Here's why Rite Aid has closed 6 of its Sacramento area stores in recent months (2024)

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Here's why Rite Aid has closed 6 of its Sacramento area stores in recent months? ›

Rite Aid says these six stores are among the 145 stores across 17 states the company plans to close between the fall of 2021 and June of 2022. According to the popular drugstore chain, these store closings are a part of their business plan to "drive maximum efficiencies."

“Other factors contributing to the higher net loss were higher restructuring-related charges, a lower gain on sale of assets, higher interest expense and a decrease in Adjusted EBITDA.”

In a statement company officials aid closing any story is a decision that's taken "very seriously and is based on a variety of factors, including business strategy, lease and rent considerations, local business conditions and viability, and store performance.”

Rite Aid is closing its Cameron Park store at 3101 Green Valley Road on April 6. Rite Aid Corp. confirmed the closure of two additional local stores this week as part of a corporate closure plan announced last year.

Rite Aid continues to report massive losses. It reported a net loss per share of $(5.56) for 1Q compared to a RAD stock price of only $1.65. The federal opioid lawsuit could eventually force them into Ch. 11 bankruptcy.

The government's complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of ...

The US government has sued Rite Aid, one of the nation's largest pharmacy chains, for allegedly missing “red flags” when it knowingly filled unlawful drug prescriptions – including opioids and fentanyl – and ignored internal controls on its practices.

Walgreens Boots Alliance completed its $4.4 billion acquisition of 1,932 Rite Aid stores and three distribution centers in March after a failed 2015 bid to buy the chain outright. Walgreens acquired many of the locations across the Northeast and the South.

WASHINGTON, March 13 (Reuters) - The U.S. government on Monday sued Rite Aid Corp (RAD. N), accusing the pharmacy chain of missing "red flags" as it illegally filled hundreds of thousands of prescriptions for controlled substances, including opioids.

Why is RAD stock falling? ›

Rite Aid Corporation RAD has been witnessing underperformance in front-end sales in the Retail Pharmacy Segment and a higher-than-expected medical loss ratio at Elixir Insurance.

Pharmacy services

For fiscal year 2024, Rite Aid is cutting back on total company Adjusted EBITA guidance by $10 million, putting it in the $330 million to $360 million range. Total revenue projection now sits at $22.6 billion to $23 billion, and net loss is expected to be somewhere in the range of $650-680 million.

Stock Price Forecast

The 2 analysts offering 12-month price forecasts for Rite Aid Corp have a median target of 1.00, with a high estimate of 1.00 and a low estimate of 1.00. The median estimate represents a -40.12% decrease from the last price of 1.67.