Ingles Markets Shares Continue Their Downward Trajectory

The equity of regional grocer Ingles Markets remains under significant selling pressure, extending a multi-week decline. During the latest trading session, the stock shed another 2.09%, bringing its total loss over the past fortnight to more than six percent. This persistent downtrend is being confirmed by elevated trading activity, with a recent session volume of 242,380 shares surpassing average levels. The price action is now testing crucial short-term support as it approaches multi-week lows.

Investor skepticism appears rooted in recently disclosed operational and financial challenges. The company's fiscal 2025 fourth-quarter and full-year results highlighted several areas of concern.

While Ingles Markets managed to return to profitability in Q4, posting net income of $25.7 million, the full-year picture was less robust. Annual net profit for fiscal 2025 came in at $83.59 million, a notable drop from the $105.54 million earned in the prior year.

The top-line figures revealed a contraction in revenue. Quarterly sales fell to $1.37 billion, compared to $1.40 billion in the same period last year. For the entire fiscal year 2025, revenue totaled $5.33 billion, down from $5.64 billion in fiscal 2024.

Should investors sell immediately? Or is it worth buying Ingles Markets?

Debt Burden and Hurricane Aftermath Pose Challenges

Looking beyond the income statement, a substantial long-term debt load of $514.8 million weighs on the balance sheet. The cost of servicing this debt was evident, with interest expenses reaching $5.0 million in the last quarter alone.

Operational recovery from 2024's Hurricane Helene continues to be a factor. Although most affected stores have reopened, stagnant sales figures suggest customer traffic has yet to fully return to pre-storm levels. Compounding these challenges is a sharp reduction in capital expenditure. CAPEX plummeted from $210.9 million in 2024 to $114.5 million in 2025. This pullback in investment could hinder the modernization of its store network, potentially affecting its competitive stance against larger national chains.

From a technical perspective, the chart configuration remains bearish, with the stock trading below key averages. All eyes are on the current multi-week low, which is being tested as the next major price level. A breach below this support could signal further weakness ahead for Ingles Markets shares.