Whole Foods stock takes a fall

NEW YORK (CNNMoney.com) -- Shares of Whole Foods Market Inc. plunged nearly 12 percent Thursday, a day after the largest natural and organic grocery chain posted a wider-than-expected decline in quarterly profit due to store-opening costs.

Whole Foods (down $5.10 to $40.70, Charts, Fortune 500) shares tumbled 11.6 percent during midday trading on Nasdaq.

The company said late Wednesday that profit fell 11.2 percent to $46 million, or 32 cents a share, in its fiscal second quarter, from $51.8 million, or 36 cents a share, a year earlier. Analysts expected the company to earn 36 cents a share, according to Reuters Estimates.

"There's some short-term issues the company has to get through, but I think investors will see some growth [in the stock] by the end of the year, " said Scott Van Winkle, an analyst with Canaccord Adams.

"It does cost to have growth, and I think at the end of the day [investors] will like it," Van Winkle said about the grocery chain's efforts to open new stores.

Austin-based Whole Foods also said members of the Federal Trade Commission voiced concerns over the grocer's plan to buy rival Wild Oats Markets Inc. (down $0.33 to $17.77, Charts) and that regulators have not yet decided whether to challenge the $565 million deal.

Van Winkle said the acquisition of Wild Oaks would be helpful for Whole Foods earnings and he does not see how it could be a problem for the FTC to approve the deal.