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Rite Aid Corporation (RAD) had an amazing performance year to date by gaining 52.52%, strongly outperforming the market where the S&P index increased 13.60% as of April 11, 2013. Rite Aid, with a market cap of $1.92B, operates drugstores in 31 states across the U.S. and in the District of Columbia. On April 11, 2013, RAD surged 18.44% after the company reported its second-straight quarterly profit and first annual profit in six years.
Rite Aid’s Q4 results were driven by solid front-end same-store sales growth of 0.3%, increased profitability from new generics and a strong 3% increase in same-store prescription count. The results were impressive as Walgreen (WAG) was back in the ESI network for the entire quarter. The company also achieved a new all-time company record for a full-year adjusted EBITDA.
Operation Improvement and Customer Satisfaction
The company had converted nearly 800 stores to wellness format, with nearly 1,300 Wellness Ambassadors working in these stores and providing a higher level of customer service. The management also indicated that new ESI patients were retained due to excellent services. RAD also earned the top position among major drugstore chains for the American Customer Satisfaction Index and its score had increased by 3%.