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    How Investors May Respond To Walmart (WMT) Expanding Milk Production And Higher-Margin Beauty And Food Brands

    Simply Wall St·12/08/2025 09:17:58
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    • In recent weeks, Walmart opened a US$350.00 million, 300,000+ square-foot milk processing facility in Valdosta, Georgia and welcomed multiple brand partners, including a nationwide GLO24K LED skincare rollout to more than 200 stores and expanded availability of Filippo Berio olive oils across its U.S. network.
    • These moves underline Walmart’s push to deepen control over essential grocery supply chains while broadening into higher-margin, innovation-led categories like beauty technology and premium food.
    • We’ll now examine how Walmart’s new Valdosta milk facility and GLO24K partnership influence its investment narrative around supply chain control and category mix.

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    Walmart Investment Narrative Recap

    To own Walmart, you generally need to believe its scale, omni-channel strategy, and higher-margin businesses can offset thin retail margins and rising costs. The new Valdosta milk facility and GLO24K rollout modestly support this thesis near term by tightening control over grocery supply and nudging mix toward premium and innovation-led categories, but they do not materially change the key short term catalyst of scaling profitable digital/omni-channel growth or the biggest risk around ongoing margin pressure from logistics, wages, and competition.

    The Valdosta milk facility is the most relevant recent announcement here, because it directly touches Walmart’s supply chain economics in a core, everyday category. By processing and bottling Great Value and Member’s Mark milk for more than 650 stores and clubs across the Southeast, it fits into the same story as e-commerce logistics and automation: if Walmart can squeeze more efficiency from essential grocery, it has more room to invest in customer experience, digital capabilities, and higher-margin categories like beauty tech devices and premium food.

    Yet even with these supply chain gains, investors still need to be aware that persistent delivery and wage cost inflation could...

    Read the full narrative on Walmart (it's free!)

    Walmart's narrative projects $789.9 billion revenue and $27.4 billion earnings by 2028. This requires 4.5% yearly revenue growth and about a $6.1 billion earnings increase from $21.3 billion today.

    Uncover how Walmart's forecasts yield a $118.38 fair value, a 3% upside to its current price.

    Exploring Other Perspectives

    WMT Community Fair Values as at Dec 2025
    WMT Community Fair Values as at Dec 2025

    Seventeen members of the Simply Wall St Community currently see Walmart’s fair value between US$91.38 and US$118.38, underscoring how far views can spread. Set against this, the biggest near term watchpoint remains whether rising logistics and labor costs outpace the benefits from e-commerce scale and mix shift, so it is worth comparing several of these perspectives before forming your own view.

    Explore 17 other fair value estimates on Walmart - why the stock might be worth 21% less than the current price!

    Build Your Own Walmart Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.