A union health plan attached to a grocery stocking job is quietly worth far more than the hourly wage suggests, and for someone four years away from Medicare, that gap changes the entire retirement math.
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A 61-year-old with some savings and no employer coverage is considering an overnight stocking job at Kroger (NYSE:KR | KR Price Prediction) that pays $17 an hour. The wage looks thin for someone late in a career, but the attached union health plan is worth about $1,300 a month and would bridge the four years until Medicare starts at 65. Many workers in their early 60s face the same trade: taking a lower-paying job mainly for the benefits.
The worry behind it comes up again and again. One caller to The Clark Howard Podcast asked how to leave work early “and not use up all my retirement savings on health insurance.” For someone at 61, that question determines whether the night shift makes sense.
A $17 Job That Pays Closer to $24.50 an Hour If you work full-time hours at $17, that’s about $35,360 a year. The health plan adds about $15,600 a year. Federal law treats that coverage differently from wages. Under 26 U.S.C. § 106(a), employer-provided health coverage is excluded from an employee’s gross income, and 26 U.S.C. § 3121(a)(2) keeps employer payments for medical expenses out of payroll-tax wages.
Add the two together, and the job is worth about $24.50 an hour. That is still well under the private-sector average of $37.81. Still, the benefit portion is tax-free, so matching it with after-tax dollars would take more than $15,600 of gross income. With Medicare 48 months away, the plan is worth about $62,400.
Health Coverage Before 65 Decides This Choice Individual marketplace premiums rise with age, so a 61-year-old buying coverage pays close to what most people do. Enhanced premium tax credits that cut costs for most Affordable Care Act enrollees have expired, shifting more of that cost onto buyers, all while prices also keep rising. The research inflation index tracking those 62 and up, which places extra weight on housing and medical care, rose 0.5% in its latest monthly reading.
Once Medicare starts, the numbers look very different. The standard Part B premium is $202.90 a month in 2026, with a $283 annual deductible. The Part A hospital deductible is $1,736. The plan’s value is concentrated in the gap from 61 to 65, and that gap drives the decision.
Path One: Take the Shift and Leave Savings Untouched For most people in this position, this path comes out ahead. The paycheck covers part of living costs, the union plan covers the largest pre-Medicare expense, and the portfolio is left alone to keep growing. Social Security also grows for every year it is delayed.
Taking Social Security early while working this job doesn’t hold up. Under full retirement age, the 2026 earnings limit is $24,480, rising to $25,560 in 2027. Full-time pay at $17 is above both limits, so part of any early benefit would be withheld. Some people want to take early because of trust fund headlines. The trustees project the combined funds can pay full benefits until 2034 and 83% after that. That timeline doesn’t change the earnings-test math.
Path Two: Retire Now and Pay for Coverage Yourself This works mainly for families with large portfolios, where coverage costs are a minor line item. For a typical saver, the math is harder. Baby boomers report median family retirement savings of $270,000. Four years of coverage at the plan’s stated value would use up about 23% of that before deductibles or a single other withdrawal.
Overnight work also takes a physical toll. A worker with health conditions that make a stocking shift hard to keep up may get more from a daytime role with benefits, even at lower pay, than from leaving work entirely.
Three Details to Confirm Before the First Shift Plan eligibility rules. Union health plans often require minimum weekly hours and a waiting period before coverage starts. If coverage starts months after hire, the four-year value shrinks, and you need separate coverage for the gap. Medicare timing at 65. Enrollment opens three months before the 65th birthday month, and late signups can bring “permanent” price increases on some Medicare costs, as one October 2026 episode of the Clark Howard podcast noted. Anyone planning to stay on the union plan past 65 should confirm how the plan coordinates with Medicare. Social Security taking age. With earnings above the earnings-test limit, delaying benefits at least to full retirement age avoids withholding and locks in a larger monthly check for life. First, check when coverage begins and how many hours it requires. Many people mistakenly judge the offer by the $17 wage alone. When you factor in total compensation, the job looks much better than the hourly rate suggests.
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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.
Nearly a year and a half after Kroger announced sweeping reductions to its national store footprint, the grocery giant has largely made good on its promise, a Fast Company review has found.
In the latest trading session, Kroger (KR - Free Report) closed at $64.13, marking a +1.83% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
Heading into today, shares of the supermarket chain had gained 7.55% over the past month, outpacing the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.
The upcoming earnings release of Kroger will be of great interest to investors. The company is predicted to post an EPS of $1.16, indicating a 10.48% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $34.57 billion, showing a 2.1% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.19 per share and revenue of $150.77 billion. These totals would mark changes of +7.01% and +2.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Kroger. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. Kroger currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kroger has a Forward P/E ratio of 12.13 right now. This represents a discount compared to its industry average Forward P/E of 14.64.
It's also important to note that KR currently trades at a PEG ratio of 1.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 7% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Albertsons Is Betting on a Turnaround—But Will It Pay Off?Kroger NYSE: KR outlined a new long-term strategy at its 2026 investor update, targeting higher sales and earnings growth through customer value investments, digital expansion, operational modernization and a stepped-up new-store development program.
Chief Executive Officer Greg Foran said the company’s ambition is to become “America’s favorite grocer” by improving store execution, simplifying promotions, expanding e-commerce and reducing costs. He said Kroger had identified shortcomings in recent performance, including inconsistent store experiences, costs rising faster than sales, a value proposition that did not keep pace and capital investments that fell short of expected returns.
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The Grocery Shelf Battle Is Changing—Who Comes Out Ahead?“We lost share. We own that,” Foran said. “The good news is that Kroger can address these issues.”
New financial framework
Kroger set financial targets for fiscal 2027 through 2029, including approximately 3% comparable sales growth in 2029, excluding fuel and pharmacy. The company also targeted adjusted EBITDA compound annual growth of 3% to 6% and adjusted net earnings per share growth of 7% to 11% over the 2027-2029 period.
The September Scramble: Find Sanctuary in These 3 Defensive Dividend StocksChief Financial Officer David Kennerley said the company expects performance to build over time, with adjusted EBITDA growth in 2027 below the three-year target range before accelerating in later years. Kroger will begin reporting comparable sales excluding fuel and pharmacy in fiscal 2027, while also including sales from relocations and major store remodels in that metric.
Kennerley said the revised EPS target represents a higher ambition than Kroger’s previous total shareholder return framework because the new target measures earnings growth before dividend payments.
Value investments and store expansion
Kroger plans to invest $5 billion in customer value by 2029, funded through cost savings and a reduction in lower-return, complex promotions. Mary Ellen Adcock, Kroger’s executive vice president and chief merchandising and marketing officer, said the retailer will shift some promotional spending into lower everyday prices, while retaining promotions that customers find valuable.
The company said its promotions had become too complex, with shoppers sometimes facing multiple price points and purchase requirements. Kroger is testing simpler signage, more visible everyday pricing and streamlined offers across stores and online.
According to Adcock, stores that had operated under the value strategy for one year generated top-line sales growth 230 basis points above the enterprise while gaining dollar and unit share. Kroger expects to have value investments in about 250 stores by the end of the current year and add approximately 450 more stores in the following year.
The company also plans to open about 110 new stores by 2029 and expects approximately $7 billion in annualized incremental sales at maturity from those locations. Kennerley said the stores are expected to generate four-wall EBITDA margins of 6% to 7% at maturity. The company plans three store formats, ranging from approximately 50,000 to 99,000 square feet, with more space devoted to fresh food, meal solutions and e-commerce fulfillment.
Grow penetration of Kroger’s Our Brands products from 35% to 40%.
Introduce more than 100 meal offerings over the next year.
Expand Smart Way with 1,000 items over the next three years.
Target more than 15% annual growth through 2029 for the Private Selection brand.
Digital growth and retail media
Chief eCommerce Officer Nate Faust said Kroger’s $18 billion e-commerce business could ultimately represent 30% of the company’s business. The retailer plans to increase online adoption among existing shoppers, noting that only one in seven Kroger store customers currently shops online with the company.
Kroger aims to make its digital experience “fresh, fast, and personal,” Faust said, supported by its approximately 2,700-store network and loyalty data. The company said 60% of store-based delivery orders were delivered in less than two hours in the second quarter, including 23% delivered in less than one hour. Express delivery grew more than 50% during the quarter.
The company expects to generate an additional $500 million of e-commerce EBITDA by 2029, excluding retail media. Kroger is also expanding its Kroger Precision Marketing business, using loyalty data tied to approximately 95% of sales to help advertisers target and measure campaigns.
Faust said repeat users of Kroger’s AI-powered Shopping Assistant spend 11% more, driven by more frequent trips. The tool is available across all company banners.
Cost savings, technology and capital allocation
Kroger expects approximately $4 billion in annualized structural cost savings by 2029. The savings plan includes direct sourcing, improved procurement, lower indirect spending and a new Kroger Capability Center in Bengaluru, India, which will centralize and automate certain above-store work. Kennerley said the new operating model is expected to affect roughly 3,000 associates who perform above-store roles.
The company plans to increase direct sourcing to more than 10% of purchases from less than 1% currently. Kroger cited an example of importing grapes directly from Peruvian growers, with about 40% of imported grape volume for the November 2026 season secured directly from growers.
Operations Chief Mark Ibbotson said Kroger is deploying digital shelf labels, RFID, robotics and artificial intelligence to improve availability, reduce waste and simplify store work. The company has installed more than 36 million digital shelf labels across 1,100 stores and expects to expand them to more than 2,400 stores by 2029. It also expects to increase its robot fleet from about 900 units to more than 2,100.
Kroger is targeting approximately $500 million in waste-reduction savings by 2029. In bakery RFID pilots, the company said it observed inventory counts nearly 70% faster, waste roughly 50% lower, sales lift of about 200 basis points and category share gains of nearly 50 basis points.
For capital allocation, Kroger expects capital expenditures to reach approximately $5 billion in 2029, primarily supporting new stores, e-commerce, retail media and supply-chain automation. The company said it intends to maintain an investment-grade credit rating and target a combined dividend and share repurchase yield of 5% to 6%, subject to board approval.
Kennerley also said Kroger’s planned acquisition of Giant Eagle remains on track to close in 2027, subject to regulatory approval, and is expected to be accretive to adjusted diluted EPS in the second full year following closing, excluding one-time transaction and integration costs.
About Kroger (NYSE:KR)The Kroger Co is a U.S. food and grocery retailer headquartered in Cincinnati, Ohio. Founded by Bernard Kroger in 1883, the company operates supermarkets under banners that include Kroger, Ralphs, Fred Meyer, King Soopers, Fry's, Harris Teeter and Smith's, among others.
Kroger's business includes the sale of fresh food, groceries, general merchandise, household products and health and beauty items. Many of its stores also provide pharmacy services and fuel centers. The company offers digital shopping, pickup and delivery services, loyalty programs and a range of private-label products, including Simple Truth, Private Selection and Kroger-branded products.
Kroger primarily serves customers across the United States, with stores concentrated in the Midwest, South, West and parts of the Mid-Atlantic region.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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The Kroger Co. (KR) Analyst/Investor Day October 20, 2026 9:00 AM EDT
Company Participants
Rob Quast - Vice President of Investor Relations
Gregory Foran - CEO & Director
Mary Adcock - Executive VP and Chief Merchant & Marketing Officer
Nate Faust - Executive VP & Chief eCommerce Officer
David John Kennerley - Executive VP & CFO
Mark Ibbotson - Executive VP & Chief Store Operations Officer
Conference Call Participants
Robert Ohmes - BofA Securities, Research Division
Jacob Aiken-Phillips - Melius Research LLC
John Heinbockel - Guggenheim Securities, LLC, Research Division
Simeon Gutman - Morgan Stanley, Research Division
Michael Lasser - UBS Investment Bank, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
Edward Kelly - Wells Fargo Securities, LLC, Research Division
Krisztina Katai - Deutsche Bank AG, Research Division
Joseph Feldman - Telsey Advisory Group LLC
Kelly Bania - BMO Capital Markets Equity Research
Presentation
Rob Quast
Vice President of Investor Relations
Good morning, everyone, and welcome to Kroger's 2026 Investor Update. I'm Rob Quast, Vice President of Investor Relations. It's great to be together here in New York and see so many familiar faces, while also welcoming those that are new. I'd also like to welcome everyone joining through the webcast. Thank you for taking the time to be with us.
Today, you'll hear directly from our leadership team about how we are building America's favorite grocer and how we're achieving that ambition with a clear set of priorities and a stronger financial framework. We're excited about Kroger's future. We believe we have the right strategy, the right team and a clear path to create meaningful and sustainable value for our shareholders.
Our presentations will begin with our CEO, Greg Foran, who will outline Kroger's strategy and path forward. Our leadership team will then take you through our priorities for driving profitable growth, delivering value and modernizing operations. And finally, our CFO, David Kennerley, brings it all together
Maia Wealth LLC raised its stake in The Kroger Co. (NYSE: KR) by 36.4% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 40,048 shares of the company's stock after acquiring an additional 10,686 shares during the period. Maia Wealth LLC's holdings
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 (KR.N) said it would focus on its core grocery business under CEO Greg Foran's first plan shared with investors on Tuesday, as the company tries to claw back ground from bigger rivals amid weak consumer spending.
Here are some details:
The grocer will invest in fresh foods, prepared meals, private-label products and its membership program, it said in a statement ahead of its investor day
Kroger said it will save costs by sourcing directly, while using technology and AI to simplify operations
Kroger plans to cut about a third of its corporate roles over the next three years by using AI to reduce duplicative work, CEO Foran had said in a memo earlier this month
Mid-tier grocers such as Kroger and Albertsons (ACI.N) face intense competition as rivals such as Walmart (WMT.O) cut prices to drive traffic, while discount retailers such as Aldi rely on cheaper pantry staples to draw in shoppers
The company said on Tuesday it would target growth in e-commerce and retail media for higher-margin revenue options
Kroger expects about 3% core comparable sales growth in 2029
Shares of the company were up about 2% in premarket trading
The grocery retailer cut its annual identical sales forecast in September but stuck to profit targets, banking on cost controls to cushion the hit from weak sales and high input costs
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).
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Retailer expects to sell 25 million pounds of Halloween candy this season
, /PRNewswire/ -- Halloween is one of America's most anticipated celebrations, and candy is at the center of it. This year, The Kroger Co. (NYSE: KR), America's grocer, expects to sell 25 million pounds of Halloween candy.
Those sales will be made up of millions of pounds of chocolate, including nine million bags of fun-sized chocolate treats. If placed end-to-end, these bags would stretch 1,400 miles, the distance from Cincinnati to Salt Lake City.
Kroger's Halloween assortment features everything from classic chocolate favorites and gummy treats to candy corn and limited-time offerings that trick-or-treaters of all ages will love.
"Halloween is one of the most fun times of year for families and communities, and candy plays an important role," said Mike Murphy, group vice president for center store and merchandising at Kroger. "We want every customer to find what they are looking for, whether it's a full candy bowl for neighborhood kids, the perfect treat for a classroom party or a seasonal favorite."
Halloween is a season
Customers are embracing Halloween earlier and more enthusiastically than ever:
57% of U.S. adults say they celebrate Halloween for a full season instead of just one day
More than one-quarter of shoppers purchased Halloween treats before October
92% of U.S. adults celebrate Halloween some or all years
Candy is still the star
When it comes to Halloween traditions, U.S. consumers overwhelmingly choose treats:
84% plan to hand out candy to trick-or-treaters
Among those handing out candy, 73% choose mini or fun-size treats
The great candy corn debate
Few Halloween traditions inspire stronger opinions than candy corn. Among customers who eat candy corn:
60% eat it in a single bite
28% start with the white end
12% begin with the yellow end
No matter what customers want, Kroger's full assortment is available in stores and online at Kroger.com.
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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On October 14, 2026, The Kroger Co KR shares rose 3.9% today, bringing the stock price to $63.09. Over the past year, KR has traded within a range of $54.15 to $76.58, demonstrating some volatility in the market. The recent uptick in price reflects a positive sentiment among investors after a year of decline.
GF Value™ verdict: KR is currently priced at $63.09, which is 7.8% below the GF Value™ estimate of $68.45.GF Score™: KR has a score of 79/100, indicating it is above average in terms of overall quality and performance.Most notable signal: Over the past 12 months, insiders have sold $6.2M worth of shares, with no buying activity reported.Is KR Overvalued or Undervalued?The current price of $63.09 for The Kroger Co KR indicates that the stock is undervalued relative to its GF Value™ estimate of $68.45, suggesting a margin of safety of 7.8%. The GF Value™ is GuruFocus' proprietary estimate that assesses a stock's intrinsic value based on historical trading multiples, past business growth, and anticipated future performance. This indicates that KR could present an opportunity for investors looking for value in the grocery retail sector, particularly as it is trading below its estimated fair value.
However, while the undervaluation presents an opportunity, potential investors should also consider the overall market conditions and the company's performance over the past year, which has resulted in a decline of 6.7%. The GF Valuation label currently indicates that KR is fairly valued, emphasizing the importance of conducting further analysis before making investment decisions.
How Does KR's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)34.1x18.1xForward P/E11.5xN/AThe current P/E ratio of 34.1x is significantly above the 5-year median P/E of 18.1x, indicating that KR is trading at a premium compared to its historical valuation. This P/E analysis aligns with the GF Value™ verdict that suggests the stock is undervalued, as a high P/E ratio typically signifies an overvalued stock, yet the GF Value™ indicates a lower intrinsic value than the current price. The forward P/E of 11.5x provides a more favorable outlook, suggesting that earnings may improve in the future.
What Does KR's GF Score™ Tell Us?The GF Score™ assesses a company's performance across several key dimensions, including financial strength, profitability, growth, valuation, and momentum. KR’s score of 79/100 reflects solid performance, particularly in valuation where it scored 9/10, indicating relative attractiveness compared to its peers.
MetricRatingGF Score™79/100Financial Strength6/10Profitability7/10Growth5/10Valuation9/10Momentum6/10KR's strongest area is its valuation rank, which suggests it is relatively undervalued compared to its historical performance as well as its peers. However, the growth rank of 5/10 indicates that there may be concerns regarding the company's future growth prospects. The financial strength score of 6/10 suggests a moderate level of stability, while the profitability and momentum ranks of 7/10 and 6/10, respectively, indicate solid but not exceptional performance.
What Are Gurus and Insiders Doing with KR?Currently, 10 gurus hold shares of KR, with 5 increasing their positions and 7 trimming their holdings in recent quarters. This mixed activity indicates a cautious sentiment among institutional investors, which can be a significant signal to potential investors. Guru ownership suggests that there is still confidence in the company's prospects, but the trimming by several gurus may reflect some concerns.
Additionally, insider activity shows that insiders have sold $6.2M worth of shares over the past year, without any buying activity. This pattern may raise some caution, as it can indicate that insiders do not anticipate significant short-term price appreciation or may be looking to diversify their holdings. However, it’s essential to interpret this alongside the overall market context and company performance.
What This Means for InvestorsIn conclusion, The Kroger Co KR is currently undervalued based on the GF Value™ assessment, which indicates a potential opportunity for long-term investors. However, the recent insider selling and mixed guru activity may suggest caution. Potential investors should weigh the dividend sustainability, market conditions, and the company's overall performance before making any decisions. For more detailed insights, visit the The Kroger Co (KR) stock page.
Frequently Asked QuestionsWhat is KR's GF Score™?
KR has a GF Score™ of 79/100, indicating that it is above average in terms of quality and performance relative to its peers.
Is KR overvalued or undervalued?
KR is currently undervalued, with a GF Value™ of $68.45 compared to its current price of $63.09, reflecting a potential upside of 7.8%.
What is KR's P/E ratio?
The P/E ratio of KR is 34.1x, which is significantly above its 5-year median of 18.1x, indicating that the stock may be trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
A sweet treat can turn a bad day around and make a good one great.
Since today (Wednesday, October 14, 2026) is National Dessert Day, it’s the perfect time to celebrate cakes, ice cream, donuts, cookies, and more.
Before looking at the sugar rush of deals that you can score today, let’s take a look at the history of a classic dessert, the chocolate chip cookie:
A brief history of the chocolate chip cookieIn the grand scheme of desserts, chocolate chip cookies are fairly modern inventions.
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Many sources attribute the invention of the chocolate chip cookie to Ruth Wakefield. According to the “Gastropod” podcast hosted by Cynthia Graber and Nicola Twilley, this is inaccurate.
One of the expert guests on the podcast, pastry chef and author Stella Parks, told the hosts that she found a 1928 newspaper article with a chocolate chip recipe that predated Wakefield’s version. The yummy cookies were also found in supermarkets before Wakefield got involved.
Despite probably not inventing the classic dessert, per se, Wakefield did help popularize it for the masses.
Kroger Co. plans to cut more than a third of its corporate workforce in the next three years under new CEO Greg Foran, according to an internal memo obtained by Fast Company. Foran joined the grocery giant in February to succeed interim CEO Ron Sargent.
The Cincinnati company’s corporate workforce is around 8,200 people, which means nearly 3,000 roles will be cut. The layoffs will only impact corporate roles, not store or distribution jobs.
“Simplifying means making faster decisions and deploying more resources where they matter most,” Foran wrote in the memo. “Our company has more layers, more handoffs and more overhead than we need.”
“We have the opportunity to make changes that will create broader roles and faster decision making,” Foran wrote. “This lets us move vital resources closer to the customer to lower prices, invest in our associates and create a better shopping experience.”
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Foran also said in the memo that the company “must adapt and take advantage of technology.”
Grocery costs have soaredWhile the memo does not specify artificial intelligence as the technology, Kroger published an AI strategy plan in September, saying it will start using AI models to manage workflows and customer data, and kick off an AI literacy training program for employees.
Foran has pushed to implement price cuts across Kroger products as the company, which also operates the Fred Meyer and Ralphs grocery store chains, has been trying to compete with Walmart and Costco prices.
Kroger just announced sweeping corporate layoffs, and the company is pointing directly at AI as the reason. The question now is whether this marks a turning point for white-collar work across every major American industry.
Kroger (NYSE: KR | KR Price Prediction), the century-old grocery giant, will cut 37% of its corporate workforce as it battles the headwinds of high energy prices, rising costs of certain foods, and the success of rival Walmart (NYSE: WMT). CEO Greg Foran told employees, “Simplifying means making faster decisions and deploying more resources where they matter most.” He said AI is making management work “more efficient,” Bloomberg noted. The layoffs will affect about 3,000 workers.
Two competing theories shape what AI will do to the future of American jobs (and those worldwide). The first is that it will increase humans’ ability to do more high-level tasks, and as these become more successful, more people will be needed to extend that success. This view is usually considered a minority view.
Bill Gates recently summarized the second viewpoint. In an essay published last month, he wrote, “Many jobs will disappear forever.” He argues that any other outcome is impossible. AI will become exponentially more efficient at doing what most humans do at work. As AI works its way into the workforce, corporate management will have easy decisions to make as it stretches to increase profits and competitiveness.
The breadth of AI layoffs will affect millions of American jobs, according to those who expect AI’s growing skills and sophistication to drive job loss. Goldman Sachs recently published a report titled, “How Will AI Affect the Global Workforce?” It read, “Occupations with higher risk of being displaced by AI include computer programmers, accountants and auditors, legal and administrative assistants, and customer service representatives.” McKinsey says that, due to AI, “11 million people will need to transition to new jobs.” Its researchers added, “One in seven workers could have a direct pathway into growing jobs, but almost half may face an unpaved pathway.”
The Kroger layoffs are essentially driven by efficiency at the middle-management level. There are strong arguments that AI can do entry-level management jobs at banks and other financial institutions more efficiently. If so, it means a brutal future for white-collar employment.
What may lead to large, future job cuts at Kroger and America’s other largest retailers, drugstore chains, and fast-food businesses is that millions of jobs running stores, handling inventory, and managing checkout can be automated.
Kroger’s layoffs are another example that AI can do some jobs better than people.
Contact [email protected] for any questions or corrections.
Kroger (KR - Free Report) closed the most recent trading day at $62.56, moving +1.49% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
Coming into today, shares of the supermarket chain had gained 5.39% in the past month. In that same time, the Retail-Wholesale sector gained 1.66%, while the S&P 500 gained 2.36%.
The investment community will be closely monitoring the performance of Kroger in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.16, marking a 10.48% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $34.57 billion, reflecting a 2.1% rise from the equivalent quarter last year.
KR's full-year Zacks Consensus Estimates are calling for earnings of $5.19 per share and revenue of $150.77 billion. These results would represent year-over-year changes of +7.01% and +2.12%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. Right now, Kroger possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Kroger currently has a Forward P/E ratio of 11.87. Its industry sports an average Forward P/E of 13.69, so one might conclude that Kroger is trading at a discount comparatively.
One should further note that KR currently holds a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Kroger (KR.N) is planning to cut about a third of its corporate roles over the next three years as CEO Greg Foran moves to adopt AI into the grocer's workflow, Bloomberg News reported on Monday, citing a memo.
Kroger did not immediately respond to a Reuters request for comment.
Kroger should reduce duplicative work, and the company was increasingly using artificial intelligence to make its workflow more efficient, Foran said in the memo, according to the Bloomberg report.
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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
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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.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, shares that getting vaccinated is one of the most effective steps families can take to protect their health and the health of those around them. Kroger pharmacies make it easy to schedule a vaccine appointment alongside weekly errands.
Flu, COVID-19, RSV and other routine vaccines are available now at Kroger Family of Pharmacies, with walk-in and scheduled appointments available. Most patients with health insurance can receive vaccines at no out-of-pocket costs. Vaccine appointments can be scheduled at Kroger.com/vaccine.
Savings are automatically loaded to a customers' loyalty accounts at Kroger pharmacy locations.
"Kroger touches more than 11 million customers every day, giving us a real opportunity to protect our communities," said Bill Shinton, interim president of Kroger Health. "Scheduling a flu shot while customers are picking up groceries or filling a prescription is the kind of simple, accessible healthcare that makes a difference for our neighbors."
What to know this season
Leading medical organizations continue to recommend annual flu vaccination for anyone six months and older, as well as a COVID-19 vaccination for adults 18 and older. RSV vaccines are encouraged for adults 75 and older as well as for adults ages 50 to 74 with certain chronic conditions. Customers with questions about routine vaccine eligibility can speak with a Kroger pharmacist.
Flu, COVID and RSV vaccines can safely be administered during the same visit. Kroger pharmacists are available to answer questions and help customers determine which vaccines are right for them.
Convenient care across the country
Kroger operates more than 2,200 pharmacies across 35 states with nearly 200 The Little Clinic locations. Customers can schedule vaccine appointments at Kroger.com/vaccine or visit their local Kroger Family of Pharmacies.
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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
Key Takeaways Kroger's 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 Precision Marketing profit increased 24%. The Kroger Co. (KR - Free Report) exited the second quarter with a widening gap between digital momentum and core sales growth. Adjusted e-commerce sales rose 20%, but identical sales excluding fuel increased only 0.2%.
That contrast now defines the fiscal 2026 setup. Kroger’s digital, retail-media and private-label businesses are improving the profit mix, while a lower comparable-sales outlook and persistent cost pressure keep the top-line picture restrained.
Kroger’s Q2 Beat Came With a Sales WarningSecond-quarter fiscal 2026 adjusted earnings rose 4.8% year over year to $1.09 per share, beating the Zacks Consensus Estimate of $1.05. Cost savings, stronger pharmacy and fuel performance, and better e-commerce profitability supported earnings.
Total sales increased 2% to $34.62 billion but missed the consensus mark of $34.69 billion. Identical sales excluding fuel rose 0.2%, and Kroger cut its fiscal 2026 identical-sales outlook to 0.2%-0.8% from 1%-2%. Adjusted earnings guidance remained $5.10-$5.30 per share.
Image Source: Zacks Investment Research
KR’s Digital Business Keeps ScalingAdjusted e-commerce sales advanced 20% in the quarter, following 19% growth in the first quarter. New digital customers also increased 20%, while pickup perfect-order performance reached a record level and delivery orders completed in less than an hour continued to grow.
Kroger also delivered a second consecutive quarter of profitable e-commerce growth when combined with retail media. The company is emphasizing faster, store-based fulfillment as it works to reduce the cost to serve and improve reliability across digital grocery.
Kroger’s Media and Brands Support Profit MixKroger Precision Marketing profit increased 24%, its best growth rate since 2021, while media monetization improved 88 basis points. First-party customer data covering 63 million households gives the business scale to support personalization and advertising activity.
Our Brands added another source of support. Sales outpaced national brands, penetration increased about 50 basis points and Private Selection sales rose more than 14%. Walmart Inc. (WMT - Free Report) , meanwhile, reported 24% Walmart U.S. e-commerce growth in its fiscal 2027 second quarter, showing how digital convenience remains a major competitive battleground in grocery retail.
KR Still Faces Pharmacy and Logistics HeadwindsKroger’s 0.2% identical-sales growth excluding fuel absorbed about 265 basis points of combined pressure. The Inflation Reduction Act accounted for roughly 140 basis points, the shift from branded to generic prescriptions about 60 basis points, Cyclospora about 35 basis points and egg deflation about 30 basis points.
Higher shrink, transportation expenses, healthcare costs and customer-value investments also pressured results. Costco Wholesale Corporation (COST - Free Report) reported 7.2% adjusted U.S. comparable-sales growth and 19.8% adjusted digitally enabled growth in its fiscal fourth quarter, highlighting the competitive standard Kroger faces as rivals combine store traffic with digital expansion.
Kroger’s Signals Frame the Post-Earnings SetupDigital growth is improving Kroger’s business mix, but the softer fiscal 2026 sales view means those gains still need to translate into broader sales productivity. Continued e-commerce profitability, media expansion and private-label momentum provide offsets, while pharmacy and logistics pressures remain important constraints.
KR currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of D. The Style Scores point to favorable value and growth characteristics but weaker momentum, while the Zacks Rank indicates a more neutral near-term earnings-revision backdrop. That combination keeps the focus on execution rather than digital growth alone. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK--(BUSINESS WIRE)--Kroger, Vidmob, and MMA Global today announced the findings of a new industry study demonstrating that predictive creative scoring can accurately forecast e-commerce purchase conversion before media is activated, giving marketers a repeatable framework for connecting creative decisions to business outcomes.The study analyzed 1,934 video and image assets from Kroger campaigns across Meta and DV360, identifying the creative attributes most strongly linked to e-commerce c.
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.
, /PRNewswire/ -- The Kroger Co. (NYSE:KR) announced today that Colleen Lindholz, president of Kroger Health, will retire after more than three decades with the company.
Colleen Lindholz Colleen joined Kroger as a pharmacist in the Cincinnati-Dayton division in 1995. From there, she held several pharmacy roles in the division, including manager, coordinator, sales promoter, recruiter and merchandiser. Colleen was promoted to director of Pharmacy Sales and Marketing in 2013 and President and CEO of the Little Clinic in 2015. Colleen was named president of Kroger Health in 2017. During her time at Kroger, Colleen has been credited as the architect of the company's Food as Medicine strategy as well as creating the Nourishing Change movement.
"Colleen is truly passionate about improving the health of communities across America," said Mary Ellen Adcock, Kroger's Chief Marketing and Merchandising Officer. "Throughout her career, she championed ways to help families live healthier lives by eating better-for-them foods. We appreciate her contributions to Kroger throughout her career and wish Colleen and her family well in this next chapter."
Colleen is the recipient of Kroger's Chairman's Award, Kroger Leadership Award and Progressive Grocer's Top Women in Grocery Rising Star Award. Colleen was recognized as one of the "Most Inspirational Female Leaders of the Year" in 2018 by the Break the Ceiling Women in Leadership Summit. In 2020, Colleen was named one of the "Most Influential Women in Retailing" by Mass Market Research. She was also recognized as one of Modern Healthcare's top women leaders in 2023 and an MMR Influential Woman in 2024 and 2025. Under her leadership, Kroger Health was named the 2022 Mass Market Retailer's Retailer of the Year and Kroger Family of Pharmacies were recognized as a Forbes Best Customer Service Company.
Colleen was the Chair of the National Association of Chain Drug Stores (NACDS) and is the Executive Chair of AHA's Heart Mini. She also serves as the Chair of the Easterseals Redwood Board of Directors of Greater Cincinnati.
Colleen earned a bachelor's degree in pharmacy from the University of Cincinnati.
Kroger's yield triples Walmart's, but a fatter dividend check at the start can mask a fragile payout years down the road. One of these grocery giants is built to keep raising through recessions, margin squeezes, and shifting consumer habits, and…
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For a retirement portfolio looking for a grocery-aisle dividend, the choice comes down to Walmart (NYSE:WMT | WMT Price Prediction) or Kroger (NYSE:KR): which check is actually built to keep arriving, and keep growing, for the next 20 years? Both feed the same American shopper, but they are structurally different businesses. Walmart is a global scale retailer with a swelling advertising and membership stream. Kroger is a pure-play supermarket operator running on razor-thin grocery margins. That distinction drives everything about payout durability.
Yield and Payout Coverage The headline yield goes to Kroger. Shares trade at $59.18 with a dividend yield of 2.46%, roughly triple Walmart’s 0.88% yield at a $109.77 share price.
Coverage, however, favors Walmart. In fiscal 2026 Walmart generated $41.57 billion in operating cash flow against a $7.51 billion dividend payout, alongside $26.64 billion in capex. Kroger produced $7.21 billion in operating cash flow, but had to fund $3.86 billion of capex before covering an $885 million dividend. Kroger is covered, but the free cash cushion after reinvestment is far thinner. Winner: Walmart, because coverage, not headline yield, is what pays retirees in year 15.
Dividend Growth Record and Path Forward Walmart is a Dividend King that has raised annually for decades, most recently lifting the FY27 annual dividend to $0.99 per share from $0.94. The verified quarterly cadence has stepped from $0.2075 in 2024 to $0.235 in 2025 to $0.2475 in 2026, following a 3-for-1 split.
Kroger’s growth cadence has actually accelerated. The quarterly payout went from $0.32 in 2025 to $0.35 in early 2026 to $0.39 in the second half of 2026, an 11% increase and what management calls its 20th consecutive annual raise. Two hikes inside one calendar year is aggressive, and PEG of 0.57 reflects modest expectations. But the forward path is fragile: FY26 identical sales guidance was cut to 0.2% to 0.8% from 1.0% to 2.0%. Walmart, by contrast, raised FY27 guidance to adjusted EPS of $2.80 to $2.87 on 4% to 5% constant-currency net sales growth. Winner: Walmart, on tenure and on the credibility of the growth engine funding future hikes.
Margin Structure and Balance Sheet Walmart dominates this dimension. Walmart’s operating margin runs 4.18% with ROE of 22.97% and net debt/EBITDA of 1.28. High-margin ad revenue is exploding: global advertising rose 38%, Walmart Connect 43%, and membership fee revenue 17%. That mix shift is the real story behind dividend durability.
Kroger operates on a 2.98% operating margin and a 0.73% profit margin, with gross margin slipping 10 bps to 22.4% on higher shrink and transportation costs. The balance sheet carries $24.68 billion in total debt against $5.93 billion of shareholder equity as of the latest annual filing. A thin-margin grocer with that leverage has minimal cushion when input costs jump. Winner: Walmart, decisively.
Verdict: Which Dividend Wins Walmart is the better retirement income holding. The starting yield is small, but the payout is covered several times over by operating cash flow, growth in the underlying business is accelerating, and the ad and membership flywheel adds margin dollars every quarter. Specific risk: valuation. At a trailing P/E of 40 and forward P/E of 38, any earnings stumble hits the stock hard.
For readers who want the deeper bench of decades-long dividend growers rather than just this head-to-head, we ranked ten of them by valuation in a free Dividend Kings report.
Kroger still suits a different reader: the higher-yield income investor who wants a supermarket dividend today, accepts single-digit growth, and can tolerate operational drag. Specific risk: identical sales momentum has decelerated sharply, and ongoing Albertsons merger and opioid litigation keep pressure on free cash flow that also pays the dividend. Shares are down 7.4% over the past year while Walmart is up 7.97%, and that gap reflects exactly the fundamental split described above.
Contact [email protected] for any questions or corrections.
The Zacks Retail – Supermarkets industry is benefiting from expanding omnichannel capabilities, rising digital engagement and growing demand for convenient shopping and meal solutions. Retailers are strengthening differentiation through private brands, prepared foods, loyalty programs and personalized offerings, while retail media and data-driven services are creating attractive new profit pools. At the same time, automation, artificial intelligence and better use of store networks should improve fulfillment efficiency and support digital profitability.
While labor, transportation, shrink and supply-chain costs continue to influence margins, retailers are pursuing productivity, sourcing and efficiency initiatives to manage these pressures. Against this backdrop, Walmart Inc. (WMT - Free Report) , The Kroger Co. (KR - Free Report) and Yesway, Inc. (YSWY - Free Report) appear well positioned to capitalize on the industry’s evolving growth opportunities.
About the Industry The Zacks Retail – Supermarkets industry includes supermarket retailers that offer grocery, health and beauty aids, household chemicals, electronics, stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, entertainment products, home furnishings and more. Players in this industry operate through various formats such as supermarkets, multi-department stores, retail stores, discount stores, supercenters, hypermarkets and warehouse clubs. Food retail accounts for a chunk of their business. The industry has undergone a significant transformation over the years, with e-commerce playing a strong role. Given consumers’ rising preference for online shopping, industry participants have enhanced pickup and delivery services and are offering easy payment options.
Major Trends Shaping the Future of the Supermarket Industry Omnichannel Grocery Becomes a Stronger Growth Engine: Digital grocery is becoming an increasingly important part of the supermarket model as consumers seek greater convenience, faster delivery and seamless shopping across stores, apps and pickup channels. Retailers are using their physical store networks as fulfillment hubs while investing in automation, artificial intelligence and supply-chain technology to improve order accuracy and delivery economics. Demand is also shifting toward faster fulfillment, encouraging operators to expand same-day and rapid-delivery capabilities. Supermarkets with strong omnichannel platforms can increase shopping frequency, strengthen customer retention and capture a larger share of household spending.
Private Brands and Meal Solutions Gain Importance: Private-label products are becoming an important growth and differentiation tool for supermarkets as consumers seek affordability and quality. Retailers are expanding their own-brand portfolios across value, premium, organic and health-focused categories, helping them address multiple customer segments while strengthening merchandise margins. Prepared foods, ready-to-eat meals and convenient meal solutions are also gaining importance. Supermarkets are responding by improving fresh offerings, expanding foodservice capabilities and introducing differentiated products that encourage repeat visits. Continued innovation in private brands and prepared foods should enable retailers to strengthen customer loyalty, reduce dependence on national brands and capture a greater share of consumer food spending.
Retail Media and Loyalty Create New Profit Pools: Supermarkets are increasingly expanding beyond traditional merchandise margins by developing retail media, digital advertising, loyalty programs, memberships and data-driven services. These businesses allow retailers to monetize large customer bases and first-party shopping data while helping suppliers reach consumers closer to the point of purchase. Loyalty ecosystems are also becoming more sophisticated, supporting personalized promotions, targeted offers and stronger customer engagement across physical and digital channels. As these platforms scale, they can contribute higher-margin revenues that are less dependent on grocery pricing and promotional activity.
Structural Costs Continue to Pressure Margins: Supermarket operators continue to face elevated operating costs while simultaneously investing heavily to remain competitive. Labor, employee benefits, transportation, shrink, utilities and supply-chain expenses remain important pressures, while retailers are also committing capital to automation, digital fulfillment, artificial intelligence, store modernization and inventory systems. These investments are becoming increasingly necessary as customers expect better availability, faster delivery and more seamless omnichannel experiences. However, the combination of rising costs and continued price investment can place pressure on the industry's already narrow margins. Operators that successfully improve productivity and reduce fulfillment costs should be better positioned to protect profitability.
Zacks Industry Rank Indicates Bright Prospects The Zacks Retail – Supermarkets industry is housed within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #84, which places it in the top 34% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. 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.
Let’s look at the industry’s performance and current valuation.
Industry Versus Broader Market The Zacks Retail – Supermarkets industry has underperformed the S&P 500 while outpacing the broader Zacks Retail – Wholesale sector over the past year.
The industry has risen 3.8% over this period compared with the S&P 500’s growth of 17.6%. Meanwhile, the broader sector has dipped 3.3% in the said time frame.
One-Year Price Performance
Industry's Current Valuation On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing retail stocks, the industry is currently trading at 31.72X compared with the S&P 500’s 20.06X and the sector’s 21.48X.
Over the last five years, the industry has traded as high as 40.07X and as low as 17.50X, with the median being 22.92X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
3 Supermarket Stocks to Keep a Close Eye On Walmart: The Bentonville, AR-based company’s combination of scale, price leadership, broad assortment and expanding omnichannel capabilities continues to strengthen its competitive position across retail. WMT’s growing e-commerce, marketplace, advertising and membership businesses are improving the Zacks Rank #3 (Hold) company’s revenue mix, while investments in automation, fulfillment speed and artificial intelligence are enhancing customer convenience and operating efficiency. Walmart’s physical network also provides a powerful foundation for faster delivery and deeper customer engagement across shopping occasions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With its core retail engine increasingly supported by higher-margin platform businesses, Walmart appears well positioned for sustained growth and stronger long-term economics. The Zacks Consensus Estimate for WMT’s current fiscal-year earnings per share (EPS) has remained unchanged at $2.87 in the past 30 days, with the consensus mark indicating growth of 8.7% from the prior-year period. Shares of WMT have tumbled 7.5% over the past three months.
Price and Consensus: WMT
The Kroger Co.: The Zacks Rank #3 company’s case is supported by a strong grocery franchise, expanding digital capabilities, differentiated private brands and a growing portfolio of higher-margin businesses. Kroger is strengthening its value proposition while using sourcing, procurement and productivity savings to fund customer investments, and its e-commerce and retail-media operations are becoming increasingly important contributors to profitability. Continued innovation across private brands, prepared meals, health and wellness, loyalty and personalized marketing should further deepen customer engagement and strengthen competitive differentiation.
With multiple growth engines complementing its core supermarket business, the Cincinnati, OH-based company appears well positioned to enhance profitability and support sustained long-term growth. The Zacks Consensus Estimate for KR’s current fiscal-year EPS has declined by 2 cents to $5.19 in the past 30 days, though the consensus mark suggests nearly 7% growth from the year-ago period reported figure. Kroger shares have climbed 0.1% over the past three months.
Price and Consensus: KR
Yesway: The fast-growing convenience-store operator benefits from a differentiated convenience-retail platform built around its established regional brands, destination foodservice offerings, strategically located real estate and growing diesel capabilities. Yesway’s proprietary food offerings, private-label expansion and loyalty program support customer traffic and attractive merchandise economics, while ongoing store development, fuel upgrades and selective acquisitions provide multiple avenues for growth. The Zacks Rank #3 company’s disciplined approach to capital allocation and focus on improving productivity across its existing store base further strengthen its operating model.
With a differentiated offering and a focused expansion strategy, Yesway appears well positioned to deepen its presence in core markets and sustain long-term growth. The Zacks Consensus Estimate for YSWY’s current fiscal-year EPS has remained stable at $1.73 in the past 30 days. The Fort Worth, TX-based company’s shares have declined 3.4% over the past three months.
Shares of The Kroger Co. (NYSE:KR – Get Free Report) have been assigned a consensus rating of “Moderate Buy” from the nineteen research firms that are currently covering the stock, MarketBeat Ratings reports. Nine analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $69.00.
Several brokerages have commented on KR. Weiss Ratings reiterated a “hold (c)” rating on shares of Kroger in a research report on Monday, September 14th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $80.00 price objective on shares of Kroger in a research note on Wednesday, June 3rd. Morgan Stanley dropped their target price on shares of Kroger from $73.00 to $67.00 and set an “equal weight” rating on the stock in a report on Monday, June 22nd. HC Wainwright reissued a “buy” rating on shares of Kroger in a research note on Thursday, July 2nd. Finally, JPMorgan Chase & Co. reduced their target price on shares of Kroger from $72.00 to $70.00 and set a “neutral” rating for the company in a report on Thursday, June 11th.
Get Our Latest Stock Report on KR
Kroger Price Performance Shares of NYSE:KR opened at $59.73 on Tuesday. The stock has a market cap of $36.59 billion, a price-to-earnings ratio of 32.46, a PEG ratio of 1.64 and a beta of 0.41. The company has a debt-to-equity ratio of 2.59, a current ratio of 0.70 and a quick ratio of 0.31. Kroger has a 12 month low of $54.15 and a 12 month high of $76.58. The stock’s 50 day moving average price is $57.97 and its 200 day moving average price is $63.31. Kroger (NYSE:KR – Get Free Report) last issued its quarterly earnings results on Friday, September 11th. The company reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.04. The company had revenue of $34.62 billion for the quarter, compared to analysts’ expectations of $34.64 billion. Kroger had a return on equity of 49.90% and a net margin of 0.73%.The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same period last year, the firm earned $1.04 EPS. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Equities research analysts anticipate that Kroger will post 5.19 earnings per share for the current fiscal year.
Kroger Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 16th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Monday, November 16th. Kroger’s dividend payout ratio is 84.78%.
More Kroger News Here are the key news stories impacting Kroger this week:
Positive Sentiment: Kroger expanded its fulfillment capabilities by enabling customers to receive groceries and prescriptions in a single delivery order. The initiative could improve convenience, strengthen customer retention and support digital sales growth. Kroger now delivers groceries and prescriptions in one order Insider Activity In other news, EVP Mary Adcock sold 72,901 shares of the business’s stock in a transaction on Friday, September 18th. The stock was sold at an average price of $60.70, for a total transaction of $4,425,090.70. Following the sale, the executive vice president directly owned 175,233 shares of the company’s stock, valued at $10,636,643.10. The trade was a 29.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.41% of the stock is owned by insiders.
Hedge Funds Weigh In On Kroger A number of institutional investors have recently bought and sold shares of the stock. SGL Investment Advisors Inc. purchased a new position in shares of Kroger in the second quarter worth approximately $2,764,000. Amundi lifted its position in shares of Kroger by 18.3% in the 2nd quarter. Amundi now owns 3,942,230 shares of the company’s stock valued at $218,912,000 after acquiring an additional 610,039 shares in the last quarter. Allstate Corp boosted its stake in 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 purchasing an additional 24,976 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Kroger during the 2nd quarter worth approximately $76,633,000. Finally, Quantitative Investment Management LLC purchased a new position in Kroger during the 2nd quarter worth approximately $1,527,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.
Kroger Company Profile (Get Free Report)
The Kroger Co (NYSE: KR) is one of the largest grocery retailers in the United States. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates supermarkets, multi-department stores, pharmacies, convenience stores and fuel centers across the country.
Kroger sells a broad range of fresh foods, packaged groceries, household products, health and beauty items, prepared foods and general merchandise. Its private-label offerings include Simple Truth, Private Selection and Kroger brands.
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, /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.
Mary Ellen Adcock, Executive Vice President of The Kroger Co. (KR -0.52%), sold 72,901 shares of common stock on Sept. 18, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$4.4 millionShares sold72,901Post-transaction shares (directly held)175,233Post-transaction value$10.51 millionTransaction value based on SEC Form 4 weighted average sale price ($60.70); post-transaction value based on Sept. 18, 2026, market close ($60.00).
Key questionsWhat were the mechanics of the derivative transaction?
Adcock exercised 48,806 options at a strike price of $38.32 before disposing of a larger block of 72,901 shares at a weighted average price of $60.70. This execution allowed the executive to capture the spread between the grant price and current market valuation.What is the executive's remaining equity exposure?
Following this transaction, Adcock retains direct ownership of ~175,000 shares of common stock. Based on the Sept. 18, 2026, market close of $60.00, this remaining direct position is valued at $10.51 million.How does the transaction align with recent stock performance?
The sale occurred with shares priced at a weighted average of $60.70, while the company's one-year total return stood at (9%) as of the Sept. 18, 2026, transaction date.How was the sale executed across different price points?
The shares were liquidated in multiple blocks, with weighted-average prices ranging from $60.63 to $60.75 across transaction sets disclosed in the filing.Company OverviewMetricValueShare Price (as of market close 2026-09-18)$60.00Market Capitalization$35.8 billionRevenue (TTM)$149.3 billionNet Income (TTM)$1.1 billionCompany SnapshotThe Kroger Co. operates an extensive network of integrated food and drug stores offering a comprehensive product portfolio, including natural and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce, supplemented by multi-department stores featuring apparel, home fashion and furnishings, and outdoor living goods.The company generates revenue through retail grocery operations across multiple store formats, leveraging its diversified product offerings and integrated services to capture market share across food, pharmacy, and general merchandise categories.The Kroger Co. serves a broad base of U.S. consumers seeking convenient access to groceries, pharmaceuticals, and general merchandise, targeting households across various income levels through its varied store formats and product assortments.The Kroger Co. represents one of the largest retail grocery operators in the United States, commanding a substantial market presence with $149.3 billion in TTM revenue and a diversified store portfolio. The company's competitive positioning is reinforced by its integrated business model combining food retail, pharmacy services, and general merchandise, enabling cross-selling opportunities and customer loyalty. With 403,000 employees and operations spanning multiple store formats, Kroger maintains significant scale advantages in procurement, distribution, and market penetration within the consumer defensive sector.
What this transaction means for investorsAlthough news of an executive unloading the equivalent of 37% of their equity stake might alarm investors, Mary Ellen Adcock's sale of Kroger stock is more than likely a move for personal reasons rather than a loss of confidence in Kroger stock.
Executive compensation often comes in the form of stock options, and sometimes insiders must exercise them by a certain date. Assuming that is the case here, the transactions would have occurred regardless of the stock's performance.
Moreover, consumer staples stocks like Kroger often appeal to investors seeking to protect wealth rather than build it quickly. Kroger has achieved this by accomplishing the rare feat of building a successful nationwide grocery chain in its highly competitive industry.
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To be sure, the stock has struggled amid rising operating expenses in 2025, which cut its net margin. Nonetheless, it has maintained a 1.9% net margin in the first half of 2026, unchanged from the previous year.
Also, its dividend has risen for 20 straight years, and its 2.4% dividend yield is far above the S&P 500 average of 1.1%. Such conditions increase the likelihood that Adcock will hold on to her much larger direct position in Kroger stock.
, /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.
The all-new collection features 15+ pumpkin-inspired products to enjoy all day long.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, is welcoming fall with the launch of its limited-time Private Selection™ Pumpkin Harvest Collection, a seasonal lineup crafted to bring all the comforting flavors of autumn to every part of the day. The collection will be exclusively available across the Kroger Co. Family of Stores.*
"That first crisp morning is the best sign that fall has officially arrived, welcoming in the warm flavors and spices that make this season so special," said Ann Reed, Group Vice President of Our Brands at Kroger. "Our new Private Selection Pumpkin Harvest Collection was crafted to help customers embrace the season with flavors that make every coffee break, afternoon snack and sweet seasonal treat even more memorable."
The collection offers new ways to enjoy pumpkin across beverages, snacks, bakery favorites and more.
Pumpkin in Every Pour
Every fall beverage is better with these pumpkin-flavored sips that bring a taste of the season to life:
Private Selection™ Pumpkin Spice Gourmet Ground Coffee and Coffee Pods: Smooth coffee infused with pumpkin, cinnamon and nutmeg Private Selection™ Pumpkin Spice Syrup: A blend of cinnamon, nutmeg, ginger and clove flavors that adds a seasonal twist to any favorite beverage Private Selection™ Pumpkin Spice Flavored Chai Black Tea: Black tea blended with pumpkin flavor and warming spices for a satisfying seasonal sip Cozy Crunches
Snack your way through the season with these sweet, salty and satisfyingly crunchy bites:
Private Selection™ Pumpkin Popcorn: Crunchy popcorn glazed with pumpkin spice and finished with a sweet icing drizzle Private Selection™ Pumpkin Spice Cashews: Kettle-cooked cashews coated in sugar and aromatic allspice Private Selection™ Pumpkin Cheesecake Granola Clusters: Crunchy, snackable granola clusters inspired by the rich flavors of pumpkin cheesecake Sweeten the Season
Indulge in the sweeter side of autumn with these freshly baked pumpkin treats:
Private Selection™ Gluten-Free Pumpkin Streusel Muffins: Soft muffins crafted with real pumpkin and seasonal spices, topped with streusel and sparkling sugar – and even better warmed up Private Selection™ Pumpkin Spice Blondies: Rich pumpkin blondie bites finished with cream cheese icing, pecans and butterscotch chips Private Selection™ Pumpkin Spice Shortbread Cookies: Buttery shortbread with warm pumpkin spice for a crisp, melt-in-your-mouth bite Fall Is Bigger Than Just Pumpkin
The Pumpkin Harvest lineup is just the beginning of fall at Kroger. As game-day season kicks off, customers can build a winning spread with Private Selection™ All Beef Hot Dogs and Private Selection™ Applewood Smoked Bacon & Cheddar Angus Beef Patties, as well as guacamole made with Kroger Brand Fresh Hass Avocados and Kroger Brand Guacamole Seasoning Mix.
No matter how customers shop, Kroger makes it easy. Customers can get these deals and more in store or Kroger.com offering the same fresh items at the same low prices for pickup at a convenient store location or delivery in as little as 30 minutes. For even more convenience, Kroger's full product assortment is available on demand at DoorDash and Uber Eats marketplaces, shopped from local stores and delivered directly to customers' doors.
*Available across all Kroger Family of Stores locations excluding Food 4 Less.
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.
Harris Teeter will make a range of store enhancements across Charlotte and surrounding communities, with updates varying by location, alongside the development of three new stores in the Charlotte metro area.
, /PRNewswire/ -- Harris Teeter announced today it will invest approximately $253 million over the next three years to refresh and modernize select stores across the Charlotte, N.C. area. The investment also includes the development of three new stores.
Harris Teeter storefront The investment includes stores throughout the Charlotte metro area, with renovations and enhancements planned for locations such as Fort Mill and Rock Hill, S.C., and Matthews, Waxhaw, Concord and Huntersville, N.C., along with many other communities across the region. These improvements are designed to make shopping easier, more convenient and more enjoyable for customers. In addition, Harris Teeter plans to open three new stores in Fort Mill, S.C., Lake Wylie, S.C., and Kannapolis, N.C., further strengthening its commitment to the region.
"For generations, Charlotte families have made us a part of their neighborhoods and this investment reflects our long-term commitment to the customers and communities we serve," said Tammy DeBoer, president of Harris Teeter. "These investments reflect areas where we believe we can better support our customers and communities — from select department and service enhancements to updates that improve convenience in stores."
The store refresh initiative will include a variety of enhancements that vary by location, which may include:
Expanded offerings in fresh, bakery and prepared food areas Layout and fixture updates designed to support easier navigation in some stores Shopping cart, exterior or parking-area improvements at select locations Faster and more convenient pickup and delivery services Updated decor, signage and store environments Customers will begin seeing store updates roll out in phases, with timing and scope varying across locations over the next three years. As renovations are completed, customers can look forward to grand re-opening celebrations this fall, featuring Harris Teeter's signature Taste of Teeter events. The celebrations will include free samples, special events and opportunities for customers to experience the newly refreshed stores at their neighborhood market.
Additional details about specific store re-openings and celebrations will be shared throughout the rollout.
Harris Teeter's History in Charlotte
Harris Teeter's roots in the Charlotte area date back 90 years, to 1936, when co-founder W.T. Harris opened his first grocery store. The company was officially formed in 1960 when W.T. Harris and Willis L. Teeter combined to form Charlotte's hometown grocery store, Harris Teeter. Since its founding, Harris Teeter has been known for high-quality products, clean stores and superior customer service, which has guided the company through its 65-year history in the Carolinas.
Harris Teeter Helping Together
As Harris Teeter invests in the future of its stores, the company remains equally committed to investing in the communities that have supported it for generations through local partnerships, hunger relief initiatives and community-focused giving programs. Through these efforts, Harris Teeter provides millions of dollars in food and financial support each year to advance the missions of nonprofit organizations and help address critical community needs across the communities it serves.
Hunger relief is one of Harris Teeter's largest and longest-standing areas of community investment. In the Charlotte region alone, the company has contributed more than $27.4 million in food and funds to hunger relief efforts over the last decade through food rescue efforts, Round Up campaigns, community fundraising events and partnerships with local nonprofit organizations.
"As Charlotte's hometown retailer, we are proud to continue investing in the communities that have supported Harris Teeter for generations," said Danna Robinson, director of corporate affairs and customer relations. "These enhancements reflect our commitment to our customers, our associates and the future of the region we call home."
For more information, visit harristeeter.com and stay connected on Instagram and Facebook.
About Harris Teeter
For more than 60 years, Harris Teeter, a wholly-owned subsidiary of The Kroger Co. (NYSE: KR), has enriched lives – one meal, one family, one associate and one community at a time. Headquartered in Matthews, North Carolina, Harris Teeter employs 36,000 valued associates across more than 250 stores and 85 fuel centers in North Carolina, South Carolina, Virginia, Georgia, Maryland, Delaware, Florida and the District of Columbia.
Kroger Company (NYSE:KR) on Friday reported second-quarter results that topped Wall Street expectations.
Adjusted earnings were $1.09 per share, beating the $1.06 estimate. Sales of $34.621 billion also topped the $34.580 billion estimate.
Kroger reaffirmed fiscal 2026 adjusted EPS guidance of $5.10 to $5.30, compared with the $5.21 estimate.
The company expects second-half earnings growth to benefit from cost savings, pharmacy margins, improving e-commerce profitability and continued retail media growth.
However, Kroger lowered its full-year identical-sales growth forecast, excluding fuel, to 0.2% to 0.8% from 1% to 2%. The revised outlook reflects first-half performance and continued consumer pressures.
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CEO Greg Foran said, “Kroger delivered a solid second quarter, with adjusted EPS growth of 5 percent. I am pleased with the progress we are making. Our teams kept driving value for customers, improving execution in our stores, growing eCommerce profitably and managing costs with discipline. Improving sales momentum remains a top priority. While there is more work to do, I am confident in our plan to become America’s favorite grocer.”
Kroger shares rose 3.9% to trade at $60.73 on Monday.
These analysts made changes to their price targets on Kroger following earnings announcement.
Evercore ISI Group analyst Michael Montani maintained the stock with an Outperform rating and lowered the price target from $75 to $70. Telsey Advisory Group analyst Joseph Feldman maintained the stock with an Outperform rating and cut the price target from $78 to $75. Considering buying KR stock? Here’s what analysts think:
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Key Takeaways Kroger Q2 adjusted EPS rose 4.8% to $1.09, beating the $1.05 estimate, while sales missed.Adjusted e-commerce sales rose 20%, delivering a second straight quarter of profitable growth.Kroger cut fiscal 2026 identical sales ex-fuel guidance to 0.2%-0.8% but kept profit goals. The Kroger Co. (KR - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $1.09 per share, which increased 4.8% year over year and beat the Zacks Consensus Estimate of $1.05. Cost savings, stronger pharmacy and fuel performance, and improved e-commerce profitability supported the bottom line.
Total sales of $34,621 million increased 2% from $33,940 million but missed the consensus mark of $34,688 million. Identical sales without fuel rose 0.2%, while adjusted e-commerce sales advanced 20%.
KR's Sales Momentum Stays SoftExcluding fuel, the sale of Vitacost and the exit of certain fulfillment centers, sales edged up 0.1%. Identical sales without fuel slowed from 3.4% growth in the year-ago quarter.
The Inflation Reduction Act reduced identical sales by 138 basis points. Management also cited a 35-basis-point Cyclospora headwind from produce, a roughly 60-basis-point drag from the shift to generic prescriptions and a 30-basis-point impact from egg deflation. Customer traffic increased, but grocery unit growth decelerated slightly from the first quarter.
Kroger's Digital and Brands Fuel GrowthAdjusted e-commerce sales rose 20%, led by delivery. The company delivered its second consecutive quarter of profitable e-commerce growth, while new e-commerce customers increased 20% from a year ago. Demand continued shifting toward faster fulfillment, with encouraging growth in delivery orders completed in less than an hour.
Kroger Precision Marketing profit climbed 24%, its strongest growth since 2021, with media monetization up 88 basis points. Our Brands outpaced national brands by 250 basis points, while Private Selection sales increased more than 14%. Our Brands penetration also increased about 50 basis points.
KR's Margins Improve Despite Cost PressureGross margin was 22.4% of sales compared with 22.5% a year earlier. The FIFO gross margin rate, excluding rent, depreciation and amortization, fuel and adjustment items, increased 13 basis points.
Improved e-commerce profitability, media, pharmacy mix, sourcing initiatives and tariff refunds helped margins. Higher shrink, transportation costs and customer value investments were offsets. The operating, general and administrative rate, excluding fuel and adjustment items, increased 33 basis points on wage investments, higher health care costs and sales deleverage. Adjusted FIFO operating profit slipped 1.4% to $1,076 million.
Kroger's Pharmacy and Fuel Add SupportPharmacy generated strong operating profit growth as the mix shifted from branded to generic drugs. Core prescription growth and continued GLP-1 momentum also supported the business despite the sales pressure from lower drug pricing.
Fuel gallons increased and outpaced the industry by about 520 basis points. Fuel reward redemptions rose nearly 6%, while higher margins per gallon in a volatile energy market contributed to modestly higher fuel profitability.
KR's Cash Flow Funds Share RepurchasesNet cash provided by operating activities totaled $3,085 million in the first half, down from $3,688 million a year earlier. Capital investments, excluding lease buyouts, were $2,651 million compared with $2,030 million.
Kroger repurchased $1 billion of shares during the quarter and $1.2 billion year to date. About $800 million remained under its $2 billion authorization. Net total debt to adjusted EBITDA was 1.91, below the company's 2.30-2.50 target range.
Kroger Cuts Sales View, Maintains Profit GoalsKroger lowered fiscal 2026 identical sales without fuel guidance to 0.2-0.8% from 1-2%. The outlook includes an approximately 140-basis-point unfavorable impact from the Inflation Reduction Act. Management expects third-quarter identical sales without fuel to be slightly better than the fourth quarter.
The company maintained adjusted FIFO operating profit guidance of $5-$5.2 billion and adjusted earnings of $5.10-$5.30 per share. Free cash flow is still projected at $2.7-$2.9 billion, with capital expenditures of $3.8-$4 billion.
Shares of this Zacks Rank #3 (Hold) company have declined 10.2% over the past year against the industry’s growth of 2.2%.
Picks You Can’t Miss Out OnThe Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently carries a Zacks Rank #2 (Buy). COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings per share (EPS) calls for growth of 31.6% and 63.9%, respectively, from the year-ago figures.
Target Corporation (TGT - Free Report) , a general merchandise retailer, currently carries a Zacks Rank of 2. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.
The Zacks Consensus Estimate for Target’s current fiscal-year sales and EPS implies growth of 4.7% and 37.8%, respectively, from the year-ago figures.
Laird Superfood, Inc. (LSF - Free Report) is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS suggests growth of 188.2% and 104%, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.
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.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's Grocer, is helping customers eat healthier in the last few weeks of summer.
Peak-season fruits and vegetables are fresher, more flavorful and more nutritious. When produce is harvested at the height of its season, it retains more of its natural vitamins, minerals and fiber than when it is picked early and transported long distances. And Kroger is making it more affordable to enjoy these nutrient-dense foods with $5 off a $20 produce purchase.
What Kroger dietitians are recommending right now
"The best thing about eating well in August and September is that the most nutritious foods are also the most delicious ones," said Laura Brown, MS, RD, LDN, director of nutrition at Kroger. "Peak-season produce is naturally higher in fiber, vitamins and antioxidants – and because it's so fresh, it's easy to enjoy."
Here are a few things shoppers should keep in mind when looking for the perfect fresh produce for them in August and September:
Berries: Among the highest antioxidant foods available and a good source of fiber Corn: A whole grain that provides fiber, B vitamins and carbohydrates for energy Peaches: A good source of vitamins A and C, fiber, and water Peppers: Exceptionally high in vitamin C, versatile and naturally filling Tomatoes: Rich in lycopene, vitamin C and potassium Watermelon: Naturally hydrating and a good source of lycopene and citrulline Zucchini: High in water content and a good source of potassium and several B vitamins For customers focused on higher-protein and lower processed food diets, peak-season produce is a natural foundation for building great meals. Fiber-rich vegetables and fruits support digestive health and nutritional balance, and they pair well with lean proteins and whole grains for complete, satisfying meals.
Kroger dietitians are available through convenient virtual appointments to help customers build meals, navigate nutrition labels and make the most of what's in season all year long. Customers can learn more or book an appointment at Kroger.com/Health.
Save more at Kroger
Customers can redeem a $5 off $20 produce purchase in store or through the Kroger app. To claim the offer, customers can tap the Kroger app, clip the digital coupon and shop any fresh department at their local Kroger Family of Companies location.
No matter how customers shop, Kroger makes it easy. Customers can get these deals and more in store or Kroger.com offering the same fresh items at the same low prices for pickup at a convenient store location or delivery in as little as 30 minutes. For even more convenience, Kroger's full product assortment is available on demand at DoorDash and Uber Eats marketplaces, shopped from local stores and delivered directly to customers' doors.
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.
Identical Sales Without Fuel: Grew 0.2% in Q2 2026; company IDs without fuel impacted by roughly 35 basis points from the Cyclospora outbreak.Adjusted EPS: $1.0
It's a fantastic time to be an income investor. The recent rise in interest rates has opened up opportunities well beyond the market's favorite dividend stocks.
Namely, interest rates on bonds are now higher than the dividend yields offered by a bunch of dividend-paying tickers. Indeed, yields on 30-year Treasuries have improved from 2024's low near 4% to their current multiyear high of just less than 5.3%, giving investors something to think about that they haven't needed to consider in a while.
Even so, a much-lower-yielding stake in grocery giant Kroger (KR +2.70%) could still be a better choice for true long-term income-seekers. Here's why.
Image source: Getty Images.
Kroger, by the numbers As far as income stocks go, you can certainly find what seems to be a better option. Kroger's forward-looking dividend yield currently stands at only 2.6%, or roughly half of what you'd be getting by owning a 30-year Treasury issued and guaranteed by the United States government.
Kroger may be one of the market's best-kept income-generating secrets, however, despite its relatively low yield.
See, Kroger shares offer something that bonds don't. That's payment growth. A lot of it. Over the course of past 10 years, the grocer's quarterly per-share payment has grown from $0.12 to $0.39. That's an average annualized increase of 12.5%, making it one of the fastest-growing dividends among all stocks for the era.
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Granted, stock buybacks helped -- dramatically. The company's total outstanding share count has been reduced by roughly one-third during this timeframe, while EBITDA didn't quite double, and profits have remained relatively flat. It just doesn't matter. The point is, the company has been able to grow its dividend payment at this amazing pace. And, it remains in a position to continue growing its dividend payments at a pace that looks like its recent past. That's in stark contrast to interest payments on bonds, which don't grow no matter how long you hold them.
Or think about it like this: Ten years from now, the yield you'd be getting on the purchase of a 30-year Treasury today would still be 5.3%. Assuming its past dividend growth persists into the future, however, in 10 years' time the 2.6% dividend yield you'd be plugging into with a new position in Kroger could grow into an effective yield of nearly 8% on your initial investment. Plus, unlike bonds, your stake in Kroger at least has a shot at offering you some capital appreciation in the meantime.
Think bigger-picture This math doesn't inherently mean everyone should opt for a new position in Kroger shares instead of a 30-year Treasury (or any other government-backed bond). Government-issued debt is ultra-safe, guaranteed by that government's ability to print money, if need be. Owning equity in publicly traded offers no such guarantee. And, Kroger's impressive dividend growth only matters if you're willing and able to stick with it for the long haul. If you're only looking to earn some decent interest on your money while it's temporarily on the sidelines, so to speak, bonds are arguably a better bet for you.
Just make sure you're doing this sort of bigger-picture thinking before diving into anything in this higher-rate environment. There's always more to the story than just today's yield.
Kroger (KR +2.70%) published its latest set of quarterly results before market open on Friday, and investors reacted by pushing the stock up slightly that trading session.
It wasn't a barn-burner of a quarter for the veteran supermarket operator, with modest rises in key fundamentals and only a minor beat on analyst profitability estimates. Yet there was enough to like in the results to satisfy Kroger bulls. Let's pick apart how the company did in the period.
Image source: The Motley Fool.
Gains, incremental and otherwiseKroger's total sales for the quarter rose by 2% year over year to just over $34.62 billion. That was on the back of a marginal rise in identical (i.e., same-store) sales, excluding fuel, to slightly below $30 billion; this compared unfavorably to second quarter 2025's 3.4% gain in the metric (fuel is stripped out of the equation because of the frequent volatility in its price).
As for profitability, net income not in accordance with generally accepted accounting principles (non-GAAP, or adjusted) fell to $667 million from the year-ago profit of $695 million. Due to a reduction in share count, Kroger's most recent quarter's per-share adjusted profit was actually higher, at $1.09 from the second quarter of 2025's $1.04.
Neither headline metric was far from its consensus analyst estimate. On average, analysts tracking the veteran retailer were modeling total sales of $34.65 billion and adjusted net income of $1.06 per share.
The overarching story of the quarter for Kroger was a mix of positive and negative factors; for the most part, they nearly canceled each other out, resulting in only modest growth.
The company wrote in its earnings release that sales would have inched up only 0.1% -- barely a blip on the radar -- if it excluded fuel sales, its divestment of the albatross that was its Vitacost health and wellness e-commerce unit (which occurred early this year), and the shuttering of several fulfillment centers.
Similarly, Kroger's gross margin (22.4%) was essentially unchanged from the year-ago quarter. A rise in fuel sales was countered by increased transportation costs. Other negative factors included higher shrink (i.e., inventory that goes missing due to factors like theft, damage, and spoilage); positive ones were a 20% pop in adjusted e-commerce sales and a sales/volume mix in pharmacy sales the company described as "favorable."
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The good and the badThat positive-offset-by-negative mix extended to Kroger's full-year 2026 guidance.
Management trimmed both ends of its estimate for identical sales growth; it is now 0.2% to 0.8% over 2025, down from 1% to 2%. This is due to its estimate of a roughly 140-basis-point drag on pharmacy sales from adjustments under the government's Inflation Reduction Act, passed in 2022.
As for the bottom line, the company is maintaining its adjusted earnings per share (EPS) forecast of $5.10 to $5.30. That's encouraging, because it presages year-over-year growth of at least 5%. This matches the trailing second-quarter rate, and would be quite a solid gain in the typically slow-growth, low-margin world of big retail.
Looking at the exclusively positive side of the ledger, Kroger said it expects not only to continue paying its quarterly dividend but also to keep increasing it. That's a very comforting assertion, because it's handed out a disbursement every quarter since reinstating the payout in mid-2006. Since then, it has declared annual dividend raises for 20 consecutive years. This year's model was a chunky 11% hike to a new quarterly payout of $0.39 per share. It yields a very healthy 2.5%, well above the current average (under 1.1%) for all S&P 500 stocks, of which the grocery giant is a component.
Kroger also said it aims to continue its habitual share repurchasing activity. The plan is to expend the roughly $800 million remaining of the $2 billion authorized by the board of directors for that purpose this year.
Doing well enoughWhile none of these figures are drawing me in or driving me away from Kroger stock, I think the company didn't do badly in the quarter. I feel the most impressive aspect of the period was that 20% increase in e-commerce sales (although, somewhat frustratingly, we weren't given an exact dollar figure in the earnings release). For an old-line retailer, the company seems to be gaining a solid grasp of modern shopping trends.
To me, Kroger's performance shows its solid foundation as a large, relatively efficient supermarket chain operator with a massive customer base. This combines with a stock that's particularly appealing to income investors, given its comparatively high yield and management's habit of raising dividends. Kroger's equity feels like a safe and comforting buy these days.
Kroger Co (NYSE:KR, XETRA:KOG) raised its full-year profit outlook after posting second-quarter earnings that beat Wall Street estimates, even as the grocer trimmed its sales growth forecast.
The company reported adjusted earnings per share of $1.09 for the quarter, ahead of analyst estimates of $1.06 and up 5% from a year earlier. Revenue came in at $34.6 billion, roughly in line with estimates of $34.58 billion and up 2% year-over-year.
Adjusted FIFO operating profit reached $1.08 billion, topping estimates of $1.01 billion, though the figure was down 1% from the prior year.
Kroger cut its full-year guidance for identical sales excluding fuel, now expecting growth of 0.2% to 0.8%, down from a prior range of 1.0% to 2.0%. Identical sales excluding fuel grew 0.2% in the quarter.
The company affirmed the rest of its full-year guidance, including adjusted earnings per share of $5.10 to $5.30, free cash flow of $2.7 billion to $2.9 billion, and capital expenditures of $3.8 billion to $4.0 billion. It also raised its outlook for adjusted FIFO operating profit to $5.0 billion to $5.2 billion, above estimates of $4.84 billion. The company expects a tax rate of 23%.
Gross margin for the quarter was 22.4%, down 10 basis points from a year earlier. Adjusted eCommerce sales grew 20% year-over-year, while profit from Kroger Precision Marketing, the company's retail media business, rose 24%.
CEO Greg Foran said he was “pleased with the progress” the company is making.
“Our teams kept driving value for customers, improving execution in our stores, growing eCommerce profitably and managing costs with discipline,” Foran said in a statement.
“Improving sales momentum remains a top priority. While there is more work to do, I am confident in our plan to become America's favorite grocer."
Shares of Kroger were up around 4% on Friday morning.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Kroger (KR) saw a positive uptick today following the release of its Q2 results for July. The grocery giant surpassed earnings per share (EPS) expectations, mar
U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining over 1% on Friday.
The Dow traded up 1.16% to 52,666.76 while the NASDAQ climbed 1.23% to 26,403.20. The S&P 500 also rose, gaining, 1.08% to 7,673.87.
Leading and Lagging Sectors
Communication services shares jumped by 1.7% on Friday.
In trading on Friday, energy stocks fell by 0.2%.
Top Headline
Kroger Company (NYSE:KR) stock gained around 3% on Friday after the grocer reported second-quarter results that topped Wall Street expectations.
Adjusted earnings were $1.09 per share, beating the $1.06 estimate. Sales of $34.621 billion also topped the $34.580 billion estimate.
Equities Trading UP
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Equities Trading DOWN
CPI Card Group Inc (NASDAQ:PMTS) shares dropped 16% to $22.61 after the company announced the pricing of its proposed secondary public offering of 2,337,323 shares shares at $21.50 per share. Shares of Ocean Power Technologies Inc (NYSE:OPTT) were down 40% to $0.095 after the company announced a 1-for-30 reverse stock split effective September 14. Nuscale Power Corp (NYSE:SMR) was down, falling 11% to $9.12 after UBS downgraded its rating on the stock from Neutral to Sell and lowered its price target from $10 to $6. Commodities
In commodity news, oil traded down 2.9% to $99.54 while gold traded up 0.2% at $4,416.10.
Silver traded up 0.6% to $65.335 on Friday, while copper rose 0.1% to $6.5475.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 gained 0.5%, while Spain’s IBEX 35 Index rose 0.8%, London’s FTSE 100 gained 0.4%, Germany’s DAX gained 0.7%, while France’s CAC 40 climbed 0.7%.
Asia Pacific Markets
Asian markets closed lower on Friday, with Japan’s Nikkei 225 dipping 1.93%, Hong Kong’s Hang Seng index falling 0.60%, China’s Shanghai Composite falling 1.18% and India’s BSE Sensex falling 0.16%.
Economics
U.S. annual inflation held at 3.4% in August, matching the market consensus and remaining unchanged from July, the Bureau of Labor Statistics said Friday. The University of Michigan’s consumer sentiment index declined to 47.8 in early September, compared to market expectations of 51.0. Photo via Shutterstock
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