Some stocks shine brightest not during boom times, but during stretches of market uncertainty. That’s when long-term investors can find reliable, under-the-radar gems hiding in plain sight. One such stock is Empire Company (TSX:EMP.A). It’s not flashy, and it’s not the kind of Canadian stock that dominates headlines. But when it comes to consistency, long-term value, and income potential, Empire checks all the boxes. Even at all-time highs.
The stock
Empire is one of Canada’s largest food retailers. It owns well-known grocery chains including Sobeys, Safeway, FreshCo, IGA, Longo’s, and Farm Boy. That means no matter what’s happening in the broader economy, Empire stays in business, because people need groceries in good times and bad. With more than 1,500 stores coast to coast, Empire has a massive reach and a reliable customer base that returns week after week.
The Canadian stock’s latest earnings show just how solid this business is. In its third-quarter report for fiscal 2025, Empire posted net earnings of $146.1 million, up from $134.2 million a year earlier. That worked out to $0.62 per share, up from $0.54. Sales rose 3.1% to $7.7 billion, and same-store food sales increased 2.6%. Gross margins also improved from 26.5% to 27%, a sign the Canadian stock is getting more efficient with operations and managing costs. This is especially important in the current inflationary environment, where costs for everything from food to transportation are under pressure.
More to come
Empire isn’t just resting on tradition, either. The Canadian stock has been investing heavily in its e-commerce and digital platforms. Its Voilà grocery delivery service, powered by Ocado’s automated warehouse technology, is expanding. The partnership with Instacart for same-day delivery, along with recent integration into Uber Eats, is helping Empire meet modern shopping preferences. Those efforts paid off with a 71.9% jump in digital sales year over year. While e-commerce is still a small portion of total revenue, it’s growing fast and positioning the company well for the future.
Another reason to like Empire is its shareholder-friendly policies. Through its ongoing share buyback program, Empire repurchased 6.7 million shares at an average price of $39.84, putting $267.4 million back into shareholders’ hands in the past year. The Canadian stock also pays a reliable dividend, with a current yield of around 1.6% as of writing. While it’s not the highest yield on the TSX, it’s backed by a strong balance sheet and a steady business. For dividend investors, Empire offers peace of mind, especially for those reinvesting dividends for long-term compounding.
Future focus
Financially, the Canadian stock is in solid shape. It reported $16.8 billion in total assets and $5.4 billion in equity as of February 1, 2025. The low debt levels and healthy cash flows mean Empire can continue investing in growth while still rewarding shareholders. It’s also worth noting that Empire’s effective tax rate was a manageable 27%, in line with expectations, and a reflection of responsible financial planning.
Looking forward, Empire has a clear strategy in place. It’s working on improving margins through automation and supply chain investments. It’s expanding its Farm Boy and FreshCo banners into more parts of Canada, which should help drive sales growth. And it’s finding new ways to compete with international giants by focusing on fresh food, local suppliers, and personalized customer experiences.
Bottom line
What makes Empire stand out right now is the opportunity to buy into a high-quality business even at all-time highs. For long-term investors looking for a reliable stock to tuck away, it’s a strong choice. Empire’s fundamentals are strong, and its long-term growth story is intact. If anything, it’s quietly getting better.
So if you have some cash on the sidelines and are looking for a Canadian stock you can buy now and hold for the next 10 or 20 years, Empire makes a strong case. It’s practically perfect for patient investors who value consistency, dividends, and a Canadian stock that knows how to evolve without losing sight of what works. Groceries might not be glamorous, but they’re always in demand, and so is a Canadian stock like this.