Tesco PLC (LSE:TSCO) shares have jumped more than 2% on the back of its first-quarter results, making it one of the FTSE 100's top risers today.
Markets welcomed the group's ability to post another quarter of market share gains, helped by rising volumes, a focus on value and better-than-expected sales growth in Ireland.
The country's largest supermarket increased its market share by 59 basis points to 27.6%, helped by growth in all its channels including food sales which rose by 5.1% year-on-year and boosted by "strong volume growth" in fresh food.
"Tesco has done exceptionally well to grow market share given rising competition," said Sophie Lund Yates at Hargreaves Lansdown.
She argued that its "enormous scale means it operates more like a utility" which is underpinned by a "reasonably generous dividend yield, too".
"Moving forward, investors will want to see further growth kicked out from wholesaler Booker – as well as a clearer understanding on what the next chapter looks like for food,” the lead equity analyst added.
Richard Hunter at Interactive Investor hailed the group's "unassailable position as the largest UK grocer" and added today's results were made that bit more impressive as it is growing "progressively difficult for Tesco to exceed expectations."
"Even so, the group is showing few signs of fatigue as its presence weighs heavily on competitors as it continues to hone its focus on value, quality and service," he said.
Meanwhile, analysts at Shore Capital have rated the stock a 'buy', arguing it is now a "consummate cash compounder, with admiration and growing respect."