Sign in

    Scott Mushkin

    Research Analyst at R5 Capital

    Scott Mushkin is the Founder, Chief Executive Officer, and Director of Research at R5 Capital, specializing in retail, e-tail, and consumer products with a particular focus on food and drug retailing. He has covered major companies such as Sprouts Farmers Market, United Natural Foods, Walmart, Amazon, and Costco, consistently ranking as a top three food retailing analyst by Institutional Investor and recognized as the top earnings estimator by Refinitiv in 2019 and top stock picker by Thomson Reuters in 2018. With over 25 years of industry experience, Mushkin previously held senior research roles at Wolfe Research, Jefferies & Company, Bank of America, and Lehman Brothers before founding R5 Capital in September 2019. He holds an MBA from the University of Chicago Booth School of Business and a BA from Boston College, and is frequently recognized for his stock picking and analytical acumen by leading industry publications.

    Scott Mushkin's questions to Sprouts Farmers Market (SFM) leadership

    Scott Mushkin's questions to Sprouts Farmers Market (SFM) leadership • Q2 2025

    Question

    Scott Mushkin from R5 Capital questioned the implied low fourth-quarter comp from the full-year guidance, given current momentum. He also asked about the long-term comp potential, suggesting it could be above the industry average of 5-6%.

    Answer

    CFO Curtis Valentine acknowledged the Q4 guidance implies a lower comp but noted key variables are still ahead, including cycling a major comp step-up in September and the impact of new stores and the loyalty program. CEO Jack Sinclair added that while there are industry tailwinds and ambitions to grow, the company remains disciplined to avoid pressuring SG&A.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Sprouts Farmers Market (SFM) leadership • Q1 2025

    Question

    Scott Mushkin drew a parallel to Whole Foods' history and asked how Sprouts can expand its competitive moat as competitors inevitably try to copy its successful model. He questioned what, beyond product differentiation, could drive a unique customer experience, such as investing more in customer service.

    Answer

    CEO Jack Sinclair outlined a multi-faceted strategy to maintain differentiation. He stated Sprouts will double down on its strengths: a leading position in produce, especially fast-growing organics; a rapid pace of innovation with thousands of new products launched annually; a sharp price differential on fresh items; and creating a superior in-store atmosphere. He emphasized that the operations team is focused on being the best in service, and efficiency gains from other initiatives are being reinvested to fund this service and product differentiation, creating a durable moat.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Sprouts Farmers Market (SFM) leadership • Q4 2024

    Question

    Scott Mushkin asked what further actions Sprouts could take to solidify its brand identity and differentiation in the market beyond its current plans for distribution and marketing.

    Answer

    CEO Jack Sinclair emphasized that a significant opportunity remains in simply increasing brand awareness through new stores and more effective communication, highlighting the potential of the upcoming loyalty program. President and COO Nick Konat added that there is still substantial runway within their existing strategic pillars of loyalty, store density, and assortment differentiation.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Sprouts Farmers Market (SFM) leadership • Q3 2024

    Question

    Scott Mushkin asked about the company's priorities for uses of capital, its thoughts on M&A, and any 'store of the future' initiatives to sustain strong comps.

    Answer

    CFO Curtis Valentine prioritized capital for business investment and store growth, followed by returning excess cash to shareholders, currently through a mix of holding cash and share repurchases. CEO Jack Sinclair stated that M&A is not a priority unless an opportunity aligns perfectly with their target customer. He added that stores are gradually evolving with more meal cases and innovation centers, with a focus on new builds rather than major remodels.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to UNITED NATURAL FOODS (UNFI) leadership

    Scott Mushkin's questions to UNITED NATURAL FOODS (UNFI) leadership • Q3 2025

    Question

    Scott Mushkin of R5 Capital inquired about the current operational status of UNFI's distribution network following the cyberattack, including shipping capacity, potential for contract breaches, and the timeline for disclosing the incident to the market.

    Answer

    CEO Sandy Douglas stated that shipping is occurring on a limited, customized basis and is improving daily, but declined to provide a specific capacity percentage. He emphasized that the company is focused on partnering with customers to meet their needs, viewing it as a defining moment for relationships. Regarding the disclosure, Douglas detailed that the unauthorized activity was detected Thursday, systems were locked down late Friday, and an 8-K was filed Monday morning, asserting they could not have communicated faster.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to UNITED NATURAL FOODS (UNFI) leadership • Q2 2025

    Question

    Scott Mushkin of R5 Capital questioned the long-term strategic fit of the conventional and natural businesses, referencing the original 'one truck' merger thesis. He also requested details on the core volume growth for the conventional business, excluding the impact of new customer wins.

    Answer

    CEO James Alexander Douglas responded that the strategy incorporates both specialization and scale; product-focused teams for conventional and natural serve customer needs better, while a scaled supply chain and back office provide enterprise-wide efficiencies. President & CFO Giorgio Tarditi added that conventional volume was roughly flat, which slightly outperformed the industry benchmark, showing positive sequential progress.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to UNITED NATURAL FOODS (UNFI) leadership • Q1 2025

    Question

    Scott Mushkin of R5 Capital inquired about the revenue split between legacy UNFI and SUPERVALU, the level of operational integration, the plan for proceeds from DC sales, and the potential for divesting the Cub retail business.

    Answer

    CEO Sandy Douglas confirmed a 50/50 revenue split and noted fulfillment systems remain largely separate. President & CFO Matteo Tarditi stated proceeds from selling the three owned, legacy SUPERVALU DCs will be used to pay down debt. Regarding retail, Douglas said the current strategy is to drive performance at Cub, as it is deeply integrated into the ecosystem, but did not rule out future strategic changes.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q1 2025

    Question

    Scott Mushkin from R5 Capital posed long-term questions about how the business model would adapt to a potential permanent decline in CPG volumes, the impact of changes to food stamp programs, and the company's current stance on M&A.

    Answer

    President and CEO Tony Sarsam expressed confidence that shifting consumer trends, such as a focus on health, present opportunities to sell different, high-margin products. EVP & CFO Jason Monaco added that the company's flexible model has proven it can adapt, for example, by catering to GLP-1 users. Regarding M&A, Sarsam confirmed that the company is very active in looking at all opportunities, both large and small, to maximize shareholder value.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q1 2025

    Question

    Scott Mushkin from R5 Capital posed long-term questions about the business model's viability in an environment of declining CPG volumes, the impact of changes to food stamp programs, and the company's current perspective on M&A activity.

    Answer

    President and CEO Tony Sarsam expressed confidence that the business can adapt to shifting consumer trends, such as a focus on health, by offering higher-margin products. EVP & CFO Jason Monaco noted the SNAP impact was slightly negative but manageable. Regarding M&A, Sarsam confirmed that the company remains very active in evaluating all opportunities, both large and small, to maximize shareholder value.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q1 2025

    Question

    Scott Mushkin from R5 Capital asked about the long-term implications of potential volume declines in CPG, the impact of changes to food stamp programs, and the company's current perspective on M&A.

    Answer

    President and CEO Tony Sarsam expressed confidence in the business's ability to adapt to shifting consumer trends, viewing them as opportunities. EVP & CFO Jason Monaco added that the company has proven its flexibility, such as catering to GLP-1 users, and noted the Q1 impact from SNAP changes was negative but less severe than in prior periods. Regarding M&A, Sarsam confirmed that the company remains very active in evaluating opportunities of all sizes to maximize shareholder value.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q1 2025

    Question

    Scott Mushkin from R5 Capital posed long-term questions about the business model's viability in an environment of declining CPG volumes, the impact of changes to food stamp programs, and the company's current perspective on M&A activity.

    Answer

    President and CEO Tony Sarsam expressed confidence that shifting consumer trends toward health create new opportunities for higher-margin products. EVP & CFO Jason Monaco noted the SNAP impact was slightly negative but manageable. Regarding M&A, Sarsam confirmed the company remains very active in evaluating all opportunities, both large and small, to maximize shareholder value.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q3 2024

    Question

    Scott Mushkin from R5 Capital asked how SpartanNash is addressing industry trends like the growth of broadline retailers and organic/specialty products, and whether to expect increased CPG promotions in 2025.

    Answer

    President and CEO Tony Sarsam explained that SpartanNash counters these trends by focusing on local and specialty products, citing the Metcalfe's acquisition as a key example. He confirmed they are working with suppliers on more promotions, which are resonating with shoppers. EVP and CFO Jason Monaco added that this aligns with their merchandising transformation and that continued promotional activity is expected from vendors, which is a factor in their 2025 EBITDA growth outlook.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q2 2024

    Question

    Scott Mushkin questioned the strategy for achieving organic revenue growth in a difficult market, asking if it relies on acquisitions or if there are paths to taking market share. He followed up by asking about wholesale growth opportunities, specifically within the dollar store channel, as they expand into fresh categories.

    Answer

    President and CEO Tony Sarsam asserted that the company's strategy involves both organic growth through share gains and M&A. He highlighted the CVP initiative as a key driver for taking share. CFO Jason Monaco added that the company's focus on strengthening margins has created a solid foundation for this growth. Regarding the dollar channel, Mr. Sarsam confirmed that SpartanNash is currently seeing growth there and is well-positioned to support their expansion, particularly in fresh products.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to SpartanNash (SPTN) leadership • Q4 2024

    Question

    Scott Mushkin asked for more details on the growth strategy for SpartanNash's ethnic store footprint. He also questioned if the tuck-in acquisitions included in the 2025 adjusted EBITDA guidance were expected to be material.

    Answer

    CEO Tony Sarsam explained that the company leverages its expertise from three high-performing ethnic stores in Nebraska and plans to double that footprint in 2025 by expanding into other Midwest cities, viewing it as a long-term growth vector. CFO Jason Monaco clarified that the 2025 guidance primarily reflects the full-year impact of acquisitions already completed in 2024, and any future tuck-ins are not considered material to the current forecast. Monaco also emphasized the positive retail comp trend and the company's overall growth vectors.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Albertsons Companies (ACI) leadership

    Scott Mushkin's questions to Albertsons Companies (ACI) leadership • Q4 2024

    Question

    Scott Mushkin of R5 Capital asked whether positive sales growth in the center store category is necessary to achieve the company's overall comparable sales guidance. He also questioned if any potential EBITDA outperformance would be returned to shareholders or reinvested in the business.

    Answer

    CEO-elect Susan Morris confirmed that the company is seeing growth in both center store (grocery and non-food) and fresh departments, in addition to strong pharmacy and e-commerce growth. President and CFO Sharon McCollam stated that the company's guidance of $3.8 billion to $3.9 billion is its current expectation and declined to speculate on the use of funds from potential outperformance.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Albertsons Companies (ACI) leadership • Q3 2024

    Question

    Scott Mushkin asked how Albertsons balances investing in price versus enhancing the store experience and merchandise. He also inquired about the level of investment needed for the store fleet to remain competitive.

    Answer

    CEO Vivek Sankaran explained their strategy focuses on adding value through service and unique products, while also making targeted price investments funded by productivity. Both he and President and CFO Sharon McCollam emphasized that significant capital has been consistently invested in the store fleet, guided by data analytics, and that this spending was not reduced during the merger period.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Natural Grocers by Vitamin Cottage (NGVC) leadership

    Scott Mushkin's questions to Natural Grocers by Vitamin Cottage (NGVC) leadership • Q1 2025

    Question

    Scott Mushkin of R5 Capital inquired about the outlook for gross margin leverage, drivers of working capital changes, long-term operating margin potential compared to competitors, and the possibility of accelerating new store openings.

    Answer

    CFO Richard Halle explained that the full-year gross margin outlook is conservative due to expected moderation in sales comps in the second half and uncertainty around potential tariffs. He attributed working capital fluctuations to timing in accounts payable. Regarding operating margins, Halle noted that while sales leverage should drive some expansion, the company's core value proposition of 'always affordable prices' differentiates them from competitors and will temper margin growth. Co-President Kemper Isely confirmed the fiscal 2025 store opening target of 4-6, with a goal of increasing to 6-8 in subsequent years.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Natural Grocers by Vitamin Cottage (NGVC) leadership • Q1 2025

    Question

    Scott Mushkin of R5 Capital inquired about Natural Grocers' margin outlook, questioning why gross margins are guided to be relatively flat for the year despite strong Q1 leverage from high comps. He also asked about the drivers behind working capital movements, the long-term potential for operating margin expansion compared to peers like Sprouts, and the possibility of accelerating new store openings beyond the current guidance.

    Answer

    Richard Halle, Chief Financial Officer, explained that the flat gross margin guidance reflects conservatism, as comps are expected to moderate in the second half of the year, reducing occupancy leverage, and there is uncertainty around potential tariffs. He confirmed Q1's working capital movements were timing-related, primarily in accounts payable. Regarding operating margins, Halle noted that while sales leverage should drive expansion, the company's commitment to affordable pricing as a core value will temper direct comparisons to higher-margin competitors. Co-President Kemper Isely added that the company is focused on opening 4-6 stores in fiscal 2025, with a goal to increase the pace to 6-8 stores in subsequent years.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Natural Grocers by Vitamin Cottage (NGVC) leadership • Q1 2025

    Question

    Scott Mushkin of R5 Capital inquired about the outlook for gross margins, asking why they are expected to remain flat despite strong Q1 leverage. He also questioned the drivers behind working capital movements impacting free cash flow, the long-term potential for operating margin expansion compared to peers, and the possibility of accelerating new store openings beyond the current guidance.

    Answer

    Chief Financial Officer Richard Hallé explained that the flat gross margin outlook is a conservative stance, anticipating moderating sales comps in the second half of the year, which would reduce occupancy leverage, and accounting for uncertainty around potential tariffs. He confirmed that working capital shifts were timing-related. Regarding operating margins, Hallé noted that while sales leverage helps, expansion is tempered by the company's core value proposition of "always affordable prices." Co-President Kemper Isely addressed store growth, stating the plan is 4-6 stores this year, with a goal to increase the pipeline to 6-8 stores in subsequent years.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Natural Grocers by Vitamin Cottage (NGVC) leadership • Q1 2025

    Question

    Scott Mushkin of R5 Capital inquired about the outlook for gross margins, asking why they are expected to be flat for the year despite strong Q1 leverage. He also questioned the timing of working capital movements affecting free cash flow, the long-term potential for operating margin expansion, and whether the company could accelerate its new store opening pace beyond the current guidance.

    Answer

    CFO Richard Halle explained that the full-year gross margin outlook is conservative because sales comps are expected to moderate in the second half, reducing store occupancy leverage. He also cited uncertainty around potential tariffs. Halle confirmed that working capital shifts were timing-related, primarily in accounts payable. On operating margins, he stated that while sales leverage should drive expansion, the company's core value of 'always affordable prices' will keep its margin profile distinct from competitors. Co-President Kemper Isely addressed store growth, reiterating the fiscal 2025 target of 4-6 stores but adding that the company hopes to increase the pace to 6-8 stores in the following year.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to Natural Grocers by Vitamin Cottage (NGVC) leadership • Q4 2024

    Question

    Scott Mushkin of R5 Capital inquired about recent sales trends compared to competitors, the performance of stores in markets with direct competition from Sprouts, and the potential industry impact of weight-loss drugs. He also asked for management's perspective on potential regulatory changes regarding food additives and questioned the primary revenue and efficiency drivers for fiscal 2025, with a specific focus on the {N}power loyalty program growth strategy.

    Answer

    Co-President Kemper Isely explained that recent sales trends remained strong and consistent, and that store performance is not materially affected by direct competition with Sprouts. He opined that the impact of weight-loss drugs is minimal, but that increased regulatory focus on food additives would be beneficial by highlighting the company's authentic product standards. Isely identified the {N}power rewards program as the primary revenue driver for fiscal 2025, aiming to boost membership through in-store associate engagement and exclusive promotions, a point reinforced by CFO Todd Dissinger.

    Ask Fintool Equity Research AI

    Scott Mushkin's questions to COSTCO WHOLESALE CORP /NEW (COST) leadership

    Scott Mushkin's questions to COSTCO WHOLESALE CORP /NEW (COST) leadership • Q1 2025

    Question

    Scott Mushkin of R5 Capital asked a high-level question about the primary drivers behind Costco's consistently strong traffic growth and the outlook for sustaining this momentum.

    Answer

    Executive Ron Vachris attributed the strong traffic growth to the collective success across all parts of the business, including pharmacy, food court, and fresh foods. He credited the company's buyers and operators for maintaining relevance to member needs by offering a dynamic product mix, from lower-cost proteins to high-end items. He emphasized that strong execution by the teams across a robust non-food business and growing e-commerce is key to the sustained performance.

    Ask Fintool Equity Research AI