Tractor Supply Company TSCO has announced the nationwide expansion of Stella & Chewy's product offerings at its Petsense by Tractor Supply stores yesterday. The expanded selection includes freeze-dried raw patties, meal mixers, kibble and raw-inspired nutrition solutions for dogs and cats, catering to the rising demand for premium, natural pet food.

To celebrate the launch and encourage customers to engage in the product trial, the company offers a 20% discount on all Stella & Chewy’s freeze-dried raw dog and cat products through Dec. 31, 2024. This expansion highlights Petsense by Tractor Supply’s continued efforts to enhance its product lineup, catering to the health and wellness needs of pets while solidifying its position as a go-to destination for premium pet nutrition.

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Stella & Chewy's products are crafted to mirror the ancestral diets of pets, providing protein and nutrients that support healthy teeth and gums, optimal digestion, vibrant skin and coat and stamina. Freeze-dried raw food offers real, raw nutrition in a convenient, ready-to-serve format, with every recipe being grain-free and minimally processed.

As part of a commitment to customers and their pets, premium products are continuously added to an extensive lineup of quality food and treats. The goal is to introduce even more pet parents to the benefits of freeze-dried raw nutrition, a fast-growing trend in pet health that reflects the demand for natural, nutrient-rich options.

Tractor Supply is focused on its Life Out Here lifestyle assortment and convenient shopping format to grab customers and market share. The strategy is based on five key pillars, which include customers, digitization, execution, team members and total shareholder return. Along with the above expansion, Tractor Supply recently announced an agreement to acquire Allivet, a privately held leading online pet pharmacy.

This acquisition is set to enhance the company’s offerings for companion animals, equestrian and livestock customers. The deal aims to introduce an affordable pet and animal pharmacy solution for Tractor Supply’s Neighbor’s Club members, a significant portion of whom are pet owners. This strategic move provides an opportunity to deepen engagement with club members, expand the company’s addressable market and strengthen its product and service portfolio.

Tractor Supply’s Neighbor's Club loyalty program is performing well. As the company continues to make investments in the program, it has been seeing strong growth in customer counts and customer retention. It has significantly expanded its Neighbor's Club offerings to reward members faster and reduce the spending for tier qualifications.

Store-Growth Initiatives

Tractor Supply is persistently focusing on its growth initiatives, which include the expansion of its store base and the incorporation of technological advancements to induce traffic and drive the top line. The company is well positioned to expand its store base, remaining on track to increase its domestic store to 2,500 in the long term. In the third quarter of 2024, the company introduced 16 flagship stores in third-quarter 2024, bringing the year-to-date count to 54. Management intends to continue its store-opening initiatives in 2024.

Shares of this Zacks Rank #3 (Hold) company have gained 26.3% in the past year compared with the industry’s growth of 13.6%.

TSCO's Price Performance

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Freshpet, Inc. FRPT, together with its subsidiaries, manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently has a Zacks Rank #2. FRPT delivered a trailing four-quarter average earnings surprise of 144.5%.

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US Foods Holding Corp. USFD is engaged in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank #2. USFD delivered a negative earnings surprise of 0.4% in the last reported quarter.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings indicates growth of 6.4% and 18.6%, respectively, from the prior-year reported levels.

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