UPDATE 3-Whole Foods sales, profit rise but outlook misses

* Q4 EPS 20 cents vs Street view of 18 cents

* Total sales $1.83 bln vs Street view $1.84 bln

* Sees FY2010 EPS of $1.05 to $1.10 vs Street view $1.11

* Shares fall 8 percent (Recasts, adds company comment, byline; updates shares)

By Lisa Baertlein

LOS ANGELES, Nov 4 (Reuters) - Upscale grocer Whole Foods Market Inc (WFMI.O: Quote, Profile, Research) warned its 2010 profit would miss Wall Street's target as it grapples with a raging price war and weak consumer spending and its shares tumbled 8 percent.

The company, which also reported better-than-expected quarterly profit on Wednesday, said sales trends are improving, but cautioned its own effort to compete on price could drag down earnings in the new fiscal year.

The grocery industry has become intensely competitive as rivals such as Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research), Kroger Co (KR.N: Quote, Profile, Research), Safeway Inc (SWY.N: Quote, Profile, Research) and Supervalu Inc (SVU.N: Quote, Profile, Research) battle for customers by slashing prices. [ID:nN03518507][ID:nN15295382]

Whole Foods, known for selling local fare, prepared food and pricey gourmet items, forecast 2010 earnings in the range of $1.05 to $1.10 per share, below analysts' call for a per share profit of $1.11.