Kroger's new CEO just admitted the grocery giant lost market share to Walmart and Costco, and the plan to win it back carries a hidden tension that Wall Street has not fully priced in.
Kroger (NYSE:KR | KR Price Prediction) is spending $5 billion through 2029 to lower prices, and part of the cost will come from its own headquarters. At an investor update in New York on October 20, 2026, CEO Greg Foran presented Kroger’s first multi-year plan. CFO David Kennerley said: “A $5 billion investment in customer value is the largest single driver in this plan, and it is entirely self-funded.” New everyday shelf prices will reach about 250 stores by year-end.
The $5 billion covers simpler promotions, better merchandising, updated store formats, larger loyalty programs and lower everyday prices, with corporate job cuts, first laid out in an October 12 memo, as one source of the savings.
For shareholders, the tension is that Kroger is promising lower prices and faster earnings growth at once. It is doing so right after a quarter in which identical sales, excluding fuel, rose just 0.2%.
The stock rose as much as 2.6% during the October 20 session and then closed down 0.11% at $62.98. On October 21, it gained 1.83% to close at $64.13, a market value of $37.87 billion.
What Kroger Committed To on October 20
The plan has three components. They are customer value, growth in e-commerce and retail media, and “Modernize How We Operate.” Kroger also set a target of about $4 billion in annualized cost savings by 2029 and expects about half of it to come from cost of goods.
The company discussed the savings. It said the savings “will fuel greater customer value and fund growth across the business.” It did not say the job-cut savings specifically pay for the $5 billion. After the first stores, the new pricing reaches roughly 450 more locations in 2027.
Why the Headquarters Cuts Matter More Than Their Size
Kroger will cut about a third of its corporate roles over three years. The cuts affect about 37% of its roughly 8,200 corporate employees, and some non-store work is moving to a capability center in Bengaluru, India.
Foran acknowledged the problem in the memo. “Our company has more layers, more handoffs and more overhead than we need, so we are addressing this issue,” he wrote, adding that “Technology is reshaping what’s possible.” Kroger says AI will improve execution and cut duplicated work. It has not said AI will replace specific roles.
Kroger employs more than 400,000 associates, and the announced cuts apply to corporate roles. The risk is that work sent offshore adds new handoffs just as pricing is being rebuilt.
Can Lower Everyday Prices Win Shoppers Back From Walmart and Costco?
Chief merchant Mary Ellen Adcock said stores that ran the new pricing for a full year grew sales about 230 basis points faster than the rest of the chain. Foran was blunt about the starting point: “The result is, we lost share. We own that.”
Foran ran Walmart’s (NYSE:WMT) U.S. business from 2014 to 2019, and Kroger is trying to close its price gap with Walmart and Aldi. He said the plan “is not about being the cheapest.”
Costco (NASDAQ:COST) is on the list too. When Foran first laid out the price cuts in May, Kroger was described as working to “reclaim ground lost to rivals including Walmart, Costco, and Aldi.” Foran said then: “The reality is, the basket has to come down.”
Shoppers are slow to notice lower shelf prices, and rivals can match them. Gross margin was already 22.4% in the latest quarter, down 10 basis points.
What Shareholders Are Promised Through 2029
Kroger is targeting adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) growth of 3% to 6% a year and adjusted EPS growth of 7% to 11%. The EPS target replaces the old 8% to 11% total-shareholder-return goal. The targets leave out the pending Giant Eagle acquisition, and 2026 guidance of $5.10 to $5.30 in adjusted EPS still stands.
EPS can grow faster than EBITDA because of buybacks. About $800 million remains to be bought back, which makes the targets look reachable.
Deutsche Bank raised its target to $70 from $68. Guggenheim moved to $68 from $66, and UBS moved to $66 from $63. Wells Fargo’s new $60 target, up from $58, is still below the share price.
What Could Make or Break Kroger’s Plan
Kroger pays for the $5 billion itself and has pilot results to point to, and the earnings targets depend on cost and buyback tools the company controls. Sales are the weak spot, because a business growing identical sales at 0.2% has to show that $5 billion of lower prices brings in enough new customers to offset smaller margins.
Check the next quarterly report for two things: identical sales without fuel rising above the 0.2% pace, and the 250-store expansion still on schedule. If the stock closes below Wells Fargo’s $60 target, that would suggest the market doubts the plan.
Contact [email protected] for any questions or corrections.
Kroger cílí do roku 2029 na zhruba 3% růst srovnatelných tržeb bez pohonných hmot a lékáren a v letech 2027–2029 na průměrný roční růst upraveného čistého EPS o 7–11 %.
Targets approximately 3% comparable sales growth excluding fuel and pharmacy in 2029, 3%-6% adjusted EBITDA growth and 7%-11% adjusted net EPS growth through 2029
Reaffirms Guidance for 2026
, /PRNewswire/ -- The Kroger Co. (NYSE: KR) will host an Investor Update today in New York, where company leaders will outline a multi-year plan to build America's Favorite Grocer and accelerate growth. The company also reiterates its guidance for full-year 2026 provided at its second quarter earnings.
Comments from CEO Greg Foran
"Kroger has a clear opportunity to unlock our full potential and build America's Favorite
Grocer," said Greg Foran, CEO of Kroger. "We are making value more visible and focusing resources closer to the customer where we see the highest returns. With our customers at the center, we are simplifying and modernizing our business to deliver a great customer experience and provide long-term value to our shareholders."
Building America's Favorite Grocer
Kroger's updated strategy centers on three pillars, with a clear focus on execution and the customer at the center.
Win With the Customer: Kroger will deliver more value for customers through a self-funded plan. The company will invest in areas of strength, including Fresh and meals, grow Our Brands penetration and Boost membership, and expand into markets where it sees attractive returns.
Drive Profitable Digital Growth: Kroger expects to grow eCommerce sales and Retail Media revenue, winning more of customers' online shopping and accelerating growth in Kroger Precision Marketing.
Modernize How We Operate: Kroger expects to generate savings through more direct sourcing, disciplined purchasing, streamlined processes and a more scalable operating model, with technology and AI improving execution. These savings will fuel greater customer value and fund growth across the business.
Kroger's Long-Term Financial Framework
Kroger is introducing an updated financial framework intended to give investors a clearer view of the performance of its core grocery business. The company is targeting:
Approximately 3% comparable sales growth in 2029, excluding fuel and pharmacy(1);
3%-6% adjusted EBITDA CAGR for FY2027 through FY2029(1); and
7%-11% adjusted net EPS CAGR for FY2027 through FY2029(1).
(1) Excludes the pending acquisition of Giant Eagle.
The new EPS target measures earnings growth alone. It replaces the previous 8%-11% total shareholder return target, which included the dividend yield, and implies a stronger earnings outlook. The company's capital allocation strategy remains unchanged and focused on making high-return growth investments, maintaining financial strength and returning surplus capital to shareholders via dividends, subject to board approval, and share buybacks.
"Our financial framework reflects our renewed focus on the core grocery business and provides a clearer line of sight from operating performance to shareholder value," said David Kennerley, CFO of Kroger. "We are targeting higher sales by 2029, with stronger adjusted EBITDA and adjusted EPS growth over the next three years. We remain focused on delivering customer value in a fully self-funded way, prioritizing high-return investments and disciplined cost savings so we can expand margins over time while continuing to invest in growth."
Investor Update
Kroger's 2026 Investor Update will include presentations from members of the company's leadership team on customer value, eCommerce, Retail Media, store execution, operations and the company's long-term financial framework.
The live webcast of the event is scheduled to begin at 9:00 a.m. ET and is expected to conclude at approximately 12:00 p.m. ET. All interested parties are invited to access the webcast at ir.kroger.com under Events & Presentations.
An on-demand replay of the webcast and presentation materials will be available on Kroger's investor relations website following the event.
About Kroger
The Kroger Co. (NYSE: KR) is one of America's largest retailers, serving more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. With more than 400,000 associates across our family of companies, Kroger is committed to providing America with affordable, great-tasting food and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
This press release includes forward-looking non-GAAP financial measures which management believes to be useful to investors and analysts. Kroger is unable to provide a full reconciliation of the GAAP and non-GAAP measures used in its guidance without unreasonable effort because it is not possible to predict with a reasonable degree of certainty. It is not possible to estimate with a reasonable degree of certainty certain adjustment items because such information is dependent upon future events that may be outside of our control. The unavailable information could have a significant impact on GAAP financial results.
This press release contains certain statements that constitute "forward-looking statements" about Kroger's financial position and the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "achieve," "continuing," "deliver," "drive," "expect," "focused," "framework," "guidance," "implies," "long-term," "may," "model," "opportunities," "plan," "strategy," "target," "trends," "will," and variations of such words and similar phrases. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as the following:
Kroger's ability to achieve adjusted EBITDA CAGR, adjusted net EPS CAGR, sales, and earnings may be affected by: labor negotiations; potential work stoppages; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with us; pricing and promotional activities of existing and new competitors and the aggressiveness of that competition; our response to these actions; the state of the economy, including interest rates, the inflationary, disinflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment including wars and conflicts; unstable political situations and social unrest; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; supply constraints; diesel fuel costs related to our logistics operations; trends in consumer spending; the extent to which our customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; stock repurchases; changes in the regulatory environment in which we operate, along with changes in federal policy and at state and federal regulatory agencies; our ability to retain pharmacy sales from third-party payors; consolidation in the healthcare industry, including pharmacy benefit managers; our ability to negotiate modifications to multi-employer pension plans; our ability to attract and retain qualified individuals; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; the potential costs and risks associated with potential cyberattacks or data security breaches; the potential costs and risks associated with new technologies, including artificial intelligence; the success of our future growth plans; the ability to execute our growth strategy and value creation model, including continued cost savings, growth of our media businesses, and our ability to better serve our customers and to generate customer loyalty and sustainable growth through Fresh, Our Brands, Personalization and eCommerce; the outcome of litigation matters, including those relating to the terminated transaction with Albertsons Companies, Inc.; and the risks relating to or arising from our opioid litigation settlements, including the risk of litigation relating to persons, entities, or jurisdictions that do not participate in those settlements.
Kroger's ability to achieve these goals may also be affected by its ability to manage the factors identified above. The ability to execute the financial strategy may be affected by the company's ability to generate cash flow.
Kroger's adjusted effective tax rate may differ from the expected rate due to changes in tax laws and policies, the status of pending items with various taxing authorities and the deductibility of certain expenses.
We cannot fully foresee the effects of changes in economic conditions on our business.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
Kroger vykázal čtvrtletní zisk 1,09 USD na akcii, čímž překonal odhad 1,05 USD na akcii, a potvrdil výhled upraveného EPS pro fiskální rok 2026 na 5,10–5,30 USD.
Birch Hill Investment Advisors LLC decreased its holdings in shares of The Kroger Co. (NYSE:KR – Free Report) by 6.8% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 742,371 shares of the company’s stock after selling 54,009 shares during the period. Kroger makes up about 1.9% of Birch Hill Investment Advisors LLC’s holdings, making the stock its 19th biggest position. Birch Hill Investment Advisors LLC owned approximately 0.13% of Kroger worth $43,518,000 as of its most recent SEC filing.
Several other institutional investors also recently made changes to their positions in the stock. MV Capital Management Inc. purchased a new position in shares of Kroger during the 4th quarter worth approximately $26,000. Whipplewood Advisors LLC acquired a new position in shares of Kroger in the 1st quarter valued at $27,000. North Point Portfolio Managers Corp OH purchased a new stake in Kroger during the third quarter valued at about $30,000. Axiom Investment Management LLC acquired a new position in Kroger during the first quarter valued at approximately $31,000. Finally, Cedar Mountain Advisors LLC purchased a new stake in Kroger during the 1st quarter worth $33,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth A number of brokerages recently commented on KR. Telsey Advisory Group reduced their price target on Kroger from $78.00 to $75.00 and set an “outperform” rating for the company in a report on Monday, September 14th. Morgan Stanley decreased their target price on shares of Kroger from $73.00 to $67.00 and set an “equal weight” rating for the company in a research report on Monday, June 22nd. Deutsche Bank Aktiengesellschaft set a $68.00 price objective on shares of Kroger in a report on Wednesday, September 9th. Wall Street Zen downgraded shares of Kroger from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. Finally, UBS Group reissued a “neutral” rating on shares of Kroger in a research note on Tuesday. Twelve analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $69.82.
Get Our Latest Analysis on KR Trending Headlines about Kroger Here are the key news stories impacting Kroger this week:
Positive Sentiment: Quarterly results and outlook supported the stock. Kroger reported adjusted earnings of $1.09 per share on approximately $34.6 billion in sales, ahead of earnings expectations, while reaffirming fiscal 2026 adjusted EPS guidance of $5.10–$5.30. Management also cited improving pharmacy margins, e-commerce profitability, retail-media growth and additional cost savings. Kroger Gains as Investors Focus on Earnings Beat and Stable Profit Outlook Positive Sentiment: Corporate restructuring could improve profitability. Kroger plans to eliminate roughly 3,000 corporate positions over three years while expanding its use of artificial intelligence. The company says the savings can help fund lower prices, potentially strengthening its competitive position and margins. An investor day scheduled for October 20 could provide more detail on the strategy. Kroger cites AI efficiency push as it cuts corporate jobs Positive Sentiment: Seasonal demand and market share remain favorable. Kroger expects to sell 25 million pounds of Halloween candy, highlighting the potential for seasonal sales momentum. Separately, the grocer continues to lead the Central Ohio grocery market. Kroger is America’s candy destination Kroger Stock Up 1.3% Shares of KR opened at $63.53 on Friday. The firm has a market capitalization of $37.52 billion, a P/E ratio of 34.53, a P/E/G ratio of 1.74 and a beta of 0.36. The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.31 and a current ratio of 0.70. The Kroger Co. has a 52 week low of $54.15 and a 52 week high of $76.58. The company has a 50-day simple moving average of $58.86 and a 200-day simple moving average of $61.69.
Kroger (NYSE:KR – Get Free Report) last issued its earnings results on Friday, September 11th. The company reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.04. Kroger had a net margin of 0.73% and a return on equity of 49.90%. The business had revenue of $34.62 billion for the quarter, compared to analyst estimates of $34.64 billion. During the same period in the previous year, the business earned $1.04 EPS. The firm’s revenue was up 2.0% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, equities research analysts expect that The Kroger Co. will post 5.19 earnings per share for the current year.
Kroger Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 16th will be issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Monday, November 16th. Kroger’s dividend payout ratio (DPR) is currently 84.78%.
Insider Buying and Selling In related news, EVP Mary Adcock sold 72,901 shares of the firm’s stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $60.70, for a total value of $4,425,090.70. Following the completion of the sale, the executive vice president owned 175,233 shares of the company’s stock, valued at $10,636,643.10. This trade represents a 29.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 0.41% of the company’s stock.
Kroger Profile (Free Report)
The Kroger Co is a U.S.-based food and consumer goods retailer headquartered in Cincinnati, Ohio. Founded in 1883 by Bernard Kroger, the company has grown into one of the largest supermarket operators in the United States.
Kroger operates supermarkets, multi-department stores, marketplace-format stores, pharmacies and fuel centers. Its stores sell groceries, fresh produce, meat, seafood, bakery and deli products, household essentials, health and beauty items, and general merchandise. The company also offers digital shopping, pickup and delivery services, loyalty programs, and a range of private-label products.
The company serves customers across numerous U.S.
Further Reading Five stocks we like better than Kroger Rocket Lab’s Neutron Delay Leaves Wall Street Bullish But Raises the Stakes for 2027 ManpowerGroup Stock Sinks on Q3 Results, But Fundamentals Stay Solid Does the AI Selloff Put Alphabet’s Breakout in Doubt? Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery Want to see what other hedge funds are holding KR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Kroger Co. (NYSE:KR – Free Report).
Receive News & Ratings for Kroger Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kroger and related companies with MarketBeat.com's FREE daily email newsletter.
By You're currently following this author! Click to unsubscribe from email alerts.
Kroger's corporate workforce is going to get leaner. Brandon Bell/Getty Images Kroger plans to cut about 3,000 roles from its corporate workforce over the next three years to simplify operations.
In a memo to staff that the company shared with Business Insider, CEO Greg Foran said the corporate-level reductions will allow Kroger to invest in frontline workers.
"Our business is becoming leaner, more focused and more competitive," he said.
The former Walmart US CEO took the helm of Kroger earlier this year and has set to work cutting prices and tightening operations over the past several months.
Foran also cited the impact of technology on the century-old company, saying that it merits a close look at where work can be done.
Amazon cuts 14,000 corporate jobs amid AI restructuring
Read the memo from CEO Greg ForanFROM: Desk of Greg Foran inboxTO: All companyRE: Changes to Our OrganizationWe shared important information on our all-company call today, and we're following up to make sure everyone is aware of the changes ahead.As a company, we have made great progress on many fronts with our customers. We started reducing prices and improving our customer experience in stores and online, and we made investments in simplifying our associates' lives through technology. Our business is becoming leaner, more focused and more competitive. We are working to be more agile; more precise in our execution; and deliver benefits to our customers, associates and our shareholders.This transformation will also result in fewer roles across the company, which means we will reduce our corporate workforce across many functions, by approximately 3,000 roles over the next three years. These reductions will allow us to continue to invest in our frontline associates.These are difficult decisions, and we do not make them lightly. This is the right thing for the company's long-term future. Here's why:Simplifying our operations is critical. Simplifying means making faster decisions and deploying more resources where they matter most, so that we deliver lower prices and a better experience for our customers. Our company has more layers, more handoffs and more overhead than we need, so we are addressing this issue.Technology is reshaping what's possible. The way work gets done is changing across every industry; we must adapt and take advantage of technology. We need to adopt capabilities, reduce duplicative work and look closely at where work is best fit to be done.We have the opportunity to make changes that will create broader roles and faster decision making. This lets us move vital resources closer to the customer to lower prices, invest in our associates and create a better shopping experience.When and how this will happenThese reductions will take place across multiple years. We will share updates when we can. We expect decisions about impacted roles to start being communicated in the coming months.Our values at workDuring these difficult moments, we will continue to be guided by Our Values. We will communicate directly with impacted associates as we make decisions, and we will not ask anyone to wait longer than necessary for clarity about their roles.We are grateful for each one of you. With the Kroger Leadership Team, we are committed to leading this company through this moment with transparency, integrity and respect.Greg
Read next
Dominick Reuter You're currently following this author! Click to unsubscribe from email alerts.
Dominick Reuter is a senior retail reporter for Business Insider, primarily covering Walmart, Target, Costco, and other big box retailers. His stories tend to focus on issues and trends that affect employees and customers, such as affordability challenges and the growing race to provide ultra-fast delivery services on e-commerce orders.Prior to joining BI in 2019, Dominick worked for more than a decade as an independent photojournalist covering a wide range of stories for global wire services and newspapers, including Reuters, the Wall Street Journal, and Agence France-Presse.Dominick studied photojournalism at Boston University and later earned a Masters in business and economics journalism from Columbia University.If you're an employee or customer with a story to share, please contact me via email or text/call/Signal at 646-768-4750.
Kroger ve 2. fiskálním čtvrtletí zvýšil upravený zisk na akcii (EPS) o 4,8 % na 1,09 USD, ale identické tržby bez paliva vzrostly jen o 0,2 %. Firma zároveň snížila výhled identických tržeb pro fiskální rok 2026 na 0,2 % až 0,8 % z 1 % až 2 %.
Key Takeaways Kroger's fiscal Q2 adjusted EPS rose 4.8%, while identical sales excluding fuel increased just 0.2%.Kroger cut fiscal 2026 identical-sales guidance to 0.2%-0.8% but kept EPS guidance at $5.10-$5.30.Kroger's e-commerce sales rose 20%, while Private Selection sales increased more than 14%. The Kroger Co. (KR - Free Report) presents a valuation-versus-execution trade-off. Its discounted earnings multiple, improving digital economics and expanding private-label business support the case for value, while softer comparable-sales growth and persistent operating pressures keep the near-term picture mixed.
The question is whether the current discount sufficiently compensates for slower sales momentum. Kroger’s latest results show that earnings can hold up even when the top line is less supportive, but clearer sales acceleration would strengthen the case.
Kroger’s Valuation Leaves Room for DebateKroger trades at 10.78X forward 12-month earnings, below its five-year median of 12.08X. The multiple also sits below 30.68X for the Zacks sub-industry, 20.83X for the Zacks Retail-Wholesale sector and 19.66X for the S&P 500.
That discount is consistent with Kroger’s Value Score of A. Still, valuation does not eliminate execution risk. The stock’s lower multiple must be weighed against slower comparable-sales growth and the need for continued investment in pricing, stores and fulfillment.
Image Source: Zacks Investment Research
KR’s Earnings Hold Up as Sales Momentum SlowsSecond-quarter fiscal 2026 adjusted earnings rose 4.8% year over year to $1.09 per share and topped the Zacks Consensus Estimate of $1.05. Total sales increased 2% to $34.62 billion but missed the consensus mark of $34.69 billion.
Identical sales excluding fuel rose only 0.2%, down from 3.4% growth a year earlier. Kroger lowered fiscal 2026 identical-sales guidance excluding fuel to 0.2%-0.8% from 1%-2%, while maintaining adjusted earnings guidance of $5.10-$5.30 per share.
Kroger’s Growth Engines Still Have SupportAdjusted e-commerce sales increased 20% in the quarter, and Kroger delivered a second consecutive quarter of profitable e-commerce growth when combined with retail media. Kroger Precision Marketing profit climbed 24%, its best growth rate since 2021.
Our Brands also outpaced national brands by 250 basis points. Private Selection sales increased more than 14%, while Our Brands penetration rose about 50 basis points. These businesses give Kroger growth and profit levers that extend beyond core grocery comparable sales.
KR Faces Cost and Consumer Spending PressureHigher shrink, transportation costs, healthcare expenses and planned wage investments weighed on profitability, while management expects additional diesel and freight pressure through the rest of fiscal 2026. Customers are also buying more on need as household budgets remain pressured.
Competition adds another layer. Walmart Inc. (WMT - Free Report) reported 2.6% U.S. comparable-sales growth excluding fuel and 24% U.S. e-commerce growth in its latest quarter. Costco Wholesale Corporation (COST - Free Report) posted 7.2% adjusted U.S. comparable-sales growth and 19.8% adjusted digitally enabled growth in its fiscal fourth quarter, underscoring a retail environment where value and convenience remain central.
Kroger’s Signals Favor Patience Over MomentumKroger’s valuation and higher-growth businesses provide support, but muted identical-sales growth and ongoing cost pressure keep the setup balanced. The operating model is still producing earnings growth, yet the next step in the case depends on stronger sales productivity and sustained margin execution.
The stock currently carries a Zacks Rank #3 (Hold), with a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of D. The favorable value and growth characteristics contrast with weaker near-term momentum. For investors weighing Kroger today, that combination supports a measured, wait-and-see view rather than a momentum-driven conclusion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger spustil novou kartu Kroger Rewards World Elite Mastercard s nulovým ročním poplatkem a body, které nikdy neexpirují. Držitelé mohou body uplatnit za slevy na potraviny, palivo a domácí potřeby.
The new credit card turns everyday spending into grocery savings with no annual fee, no spending caps and Points that never expire. ‡
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, today announced the launch of the Kroger Rewards World Elite Mastercard®, a new everyday spend credit card that gives customers more opportunities to unlock savings on groceries, fuel and household items.
Building on Kroger's expanded rewards program, the Kroger Rewards World Elite Mastercard gives shoppers a faster way to earn more Points through everyday purchases, while maintaining flexibility to redeem rewards for dollars off groceries and fuel across Kroger Family of Stores locations and participating fuel centers. Points never expire‡ and connect to customers' loyalty accounts, fitting effortlessly into the way families already shop and spend.
"At Kroger, we're always looking for new ways to help customers save," said Megan Shaffer, group vice president of customer growth and strategy at Kroger. "From weekly grocery trips to filling up at the pump or paying bills, the Kroger Rewards World Elite Mastercard® turns purchases into real savings. It is one more way we're rewarding customers for the shopping they're already doing."
Cardholders can earn*:
Up to 5X Points on purchases made through Kroger.com and the Kroger app 4X Points at Kroger Family of Stores participating fuel pumps Up to 3X Points on purchases made in-store at the Kroger Family of Stores 2X Points on dining, utilities and travel 1X Points on all other eligible purchases made with the card, anywhere Mastercard is accepted The Kroger Rewards World Elite Mastercard provides additional benefits including a $100 Welcome Bonus^, complimentary Boost Essential membership, (including free next-day delivery with minimum purchase)+, and a $10 annual Birthday Reward, helping customers save even more throughout the year*.
Powered by Imprint's modern technology, customers can apply for and manage their rewards directly in the Kroger app or website, creating an easy shopping experience that connects earning, saving and tracking rewards in one place.
"Kroger is one of America's most trusted brands, with customer relationships built over decades of everyday shopping," said Daragh Murphy, co-founder and CEO of Imprint. "Together, we set out to turn that loyalty into a card customers reach for every day, one that rewards the weekly Kroger trip and everything in between, with the modern, seamless experience they expect."
"Grocery spending is one of the most consistent and essential parts of life. Together with Kroger and Imprint, we've created a seamless rewards experience that helps shoppers earn more on the purchases they already make, turning regular grocery trips into meaningful savings," said Kiki Del Valle, executive vice president, U.S. Market Development at Mastercard.
The Kroger Rewards World Elite Mastercard is available now. To learn more or apply, visit Kroger.com/rewardscreditcard or the Kroger app.
About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an eCommerce experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
About Imprint
Imprint is the payments and loyalty platform built to turn everyday spending into the most valuable relationships between brands and their customers. With its digital cardholder experiences and AI-powered platform, Imprint enables partners such as Booking.com, Rakuten, and Shell to deliver tailored programs and personalized rewards that drive measurable increases in engagement, spend, and customer lifetime value. For more information, visit imprint.co.
About Mastercard
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we're building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential. www.mastercard.com
This card is issued by First Bank & Trust, pursuant to a license by Mastercard International Incorporated. Mastercard, the circles design, and World Elite Mastercard are registered trademarks of Mastercard International Incorporated. This credit card is operated by Imprint Payments, Inc.
‡Points earned using the Kroger Rewards Mastercard® do not expire while your account remains active and in good standing. An account is no longer active after 12 consecutive months with no settled transactions, or upon account closure. See Imprint Rewards Program Terms and Conditions for details.
*See Imprint Rewards Program Terms and Conditions and Cardholder Agreement for details.
^ Valid one time only for new cardholders. Offer cannot be combined with other promotions. Earn a $100 Kroger reward after $750 in net spend on the card outside of Kroger Channels within 90 days of opening an account. Qualifying purchases exclude balance transfers, cash advances, fees and returned items. Reward is redeemable for eligible grocery purchases only; cannot be applied toward fuel purchases. Reward will expire after the end of the second month following the month in which it is issued. See Imprint Rewards Program Terms and Conditions for details.
Kroger představil na GroceryShop 2026 AI strategii, která už využívá zákaznická a provozní data k přesnějšímu plánování poptávky a lepšímu zákaznickému servisu. AI nástroje zpřístupňuje i více než 400 000 zaměstnancům.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, today outlined its artificial intelligence strategy at GroceryShop 2026, detailing how customer insights, operational data, retail expertise and a portfolio of proprietary models are already driving meaningful results. Kroger's AI initiatives are supported by privacy, security and responsible AI governance processes designed to help ensure appropriate use of data and human oversight.
Yael Cosset, executive vice president and Chief Digital Officer, described a strategy built on using AI to improve the customer experience, make work easier for associates and produce better business outcomes.
"This isn't new for Kroger," said Cosset. "We've long been using data science and artificial intelligence to serve our customers by precisely forecasting demand, connecting customers with the most relevant savings opportunities and helping them find and get the products they need. Our latest investments in AI allow us to connect relevant business and operational signals to make decisions and take action faster."
A foundation few retailers can match
Kroger's AI strategy begins with a data foundation built on a longstanding loyalty program and years of customer and operational insights and data science. The company expands its broad portfolio of proprietary models spanning from demand forecasting, to operational optimization, personalization and generative AI capabilities.
Kroger's combination of proprietary and third-party frontier models with shared infrastructure, including data, services, agentic capabilities and governance guardrails, enables the company to move faster on proven capabilities, better orchestrate agents across workflows and manage performance in a more disciplined, and reliable manner.
From assisted to autonomous, with discipline
Cosset described Kroger's AI journey in three stages: Assisted, augmented and autonomous.
"The goal is not autonomy everywhere," said Cosset. "The goal is using the right level of AI based on risk, repeatability and the need for human judgement. Different cases will sit at different stages, and strong governance remains at the center."
What AI is doing for customers today
Kroger's AI Shopping Assistant is helping customers plan meals for the week, find new recipes, and build a cart around budget and dietary needs as well as preferences. Conversational search helps customers plan meals, discover relevant products and find what they need more easily.
The company is also working on improving agents for frontline teams to cut through the noise of dozens of daily notifications and tasks and surface only the most important information. Additionally, Kroger is making AI literacy training and tools available to more than 400,000 associates across the enterprise.
"It's about more than simply granting access," said Cosset. "Teams need the skills and discernment to use AI responsibly, understanding where it is useful and redesign work around this new capability. At our core, the human connection to a customer or fellow associate will never be replaced by AI. Instead, AI will give our associates more time and insight to create that connection."
The next frontier: Grocery as a managed service
Cosset outlined a future in which grocery shopping becomes an outcome-based experience instead of a series of individual and functional transactions. In this model, customers may choose to share information relevant to their shopping needs and AI agents handle planning, shopping and fulfillment.
Rather than formulating a weekly shopping list, customers may choose to share their goals and preferences, allowing AI agents to assist with planning and completing their shopping.
Kroger's advantage in this future, Cosset argued, is the same as it is today: A deep knowledge of customer shopping patterns, visibility into product availability and fulfillment, making the customer experience better.
About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an eCommerce experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
, /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors today declared a quarterly dividend of 39 cents per share to be paid on December 1, 2026, to shareholders of record as of the close of business on November 16, 2026.
The company's quarterly dividend has grown at a 13% compounded annual growth rate since it was reinstated in 2006. The company continues to expect, subject to board approval, an increasing dividend over time.
Kroger's capital allocation strategy is to use its free cash flow to invest in the business to drive long-term sustainable net earnings growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its free cash flow to achieve these goals.
About Kroger
The Kroger Co. (NYSE: KR) is one of America's largest retailers, serving more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. With more than 400,000 associates across our family of companies, Kroger is committed to providing America with affordable, great-tasting food and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
This press release contains certain statements that constitute "forward-looking statements" about the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "continues," "expect," "goals," and "strategy." Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as the following:
Kroger's ability to achieve sales, earnings, incremental FIFO operating profit, and adjusted free cash flow goals may be affected by: labor negotiations; potential work stoppages; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with Kroger; pricing and promotional activities of existing and new competitors, and the aggressiveness of that competition; Kroger's response to these actions; the state of the economy, including interest rates, the inflationary, disinflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment including wars and conflicts; unstable political situations and social unrest; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; supply constraints; diesel fuel costs related to Kroger's logistics operations; trends in consumer spending; the extent to which Kroger's customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; stock repurchases; changes in the regulatory environment in which Kroger operates, along with changes in federal policy and at state and federal regulatory agencies; Kroger's ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger's ability to negotiate modifications to multi-employer pension plans; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; the potential costs and risks associated with potential cyber-attacks or data security breaches; the success of Kroger's future growth plans; the ability to execute our growth strategy and value creation model, including continued cost savings, growth of our media businesses, and our ability to better serve our customers and to generate customer loyalty and sustainable growth through Fresh, Our Brands, Personalization and eCommerce; the outcome of litigation matters, including those relating to the terminated transaction with Albertsons; and the risks relating to or arising from our opioid litigation settlements, including the risk of litigation relating to persons, entities, or jurisdictions that do not participate in those settlements. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
Kroger snížil výhled srovnatelných tržeb na 0,2 % až 0,8 %, ale ponechal odhad upraveného EPS na 5,10 až 5,30 USD. Firma zároveň uvedla 20% růst upraveného segmentu e-commerce a 24% růst retail media.
Key Takeaways Kroger cut identical-sales guidance to 0.2%-0.8% but kept adjusted EPS guidance at $5.10-$5.30. Cost savings, pharmacy margins, e-commerce profitability and media growth underpin the profit outlook. Kroger posted 20% adjusted e-commerce growth and 24% retail media growth despite softer consumer spending. The Kroger Co. (KR - Free Report) used its second-quarter fiscal 2026 earnings call to stress cost discipline and customer value as sales momentum softened. Management lowered its identical-sales outlook but kept profit targets intact.
Adjusted earnings per share of $1.09 topped the Zacks Consensus Estimate of $1.05, while revenues of $34.62 billion came in below the $34.69 billion estimate.
KR Cuts Sales View but Holds Profit TargetsCFO David Kennerley lowered fiscal 2026 identical sales without fuel guidance to 0.2%-0.8% from 1.0%-2.0%, reflecting first-half results and continued pressure on the consumer.
Kennerley kept adjusted FIFO operating profit guidance at $5.0-$5.2 billion and adjusted earnings guidance at $5.10-$5.30 per share, citing cost savings, pharmacy margins, e-commerce profitability and media growth.
The CFO also said third-quarter identical sales without fuel should be slightly better than the fourth quarter, when pharmacy, delivery-comparison and weather-related headwinds become more pronounced.
Kroger Leans on Savings to Fund ValueCEO Greg Foran said Kroger is deliberately using sourcing, procurement, productivity and simplification savings to improve shelf value rather than sacrificing profit discipline.
Foran described pricing changes as a multiyear effort that will be rolled out by geography. He said the company is also simplifying promotions so customers can more easily recognize value.
Kennerley said the 13-basis-point increase in FIFO gross margin, excluding rent, depreciation, amortization and fuel, demonstrated Kroger's ability to reinvest savings while protecting margins.
KR Sees Digital and Media MomentumForan highlighted adjusted e-commerce sales growth of 20% and said Kroger delivered a second consecutive quarter of profitable e-commerce growth.
Foran said new e-commerce customers increased 20% year over year, while demand continued shifting toward faster fulfillment, including delivery orders completed in less than an hour.
The CEO also said retail media grew 24%, its best performance since 2021, while Our Brands gained roughly 50 basis points of penetration and Private Selection sales rose more than 14%.
Kroger Faces a More Pressured ConsumerKennerley said the Inflation Reduction Act reduced identical sales without fuel by about 140 basis points, while generic drug shifts, egg deflation and Cyclospora created additional pressure.
Together, those items represented a 265-basis-point drag on identical sales without fuel. CEO Greg Foran also cited higher fuel prices, lower SNAP benefits and softer confidence as constraints on household spending.
Foran said traffic still increased slightly, but ticket declined as shoppers bought fewer items. He emphasized that natural, organic, prepared meals and other health-oriented categories remained areas of strength.
KR Q&A Sharpens the Pricing Road MapA UBS analyst pressed management on the size and effectiveness of price investments. Foran declined to quantify the spending but said basic shelf pricing improved relative to competitors.
A Wells Fargo analyst asked how pricing simplification would alter promotions. Foran said Kroger will gradually rebalance shelf prices and promotional activity while tracking unit growth, e-commerce engagement and competitor responses.
A JPMorgan analyst questioned gross-margin drivers. Kennerley said e-commerce, media, pharmacy mix and sourcing all contributed meaningfully, while tariff refunds were modest and fully reinvested in customer value.
Kroger Keeps Focus on ExecutionForan said the operating agenda remains centered on better in-stocks, merchandising, store standards and shrink control, with the company preparing to detail its longer-term framework at its October investor update.
Kennerley reinforced that management expects savings to build through the second half while maintaining investment in value and e-commerce. The call remained focused on execution despite a softer sales backdrop.
Zacks Signals for KR Stay MixedKR carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of F and VGM Score of B. The favorable Value, Growth and VGM scores indicate stronger characteristics in those styles, while the Momentum score is weak. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Style Scores are designed to complement the Zacks Rank, with A and B grades preferred to lower grades. The current Rank is neutral rather than top-rated, and it can change as earnings estimates are revised following the newly reported results.
Kroger (KR - Free Report) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.81%. A quarter ago, it was expected that this supermarket chain would post earnings of $1.59 per share when it actually produced earnings of $1.58, delivering a surprise of -0.63%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Kroger, which belongs to the Zacks Retail - Supermarkets industry, posted revenues of $34.62 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $33.94 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kroger shares have lost about 8.9% since the beginning of the year versus the S&P 500's gain of 10.9%.
What's Next for Kroger?While Kroger has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kroger was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.18 on $34.76 billion in revenues for the coming quarter and $5.21 on $151.2 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Supermarkets is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Stitch Fix (SFIX - Free Report) , another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 23.
This online clothing styling service is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +14.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Stitch Fix's revenues are expected to be $324.97 million, up 4.4% from the year-ago quarter.
Kroger snížil celoroční výhled srovnatelných tržeb bez paliva na 0,2 % až 0,8 % z původních 1 % až 2 %. Ve 2. čtvrtletí růst zpomalil na 0,2 % a zaostal za odhady.
U.S. grocer Kroger (KR.N) cut its annual identical sales forecast on Friday, underscoring cautious consumer spending even in categories like staples such as food and household items amid growing macroeconomic uncertainty.
Shares of the company were down about 1.5% in premarket trading.
U.S. consumer sentiment weakened in August, while retail sales unexpectedly declined in July for the first time in nine months, as middle- and lower-income households increasingly prioritize essentials and value purchases in the face of persistent inflation.
The lowered sales outlook from one of the largest U.S. grocers raises concerns about the health of the American consumer and adds pressure on CEO Greg Foran, who took the helm in February.
While Kroger's ability to maintain its profit forecast highlights its cost-control efforts, the slowing sales underscore intense competition from rivals such as Walmart and Aldi.
Retail bellwether Walmart (WMT.O) last month reported a rare quarterly sales miss and its slowest sales growth in six years, highlighting weakness in consumer spending, while U.S. President Donald Trump has warned that fuel prices could remain high as the war in Iran drags on.
Kroger expects full-year identical sales without fuel to increase in the range of 0.2% to 0.8%, compared with its prior forecast of a 1% to 2% rise.
It said its updated sales forecast includes a roughly 140-basis-point headwind from the Inflation Reduction Act, which lowered prescription drug prices for Medicare beneficiaries, impacting revenue at its pharmacies. Walmart had flagged a similar hit.
Kroger's gross margin for the three months ended August 15 was 22.4% of sales, lower than 22.5% a year ago, partly due to higher fuel and transportation costs, as well as the grocer's move to lower prices on some products.
Second-quarter identical sales growth slowed to 0.2% from 3.4% a year ago, and missed estimates of 0.9% growth, according to data compiled by LSEG.
On an adjusted basis, the company posted quarterly profit of $1.09 per share, compared with estimates of $1.06.
Kroger čeká za 2. fiskální čtvrtletí růst tržeb o 2,2 % na 34,675 miliardy USD a EPS o 1 % na 1,05 USD. Výsledky mohou podpořit silnější maloobchod a e-commerce, ale brzdit je mohou opatrní zákazníci a vyšší náklady.
Key Takeaways Kroger's Q2 sales are expected to rise 2.2%, while EPS is projected to increase 1% year over year.Fresh, Our Brands, loyalty gains and improving e-commerce economics are expected to support Q2 results.Consumer caution, pharmacy headwinds, price investments and higher operating costs may pressure results. The Kroger Co. (KR - Free Report) is scheduled to report second-quarter fiscal 2026 earnings results on Sept. 11, before the opening bell. The key question for investors is whether the food and drug retailer can sustain its sales momentum and profitability while navigating a value-conscious consumer environment, competitive pricing pressures and ongoing investments in e-commerce and other strategic growth initiatives.
The Zacks Consensus Estimate for second-quarter revenues stands at $34,675 million, indicating a 2.2% increase from the prior-year reported figure. On the earnings front, the consensus estimate has remained stable at $1.05 per share over the past 30 days, implying a 1% rise from the year-ago period.
Kroger has an average trailing four-quarter earnings surprise of 2.8%. In the last reported quarter, this Cincinnati, OH-based company’s bottom line missed the Zacks Consensus Estimate by 0.6%.
Image Source: Zacks Investment Research
What the Zacks Model Indicates for Kroger’s Q2 EarningsAs investors prepare for Kroger’s second-quarter results, the question remains whether it will beat or miss earnings. Our proven model does not conclusively predict an earnings beat for Kroger this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kroger has an Earnings ESP of +1.76% but a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Likely to Have Shaped Kroger’s Q2 OutcomeKroger’s second-quarter performance is likely to have benefited from continued strength in its core grocery business, supported by improving customer traffic and loyalty trends. Management indicated that its affordability initiatives were resonating with shoppers, while Fresh and Our Brands remained important traffic and sales drivers. The company’s focus on sharpening value, improving in-store execution and simplifying promotions may also have helped Kroger capture a greater share of customer spending. Continued product innovation across Simple Truth and Private Selection is likely to have added further support to customer engagement and basket growth. Management expects second-quarter identical sales, excluding fuel, to increase about 1%, roughly in line with the first quarter.
Building on this momentum, Kroger’s expanding digital ecosystem is likely to have remained another key growth driver. Demand for convenient delivery options has been strong, with the company benefiting from faster delivery services and partnerships with DoorDash and Uber Eats that extend its reach to more customers. At the same time, the shift toward store-based fulfillment has been improving the economics of the e-commerce business. This digital growth also supports Kroger Precision Marketing, where deeper use of customer data, expanded advertiser relationships and new technology capabilities are enhancing the company’s alternative profit streams.
Kroger’s ongoing cost-reduction and productivity initiatives may have provided further support to second-quarter profitability. Management has been pursuing savings across sourcing, supplier negotiations and broader operating processes. The company has also been working to improve store execution, replenishment and shrink management while using technology to simplify operations.
That said, management had cautioned that continued pressure on consumer spending and pharmacy-related headwinds from the shift toward generic prescriptions could weigh on sales. Kroger also remained focused on price investments to strengthen its competitive position, which could have pressured gross margin. At the same time, elevated transportation expenses and continued investments in associate wages, store hours and training could have increased operating costs.
Kroger Stock Price PerformanceKroger, which competes with Walmart Inc. WMT and Albertsons Companies, Inc. ACI, has seen its shares plunge 21.8% over the past six months compared with the industry’s 14.7% decline. Over the same period, shares of Walmart and Albertsons Companies have dropped 14.3% and 27.9%, respectively.
Image Source: Zacks Investment Research
How Does Kroger’s Valuation Stack Up?Kroger trades at a discount to the broader industry. The stock currently carries a forward 12-month price-to-earnings (P/E) multiple of 10.46, well below the industry average of 31.41. It also trades below its 12-month median P/E multiple of 12.38.
Kroger trades at a discount to Walmart, which carries a forward 12-month P/E multiple of 34.29, but at a premium to Albertsons Companies, which trades at a multiple of 6.46.
Image Source: Zacks Investment Research
Final Words on KrogerKroger enters the second-quarter earnings release with a mixed setup. Strength in the core grocery business, improving e-commerce economics, growing alternative profit streams and ongoing cost-saving efforts provide support, while cautious consumer spending, pharmacy-related headwinds, price investments and elevated operating costs remain concerns. The earnings model does not point to a clear beat this time, adding uncertainty around the near-term outcome. Although the stock’s discounted valuation may appear attractive, limited earnings-beat visibility suggests that prospective investors may be better off waiting for greater clarity from the upcoming results, while existing shareholders may want to maintain a cautious stance rather than add aggressively ahead of the release.
Jupiter Topco LLC purchased a new position in The Kroger Co. (NYSE:KR – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 76,501 shares of the company’s stock, valued at approximately $4,248,000.
A number of other institutional investors have also added to or reduced their stakes in the stock. SGL Investment Advisors Inc. bought a new position in Kroger during the second quarter valued at $2,764,000. Allstate Corp grew its stake in shares of Kroger by 108.5% in the 4th quarter. Allstate Corp now owns 47,991 shares of the company’s stock worth $2,998,000 after buying an additional 24,976 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Kroger in the 2nd quarter worth about $76,633,000. Conning Inc. increased its holdings in shares of Kroger by 10,178.7% in the 4th quarter. Conning Inc. now owns 507,459 shares of the company’s stock worth $31,706,000 after buying an additional 502,522 shares during the last quarter. Finally, North Dakota State Investment Board purchased a new stake in shares of Kroger during the 4th quarter valued at about $1,299,000. 80.93% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In A number of equities research analysts have issued reports on the company. Morgan Stanley decreased their price objective on Kroger from $73.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Monday, June 22nd. The Goldman Sachs Group reissued a “buy” rating and set a $82.00 target price on shares of Kroger in a research report on Friday, June 19th. Wells Fargo & Company set a $58.00 price target on Kroger in a report on Monday, June 22nd. Wall Street Zen downgraded Kroger from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. Finally, Barclays set a $61.00 price objective on shares of Kroger and gave the stock an “equal weight” rating in a research note on Monday, June 22nd. Ten analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $71.75.
View Our Latest Research Report on Kroger Kroger Trading Up 0.7% NYSE:KR opened at $57.94 on Wednesday. The firm has a 50 day moving average of $57.69 and a 200 day moving average of $64.26. The company has a quick ratio of 0.39, a current ratio of 0.79 and a debt-to-equity ratio of 2.43. The Kroger Co. has a 52 week low of $54.15 and a 52 week high of $76.58. The stock has a market capitalization of $35.50 billion, a price-to-earnings ratio of 34.08, a PEG ratio of 1.54 and a beta of 0.41.
Kroger (NYSE:KR – Get Free Report) last issued its quarterly earnings results on Thursday, June 18th. The company reported $1.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.01). Kroger had a return on equity of 44.33% and a net margin of 0.71%.The business had revenue of $46.12 billion for the quarter, compared to analyst estimates of $45.59 billion. During the same period in the previous year, the company posted $1.49 earnings per share. The business’s revenue for the quarter was up 2.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, sell-side analysts anticipate that The Kroger Co. will post 5.21 earnings per share for the current fiscal year.
Kroger Increases Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Saturday, August 15th were issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.7%. This is a positive change from Kroger’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Friday, August 14th. Kroger’s dividend payout ratio is presently 91.76%.
Kroger Company Profile (Free Report)
The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.
In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.
Featured Articles Five stocks we like better than Kroger Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery
Receive News & Ratings for Kroger Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kroger and related companies with MarketBeat.com's FREE daily email newsletter.
Callan Family Office LLC bought a new position in shares of The Kroger Co. (NYSE:KR – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 46,834 shares of the company’s stock, valued at approximately $2,601,000.
Several other large investors have also recently bought and sold shares of the stock. Brighton Jones LLC grew its stake in Kroger by 27.3% in the fourth quarter. Brighton Jones LLC now owns 15,733 shares of the company’s stock valued at $962,000 after purchasing an additional 3,373 shares in the last quarter. Woodline Partners LP raised its stake in shares of Kroger by 40.7% during the 1st quarter. Woodline Partners LP now owns 56,243 shares of the company’s stock worth $3,807,000 after purchasing an additional 16,270 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Kroger in the 2nd quarter valued at approximately $201,000. NewEdge Advisors LLC boosted its holdings in shares of Kroger by 11.5% in the 2nd quarter. NewEdge Advisors LLC now owns 97,288 shares of the company’s stock valued at $6,978,000 after buying an additional 10,051 shares during the last quarter. Finally, Nebula Research & Development LLC bought a new position in shares of Kroger in the second quarter valued at $1,840,000. 80.93% of the stock is owned by institutional investors and hedge funds.
Kroger News Roundup Here are the key news stories impacting Kroger this week:
Positive Sentiment: Kroger’s dividend profile continues to attract attention from income-focused investors. Analysts reviewing the stock highlight its potential appeal as a dividend investment, which could support demand for the shares. Kroger Could Be a Great Choice Positive Sentiment: The company is expanding its Fold Bitcoin Gift Card offering after a successful pilot, adding another digital and cryptocurrency-related feature for customers. The initiative is strategically positive but is unlikely to materially affect near-term financial results. Kroger Expands Fold Bitcoin Gift Card Offering Positive Sentiment: Kroger is unveiling a remodeled store in Worthington, Ohio, reflecting continued investment in store quality and the customer experience. Kroger to Unveil Remodeled Store Neutral Sentiment: An ice cream brand sold at Kroger and other retailers filed for Chapter 11 bankruptcy. The filing concerns the supplier’s ownership and future rather than Kroger’s finances, so the direct impact on KR appears limited. Ice Cream Brand Files for Chapter 11 Neutral Sentiment: Kroger’s annual food-bank and peanut-butter donation efforts may support community goodwill but should have little direct effect on valuation. Kroger Holds Peanut Butter Drive Neutral Sentiment: Cincinnati officials limited protests near Kroger’s headquarters following complaints from a nearby small-business owner. The development reduces immediate disruption but highlights ongoing local tensions. Cincinnati Limits Kroger HQ Protests Negative Sentiment: Kroger plans to close 60 stores during 2026. Although closures could improve the portfolio by removing underperforming locations, the scale of the reductions raises concerns about sales, market presence and restructuring costs. Kroger to Shutter 60 Stores Negative Sentiment: Kroger faces a proposed $17 million class-action settlement involving pharmacy customers who used insurance for prescriptions. The settlement would create a financial cost and adds legal and reputational risk, though the amount is modest relative to Kroger’s scale. Kroger Pharmacy Settlement Negative Sentiment: Kroger agreed to pay $75,000 to resolve an EEOC disability-discrimination and retaliation lawsuit. The payment is financially immaterial but adds to legal and compliance headlines. Kroger EEOC Lawsuit Settlement Kroger Stock Up 2.7% KR opened at $57.86 on Friday. The Kroger Co. has a 1-year low of $54.15 and a 1-year high of $76.58. The stock’s fifty day simple moving average is $57.88 and its 200 day simple moving average is $64.71. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. The stock has a market cap of $35.45 billion, a PE ratio of 34.04, a price-to-earnings-growth ratio of 1.55 and a beta of 0.43. Kroger (NYSE:KR – Get Free Report) last released its quarterly earnings data on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.01). Kroger had a return on equity of 44.33% and a net margin of 0.71%.The company had revenue of $46.12 billion for the quarter, compared to the consensus estimate of $45.59 billion. During the same period last year, the firm earned $1.49 earnings per share. The company’s revenue for the quarter was up 2.2% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, research analysts expect that The Kroger Co. will post 5.21 earnings per share for the current year.
Kroger Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Saturday, August 15th will be issued a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, August 14th. This is a positive change from Kroger’s previous quarterly dividend of $0.35. Kroger’s payout ratio is presently 91.76%.
Analyst Upgrades and Downgrades KR has been the topic of a number of recent analyst reports. Wall Street Zen downgraded shares of Kroger from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. Morgan Stanley cut their price target on shares of Kroger from $73.00 to $67.00 and set an “equal weight” rating for the company in a research note on Monday, June 22nd. Jefferies Financial Group reissued a “buy” rating and issued a $80.00 price objective on shares of Kroger in a research report on Wednesday, June 3rd. Barclays set a $61.00 price objective on shares of Kroger and gave the stock an “equal weight” rating in a research note on Monday, June 22nd. Finally, UBS Group set a $63.00 target price on shares of Kroger and gave the company a “neutral” rating in a research note on Monday, June 22nd. Ten investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $72.00.
View Our Latest Analysis on Kroger
Kroger Profile (Free Report)
The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.
In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.
Read More Five stocks we like better than Kroger 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit? Want to see what other hedge funds are holding KR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Kroger Co. (NYSE:KR – Free Report).
Receive News & Ratings for Kroger Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kroger and related companies with MarketBeat.com's FREE daily email newsletter.
Bonfire Financial ve 2. čtvrtletí získala nový podíl v Kroger za zhruba 1,168 milionu USD. Nakoupila 21 040 akcií a řadí se na 16. největší pozici v portfoliu.
Bonfire Financial purchased a new stake in The Kroger Co. (NYSE:KR – Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 21,040 shares of the company’s stock, valued at approximately $1,168,000. Kroger comprises approximately 0.8% of Bonfire Financial’s portfolio, making the stock its 16th biggest position.
Several other hedge funds also recently made changes to their positions in KR. Brighton Jones LLC lifted its stake in Kroger by 27.3% during the fourth quarter. Brighton Jones LLC now owns 15,733 shares of the company’s stock valued at $962,000 after purchasing an additional 3,373 shares during the last quarter. Woodline Partners LP grew its position in Kroger by 40.7% in the first quarter. Woodline Partners LP now owns 56,243 shares of the company’s stock worth $3,807,000 after buying an additional 16,270 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of Kroger in the second quarter valued at $201,000. NewEdge Advisors LLC increased its holdings in shares of Kroger by 11.5% in the second quarter. NewEdge Advisors LLC now owns 97,288 shares of the company’s stock valued at $6,978,000 after buying an additional 10,051 shares in the last quarter. Finally, Nebula Research & Development LLC acquired a new stake in shares of Kroger during the 2nd quarter valued at $1,840,000. Institutional investors and hedge funds own 80.93% of the company’s stock.
Kroger Stock Up 0.6% Shares of Kroger stock opened at $56.39 on Wednesday. The Kroger Co. has a 1 year low of $54.15 and a 1 year high of $76.58. The company has a market cap of $34.55 billion, a P/E ratio of 33.17, a P/E/G ratio of 1.52 and a beta of 0.43. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. The stock has a 50-day moving average price of $58.34 and a 200 day moving average price of $64.84.
Kroger (NYSE:KR – Get Free Report) last released its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share for the quarter, missing the consensus estimate of $1.59 by ($0.01). The business had revenue of $46.12 billion for the quarter, compared to analysts’ expectations of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The company’s revenue was up 2.2% compared to the same quarter last year. During the same period last year, the firm earned $1.49 EPS. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, analysts expect that The Kroger Co. will post 5.21 EPS for the current fiscal year. Kroger Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be given a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, August 14th. This is a positive change from Kroger’s previous quarterly dividend of $0.35. Kroger’s payout ratio is currently 91.76%.
Analysts Set New Price Targets Several equities research analysts have recently weighed in on KR shares. Morgan Stanley reduced their price objective on Kroger from $73.00 to $67.00 and set an “equal weight” rating for the company in a research note on Monday, June 22nd. Barclays set a $61.00 price target on Kroger and gave the company an “equal weight” rating in a research report on Monday, June 22nd. Royal Bank Of Canada reissued an “outperform” rating on shares of Kroger in a research note on Monday, June 1st. UBS Group set a $63.00 price objective on Kroger and gave the stock a “neutral” rating in a report on Monday, June 22nd. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $82.00 price objective on shares of Kroger in a research note on Friday, June 19th. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $72.00.
View Our Latest Stock Analysis on Kroger
More Kroger News Here are the key news stories impacting Kroger this week:
Positive Sentiment: Kroger is opening new Marketplace locations in metro Atlanta, expanding its larger-format grocery, general merchandise and prepared-food offering. A new store is also planned for Lenoir City, Tennessee, supporting the company’s long-term growth and local market presence. Kroger opens new Marketplace locations in metro Atlanta New Kroger grocery store coming to Lenoir City Neutral Sentiment: Rebel Creamery, whose ice cream products are sold at Kroger and other major retailers, filed for bankruptcy while appealing a multimillion-dollar judgment. The development could affect product availability, but appears unlikely to have a material direct impact on Kroger’s finances. Ice cream brand sold at Kroger files for bankruptcy Negative Sentiment: Kroger reportedly plans to close 60 U.S. stores in 2026, including locations tied to its Fry’s banner. The closures may improve efficiency and profitability, but they also signal weak store economics and could reduce sales and customer reach. Kroger to Close 60 Stores Negative Sentiment: Reports and social-media reactions highlight declining Kroger store traffic, raising concerns about competitive pressure, consumer behavior and the company’s ability to sustain sales growth. Kroger’s declining traffic Negative Sentiment: A jalapeño-related salmonella recall involving products sold at Kroger and other grocers creates potential reputational, compliance and customer-trust risks, although the financial impact is not yet clear. Products recalled over jalapeño salmonella outbreak Negative Sentiment: Kroger’s co-branded credit card with U.S. Bank is reportedly being discontinued, including changes to gas-discount benefits. Ending the program may frustrate shoppers and weaken loyalty incentives. Kroger’s credit card is going away Kroger Company Profile (Free Report)
The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.
In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.
Further Reading Five stocks we like better than Kroger The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding KR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Kroger Co. (NYSE:KR – Free Report).
Receive News & Ratings for Kroger Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kroger and related companies with MarketBeat.com's FREE daily email newsletter.
Kroger uzavřel nejméně tři desítky obchodů v rámci přestavby sítě, kterou oznámil loni a která má do konce roku 2026 zavřít 60 lokalit. Firma to zdůvodňuje snahou fungovat efektivněji a dlouhodobě posílit byznys.
Kroger has closed at least three dozen stores since announcing plans last year to shutter 60 locations that were not "delivering sustainable results" by the end of 2026.
The Cincinnati-based grocery giant did not release a full list of stores or banners slated for closure, but online searches listed 39 locations across nine banners as no longer operating. Local reports also confirmed that many of the locations were part of the broader store overhaul.
As of January 2026, Kroger operated 2,697 supermarkets across 35 states under roughly 20 banners, including Fred Meyer, Fry’s Food and Drug, Harris Teeter, Jay C, King Soopers, Mariano’s, Pick ’n Save, QFC and Ralphs, according to a Securities and Exchange Commission filing.
The company said the closures are intended to help it "run more efficiently and ensure the long-term health of our business," according to FOX 26 Houston, which reported that two Houston-area locations were slated to close in April.
KROGER TO BUY POPULAR GROCERY AND PHARMACY RETAILER IN $1.65B DEAL
A Kroger grocery store in Dallas. (Shelby Tauber/Bloomberg via Getty Images, File / Getty Images)
The closures come as Kroger announced plans last month to acquire regional grocery chain Giant Eagle for $1.65 billion, which would add another 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
The acquisition is expected to strengthen Kroger’s presence across several Midwestern and Mid-Atlantic markets.
At least three of the impacted locations were or are expected to be replaced by Kroger Marketplace stores as part of the company’s efforts to consolidate operations. Kroger Marketplace stores are larger-format locations that offer an expanded selection of non-grocery merchandise, including clothing, toys, home goods and furniture.
The impacted locations include:
KrogerAtlanta, Georgia — 2452 Morosgo Way NEBrookhaven, Georgia — 3855 Buford Hwy. NEDecatur, Georgia — 3479 Memorial Dr.Alpharetta, Georgia — 11877 Douglas Rd.Peoria, Illinois — 3311 N Sterling Ave.South Bend, Indiana — 4526 W Western Ave.Elkhart, Indiana — 901 Johnson St.Louisville, Kentucky — 4211 S 3rd St.Bossier City, Louisiana — 4100 Barksdale BlvdKingsport, Tennessee — 1664 E Stone Dr.Houston, Texas — 239 W 20th St.Houston, Texas — 9325 Katy Fwy.Houston, Texas — 2300 Gessner Rd.McKinney, Texas — 2901 Lake Forest Drive (a new store is planned to replace this location nearby in 2027)Spring, Texas — 6060 Farm to Market 2920Charlottesville, Virginia — 1904 Emmet St. NAbingdon, Virginia — 466 Cummings St.Gassaway, West Virginia — 2908 State St.South Charleston, West Virginia — 5 River Walk Mall (consolidated last June into a new Kroger Marketplace at 3060 Ray Park Blvd.)Dunbar, West Virginia — 981 Dunbar Village (consolidated last June into a new Kroger Marketplace at 3060 Ray Park Blvd.)SEPHORA JOINS WALMART, TARGET WITH NEW ‘QUIET HOURS’ SHOPPING EXPERIENCE
Giant Eagle operates about 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. (Allison Farrand/Bloomberg via Getty Images, File / Getty Images)
Fred MeyerTacoma, Washington — 7250 Pacific Ave.Fry’s Food and DrugMesa, Arizona — 1915 S Power Rd.Harris TeeterArlington, Virginia — 950 S George Mason Dr.Arlington, Virginia — 3600 S Glebe Rd. W100McLean, Virginia — 8200 Crestwood Heights Dr.Rockville, Maryland — 11845 Old Georgetown Rd.Raleigh, North Carolina — 5563 Western Blvd., Suite 6ACharlotte, North Carolina — 5706 Wyalong Dr.Ticker Security Last Change Change % KR THE KROGER CO. 56.06 -0.19 -0.34% Jay C Food StoresShoals, Indiana — 201 High St.King SoopersCentennial, Colorado — 5050 E Arapahoe Rd.Mariano’sBuffalo Grove, Illinois — 450 W Half Day Rd.Northbrook, Illinois — 2323 Capital Dr.Bloomingdale, Illinois — 144 S Gary Ave. At least six Harris Teeter locations recently closed as part of Kroger's broader company overhaul. (Laura Kalcheff/Corey Lowenstein/Raleigh News & Observer/Tribune News Service via Getty Images, File / Getty Images)
Pick ’n SaveGlendale, Wisconsin — 1735 W Silver Spring Dr.Milwaukee, Wisconsin — 3701 S 27th St.Milwaukee, Wisconsin — 2355 N 35th St.Oak Creek, Wisconsin — 2320 W Ryan Rd.South Milwaukee, Wisconsin — 2931 S Chicago Ave.QFCMill Creek, Washington — 926 164th St. SECLICK HERE TO GET FOX BUSINESS ON THE GO
FOX Business reached out to Kroger for more information.
Cetera Investment Advisers ve 1. čtvrtletí snížila podíl v Kroger o 17,5 % na 311 154 akcií. Kroger zároveň oznámil čtvrtletní dividendu ve výši 0,39 USD na akcii, oproti předchozím 0,35 USD.
Cetera Investment Advisers lowered its holdings in shares of The Kroger Co. (NYSE:KR – Free Report) by 17.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 311,154 shares of the company’s stock after selling 66,152 shares during the period. Cetera Investment Advisers owned about 0.05% of Kroger worth $22,515,000 at the end of the most recent reporting period.
Several other large investors have also modified their holdings of the business. Ares Financial Consulting LLC purchased a new position in Kroger during the fourth quarter worth $25,000. Princeton Global Asset Management LLC lifted its position in shares of Kroger by 268.1% in the fourth quarter. Princeton Global Asset Management LLC now owns 416 shares of the company’s stock valued at $26,000 after acquiring an additional 303 shares in the last quarter. MV Capital Management Inc. acquired a new stake in shares of Kroger during the fourth quarter valued at $26,000. Whipplewood Advisors LLC acquired a new stake in shares of Kroger during the first quarter valued at $27,000. Finally, Lloyd Advisory Services LLC. purchased a new stake in Kroger during the 4th quarter worth about $28,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades Several brokerages recently weighed in on KR. Royal Bank Of Canada reissued an “outperform” rating on shares of Kroger in a research note on Monday, June 1st. Erste Group Bank cut shares of Kroger from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Morgan Stanley lowered their price target on shares of Kroger from $73.00 to $67.00 and set an “equal weight” rating for the company in a report on Monday, June 22nd. Wells Fargo & Company set a $58.00 price objective on shares of Kroger in a research note on Monday, June 22nd. Finally, JPMorgan Chase & Co. decreased their target price on shares of Kroger from $72.00 to $70.00 and set a “neutral” rating on the stock in a research report on Thursday, June 11th. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $72.00.
View Our Latest Stock Report on Kroger
Kroger Price Performance KR opened at $57.99 on Tuesday. The Kroger Co. has a 52-week low of $54.15 and a 52-week high of $76.58. The company has a market cap of $35.53 billion, a P/E ratio of 34.11, a P/E/G ratio of 1.53 and a beta of 0.44. The company has a quick ratio of 0.39, a current ratio of 0.79 and a debt-to-equity ratio of 2.43. The company has a 50 day moving average of $60.65 and a two-hundred day moving average of $65.39.
Kroger (NYSE:KR – Get Free Report) last released its quarterly earnings data on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing the consensus estimate of $1.59 by ($0.01). The company had revenue of $46.12 billion during the quarter, compared to analysts’ expectations of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The company’s revenue for the quarter was up 2.2% compared to the same quarter last year. During the same period last year, the business earned $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, analysts expect that The Kroger Co. will post 5.21 earnings per share for the current year.
Kroger Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be issued a $0.39 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.56 dividend on an annualized basis and a yield of 2.7%. This is an increase from Kroger’s previous quarterly dividend of $0.35. Kroger’s dividend payout ratio (DPR) is presently 82.35%.
About Kroger (Free Report)
The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.
In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.
Featured Stories Five stocks we like better than Kroger AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding KR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Kroger Co. (NYSE:KR – Free Report).
Receive News & Ratings for Kroger Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kroger and related companies with MarketBeat.com's FREE daily email newsletter.
Kroger chce zjednodušit ceny a akce, aby byla jeho nabídka pro zákazníky srozumitelnější a podpořila častější návštěvy. Investice do cenovek mají být financovány z úspor, vyjednávání s dodavateli a efektivitou AI.
Key Takeaways Kroger plans to simplify pricing and promotions to make its value proposition easier to understand.KR aims to drive repeat visits with clearer pricing, trusted relationships and a better shopping experience.KR's pricing investments will be funded through cost savings, supplier negotiations and AI efficiencies. The Kroger Co. (KR - Free Report) sees opportunities to strengthen its pricing strategy by making its value proposition simpler and easier for customers to understand. Management acknowledged that promotional offerings have become overly complicated over time, while the company's pricing position has not kept pace where it needed to, highlighting an area of focus for improvement.
The company is focused on strengthening its value proposition by making its pricing more competitive, consistent and easier for customers to understand rather than becoming the lowest-priced retailer. Management believes customers should clearly recognize the value offered when deciding where to shop. The company aims to encourage more frequent customer visits by combining a clear value proposition with a strong shopping experience and trusted customer relationships, reinforcing its long-term competitive positioning.
Kroger plans to transition toward a simpler and more consistent everyday value strategy while continuing to use promotions as an important part of its business. Management emphasized future promotional offerings will be sharper and easier for customers to understand. The company believes achieving this approach will require greater discipline as it works to support and fund a clearer, more straightforward value proposition for customers.
Importantly, the company emphasized that these pricing investments are not a one-time reset but are fully funded through internal cost savings and efficiencies, such as improved supplier negotiations and the application of AI across the business. Overall, a clearer and more transparent pricing strategy should strengthen customer trust, encourage repeat shopping and improve long-term loyalty while reinforcing Kroger’s competitive position in the grocery market.
The Zacks Rundown for KRThe company's shares have lost 6.9% in the past six months compared with the industry’s decline of 3.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, KR trades at a forward price-to-earnings ratio of 10.87, lower than the industry’s average of 33.96. KR currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KR’s current and next fiscal year earnings implies year-over-year growth of 7.4% and 6.4%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
United Natural Foods Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It presently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for UNFI’s 2026 sales indicates a decline of 2.1%, and the same for earnings indicates growth of 254.9% from the prior-year reported levels. UNFI delivered a trailing four-quarter earnings surprise of nearly 30%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30% and 73.3%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 129.2%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 25.9% and 140.2%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 635%, on average.
Kroger zvyšuje standardy čerstvosti, protože právě kvalita čerstvých potravin nejvíc ovlivňuje výběr prodejce a udržení zákazníků. V 1. čtvrtletí fiskálního roku 2026 růst tržeb táhly Fresh, e-commerce a Our Brands.
Key Takeaways Kroger is raising freshness standards to improve customer experience and strengthen retention.KR's first-quarter sales growth was driven by Fresh, e-commerce and Our Brands performance.KR is using item-level merchandising and serving evolving customer needs across grocery and pharmacy. The Kroger Co. (KR - Free Report) emphasized that freshness remains the most important factor influencing customers’ choice of grocery retailer. The company believes that poor quality in key categories such as produce and protein can negatively impact customer retention. As a result, it is raising its freshness standards and evaluating product quality based not only on shelf presentation but also on how products perform after customers take them home. Management views this customer-focused approach as essential to strengthening the shopping experience and maintaining customer loyalty.
Kroger also highlighted that sales growth in the first quarter of fiscal 2026 was driven by strong performance in Fresh alongside e-commerce and Our Brands. Grocery sales also increased as a proportion of the overall sales mix, reinforcing improving trends in the company’s core business. The company noted that its Fresh offering is well-suited for digital shopping, supporting continued growth in e-commerce while strengthening its grocery business.
The company is adopting an item-level merchandising approach, emphasizing that customers choose individual products rather than overall assortments. Kroger believes that every item must earn its place on the shelf by delivering quality and a positive customer experience, with this discipline applied across the entire store.
Management also believes that Kroger is well-positioned to serve customers using GLP-1 medications. These shoppers may fill prescriptions at Kroger while increasingly seeking fresh, higher-protein and Better For You foods. Kroger believes that its combined pharmacy and grocery ecosystem can help address those changing needs.
Overall, Fresh is becoming a more central component of Kroger’s customer strategy. Its effectiveness as a competitive advantage, however, will depend on the company’s ability to deliver consistently across stores and digital channels.
The Zacks Rundown for KRThe company's shares have lost 3.1% in the past six months compared with the industry’s decline of 5.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, KR trades at a forward price-to-earnings ratio of 11.29, lower than the industry’s average of 33.98. KR currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KR’s current and next fiscal year earnings implies year-over-year growth of 7.4% and 6.5%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
B&G Foods, Inc. (BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 11.8% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.7%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Armanino Foods' current fiscal-year sales and earnings indicates growth of 7.1% and 1.7%, respectively, from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 23.1%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 25.9% and 140.2%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 635%, on average.
Kroger rozšiřuje AI v reklamním byznysu, aby zrychlil tvorbu publik a optimalizaci v reálném čase. Využívá loajalitní data z 95 % transakcí a přes 20 let historie nákupů.
Key Takeaways Kroger is expanding AI across its media business for real-time optimization and faster audience creation.KR uses loyalty-linked purchase data to help brands target audiences based on actual buying behavior.KR is extending AI-powered retail media through Google Display & Video 360 and a TikTok collaboration. The Kroger Co. (KR - Free Report) is expanding AI-powered capabilities within its media business to support real-time optimization, predictive budget allocation and faster audience creation, positioning the technology as a key enabler of performance and scalability. Rather than presenting artificial intelligence (AI) as a standalone initiative, management is tying it to Kroger Precision Marketing and the company’s broader effort to use customer data more effectively.
Kroger’s AI opportunity rests on its extensive first-party data ecosystem. Management noted that 95% of all transactions are tied to a loyalty card and supported by more than 20 years of purchase history. This gives Kroger the ability to measure actual purchase behavior, not just intent, creating retail signals that are valuable to brands and advertisers.
The company is also extending those capabilities through external digital platforms. Kroger said that advertisers can now use KPM’s retail signals through Google’s Display & Video 360 to reach audiences across YouTube and YouTube TV, with SKU-level conversion reporting available for the first time. The company also said that Kroger Precision Marketing is set to launch a self-service collaboration with TikTok, giving brands direct access to its audiences.
Overall, Kroger is using AI to make its loyalty data and retail media platform more scalable and effective. Management believes that direct customer relationships and first-party data are becoming more important in advertising, and AI could help Kroger turn those assets into more targeted marketing solutions and a longer-term growth opportunity.
The Zacks Rundown for KRThe company's shares have lost 1.8% in the past six months compared with the industry’s decline of 1%.
Image Source: Zacks Investment Research
From a valuation standpoint, KR trades at a forward price-to-earnings ratio of 10.87, lower than the industry’s average of 33.40. KR currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KR’s current and next fiscal year earnings implies year-over-year growth of 7.4% and 6.5%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
B&G Foods, Inc. (BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 11.8% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.7%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Armanino Foods' current fiscal-year sales and earnings indicates growth of 7.1% and 1.7%, respectively, from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 23.1%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30% and 73.3%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 129.2%, on average.
Kroger uzavřel definitivní dohodu o koupi Giant Eagle za celkovou hodnotu podniku 1,65 miliardy USD. Získá tak 197 supermarketů, 11 samostatných lékáren a zhruba 9 miliard USD ročních tržeb.
The collapse of the Albertsons mega-merger forced Kroger NYSE: KR into a severe reckoning. Antitrust regulators effectively shut the door on transformative coast-to-coast consolidation late last year, and the market aggressively punished the uncertainty. Shares dragged toward a 52-week low of $54.15 as investors questioned how Kroger would navigate relentless pressure from omnichannel titans such as Amazon NASDAQ: AMZN and Walmart NASDAQ: WMT.
Kroger Today
$58.12 -0.10 (-0.16%)
As of 07/2/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$54.15▼
$76.58Dividend Yield2.68%
P/E Ratio34.19
Price Target$71.94
Shifting consumer behavior and an unforgiving macroeconomic environment require massive scale to survive, leaving Kroger in a precarious position.
Get Kroger alerts:
The answer arrived in the form of a definitive agreement to acquire regional grocer Giant Eagle for a total enterprise value of $1.65 billion. This transaction represents a ruthlessly pragmatic pivot in corporate strategy.
By bolting on a dense, well-established grocery network across five key midwestern and mid-Atlantic states, Kroger is securing immediate distribution leverage.
Under the guidance of recently installed Chief Executive Officer Greg Foran, who brings deep operational experience from Walmart, Kroger is orchestrating a classic value-play consolidation to defend an increasingly vulnerable economic moat.
Kroger Rings Up Top-Line Growth at a BargainBreaking down the transaction arithmetic reveals exactly why this acquisition serves as a powerful upside catalyst. Kroger is paying $1.25 billion in cash and assuming approximately $400 million in outstanding liabilities. In exchange, Kroger instantly integrates 197 supermarkets, 11 standalone pharmacies, and roughly $9 billion in annual top-line revenue across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana.
Securing $9 billion in incoming revenue for a total price tag of $1.65 billion translates to a 0.18x multiple on acquired sales. Attempting to build that physical footprint organically is nearly impossible in today's elevated interest rate environment. Securing premium commercial real estate, building localized distribution centers, and acquiring net-new customers in heavily saturated regional corridors would cost substantially more capital and take a decade to execute properly.
Kroger is instead buying established cash flows and localized market dominance at a steep discount. Management expects the deal to become accretive to adjusted earnings per share (EPS) by the second full year post-integration in 2029.
Trimming the Fat: Digital Margins and Pharmacy PlaysSupermarket operators exist in an environment where profitability remains structurally tight. Kroger currently generates razor-thin net margins of 0.71% and pre-tax margins of 0.86%. Earnings per share for the first quarter of 2027 came in at $1.58, missing consensus estimates by a single penny, while identical sales excluding fuel increased by just 1.0%. Investors rightly view these metrics with caution, but analyzing the underlying operations reveals a critical inflection point hidden just beneath the surface.
During that same first quarter, Kroger's digital fulfillment operations turned profitable for the very first time. E-commerce logistics and last-mile grocery delivery traditionally bleed cash, serving as massive loss leaders to maintain market share.
Achieving sustainable profitability in digital fulfillment justifies the Giant Eagle acquisition on a fundamental level. Kroger can now seamlessly integrate Giant Eagle's established customer loyalty programs into a proven, margin-positive digital fulfillment engine, eliminating redundant logistics costs and instantly scaling online margins.
Investors must also contextualize shifting consumer behaviors, specifically the structural rise of GLP-1 weight-loss medications. Market data indicate that households using GLP-1 treatments reduce overall grocery spending by roughly 5.5% to 6.0%. This dynamic presents a widely discussed margin-pressure point for traditional center-store grocery volumes. Kroger is slightly derisked in this environment, as it already operates a massive network of in-store pharmacies.
Adding Giant Eagle's standalone and integrated pharmacy footprint acts as a natural defensive hedge. The combined entity captures high-margin prescription revenue from dispensing the weight-loss medications, effectively neutralizing the peripheral drag on traditional packaged food sales by shifting the consumer's wallet from the grocery aisle to the pharmacy counter.
Paying the Bill: How Kroger Funds the FeastAny debt-funded acquisition requires serious balance sheet scrutiny from investors. Kroger carries a debt-to-equity ratio of 2.43 and a quick ratio of 0.39, signaling low immediate liquidity. Adding $400 million in assumed Giant Eagle liabilities introduces near-term financial friction. When the Giant Eagle deal hit the wires, Kroger shares dipped to $53.92 amid immediate financing concerns before buyers stepped in and pushed the stock back to a close above $56
The Kroger Co. (KR) Price Chart for Friday, July, 3, 2026
The downside risk appears heavily capped by a deeply compressed valuation and highly aggressive capital return programs. Kroger currently trades at a forward price-to-earnings ratio (P/E) of 11 and a price-to-sales ratio (P/S) of just 0.24.
These depressed metrics price in operational stagnation rather than targeted regional growth. Kroger management is aggressively exploiting the disconnect between market price and intrinsic value. Following the dissolution of the Albertsons deal, the board initiated a $7.5 billion share repurchase program. Retiring nearly 17% of the outstanding float at current depressed prices artificially boosts earnings per share. This creates a powerful dual-engine for shareholder returns when combined with Giant Eagle's incoming cash flows.
This aggressive buyback program is backstopped by heavy institutional conviction. Vanguard Group and BlackRock maintain stable equity positions, holding approximately 12.0% and 8.6% of Kroger's outstanding shares, respectively. Having over 20% of the entire float anchored by two institutional giants provides a formidable structural floor. This institutional ownership mitigates downside volatility while the regulatory and integration processes play out ahead of the 2027 closing date.
Bagging the Bottom: Why Kroger Is a Top-Shelf BuyCapital allocation ultimately dictates long-term shareholder value in the retail sector. Kroger is leveraging a temporary weakness in its own equity pricing to acquire significant regional market share at a deep discount. Securing localized density in the Midwest and Mid-Atlantic allows Kroger to build a formidable firewall against non-traditional grocery entrants such as Walmart and Amazon.
The grocery sector rarely offers hyper-growth narratives, but the industry frequently provides mispriced cash flows. Kroger is trading at a depressed multiple while expanding its omnichannel reach, leveraging a newly profitable digital fulfillment network, and executing one of the largest buyback programs in the retail landscape.
Value-oriented investors willing to look past the immediate debt load and short-term integration friction might find current pricing levels a highly opportunistic entry point into a resilient, cash-generating retail powerhouse.
Should You Invest $1,000 in Kroger Right Now?Before you consider Kroger, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kroger wasn't on the list.
While Kroger currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
Kroger oznámil dohodu o akvizici Giant Eagle za 1,65 miliardy USD, včetně 1,25 miliardy USD v hotovosti a převzetí zhruba 400 milionů USD závazků. Uzavření se čeká v roce 2027.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR) and Giant Eagle, Inc. ("Giant Eagle") today announced a definitive agreement under which Kroger will acquire Giant Eagle, a leading family-owned food and pharmacy retailer with approximately $9 billion in annual sales and 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. The transaction has been unanimously approved by Kroger's Board of Directors.
With a purchase price of $1.65 billion, comprised of $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities, this transaction is consistent with Kroger's disciplined approach to capital allocation and its focus on acquisitions where the company can create clear value for customers, associates and shareholders.
A strong strategic fit
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," said Greg Foran, Chief Executive Officer at Kroger. "We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day."
Giant Eagle's established store base, loyalty program, pharmacy business and private label portfolio provide a strong foundation for growth. Together with Kroger's eCommerce solutions, data and personalization capabilities and operating discipline, we see significant opportunity to accelerate growth both in-store and online, enhance the customer experience and create long-term value for shareholders.
The companies plan to build on Giant Eagle's long history of community engagement by bringing Kroger's Zero Hunger | Zero Waste impact plan to new communities.
"Today's announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners," said Bill Artman, Chief Executive Officer at Giant Eagle. "Together with Kroger, we will be well-positioned to advance our strategy and deliver better quality and service, better everyday value, and a better shopping experience for our customers, while providing greater growth opportunities for our dedicated Team Members."
Financial impact
Kroger will finance the transaction with cash. Following the close of the transaction, the company expects to maintain its net total debt to adjusted EBITDA ratio target range of 2.3 – 2.5x. As part of Kroger's commitment to shareholder returns, the company expects to maintain its dividend, subject to board approval, continue its previously announced $2 billion share repurchase program, and preserve financial flexibility to invest in its strategic priorities and core business.
Kroger expects the transaction to be accretive to adjusted EPS per diluted share in the second full year after close, excluding one-time transaction and integration costs.
Regulatory process
In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures.
The transaction is expected to close in 2027, subject to receipt of required regulatory clearance and other customary closing conditions.
Advisors
RBC Capital Markets is serving as exclusive financial advisor, and Jones Day is serving as legal counsel to Kroger.
Wells Fargo is serving as exclusive financial advisor to Giant Eagle. WilmerHale is serving as the primary legal advisor and Troutman Pepper Locke is serving as local counsel on Giant Eagle's behalf.
About Kroger
At The Kroger Co. (NYSE: KR), we are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an eCommerce and store experience under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
About Giant Eagle
Giant Eagle, Inc., ranked among Forbes magazine's largest private corporations, is one of the nation's largest food retailers and distributors. Founded in 1931, Giant Eagle, Inc. has grown to be a leading food and pharmacy retailer in the region, with more than 200 stores throughout western Pennsylvania, north central Ohio, northern West Virginia, Maryland, and Indiana.
This press release contains certain statements that constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, about the proposed acquisition of Giant Eagle and the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "achieve," "committed," "continue," "drive," "expect," "focused," "future," "guidance," "may," "model," "opportunities," "strategy," "target," "trends," and variations of such words and similar phrases. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as our ability to successfully complete the acquisition of Giant Eagle; and our ability to successfully integrate Giant Eagle into our business and risks inherent with the Giant Eagle acquisition in the achievement of expected results, including whether the acquisition will be accretive and within the expected timeframe.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
, /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors approved a dividend increase from $1.40 to $1.56 per year. The next quarterly dividend of 39 cents per share will be paid on September 1, 2026, to shareholders of record as of close of business on August 15, 2026.
The company's quarterly dividend has grown at a 13% compounded annual growth rate since it was reinstated in 2006. This marks the 20th consecutive year of dividend increases. The company continues to expect, subject to board approval, an increasing dividend over time.
"This dividend increase reflects the Board of Directors' confidence in Kroger's operating performance, durable free cash flow generation, and commitment to deliver long-term value for shareholders," said Ron Sargent, Chairman of Kroger's Board of Directors.
Kroger remains committed to balanced capital allocation by investing in the business to drive sustainable growth, maintaining its current investment grade debt rating and returning capital to shareholders.
About Kroger
The Kroger Co. (NYSE: KR) is one of America's largest retailers, serving more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. With more than 400,000 associates across our family of companies, Kroger is committed to providing America with affordable, great-tasting food and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
This press release contains certain statements that constitute "forward-looking statements" about Kroger's financial position and the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "committed," "continue," "expect," and variations of such words and similar phrases. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as the following:
Kroger's ability to achieve sales, earnings, incremental FIFO operating profit, and adjusted free cash flow goals may be affected by: labor negotiations; potential work stoppages; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with Kroger; pricing and promotional activities of existing and new competitors, and the aggressiveness of that competition; Kroger's response to these actions; the state of the economy, including interest rates, the inflationary, disinflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment including wars and conflicts; unstable political situations and social unrest; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; supply constraints; diesel fuel costs related to Kroger's logistics operations; trends in consumer spending; the extent to which Kroger's customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; stock repurchases; changes in the regulatory environment in which Kroger operates, along with changes in federal policy and at state and federal regulatory agencies; Kroger's ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger's ability to negotiate modifications to multi-employer pension plans; our ability to attract and retain qualified individuals; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; the potential costs and risks associated with potential cyber-attacks or data security breaches; the potential costs and risks associated with new technologies, including artificial intelligence; the success of Kroger's future growth plans; the ability to execute our growth strategy and value creation model, including continued cost savings, growth of our alternative profit businesses, and our ability to better serve our customers and to generate customer loyalty and sustainable growth through Fresh, Our Brands, Personalization, and eCommerce; the outcome of litigation matters, including those relating to the terminated transaction with Albertsons Companies, Inc.; and the risks relating to or arising from our opioid litigation settlements, including the risk of litigation relating to persons, entities, or jurisdictions that do not participate in those settlements. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
Kroger v 1. čtvrtletí fiskálního roku 2026 zvýšil srovnatelné tržby bez paliva o 1 % a upravené tržby z e-commerce o 19 %. Jeho Our Brands získaly podíl a překonaly národní značky o 175 bazických bodů.
Key Takeaways Kroger's grocery engine remains steady, with identical sales excluding fuel up 1% in fiscal Q1.Adjusted e-commerce sales rose 19%, led by delivery and under-one-hour convenience orders.Kroger's Our Brands gained share and outpaced national brands by 175 basis points in Q1. The Kroger Co. (KR - Free Report) is being judged on more than store traffic. Its investment case now depends on whether grocery momentum, digital growth, retail media and private-label strength can offset cost and consumer pressures.
The latest results show that Kroger still has durable operating advantages. They also show why investors are likely to keep watching margins and sales acceleration closely.
Why KR’s Grocery Engine Still MattersKroger’s identical sales excluding fuel increased 1% in the first quarter of fiscal 2026. That growth came despite a 130-basis-point headwind tied to the Inflation Reduction Act and 64 basis points of pressure from egg deflation.
The company expects identical sales without fuel to rise 1-2% in fiscal 2026. That outlook points to steady progress in the core grocery business, but not a sharp acceleration.
Walmart Inc. (WMT - Free Report) remains a relevant comparison because grocery value and convenience are central to how consumers choose where to shop. Costco Wholesale Corporation (COST - Free Report) also matters in the sector context, as membership-based food retail keeps pressure on traditional grocers to defend traffic and value perception.
Image Source: Zacks Investment Research
How Kroger Is Expanding Beyond StoresKroger has built a broad omnichannel network that includes supermarkets, pharmacies, fuel centers and digital commerce platforms. As of Jan. 31, 2026, it operated 2,697 supermarkets, 2,250 pharmacies and 1,731 fuel centers.
The company offers pickup and delivery to substantially all customers. Store-based fulfillment, third-party delivery partnerships and automated capabilities are becoming more important as shoppers shift between in-store and online purchases.
KR’s Digital Business Is Becoming More ImportantAdjusted e-commerce sales grew 19% in the first quarter, led by delivery. Under-one-hour convenience orders represented roughly 50% of digital growth, showing how speed is becoming a larger part of Kroger’s customer proposition.
Kroger also reached a key milestone as e-commerce, including media, turned profitable. That matters because lower cost to serve, better store-based fulfillment and digital scale can help protect margins while the company continues investing in convenience.
Why Kroger’s Private Labels Stand OutKroger’s Our Brands portfolio gained share and outpaced national brands by 175 basis points in the first quarter. Momentum was supported by Simple Truth and Private Selection, with innovation helping the company sharpen its merchandising position.
Private label gives Kroger two advantages in a cautious spending environment. It helps customers manage affordability while giving the company more control over assortment, differentiation and margin flexibility.
What KR’s Ratings Say About the SetupThe bottom line is that Kroger has useful operating levers, but the setup is not without near-term friction. Digital profitability, private-label gains and grocery traffic trends support the bull case, while pharmacy pressure, diesel-related transportation costs and cautious consumers keep the story balanced.
The stock currently carries a Zacks Rank #3 (Hold). That rank fits a company with visible strengths but also execution questions as investors wait for clearer evidence of stronger sales momentum and margin stabilization. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger’s Value Score of A and VGM Score of A support investor interest from a valuation and blended-style standpoint. Its Momentum Score of D is a reminder that timing remains less favorable, which may keep some investors on the sidelines until operating trends become cleaner.
Kroger Precision Marketing zvýšil zisk o více než 20 % díky vyšší návštěvnosti a zájmu inzerentů. E-commerce tržby vzrostly o 19 % a poprvé byly ziskové i s reklamou.
Key Takeaways KR is tied to food retail shifts as investors watch digital demand, value trends and margin pressure.Kroger Precision Marketing profit rose over 20%, aided by traffic and advertiser commitments.Our Brands gained share, while e-commerce sales rose 19% and turned profitable with media. The Kroger Co. (KR - Free Report) is increasingly a window into the forces reshaping food retail. Investors are watching more than identical sales as grocery operators adapt to digital demand, value-seeking shoppers and margin pressure.
Kroger’s scale, loyalty data, private-label reach and omnichannel model give it several structural levers. The question is whether those trends can translate into cleaner earnings momentum.
Why Kroger Is Leaning Into Retail MediaKroger Precision Marketing remains one of KR’s clearest high-margin growth drivers. Profit from the business grew more than 20% in the first quarter of fiscal 2026, supported by stronger on-site traffic and increased advertiser commitments.
The appeal is Kroger’s data advantage. Management noted that 95% of transactions are tied to a loyalty card, backed by more than 20 years of history. Partnerships with Google’s Display & Video 360 and TikTok, along with artificial intelligence tools for audience creation and budget allocation, widen the retail media opportunity.
Image Source: Zacks Investment Research
How KR Benefits From Trade-Down BehaviorA pressured consumer backdrop makes private label more important. Kroger’s Our Brands portfolio helps the company meet affordability needs without relying only on price cuts.
Our Brands was described as an approximately $39 billion business in fiscal 2025. In the first quarter of fiscal 2026, it gained share and outpaced national brands by 175 basis points, with Simple Truth and Private Selection showing momentum.
Why Kroger’s Digital Model Is EvolvingKroger’s digital growth is shifting toward faster and more practical convenience. Adjusted e-commerce sales increased 19% in the first quarter, led by delivery.
Under-one-hour convenience orders represented roughly 50% of digital growth. E-commerce, including media, also turned profitable for the first time, helped by store-based fulfillment, lower cost to serve and the closure of three fulfillment centers.
What KR Reveals About Margin PressuresKroger also shows that scale does not remove pressure from the grocery model. Gross margin was 22.7% in the first quarter of fiscal 2026, down from 23% a year earlier.
The decline reflected higher transportation costs, egg deflation, planned price investments and mix factors. Transportation alone created a 15-basis-point headwind, while pharmacy-related sales pressure included a 130-basis-point Inflation Reduction Act impact.
Walmart Inc. (WMT - Free Report) remains a key comparison because it competes across grocery, value and retail media. Target Corporation (TGT - Free Report) is also relevant as retailers use owned brands and advertising platforms to protect customer engagement and improve economics.
How KR’s Signals Fit These Industry ShiftsKroger’s emerging trends are attractive, but the investment case is not one-sided. Retail media, private label and profitable digital growth point to better long-term optionality, while transportation inflation, promotional investment and pharmacy sales drag keep near-term expectations measured.
The stock currently carries a Zacks Rank #3 (Hold). That rank suggests a balanced near-term outlook rather than a clear positive or negative earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KR has a Value Score of A and a VGM Score of A, indicating favorable valuation and combined style characteristics. Its Growth Score of B also supports the longer-term case, but the Momentum Score of D shows weaker price action. For now, the market still wants more proof that these industry shifts can lift stock performance.
Kroger oznámil růst tržeb o 1 %, zatímco zákazníci kvůli drahému benzínu a nižším dávkám SNAP více šetří. Divize e-commerce zároveň poprvé vykázala zisk.
Kroger’s revenues ticked up slightly last quarter as its shoppers felt increased financial strain.
“The customer is under pressure,” Greg Foran, chief executive of America’s largest traditional supermarket chain, said Thursday (June 18) as Kroger reported earnings showing revenues up 1%, compared to a 3.2% rise in the same quarter last year.
“High gas prices and reduced SNAP benefits are squeezing budgets,” Foran continued. “Customers are managing spend carefully and shopping with real intent. That pressure is showing up in the market.”
SNAP, he said later in the call, is impacted the most in three states in particular, a phenomenon that shows up in terms of the price of fuel impacting “when that price gets up to what it has.”
“I think we see that some of the basket sizes, some of the items that people buy tend to be traded down a bit. I think that helps probably with Our Brands and how we’re operating,” he added, referring to the company’s private label products.
Those brands outpaced national brands by 175 points during the quarter, said Foran, a Walmart vet who became CEO in February. The quarter also saw Kroger’s eCommerce business turn a profit, with revenues from that unit up 19% and attracting a record number of new households.
Advertisement: Scroll to Continue
Foran also noted that Kroger’s omnichannel customers — those who shop both online and in person — spend nearly two and a half times more than in store-only shoppers. And 95% of all transactions, he said, are tied to the company’s loyalty card.
The selective behavior Kroger is witnessing from its shoppers is in keeping with PYMNTS Intelligence research, which found that financially stressed consumers across generations continually cite grocery prices as a hardship.
Foran told Bloomberg News in May that the company was considering significant price reductions as it tries to reclaim market share from companies such as Walmart that have pushed into the traditional grocery space.
During Thursday’s call, the executive spoke of opportunities for Kroger to “sharpen” its pricing and “make value simpler” for its shoppers.
“Over time our promotions have gotten too complicated and our price position has not kept pace where it needed to,” Foran said.
“Let me be clear on what this means. We do not need to be the lowest price retailer. We need to be more competitive, more consistent and easier for customers to understand. When a customer is deciding where to shop, we want more of them.”
Meanwhile, rival grocery chain Aldi is spending $9 billion as it tries to compete with Kroger in the U.S. According to a Financial Times (FT) report Thursday, the German company plans to have 4,000 stores nationwide, giving it more locations than Kroger.
“We don’t know what the ceiling is,” Scott Patton, Aldi USA’s chief commercial officer, told the FT. “We’re trying to take market share from anyone who sells groceries.”
Shares of Kroger (KR +2.31%) sank on Thursday after the supermarket operator's earnings fell a bit short of investors' expectations.
Image source: Getty Images.
Q1 challenges Kroger's adjusted sales inched up 0.5% year over year to $46 billion in its fiscal first quarter, which ended on May 23.
Excluding fuel, the retailer's identical sales, which measure revenue at stores open for at least five full quarters, rose by 1%.
During a conference call with analysts, CEO Greg Foran said he's working to bring more consistency to the supermarket chain's operations.
"Today, the gap between our best stores and the rest of the fleet needs to improve," Foran said. "Closing it is one of our biggest near-term opportunities."
Today's Change
(
2.31
%) $
1.29
Current Price
$
57.05
Kroger's gross margin declined to 22.7% from 23% in the year-ago quarter, driven in part by higher shipping costs and price reductions. Higher labor costs further impacted the company's operating margin.
All told, Kroger's adjusted operating profit increased by less than 2% to $1.5 billion. Its adjusted earnings per share, boosted by stock buybacks, rose 6% to $1.58. That was slightly below Wall Street's estimates, which had called for per-share profits of $1.59.
Leadership is laser-focused on stripping out costs Still, Kroger said it's on track to achieve its full-year financial forecast. Management continues to expect an adjusted operating profit of roughly $5.1 billion and earnings per share of $5.10 to $5.30.
Foran noted that operating costs have been growing faster than Kroger's sales, a trend he intends to reverse.
"Taking costs out of this business is not optional," Foran said. "It's the starting point for everything else we want to do."
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
Kroger po výsledcích za 1. čtvrtletí klesl o více než 8 %, i když tržby i celoroční výhled splnily očekávání. Investoři čekají na detaily o investicích a úsporách nákladů.
Kroger Co (NYSE:KR, XETRA:KOG) shares closed more than 8% lower on Thursday after the grocery retailer reported first-quarter results that largely met expectations and reaffirmed its full-year outlook, while investors looked for greater clarity on planned investments and cost savings.
Jefferies analysts maintained a ‘Buy’ rating on the stock and a $74 price target, describing Kroger's strategy as becoming more defined under CEO Greg Foran.
"Kroger's Q1 results were in-line with expectations, with identical sales excluding fuel up 1% led by e-commerce, fresh products and private-label brands," the analysts wrote. They added that grocery volumes remained negative but improved relative to prior periods, while management indicated unit market share performance was the strongest in two to three years.
Jefferies wrote that fiscal 2026 is expected to be "an H2 story," with Kroger anticipating earnings growth to accelerate in the second half of the year as cost-saving initiatives and investments increase. Management expects second-quarter identical sales to be roughly in line with the first quarter and adjusted earnings per share to be flat year over year, while acknowledging continued pressure on consumers.
The analysts noted that cost savings in the quarter exceeded internal plans by about 30%, with opportunities identified across merchandise costs and non-resale expenses. E-commerce sales increased 19%, driven by delivery services, and Kroger's combined e-commerce and retail media business became profitable.
Jefferies wrote that Foran's strategy is centered on narrowing Kroger's price gap with competitors, simplifying promotions and fostering a faster-paced operating culture. Management has indicated that planned price and value investments will be fully funded by cost reductions and that savings are expected to exceed investments.
However, the company declined to quantify either the amount of expected savings or the scale of planned investments, instead directing investors to its Oct. 20 investor day for additional details.
"Importantly, management was explicit that the strategy is not about being the lowest-price retailer, rather, it's about being more competitive," Jefferies wrote, adding that Kroger is resisting supplier price increases while maintaining pricing discipline.
Despite reducing earnings estimates to account for ongoing consumer weakness, Jefferies wrote that accelerating market share gains, profitable e-commerce operations and a greater focus on execution support its positive view on the company.
Kroger's NYSE: KR share price is under pressure due to slowing growth, sluggish results relative to high-flying AI names, and an expected slowdown in buybacks. However, despite the headwinds, the fundamental forces remain bullish, and the stock price is at long-term lows. Look for the company, institutions, and analysts to signal a buy that soon shows up in the charts.
Technically, KR shares are testing critical support with long-term implications. The level represents a convergence of lesser targets, including previous lows and a long-term exponential moving average that has provided support numerous times.
Get Kroger alerts:
A sustained dip below this level is unlikely, as it would indicate a significant change in the fundamental outlook; more likely, the June price implosion triggers a robust market response, confirming support and the long-term uptrend.
Kroger Isn’t a Growth Investment: Kroger Is About Cash Flow and Capital ReturnBoiled down to its essence, Kroger is not so much a growth story as an inflation-resistant buy-and-hold story for long-term investors. Its attractions include a strong industry position, robust cash flow, and capital returns. Its industry position is that of a retailer focused on daily necessities and essentials like food, health and family care. Its benefits to investors include predictable cash flows, a healthy balance sheet, and the capacity for capital returns to increase over time.
Capital returns, specifically buybacks, are aggressive this year, the result of 2024's failed Albertsons NYSE: ACI bid, and are likely to slow in the upcoming year, remaining a driver for this market. The dividend is the base payment, yielding approximately 2.5% as of mid-year 2026, and the distribution is expected to grow. Kroger has increased its dividend for 19 years, is on track to be included in the Dividend Champions, and is unlikely to alter its trajectory without dire need.
Buybacks are the bonus. Accelerated in 2026 to utilize unneeded cash, which had been hoarded in anticipation of an acquisition, Kroger reduced its share count by an average of over 8% over the trailing 12 months. It is on track to exhaust a multi-billion-dollar authorization by year’s end. The question is what comes next, and an additional authorization is likely, albeit with a slower implied pace of share count reduction.
Kroger Analysts and Institutions Limit Downside RiskAnalysts and institutional trends highlight the quality of capital returns. MarketBeat tracks 17 analysts, high for such a mundane name, rating the stock as a consensus of Moderate Buy with a 53% Buy-side bias and no Sell rating logged.
Overall MarketRank™85th Percentile
Analyst RatingModerate Buy
Upside/Downside26.0% Upside
Short Interest LevelBearish
Dividend StrengthStrong
News Sentiment0.43 Insider TradingN/A
Proj. Earnings Growth6.86%
See Full Analysis
They forecast approximately 30% upside at consensus, up from last year and steady over the trailing three-month period. It is unlikely that the Q1 release will catalyze price target revisions, whether bullish or bearish. The more likely outcome is for targets to fall, but sentiment and outlook to remain otherwise positive.
Institutional trends also reflect bullish behavior, with them owning more than 80% of the stock and accumulating shares. Selling has intensified in recent months, but is offset by greater buying, underpinning support for this market. The likely outcome from this vector, given the low share price and technical setup, is that selling pressure dwindles while buying ramps up. Kroger provides value at its current levels relative to its long-term forecasts and competitors. Competitors trade at double the valuation, while long-term forecasts suggest the stock could double over time while maintaining the current valuation.
Kroger’s Mixed Results Were Priced Into the MarketKroger’s Q1 earnings release was mixed, providing reasons for caution but no impetus to shed shares. Revenue grew 2.2% to $46.12 billion, more than $500 million above expectations, but the margin was weak. The caveat is that margin contraction was minimal, leaving cash flow in solid shape. While lower than expected, the cash flow provides ample coverage of capital returns.
Looking ahead, guidance is also insufficient to catalyze a bullish market response but does not alter the capital return outlook. Near-term pressures will ease over time, enabling buybacks and distribution growth to do their work on the share price.
Kroger’s biggest risk this year is capital-intensive store updates. The company is rolling out nationwide digital shelf labels and supply chain enhancements expected to pay off over time. The risk is that they don’t translate into improved revenue or profits as quickly as hoped, and drag on results moving forward. Catalysts include systemwide price reductions intended to improve competitiveness and private label. The near-term headwind is margin pressure, but market share gains and private label strength will offset it over time.
Should You Invest $1,000 in Kroger Right Now?Before you consider Kroger, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kroger wasn't on the list.
While Kroger currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
