Kroger (KR - Free Report) closed the most recent trading day at $56.87, moving +1.99% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.64%.
Shares of the supermarket chain have depreciated by 3.48% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.78%, and the S&P 500's gain of 0.61%.
Market participants will be closely following the financial results of Kroger in its upcoming release. It is anticipated that the company will report an EPS of $1.05, marking a 0.96% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.78 billion, up 2.47% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $151.36 billion, which would represent changes of +7.42% and +2.52%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kroger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 witnessed a 0.12% decrease. Kroger is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 10.7. This denotes a discount relative to the industry average Forward P/E of 14.19.
Meanwhile, KR's PEG ratio is currently 1.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Supermarkets was holding an average PEG ratio of 2.04 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Kroger Health dietitians share practical guidance for patients navigating weight-management treatment as part of Kroger's new GLP-1 Complete Support Program
, /PRNewswire/ -- GLP-1 medications are changing what is possible for many patients looking to manage their weight. To get the most out of this treatment, patients need more than a prescription.
"Patients need more than a prescription, they need ongoing support," said Colleen Lindholz, president of Kroger Health. "Kroger Health GLP-1 Complete Support was created to help patients navigate affordability, nutrition and lifestyle changes with confidence."
Kroger Health dietitians work with patients at every stage of their GLP-1 journey, from understanding affordability options like the Medicare GLP-1 Bridge Program to building everyday habits that support lasting results. Here are five practical tips to help:
1. Lead with protein
GLP-1 medications reduce appetite, which means what patients eat matters more than how much they eat. Build meals around protein, such as seafood, lean meats, eggs, Greek yogurt, cottage cheese, beans or tofu, then add fruits, vegetables and whole grains. Protein helps patients stay fuller longer and supports muscle preservation during weight loss.
2. Make Every Bite Count
When appetite decreases, nutrient quality becomes more important. Kroger's OptUP® nutrition rating system makes it easy to identify more nutritious options throughout the store. This is a simple way to build a cart that supports nutrition goals without reading every label
3. Stay hydrated
Many patients unintentionally drink less while taking a GLP-1 medication. Staying hydrated supports energy, digestion and overall wellness. Water, low-sugar beverages and water-rich foods such as cucumbers and melons all help.
4. Plan before shopping
Having the right foods on hand makes healthy choices easier throughout the week. Simple staples – rotisserie chicken, Greek yogurt, pre-cut vegetables, frozen fruit and portion-controlled snacks – work well for smaller appetites and busy schedules.
5. Build a support team
Medication is only one part of a successful journey. Pharmacists, registered dietitians and care teams help patients manage side effects, optimize nutrition and develop habits that last. No patient has to navigate this experience alone.
Support at Every Step
Kroger Health's GLP-1 Complete Support connects patients with pharmacists, registered dietitians, clinical services through The Little Clinic and personalized nutrition guidance through OptUP®, all in one place. Kroger pharmacists can also help patients understand affordability issues, including the Medicare GLP-1 Bridge Program, and determine eligibility.
"GLP-1 medications can be powerful tools, but long-term success depends on the everyday choices patients make around food, hydration and lifestyle," said Laura Brown, MS, RDN, LDN, director of nutrition for Kroger Health. "Practical guidance and the right support system make a real difference."
To learn more, patients can speak with their local Kroger pharmacy team, schedule a consultation with a registered dietitian or visit Kroger Health online.
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 e-Commerce 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.
Kroger (KR - Free Report) ended the recent trading session at $55.76, demonstrating a -3.09% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.
The supermarket chain's shares have seen a decrease of 1.61% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
The investment community will be closely monitoring the performance of Kroger in its forthcoming earnings report. The company is forecasted to report an EPS of $1.05, showcasing a 0.96% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.78 billion, up 2.47% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.21 per share and a revenue of $151.36 billion, indicating changes of +7.42% and +2.52%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Kroger currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Kroger is currently being traded at a Forward P/E ratio of 11.04. This represents a discount compared to its industry average Forward P/E of 14.47.
Investors should also note that KR has a PEG ratio of 1.54 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Supermarkets industry stood at 1.94 at the close of the market yesterday.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 219, finds itself in the bottom 11% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Conventional wisdom says breakfast is the most important meal of the day, but you don't want to be starting your morning off by eating any of the 19 million eggs that are part of a massive recall.
Key Takeaways Kroger plans to simplify pricing and promotions to make its value proposition easier to understand.KR aims to drive repeat visits with clearer pricing, trusted relationships and a better shopping experience.KR's pricing investments will be funded through cost savings, supplier negotiations and AI efficiencies. The Kroger Co. (KR - Free Report) sees opportunities to strengthen its pricing strategy by making its value proposition simpler and easier for customers to understand. Management acknowledged that promotional offerings have become overly complicated over time, while the company's pricing position has not kept pace where it needed to, highlighting an area of focus for improvement.
The company is focused on strengthening its value proposition by making its pricing more competitive, consistent and easier for customers to understand rather than becoming the lowest-priced retailer. Management believes customers should clearly recognize the value offered when deciding where to shop. The company aims to encourage more frequent customer visits by combining a clear value proposition with a strong shopping experience and trusted customer relationships, reinforcing its long-term competitive positioning.
Kroger plans to transition toward a simpler and more consistent everyday value strategy while continuing to use promotions as an important part of its business. Management emphasized future promotional offerings will be sharper and easier for customers to understand. The company believes achieving this approach will require greater discipline as it works to support and fund a clearer, more straightforward value proposition for customers.
Importantly, the company emphasized that these pricing investments are not a one-time reset but are fully funded through internal cost savings and efficiencies, such as improved supplier negotiations and the application of AI across the business. Overall, a clearer and more transparent pricing strategy should strengthen customer trust, encourage repeat shopping and improve long-term loyalty while reinforcing Kroger’s competitive position in the grocery market.
The Zacks Rundown for KRThe company's shares have lost 6.9% in the past six months compared with the industry’s decline of 3.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, KR trades at a forward price-to-earnings ratio of 10.87, lower than the industry’s average of 33.96. KR currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KR’s current and next fiscal year earnings implies year-over-year growth of 7.4% and 6.4%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
United Natural Foods Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It presently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for UNFI’s 2026 sales indicates a decline of 2.1%, and the same for earnings indicates growth of 254.9% from the prior-year reported levels. UNFI delivered a trailing four-quarter earnings surprise of nearly 30%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30% and 73.3%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 129.2%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 25.9% and 140.2%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 635%, on average.
Kroger is attractively valued at a forward P/E of 11.2, trading near the bottom of its 52-week range. KR's private label growth, digital expansion, and retail media initiatives drive earnings and customer loyalty amid competitive pressures. KR maintains a robust balance sheet, a 2.7% dividend yield, and aggressive share buybacks, supporting long-term shareholder returns.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR) and Murray's Cheese announced today that six cheeses from its renowned Cave Aged Cheese program received honors at the 2026 American Cheese Society (ACS) Judging & Competition Awards, one of the most respected and competitive accolades in American artisan cheese.
Often referred to as the "Academy Awards of cheese," the annual ACS competition recognizes excellence in cheesemaking and affinage through rigorous technical and aesthetic evaluation by industry experts. This year's competition featured more than 1,300 entries from cheesemakers and affineurs across North America, with winners announced this week during the ACS Annual Conference in Louisville, Kentucky.
Six of Murray's cave-aged cheeses, created in collaboration with distinguished cheesemakers and proprietarily aged in Murray's cheese caves, earned medals across a diverse range of categories:
Double Doe: First Place, Washed Rind, Other Milks, Open Category Treeline: Second Place, Washed Rind, Cow Milk, Open Category Savage: Second Place, American Made International Style, Cow Milk Mini Greensward: Second Place, Cheeses Wrapped in Bark Stockinghall: Second Place, Clothbound Cheddar, Cow Milk, Aged Over 13 Months Carpenter's Wheel: Third Place, Goat's Milk Cheese, Aged Over 60 Days Several of the wins marked significant milestones for Murray's caves program, with Treeline, Savage and Mini Greensward earning medals in their first-ever appearances in competition. Double Doe returned to the podium with a first-place finish after previously taking home top honors in 2024.
Three of the winners are available at Murray's Cheese kiosks inside Mariano's stores, part of a new program that launched this spring at 15 Marianos locations, marking the first time the unique small-batch collection has been available outside Murray's New York City retail shops.
"These awards recognize the passion and expertise of our incredible team of cheese agers and our fantastic cheese making partners. " notes Nick Tranchina, President of Murrays Cheese.
The awards underscore the success of Murray's distinctive approach to in-house cave aging, also known as affinage, a model rarely seen among American cheese and food retailers, and one that continues to uniquely position Murray's within the specialty food industry.
"It was wonderful to see such a wide array of our Cave Age cheeses recognized at the awards. We are truly honored to be able to age and nurture cheeses from so many great American cheese makers. Partnership is key to the work that we do!" says Josh Windsor, Caves Manager and Affineur
Murray's expert affinage team has operated state-of-the-art cheese caves in Long Island City, New York, aging and ripening cheeses from around the world while developing an innovative collection of proprietary cave-aged cheeses in collaboration with leading American creameries and small producers.
Murray's works hand-in-hand with cheesemakers throughout the production and maturation process, creating a foundation for continuous experimentation, innovation and flavor development. The close collaboration between Murray's affineurs and their producer partners allows the team to develop new techniques, styles and flavor profiles, creating cheeses unlike anything else on the market.
The result is a distinctive collection of cave-aged cheeses available exclusively through Murray's, many of which are produced in limited quantities and cannot be found anywhere else in the market. Together, the collection reflects Murray's commitment to redefining innovation in American cave-aged cheese while championing small producers and artisan cheesemakers across the country.
The 2026 honors build on a strong recent history for Murray's at ACS, following 2025 wins for Cave Aged Reserve Barnstorm Blue, which earned Gold and a coveted Top 10 overall finish, and St. Marks, which received Silver in the soft-ripened category.
The 2026 wins further establish Murray's as one of the country's leading authorities in affinage and reflect the company's ongoing commitment to pushing the boundaries of what American cave-aged cheese can become.
Customers can try these amazing cheeses both in Kroger Family of Companies stores across the U.S. and online at www.kroger.com.
About Murray's Cheese: Murray's Cheese is a New York City institution dedicated to the craft of exceptional cheese and artisanal food. Renowned for its meticulous curation, expert cheesemongers, and award-winning cave-aged cheeses matured in its Long Island City caves, Murray's has become a leading destination for specialty food lovers. The company operates two NYC retail shops, a kiosk in Grand Central Station, and a national ecommerce business, all rooted in a commitment to quality, tradition, and craftsmanship. Murray's also hosts expert-led tastings and educational events, while supplying many of the country's most acclaimed restaurants with thoughtfully sourced and expertly aged cheeses. Murray's joined the Kroger family in 2017 and their cheese kiosks and mongers guide customers through a joyful shopping experience within 1,200+ stores. throughout the country. Follow along at @murrayscheese and www.murrayscheese.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 e-Commerce 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 a beneficial long position in the shares of VZ, KRC 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.
Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.
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.
Greg Abel has a tough act to follow in replacing investing legend Warren Buffett as CEO of Berkshire Hathaway. But Abel has already shown, in just a few months on the job, that he is not afraid to make changes.
One of his biggest is boosting Berkshire's position in Alphabet, which now makes up about 9% of the portfolio and is a top-five holding. The combination of Apple and Alphabet accounts for almost 30% of the Berkshire Hathaway portfolio.
But right now, an old Buffett play, Kroger (KR 3.71%), might be one of the better Berkshire Hathaway stocks to own. Here's why.
Image source: The Motley Fool.
Why Kroger is a sneaky good buy Kroger, the nation's largest grocery store chain, has been in the Berkshire Hathaway portfolio since 2019. Last quarter, it made up about 1.4% of the portfolio, with no shares bought or sold by Abel.
Kroger is a classic defensive play. Groceries are needed whether the economy is good, bad, or somewhere in between. So, as the largest grocery store chain, it is built to outperform during an extended market dip. In the 2022 bear market, Kroger stocks held up well, down about 1% in a year when the S&P 500 (^GSPC +0.38%) was off 19% and the Nasdaq Composite (^IXIC +0.62%) sank 33%.
This year has been a microcosm of Kroger's defensive attributes. In the first quarter, when the Nasdaq entered a correction and the S&P 500 was down, Kroger stock rose by some 21% to more than $75 per share in March.
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Then, as the market stormed back in April and May, Kroger shares sank back down to their current $58 per share, down around 5% year to date. It hit a 52-week low of $55 per share at the end of June. It is currently trading at about 34 times earnings but just 11 times forward earnings. Its five-year PEG ratio is even lower at 0.57, well below 1, which means it is undervalued.
Trading near a 52-week low It's hard to say when the market will undergo another correction, but valuations have surged back up, and economic indicators remain somewhat weak. Investors should be cautious and focused on building a carefully balanced and diversified portfolio.
That's where Kroger comes in. This is a great time to add a strong defensive stock to your portfolio at a 52-week low to have that downside protection during the next dip.
Wall Street is bullish on Kroger, with analysts setting a median price target of $72.50 per share. That would represent about 24% upside over the next 12 months.
In addition, Kroger has an excellent dividend, yielding 2.63% with a low payout ratio of 21%. That suggests the company has more room to increase that dividend. Kroger has consistently raised its dividend over the years, with 19 straight years of annual dividend increases.
Kroger may not be glitzy like a "Magnificent Seven" stock or a highflier, but right now is a particularly good time to buy this strong defensive stock.
New survey finds Americans spend more than six hours each week on meal planning, grocery shopping, cooking and cleanup.
, /PRNewswire/ -- Time is the new currency of wellness, and Americans are spending too much of it at the grocery store or in the kitchen. According to a new survey from Tempo, a ready-to-heat meal delivery service from the team at Home Chef, Americans spend more than six hours each week on meal planning, grocery shopping, cooking and cleanup combined, totaling more than 300 hours, or 13 full days, every year.
Cook Never Club_Tempo Meals
Tempo Infographic
Cook Never Club Merch The toll goes beyond the clock. 42% of Americans say they've cut short time spent relaxing because of cooking and meal prep, and nearly one in three have skipped a workout or wellness activity. Eating well, it turns out, is coming at the cost of living well.
Introducing the Cook Never Club
To help people reclaim their time this summer, Tempo is launching the Cook Never Club, a community built around a simple idea: opting out of cooking shouldn't mean opting out of eating well.
The only membership requirement is to opt-out of cooking and opt-in to more time well spent. No fees, no gatekeeping, just a shared mindset for anyone who wants to Eat Better, Cook Never. The Cook Never Club will come to life through exclusive merchandise giveaways, social content and in-person wellness events throughout the summer.
The Data Behind the Movement
Tempo's survey surfaces a growing tension at the center of American life, which is that people want to eat healthier, but the daily time and labor involved is standing in the way
83% of Americans say they'd like to improve the way they eat 50% say cooking is more frustrating than it's worth 38% have ordered takeout despite having groceries at home, simply because they didn't have the energy to cook 67% say getting back time lost to food-related tasks would be extremely or very valuable This isn't a motivation problem, it's a food friction problem.
What Tempo Offers
Tempo delivers fully prepared, single-serve meals ready to enjoy in just two minutes, with no meal planning, no prepping,no cleanup and especially, no cooking. Each meal is made with fresh ingredients on a menu approved by registered dietitians, so eating well doesn't come with compromise.
Customers choose from more than 20 rotating weekly meals, many featuring:
30+ grams of protein Fewer than 35 grams of carbohydrates 20%+ of the daily value of fiber GLP-1 Smart, wellness forward options for those managing metabolic wellness goals Gut-friendly ingredients Side Quests Welcome
Part of the Cook Never Club philosophy is that the hours saved in the kitchen and grocery store should go toward things that actually bring joy. Maybe that's a pottery class, bird watching, a sunrise run or finally learning to play mahjong. The Tempo team is taking on a side quest of their own and partnering with RISE Pilates Chicago for three free outdoor Pilates events this summer.
Tempo's Cook Never Club x RISE Pilates at Oak Street Beach
When: July 17, July 31 and August 7 at 6:00 a.m. CT Where: Oak Street Beach, Chicago, Illinois What: Free lakeside Pilates, Cook Never Club merchandise and a chance to win one month of free Tempo meals To learn more about Cook Never Club or enter to win exclusive merchandise, visit eat.tempomeals.com/cook-never-club or follow @TempoMeals on Instagram for event updates, giveaways and more opportunities to Eat Better, Cook Never.
About Tempo
Launched in 2023, Tempo is a ready-to-heat meal delivery service from the team at Home Chef that delivers delicious, single-serving meals right to your door. These balanced, registered dietitian-approved menus offer a simple solution to mindful meal prep and cook in just 2 minutes. Tempo and Home Chef are a part of The Kroger Co. (NYSE: KR) Family of Companies. Find out more at tempomeals.com.
The Cook Never Club survey was conducted by We Are Talker among 1,000 nationally representative U.S. adults ages 20-40 from June 2 - 5, 2026. Results were weighted to reflect the national population.
Key Takeaways Kroger is raising freshness standards to improve customer experience and strengthen retention.KR's first-quarter sales growth was driven by Fresh, e-commerce and Our Brands performance.KR is using item-level merchandising and serving evolving customer needs across grocery and pharmacy. The Kroger Co. (KR - Free Report) emphasized that freshness remains the most important factor influencing customers’ choice of grocery retailer. The company believes that poor quality in key categories such as produce and protein can negatively impact customer retention. As a result, it is raising its freshness standards and evaluating product quality based not only on shelf presentation but also on how products perform after customers take them home. Management views this customer-focused approach as essential to strengthening the shopping experience and maintaining customer loyalty.
Kroger also highlighted that sales growth in the first quarter of fiscal 2026 was driven by strong performance in Fresh alongside e-commerce and Our Brands. Grocery sales also increased as a proportion of the overall sales mix, reinforcing improving trends in the company’s core business. The company noted that its Fresh offering is well-suited for digital shopping, supporting continued growth in e-commerce while strengthening its grocery business.
The company is adopting an item-level merchandising approach, emphasizing that customers choose individual products rather than overall assortments. Kroger believes that every item must earn its place on the shelf by delivering quality and a positive customer experience, with this discipline applied across the entire store.
Management also believes that Kroger is well-positioned to serve customers using GLP-1 medications. These shoppers may fill prescriptions at Kroger while increasingly seeking fresh, higher-protein and Better For You foods. Kroger believes that its combined pharmacy and grocery ecosystem can help address those changing needs.
Overall, Fresh is becoming a more central component of Kroger’s customer strategy. Its effectiveness as a competitive advantage, however, will depend on the company’s ability to deliver consistently across stores and digital channels.
The Zacks Rundown for KRThe company's shares have lost 3.1% in the past six months compared with the industry’s decline of 5.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, KR trades at a forward price-to-earnings ratio of 11.29, lower than the industry’s average of 33.98. KR currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KR’s current and next fiscal year earnings implies year-over-year growth of 7.4% and 6.5%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
B&G Foods, Inc. (BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 11.8% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.7%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Armanino Foods' current fiscal-year sales and earnings indicates growth of 7.1% and 1.7%, respectively, from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 23.1%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 25.9% and 140.2%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 635%, on average.
Berkshire Hathaway (BRKA 0.56%) (BRKB +0.12%) has owned Kroger (KR +0.56%) shares for nearly seven years. That goes back to the days when Warren Buffett made the capital allocation decisions. Buffett may have stepped aside as Berkshire Hathaway's CEO, but the famed value investor undoubtedly approves of this holding from his perch as chairman.
The company results haven't been terrible, but the new CEO aims to accelerate growth. Kroger's shares haven't performed well, but a check of the business shows this is an excellent buying opportunity for astute long-term investors.
Image source: Getty Images.
Growing sales Kroger operates supermarkets that include grocery, pharmacy, and gas stations. People need these consumer staples, no matter what's going on with their personal economic situation. That's the good news.
However, it's a very competitive business. Giants like Amazon and Walmart compete in the space. Still, Kroger has been in existence since 1883, so it's been doing something right.
Fortunately, new CEO Greg Foran doesn't plan to sit idly by. Foran plans broad-based price cuts to remain competitive. He certainly knows how to run an operation focused on low prices, having previously worked as CEO of Walmart U.S.
Kroger may not be growing fast, but it has seen increasing sales. The company's first-quarter same-store sales (comps), excluding gasoline, grew 1%. On that basis, management expects comps to increase 1% to 2% for the year.
Still, the company's gross margin under generally accepted accounting principles (GAAP) contracted 30 basis points to 22.7%. Investors may be concerned that lower prices will further hurt margins, but management plans to minimize the impact by pressing suppliers on costs and focusing on efficiency.
Cheap valuation With intense competition, tepid sales growth, and a lower gross margin, investors haven't been too pleased with Kroger. Over the last year, through July 6, the share price lost 16.1%. Meanwhile, the S&P 500 index gained 19.3%.
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That's certainly disappointing, but a new CEO with fresh ideas and tremendous success at Walmart should provide investors with optimism about the future. Cutting prices to maintain competitiveness seems like a good first step.
In the meantime, Kroger's valuation has become more attractive. Earnings can fluctuate, so it's easier to use the price-to-sales (P/S) ratio. The shares' P/S ratio has dropped from 0.35 to 0.25 over the last year. That's a fraction of the S&P 500's P/S multiple of 3.7.
Kroger shares may deserve a lower multiple than the overall market, given that it's not a fast-growing business. But a steady business in the hands of a strong and experienced executive focused on market share and improved sales should reward patient investors.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
Man pushing a shopping cart filled with groceries at Aldi, the supermarket known for selling store-brand (private label) products at discounted prices. Aldi's low prices make it a popular choice for shoppers looking to save money. (Photo by: Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images)
UCG/Universal Images Group via Getty Images
A fierce battle is emerging over how Americans shop for groceries—one-stop convenience versus deep discounts, regional loyalty versus national scale, full-service supermarkets versus small-scale efficiency. Two players are defining the fight: Kroger and Aldi.
Privately-owned Aldi is investing $9 billion in U.S. expansion to reach some 4,000 stores, leaving Kroger’s 2,700 footprint in the dust. Its deep-discount model is built for speed and simplicity around compact stores, limited assortments, a heavy reliance on private label and customer self-service—like bagging and shopping-cart retrieval— that keeps prices low and operations tight.
Kroger, the nation’s largest pure-play grocer with roughly $150 billion in revenue, is doubling down on a different strategy: expanded regional penetration and full-service breadth. Its $1.65 billion acquisition of Giant Eagle—a well-run, private regional chain with nearly 200 stores and 11 pharmacies generating an estimated $9 billion annually—is a strategic move to reinforce that model.
In a category where shopping is a necessity, household budgets are under pressure and grocers must aggressively defend market share, the stakes are high. The top five grocery store chains control over half of the market—Walmart (24%), Kroger (10%), Costco (9%), Albertsons (6%) and Publix (5%)—and Aldi, at 3.5%, is angling for more.
“We don’t know what the ceiling is,” Aldi USA chief commercial officer Scott Patton told the Financial Times. “We’re trying to take market share from anyone who sells groceries.”
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Kroger Takes A Small Bite Out Of A Big AppleAfter the FTC blocked Kroger’s $24.6 billion ambition to swallow number two pure-play grocer Albertsons whole, the company is back on the acquisition trail: this time snapping up Pittsburgh-based Giant Eagle.
Giant Eagle—not to be confused with Giant grocery stores owned by Ahold Delhaize—is a popular regional chain with stores across Pennsylvania and neighboring Ohio, Maryland, West Virginia and Indiana.
Unlike the Albertsons’ deal—where significant crossover in local markets would have required equally significant divestitures—Kroger operates no stores in Pennsylvania, where about half of Giant Eagle stores are located, and it has only limited exposure in Indiana, Maryland and West Virginia.
The exception is Ohio: Kroger holds a dominant market share in Columbus, OH. It is likely that between five and nine Giant Eagle stores will face divestiture. The National Grocers Association said that where divestitures are required after a “robust” regulatory review, independent grocers should be prioritized as buyers “to ensure local communities benefit from a diverse marketplace.”
A number of industry observers are all in on this acquisition. Burt P. Flickinger III, managing director at Strategic Resource Group, told Supermarket News that the deal positions Kroger to push deeper into the Mid-Atlantic and New England.
Peter V.S. Bond, of Flywheel and co-host of the CPG Guys podcast, sees it as an adjacent-market expansion that marks Kroger’s acquisition strategy moving forward. “After the Albertsons deal collapsed, Kroger is choosing a smaller, more regionally contained target—a signal about how M&A appetite in grocery is being recalibrated post-FTC,” he wrote on LinkedIn.
Phil Lempert, CEO of SupermarketGuru, concurs, calling the deal “the first domino in an M&A obsession,” in The Robin Report. However, he questions whether Kroger has the financial wherewithal to continue on its present course, especially since the company vows to keep its dividend and $2 billion share-repurchase plan intact.
Kroger is financing the Giant Eagle acquisition with $1.25 billion in cash and $400 million in outstanding liabilities, a structure that Lempert argues leaves little capital to fund the in-store turnaround that newly appointed CEO Greg Foran promised.
“That’s a lot of confidence for a company whose own numbers are telling a shakier story,” Lempert wrote. “This looks less like disciplined capital allocation and more like a company that keeps writing new checks hoping the next one solves the problem the last one didn’t.”
Aldi Has Mastered Disciplined ExecutionIf Kroger’s M&A appetite continues to grow with the eating, then Aldi’s strategy shows what restrained, disciplined growth looks like. It’s been 50 years since Aldi opened its first store in Iowa City and the company has expanded steadily from its Midwestern roots to 2,400 stores across 38 states today.
Aldi’s growth has been largely organic with one major exception—2004 acquisition of Southeastern Grocers’ Winn-Dixie and Harvey’s banners. Of the roughly 400 stores acquired in the transaction, Aldi committed to convert 220 to its own format and sold another 170 to a consortium led by C&S Wholesale Grocers.
In 2025, Aldi announced plans to add a record 225 stores to its fleet, though the final number fell short, with only 175 openings, many in the southern heartland of Winn-Dixie/Harvey’s. Conversions are taking a bit longer than expected: after opening nearly 90 converted stores in 2025, another 80 are slated for completion in 2026.
Earlier this year, Aldi announced that 180 stores would open, including its first in Maine and Colorado, where it plans to reach to 50 stores by 2028. The plan also includes three new distribution centers in Florida, Arizona and Colorado. And its website is getting an overhaul to enhance customers’ online shopping experience.
However, Cheapism sees the potential for 225 new stores this year. “ALDI’s plans make one thing clear: the retailer sees significant opportunity in the American market,” columnist Julieta Simone wrote. “Whether it’s entering entirely new states like Maine or deepening its presence in fast-growing Sun Belt cities, ALDI is betting that demand for low-cost groceries isn’t going away anytime soon.”
And the Financial Times article ups the total number of Adli stores from the previously announced 3,200 by end of 2028 to 4,000 stores.
Striking While The Iron Is HotRegardless of how many stores Aldi opens—and it’s recognized as the nation’s fastest-growing grocery chain—the retailer is on roll. At a time when over 60% of consumers name buying groceries and food as their number one financial pressure, Aldi comes to them with quantifiably the lowest grocery prices in the country, based on an analysis by Ernst & Young QUEST group.
In comparing a basket of 70 high-demand grocery items, the QUEST analysis found that a family of four could save up to 36% on an average shopping trip, translating to an average annual shopping total of $6,759 at Aldi versus the national average of $10,610. “That’s nearly $4,000 a year,” said Aldi CEO Jason Hart, adding that choosing Aldi private label instead of comparable national brands, the savings could rise to 63%.
With one in three U.S. households shopping at Aldi in the past year, the savings really add up. “In the U.S., we’re saving Aldi shoppers a collective $8.3 billion per year,” he said.
And beyond the cost savings, Aldi saves shoppers something even more precious: time. Because of its smaller store footprint and limited selection—solving the paradox of choice time waster—an average Aldi shopping trip takes about 30 minutes.
Designed To Save Money And Take Market Share“Our stores are quite literally designed to save you money,” Hart explained, pointing to Aldi’s smaller-sized stores, emphasis on private labels and its quarter-cart system. That refers to shoppers depositing a quarter to unlock a shopping cart that they get back after replacing it to the storage carousel. Not only does the quarter-cart system help the company operate more efficiently— removing the need for staff to retrieve carts across the parking lot—it immediately imprints Aldi in a customer’s memory.
While Aldi is working to be shoppers’ best friend, it is giving the competition fits. Morgan Stanley reported that when an Aldi store opens, it steals an average of one percentage point off annual sales from competitors within a 10-mile radius.
Kroger can ill afford the loss: first-quarter revenues increased only 0.5%, excluding gas and Vitacost, which was sold to iHerb in January. Adding insult to injury, Aldi makes a practice of locating its stores close to national competitors.
“The intentionally unique way Aldi runs its stores drew 19 million new shoppers into our stores in the last year alone, and the number of Aldi super fans only continues to grow as more people discover the value we offer,” Hart concluded. “For those of you who haven’t yet experienced one of our stores 2,400+ stores, we can’t wait to welcome you in.”
Just remember to bring along a quarter.
See Also:
ForbesALDI At 50: The Grocer That Changed America’s Shopping Habits Isn’t Slowing DownBy Phil LempertForbesFirst Look At New Aldi Format Set To Rollout Across The U.S.By Mark Faithfull
Key Takeaways Kroger is expanding AI across its media business for real-time optimization and faster audience creation.KR uses loyalty-linked purchase data to help brands target audiences based on actual buying behavior.KR is extending AI-powered retail media through Google Display & Video 360 and a TikTok collaboration. The Kroger Co. (KR - Free Report) is expanding AI-powered capabilities within its media business to support real-time optimization, predictive budget allocation and faster audience creation, positioning the technology as a key enabler of performance and scalability. Rather than presenting artificial intelligence (AI) as a standalone initiative, management is tying it to Kroger Precision Marketing and the company’s broader effort to use customer data more effectively.
Kroger’s AI opportunity rests on its extensive first-party data ecosystem. Management noted that 95% of all transactions are tied to a loyalty card and supported by more than 20 years of purchase history. This gives Kroger the ability to measure actual purchase behavior, not just intent, creating retail signals that are valuable to brands and advertisers.
The company is also extending those capabilities through external digital platforms. Kroger said that advertisers can now use KPM’s retail signals through Google’s Display & Video 360 to reach audiences across YouTube and YouTube TV, with SKU-level conversion reporting available for the first time. The company also said that Kroger Precision Marketing is set to launch a self-service collaboration with TikTok, giving brands direct access to its audiences.
Overall, Kroger is using AI to make its loyalty data and retail media platform more scalable and effective. Management believes that direct customer relationships and first-party data are becoming more important in advertising, and AI could help Kroger turn those assets into more targeted marketing solutions and a longer-term growth opportunity.
The Zacks Rundown for KRThe company's shares have lost 1.8% in the past six months compared with the industry’s decline of 1%.
Image Source: Zacks Investment Research
From a valuation standpoint, KR trades at a forward price-to-earnings ratio of 10.87, lower than the industry’s average of 33.40. KR currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KR’s current and next fiscal year earnings implies year-over-year growth of 7.4% and 6.5%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
B&G Foods, Inc. (BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 11.8% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.7%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Armanino Foods' current fiscal-year sales and earnings indicates growth of 7.1% and 1.7%, respectively, from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 23.1%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30% and 73.3%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 129.2%, on average.
The collapse of the Albertsons mega-merger forced Kroger NYSE: KR into a severe reckoning. Antitrust regulators effectively shut the door on transformative coast-to-coast consolidation late last year, and the market aggressively punished the uncertainty. Shares dragged toward a 52-week low of $54.15 as investors questioned how Kroger would navigate relentless pressure from omnichannel titans such as Amazon NASDAQ: AMZN and Walmart NASDAQ: WMT.
Kroger Today
$58.12 -0.10 (-0.16%)
As of 07/2/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$54.15▼
$76.58Dividend Yield2.68%
P/E Ratio34.19
Price Target$71.94
Shifting consumer behavior and an unforgiving macroeconomic environment require massive scale to survive, leaving Kroger in a precarious position.
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The answer arrived in the form of a definitive agreement to acquire regional grocer Giant Eagle for a total enterprise value of $1.65 billion. This transaction represents a ruthlessly pragmatic pivot in corporate strategy.
By bolting on a dense, well-established grocery network across five key midwestern and mid-Atlantic states, Kroger is securing immediate distribution leverage.
Under the guidance of recently installed Chief Executive Officer Greg Foran, who brings deep operational experience from Walmart, Kroger is orchestrating a classic value-play consolidation to defend an increasingly vulnerable economic moat.
Kroger Rings Up Top-Line Growth at a BargainBreaking down the transaction arithmetic reveals exactly why this acquisition serves as a powerful upside catalyst. Kroger is paying $1.25 billion in cash and assuming approximately $400 million in outstanding liabilities. In exchange, Kroger instantly integrates 197 supermarkets, 11 standalone pharmacies, and roughly $9 billion in annual top-line revenue across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana.
Securing $9 billion in incoming revenue for a total price tag of $1.65 billion translates to a 0.18x multiple on acquired sales. Attempting to build that physical footprint organically is nearly impossible in today's elevated interest rate environment. Securing premium commercial real estate, building localized distribution centers, and acquiring net-new customers in heavily saturated regional corridors would cost substantially more capital and take a decade to execute properly.
Kroger is instead buying established cash flows and localized market dominance at a steep discount. Management expects the deal to become accretive to adjusted earnings per share (EPS) by the second full year post-integration in 2029.
Trimming the Fat: Digital Margins and Pharmacy PlaysSupermarket operators exist in an environment where profitability remains structurally tight. Kroger currently generates razor-thin net margins of 0.71% and pre-tax margins of 0.86%. Earnings per share for the first quarter of 2027 came in at $1.58, missing consensus estimates by a single penny, while identical sales excluding fuel increased by just 1.0%. Investors rightly view these metrics with caution, but analyzing the underlying operations reveals a critical inflection point hidden just beneath the surface.
During that same first quarter, Kroger's digital fulfillment operations turned profitable for the very first time. E-commerce logistics and last-mile grocery delivery traditionally bleed cash, serving as massive loss leaders to maintain market share.
Achieving sustainable profitability in digital fulfillment justifies the Giant Eagle acquisition on a fundamental level. Kroger can now seamlessly integrate Giant Eagle's established customer loyalty programs into a proven, margin-positive digital fulfillment engine, eliminating redundant logistics costs and instantly scaling online margins.
Investors must also contextualize shifting consumer behaviors, specifically the structural rise of GLP-1 weight-loss medications. Market data indicate that households using GLP-1 treatments reduce overall grocery spending by roughly 5.5% to 6.0%. This dynamic presents a widely discussed margin-pressure point for traditional center-store grocery volumes. Kroger is slightly derisked in this environment, as it already operates a massive network of in-store pharmacies.
Adding Giant Eagle's standalone and integrated pharmacy footprint acts as a natural defensive hedge. The combined entity captures high-margin prescription revenue from dispensing the weight-loss medications, effectively neutralizing the peripheral drag on traditional packaged food sales by shifting the consumer's wallet from the grocery aisle to the pharmacy counter.
Paying the Bill: How Kroger Funds the FeastAny debt-funded acquisition requires serious balance sheet scrutiny from investors. Kroger carries a debt-to-equity ratio of 2.43 and a quick ratio of 0.39, signaling low immediate liquidity. Adding $400 million in assumed Giant Eagle liabilities introduces near-term financial friction. When the Giant Eagle deal hit the wires, Kroger shares dipped to $53.92 amid immediate financing concerns before buyers stepped in and pushed the stock back to a close above $56
The Kroger Co. (KR) Price Chart for Friday, July, 3, 2026
The downside risk appears heavily capped by a deeply compressed valuation and highly aggressive capital return programs. Kroger currently trades at a forward price-to-earnings ratio (P/E) of 11 and a price-to-sales ratio (P/S) of just 0.24.
These depressed metrics price in operational stagnation rather than targeted regional growth. Kroger management is aggressively exploiting the disconnect between market price and intrinsic value. Following the dissolution of the Albertsons deal, the board initiated a $7.5 billion share repurchase program. Retiring nearly 17% of the outstanding float at current depressed prices artificially boosts earnings per share. This creates a powerful dual-engine for shareholder returns when combined with Giant Eagle's incoming cash flows.
This aggressive buyback program is backstopped by heavy institutional conviction. Vanguard Group and BlackRock maintain stable equity positions, holding approximately 12.0% and 8.6% of Kroger's outstanding shares, respectively. Having over 20% of the entire float anchored by two institutional giants provides a formidable structural floor. This institutional ownership mitigates downside volatility while the regulatory and integration processes play out ahead of the 2027 closing date.
Bagging the Bottom: Why Kroger Is a Top-Shelf BuyCapital allocation ultimately dictates long-term shareholder value in the retail sector. Kroger is leveraging a temporary weakness in its own equity pricing to acquire significant regional market share at a deep discount. Securing localized density in the Midwest and Mid-Atlantic allows Kroger to build a formidable firewall against non-traditional grocery entrants such as Walmart and Amazon.
The grocery sector rarely offers hyper-growth narratives, but the industry frequently provides mispriced cash flows. Kroger is trading at a depressed multiple while expanding its omnichannel reach, leveraging a newly profitable digital fulfillment network, and executing one of the largest buyback programs in the retail landscape.
Value-oriented investors willing to look past the immediate debt load and short-term integration friction might find current pricing levels a highly opportunistic entry point into a resilient, cash-generating retail powerhouse.
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Kroger said Wednesday it plans to buy regional grocer and pharmacy retailer Giant Eagle in a deal valued at $1.65 billion.
Giant Eagle, which is privately held, has 197 supermarkets and 11 stand-alone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana. They would continue to operate under the Giant Eagle name under the terms of the deal.
Kroger, which is the largest U.S. supermarket chain, has 2,685 stores in 35 states and the District of Columbia. Its stores operate under various brand names, including Ralphs, King Soopers, Smith’s, and Fred Meyer.
The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities, the companies said Wednesday.
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“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label, and customer loyalty,” Kroger CEO Greg Foran said in a statement. “We evaluated the opportunity carefully, and the strategic fit is clear.”
Foran, a former Walmart executive, was named Kroger’s CEO in February.
Kroger and other traditional grocers have been squeezed in recent years as consumers do more of their food shopping at big retailers like Walmart, Costco, and Amazon, and discount chains like Aldi.
CINCINNATI, July 2, 2026 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today announced Emilee De Martino will serve as its next Executive Vice President and Chief People Officer. De Martino succeeds Tim Massa, who announced he will be retiring September 18.
The Zacks Retail – Supermarkets industry faces persistent cost inflation, pricing pressure and cautious consumer spending. Rising labor, transportation, fuel and technology investments are weighing on margins, while value-focused shoppers are keeping the sector highly promotional. This limits pricing power and increases the need for stronger productivity gains, sharper cost controls and efficient execution.
However, the outlook is supported by expanding omnichannel capabilities, faster delivery models and higher-margin revenue streams such as retail media, memberships and data-driven advertising. Against this mixed backdrop, Walmart Inc. (WMT - Free Report) and The Kroger Co. (KR - Free Report) appear well-positioned due to their scale, digital investments and diversified growth platforms.
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 Costs Weigh on Margins: The supermarket industry continues to face elevated structural costs despite ongoing productivity initiatives. Rising transportation expenses, fuel volatility, wage investments and supply-chain costs are increasing pressure on operating margins, while retailers must simultaneously invest in automation, artificial intelligence, digital capabilities and store modernization to remain competitive. These investments are becoming essential as customer expectations continue to rise across both physical and digital channels. Going forward, operators will need to generate substantial productivity gains and procurement savings to offset these higher expenses. Companies that struggle to improve efficiency or execute cost reduction programs may face increasing difficulty balancing customer value investments with long-term profitability.
Value Pressure Persists: Although inflation has moderated from recent peaks, consumers remain highly disciplined in their grocery spending, keeping affordability at the center of purchase decisions. Households continue comparing prices across multiple retailers, seeking promotions, trading into private labels and carefully managing discretionary purchases. This environment is prompting supermarket players to narrow price gaps, simplify promotional strategies and maintain aggressive value investments to defend customer traffic. While these actions support volume growth and market share, they also limit pricing flexibility and compress gross margins.
Omnichannel Grocery Gains Ground: The supermarket industry is moving beyond simply offering online grocery to creating fully integrated omnichannel ecosystems that combine stores, pickup and rapid delivery. Retailers are increasingly leveraging their store networks as fulfillment hubs, allowing them to improve delivery speed while lowering fulfillment costs. At the same time, investments in artificial intelligence, automation and predictive inventory management are making digital grocery operations more efficient and scalable. These capabilities are improving order accuracy, strengthening customer engagement and increasing shopping frequency across channels. As fulfillment economics continue to improve, omnichannel grocery is expected to evolve from a necessary service into a sustainable source of revenue growth, customer retention and long-term operating leverage for leading supermarket operators.
New Profit Pools Expand: Supermarket companies are expanding higher-margin businesses such as retail media, digital advertising, loyalty ecosystems, memberships, marketplace services and data monetization. These businesses capitalize on extensive first-party customer relationships while generating earnings that are less dependent on food pricing or promotional intensity. At the same time, richer customer data is enabling increasingly personalized promotions and supplier partnerships, strengthening customer loyalty and vendor engagement. As these platforms mature, supermarkets should benefit from a more diversified profit mix, improved earnings resilience and greater flexibility to reinvest in pricing, technology and customer experience.
Zacks Industry Rank Indicates Dull Prospects The Zacks Retail – Supermarkets industry is housed within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #201, which places it in the bottom 18% 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 drab 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.
The industry’s position in the bottom 50% of the Zacks-ranked industries leads to a negative aggregate earnings outlook for the constituent companies. Since the beginning of February 2026, the industry’s consensus estimate for current financial-year earnings has decreased 2.6%.
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 13.6% over this period compared with the S&P 500’s growth of 23.9%. Meanwhile, the broader sector has climbed 0.5% 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 33.78X compared with the S&P 500’s 21.13X and the sector’s 22.59X.
Over the last five years, the industry has traded as high as 40.07X and as low as 17.5X, with the median being at 22.18X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
2 Supermarket Stocks to Keep a Close Eye On Walmart: The Zacks Rank #3 (Hold) company continues to strengthen its competitive position by combining its unmatched store network with rapidly expanding digital capabilities and AI-driven innovation. Walmart is successfully diversifying its earnings through higher-margin businesses such as advertising, marketplace services and memberships while improving customer engagement through faster fulfillment and personalized shopping experiences. WMT’s disciplined investments in automation, technology and omnichannel infrastructure reinforce both operational efficiency and long-term profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With multiple growth engines complementing its core retail business, Walmart appears well-positioned to sustain market share gains and deliver durable long-term growth. The Zacks Consensus Estimate for WMT’s current fiscal-year earnings per share (EPS) has remained unchanged at $2.89 in the past 30 days, with the consensus mark indicating growth of 9.5% from the prior-year period. Shares of this Bentonville, AR-based company have gained 10.6% over the past year.
Price and Consensus: WMT
The Kroger Co.: The Cincinnati, OH-based company is sharpening its competitive position through a renewed focus on operational excellence, customer value and digital transformation. Kroger continues to strengthen its fresh food leadership, private-label portfolio and e-commerce capabilities while expanding higher-margin businesses such as retail media. At the same time, disciplined cost management and productivity initiatives are creating greater flexibility to reinvest in pricing and customer experience.
Supported by a loyal customer base, strong data capabilities and a clear strategic roadmap, the Zacks Rank #3 company appears well-positioned to strengthen its competitive standing and drive sustainable long-term growth. The Zacks Consensus Estimate for KR’s current fiscal-year EPS has declined by 0.8% to $5.21 in the past 30 days, though the consensus mark suggests 7.4% growth from the year-ago period reported figure. Kroger shares have tumbled 19.5% over the past year.
Key Takeaways Kroger will acquire Giant Eagle for $1.65B, adding 197 supermarkets and 11 pharmacies.Kroger expects Giant Eagle's fresh foods, loyalty programs and pharmacies to complement digital strengths.KR plans an all-cash funding, keeps buybacks & dividend. EPS gains expected in second full-year after closing. The Kroger Co. (KR - Free Report) has agreed to acquire Giant Eagle for $1.65 billion, in a move that would significantly expand its presence across key Midwestern markets. The transaction includes $1.25 billion in cash and the assumption of roughly $400 million in liabilities. The deal is expected to close in 2027.
Giant Eagle brings a sizeable regional platform to Kroger, generating approximately $9 billion in annual sales through 197 supermarkets and 11 standalone pharmacies. Its operations span northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana, providing Kroger with access to attractive adjacent markets where Giant Eagle has built strong customer loyalty and brand recognition.
The acquisition aligns with Kroger's strategy of pursuing targeted opportunities that can create long-term value for customers, employees and shareholders. Giant Eagle's strengths in fresh foods, pharmacy services, private-label offerings and loyalty programs are expected to complement Kroger's expertise in e-commerce, personalization technology and data-driven merchandising.
Management believes the combination can accelerate growth across both in-store and digital channels while enhancing convenience and improving the overall shopping experience. The companies also intend to expand community-focused initiatives by extending Kroger's Zero Hunger Zero Waste program into new markets served by Giant Eagle.
Kroger plans to fund the purchase entirely with cash while maintaining its targeted leverage range of 2.3-2.5 times adjusted EBITDA. The company expects to preserve its dividend policy, continue its previously authorized $2 billion share repurchase program and retain flexibility to invest in core operations. The transaction is projected to contribute positively to adjusted earnings per share beginning in the second full year after closing, excluding integration-related expenses, although limited store divestitures are anticipated as part of the regulatory review process.
Kroger’s Price Performance, Valuation & EstimatesShares of Kroger have lost 17.8% over the past year against the industry’s13.9% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Kroger trades at a trailing price-to-sales ratio of 0.23X, down from the industry’s average of 1.21X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Kroger’s fiscal 2026 earnings implies a year-over-year growth of 7.4%, whereas the same for fiscal 2027 indicates an uptick of 6.5%. The estimates for fiscal 2026 and 2027 have been revised downward by 1 cent each, respectively, over the past seven days.
Image Source: Zacks Investment Research
Kroger currently carries a Zacks Rank #3 (Hold).
Key PicksWe have highlighted three better-ranked stocks, namely, Ross Stores Inc. (ROST - Free Report) , Dollar Tree Inc. (DLTR - Free Report) and Ollie's Bargain Outlet Holdings (OLLI - Free Report) .
Ross Stores operates as an off-price retailer of apparel and home accessories. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales suggests growth of 17.1% and 9.1%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales suggests growth of 21.4% and 6.5%, respectively, from the year-ago actuals. The company delivered a trailing four-quarter average earnings surprise of 32.1%.
Ollie's Bargain is a value retailer of brand-name merchandise at drastically reduced prices. OLLI also has a Zacks Rank of 2.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year earnings and sales suggests growth of 17.1% and 12.7%, respectively, from the year-ago actuals. OLLI delivered a trailing four-quarter average earnings surprise of 4.9%.
Kroger is set to acquire Pennsylvania-based grocery chain Giant Eagle for $1.65 billion.
The deal, announced Wednesday (July 1), expands Kroger’s footprint in the western part of Giant Eagle’s home state as well as in Indiana, Maryland, Ohio and West Virginia.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Kroger CEO Greg Foran said in a news release.
“We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.”
The release touted the benefits of Giant Eagle’s established store base, loyalty program, pharmacy business and its portfolio of private label products, coupled with Kroger’s eCommerce solutions, data and personalization capabilities and operating discipline,
Together, these factors present a “significant opportunity to accelerate growth both in-store and online, enhance the customer experience and create long-term value for shareholders,” the release added.
In an announcement on its website, Giant Eagle notes that its stores will retain their name. Giant Eagle operates 197 stores and 11 standalone pharmacies, taking in around $9 billion in annual sales, per the news release.
The deal comes as Kroger is facing increased competition from German grocery chain Aldi, which is spending $9 billion on an expansion plan aimed at giving it more locations than Kroger.
“We don’t know what the ceiling is,” Scott Patton, Aldi USA’s chief commercial officer, said in an interview with the Financial Times last month. “We’re trying to take market share from anyone who sells groceries.”
Kroger last month reported a slight uptick in sales — 1% for the quarter, compared to 3.2% for the same quarter in 2025 — as consumers grow more cautious.
“The customer is under pressure,” Foran said during an earnings call. “High gas prices and reduced SNAP benefits are squeezing budgets. Customers are managing spend carefully and shopping with real intent. That pressure is showing up in the market.”
The selective behavior Kroger reported from its customers is in keeping with PYMNTS Intelligence research, which has shown that financially stressed consumers across generations routinely point to grocery costs as a hardship.
Kroger announced Wednesday it will acquire regional supermarket chain Giant Eagle in a $1.65 billion deal, marking the grocery giant's first major acquisition since regulators blocked its proposed $25 billion merger with Albertsons nearly two years ago.
The acquisition will strengthen Kroger's presence across several Midwestern and Mid-Atlantic markets as traditional grocery chains compete with Walmart and Amazon while consumers continue searching for lower prices after years of elevated inflation.
"We evaluated the opportunity carefully, and the strategic fit is clear," Kroger CEO Greg Foran said in a statement. "Giant Eagle expands our reach into attractive adjacent markets."
SEPHORA JOINS WALMART, TARGET WITH NEW ‘QUIET HOURS’ SHOPPING EXPERIENCE
Kroger announced Wednesday it will acquire regional supermarket chain Giant Eagle in a $1.65 billion deal. (Shelby Tauber/Bloomberg via Getty Images)
Giant Eagle operates about 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. Kroger currently operates roughly 2,700 supermarkets and multi-department stores, along with about 2,200 pharmacies, across 35 states.
The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in Giant Eagle's outstanding liabilities.
Giant Eagle operates about 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. (Allison Farrand/Bloomberg via Getty Images)
The acquisition follows the collapse of Kroger's proposed merger with Albertsons in late 2024, when courts blocked the deal over antitrust concerns, prompting the nation's largest traditional supermarket operator to pursue other avenues for growth.
The grocery industry remains fiercely competitive as retailers battle for market share amid persistent pressure on household budgets. Kroger has sought to keep prices competitive as shoppers remain price-conscious, while Walmart has continued to gain grocery market share and Amazon has expanded its online grocery offerings.
Kroger said it expects the Giant Eagle acquisition to increase adjusted earnings beginning in the second full year after the transaction closes, which is expected in 2027.
A Kroger grocery store in Covington, Kentucky, on June 2, 2024. (Jeffrey Dean/Bloomberg via Getty Images)
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The deal also reflects a broader wave of consolidation across the consumer sector, with companies pursuing acquisitions to gain scale and navigate inflationary pressures, changing consumer preferences and heightened competition.
, /PRNewswire/ -- The Kroger Co. (NYSE: KR) and Giant Eagle, Inc. ("Giant Eagle") today announced a definitive agreement under which Kroger will acquire Giant Eagle, a leading family-owned food and pharmacy retailer with approximately $9 billion in annual sales and 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. The transaction has been unanimously approved by Kroger's Board of Directors.
With a purchase price of $1.65 billion, comprised of $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities, this transaction is consistent with Kroger's disciplined approach to capital allocation and its focus on acquisitions where the company can create clear value for customers, associates and shareholders.
A strong strategic fit
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," said Greg Foran, Chief Executive Officer at Kroger. "We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day."
Giant Eagle's established store base, loyalty program, pharmacy business and private label portfolio provide a strong foundation for growth. Together with Kroger's eCommerce solutions, data and personalization capabilities and operating discipline, we see significant opportunity to accelerate growth both in-store and online, enhance the customer experience and create long-term value for shareholders.
The companies plan to build on Giant Eagle's long history of community engagement by bringing Kroger's Zero Hunger | Zero Waste impact plan to new communities.
"Today's announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners," said Bill Artman, Chief Executive Officer at Giant Eagle. "Together with Kroger, we will be well-positioned to advance our strategy and deliver better quality and service, better everyday value, and a better shopping experience for our customers, while providing greater growth opportunities for our dedicated Team Members."
Financial impact
Kroger will finance the transaction with cash. Following the close of the transaction, the company expects to maintain its net total debt to adjusted EBITDA ratio target range of 2.3 – 2.5x. As part of Kroger's commitment to shareholder returns, the company expects to maintain its dividend, subject to board approval, continue its previously announced $2 billion share repurchase program, and preserve financial flexibility to invest in its strategic priorities and core business.
Kroger expects the transaction to be accretive to adjusted EPS per diluted share in the second full year after close, excluding one-time transaction and integration costs.
Regulatory process
In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures.
The transaction is expected to close in 2027, subject to receipt of required regulatory clearance and other customary closing conditions.
Advisors
RBC Capital Markets is serving as exclusive financial advisor, and Jones Day is serving as legal counsel to Kroger.
Wells Fargo is serving as exclusive financial advisor to Giant Eagle. WilmerHale is serving as the primary legal advisor and Troutman Pepper Locke is serving as local counsel on Giant Eagle's behalf.
About Kroger
At The Kroger Co. (NYSE: KR), we are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an eCommerce and store experience under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
About Giant Eagle
Giant Eagle, Inc., ranked among Forbes magazine's largest private corporations, is one of the nation's largest food retailers and distributors. Founded in 1931, Giant Eagle, Inc. has grown to be a leading food and pharmacy retailer in the region, with more than 200 stores throughout western Pennsylvania, north central Ohio, northern West Virginia, Maryland, and Indiana.
This press release contains certain statements that constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, about the proposed acquisition of Giant Eagle and the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "achieve," "committed," "continue," "drive," "expect," "focused," "future," "guidance," "may," "model," "opportunities," "strategy," "target," "trends," and variations of such words and similar phrases. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as our ability to successfully complete the acquisition of Giant Eagle; and our ability to successfully integrate Giant Eagle into our business and risks inherent with the Giant Eagle acquisition in the achievement of expected results, including whether the acquisition will be accretive and within the expected timeframe.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
Kroger logo is seen in this illustration taken, February 11, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesJuly 1 (Reuters) - Kroger (KR.N), opens new tab said on Wednesday it would acquire food and pharmacy retailer Giant Eagle in a $1.65 billion deal, as it looks to expand its retail footprint.
Dealmaking in the industry, including food, beverage, personal care, pet products and health, has been robust. Companies are consolidating to weather inflationary pressures, shifting consumer preferences and intensifying competition.
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"Giant Eagle expands our reach into attractive adjacent markets," Kroger CEO Greg Foran said.
The transaction involves $1.25 billion in cash consideration and the assumption of approximately $400 million in Giant Eagle's outstanding liabilities, Kroger said.
Reporting by Neil J Kanatt in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
On June 29, 2026, The Kroger Co (KR) shares fell 3.1% to a current price of $55.91. The stock has experienced a significant decline over the past year, with a 5
Retailer makes it easy to host unforgettable backyard gatherings with creative food flights, grilling favorites and digital savings
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, today shared it is helping customers celebrate Independence Day with fresh inspiration, low prices and the season's hottest food trend: customizable "flights" designed to elevate every backyard barbecue.
Retailer makes it easy to host unforgettable backyard gatherings with creative food flights, grilling favorites and digital savings "Fourth of July is a time to come together in celebration of our nation's traditions, while creating new memories with family and friends," said Kate Meyer, vice president of Grocery. "Kroger is here to make those moments easy and affordable, with fresh inspiration, quality ingredients and simple ways to bring something new to the table."
From hot dog spreads to s'mores stacks and tomato tastings, Kroger brings fun, flavor and creativity to Fourth of July tables—making it easy to gather with friends and family and create memories that last all summer with many exclusive Our Brands products found only at Kroger Family of Stores. Try out these trends with simple, affordable ingredients to create crowd-pleasing pairings.
Customers can make their celebrations even more rewarding with Kroger's enhanced rewards program. Members earn one Point for every $1 spent and can now redeem Points for dollars off groceries in-store and online in addition to fuel savings at the pump—giving families more flexibility to save on summer celebrations. Earn Points faster with 4X Points Fridays through July 24 and again from July 1-4.*
Hot Dog Flights
Turn a classic cookout staple into a customizable tasting experience:
All-American Classic Flight: Ball Park® hot dogs, Kroger® buns, Heinz ketchup, mustard, relish and diced onions BBQ Backyard Flight: Nathan's Famous Beef Franks topped with Private Selection® BBQ sauce, coleslaw and crispy onions Chili Cheese Flight: Hot dogs layered with Kroger chili, shredded cheddar and jalapeños Gourmet Street Dog Flight: Topped with avocado, pico de gallo, crema and fresh cilantro for a bold twist S'mores Flights
Reimagine the classic firepit favorite with mix-and-match flavors:
Classic Campfire Flight: Hershey's® chocolate, Jet-Puffed marshmallows and Honey
Maid graham crackers Chocolate Lover's Flight: Assorted chocolate bars such as milk, dark or caramel-filled with marshmallows and Bakery Fresh chocolate chip cookies for $3 a dozen Sweet & Salty Flight: Pretzels, peanut butter cups, marshmallows and chocolate squares Berry Bliss Flight: Fresh strawberries, raspberries, chocolate and marshmallows for a summer twist Tomato Flights
Celebrate peak summer produce with fresh, flavorful combinations:
Garden Fresh Flight: Sliced heirloom, roma and cherry tomatoes with sea salt, olive oil and fresh basil Caprese Flight: Tomatoes paired with fresh mozzarella, Simple Truth Organic basil and Private Selection balsamic glaze Grilled Tomato Flight: Charred tomatoes with olive oil, garlic and Private Selection shaved parmesan Savory Snack Flight: Cherry tomatoes served with hummus, Alouette or Boursin spreadable cheese (Mix & Match BOGO free*) topped with flaky sea salt Mocktail Flights
Top your meal off with a crisp, refreshing beverage that tastes like summer:
Stars and Stripes Spritzer: This layered refreshment blends Kroger® Blue Raspberry Pop Sparkling Water with a splash of lemonade and a patriotic Red, White & Blue Ice Pop that slowly melts into sweet, fruity flavor. Top it off with juicy blueberries, bright raspberries, and a sprig of mint for a refreshing finish. Firecracker Dirty Soda: Grab your favorite flavor of soda, splash in coffee creamer or fruit juice, one pump of Private Selection flavored syrup and finish with a fruity garnish of citrus, maraschino cherries or fresh herbs like mint. Try flavor combos like orange vanilla, peach mango or blue raspberry coconut. Cool as a Cucumber - with a Kick: Mix muddled cucumber, Kroger 100% lime juice, fresh mint and Private Selection Sparkling Mineral Water. Enjoy a little spice? Add chili lime spice mix like Tajin to the rim. Shirley Sparkler: A tangy twist on the classic Shirley Temple – combine ginger ale, grenadine, half of a squeezed lime and top with lime wedges and a cherry. In addition to trending food experiences, Kroger offers everyday low prices for all celebrations, including**:
Coca-Cola, Pepsi and Canada Dry 12-pack cans - Mix & Match Buy 2, Get 3 Free Buy 1, Get 1 Free or $2.99/lb pork back ribs 3/$5 Kroger sour cream, cottage cheese or dip 4/$5 Kroger pasta Johnsonville dinner sausage for $3.99 Mix & Match Buy 1, Get 1 free Natural Made supplements No matter how you 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 your local store and delivered directly to your door.
Find even more Independence Day inspiration at Kroger's blog, The Fresh Lane brimming with grill out recipes, party essentials and even more gift ideas for dad.
*Offers vary by geography.
**Prices valid beginning July 1. Prices and products may vary by geography. Discount and number of items vary by location.
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 e-Commerce 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.
Members can now redeem Points for dollars off groceries in-store and online, plus fuel discounts at the pump
, /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's grocer, today announced rewards program members have more flexibility in how they use their rewards. Members can now redeem their Points for dollars off groceries in-store and online, in addition to fuel discounts at the pump. "Fuel Points" are simply "Points," giving members the freedom to choose how they save. This is one more way Kroger is making shopping simpler and more flexible, helping customers save in ways that fit their needs.
Members can now redeem Points for dollars off groceries in-store and online, plus fuel discounts at the pump "We're excited to help customers stretch their budgets and give more choices in how they use the rewards they earn shopping with us," said Megan Shaffer, group vice president of customer growth and strategy at Kroger. "Whether they're saving up to $35 on their next fill-up or taking dollars off their grocery bill, customers can now choose the savings that matter most to them."
How to Earn Points:
Earn one Point for every $1 spent on purchases made with a reward card in-store or online for Pickup or Delivery. Points can be earned on everyday purchases, qualifying gift cards and qualifying prescriptions and during special Point events. Boost members earn 2X Points¹ on purchases, along with exclusive membership benefits like free delivery, helping them maximize rewards faster and save more every day. How to Redeem Points – Your Way
Fuel discounts: Save 10 cents per gallon at the pump for every 100 Points redeemed, up to $1 per gallon. ² Dollars off groceries: Members can now redeem Points for dollars off groceries. $1 off purchases for every 100 Points redeemed, up to $10 per day. To redeem, customers must log into their digital account at Kroger.com or the Kroger app and apply Points before checkout. Maximize Your Points this Summer
Summer is the time to earn and redeem. Customers can earn Points even faster with these limited time offers.4:
4X Points Fridays through July 24 4X Points July 1 through July 4 Download a digital coupon to receive 4X Points on Private Selection® products available through July 18 to stock up on your favorites while earning faster. Kroger rewards program members can view their Points balance and redeem rewards by logging into their digital account at Kroger.com or on the Kroger app. New to the program? Customers can join for free at Kroger.com.
Boost members save even more every day with exclusive discounts on groceries, 2X Points, streaming options and free grocery delivery. ³ Learn more about Boost at Kroger.com.
No matter how customers shop, Kroger makes it easy. Customers can get their favorite products in-store or on Kroger.com, offering the same fresh items at the same low prices available 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 your local store and delivered directly to your door.
Whether customers are shopping for fresh food, everyday essentials or preparing for holiday celebrations, Kroger is making it easier to save in-store, online and at the pump.
Media assets available for download here.
Disclaimers
$1 in spending = 1 Point + 1 bonus Point on qualifying purchases made in-store, curbside pickup and delivery. Pharmacy prescriptions, Fred Meyer jewelry, tobacco products, gift cards, money services, lottery tickets, postage stamps, The Little Clinic, Delivery tips, and Boost membership fees are excluded from Boost Points benefits, as well as alcohol where restricted. Points can be redeemed at participating locations. For full details, including availability and nonavailability in given jurisdictions or locations, other potential limitations or restrictions, and related information, see the complete Terms and Conditions on our website. Boost Streaming Benefit: Eligible subs only. Restrictions Apply. See retailer site for details. Free delivery: $35 order minimum. Restrictions apply. Subject to availability. Delivery time not guaranteed. Offers vary by geography. 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 e-Commerce experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
, /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors approved a dividend increase from $1.40 to $1.56 per year. The next quarterly dividend of 39 cents per share will be paid on September 1, 2026, to shareholders of record as of close of business on August 15, 2026.
The company's quarterly dividend has grown at a 13% compounded annual growth rate since it was reinstated in 2006. This marks the 20th consecutive year of dividend increases. The company continues to expect, subject to board approval, an increasing dividend over time.
"This dividend increase reflects the Board of Directors' confidence in Kroger's operating performance, durable free cash flow generation, and commitment to deliver long-term value for shareholders," said Ron Sargent, Chairman of Kroger's Board of Directors.
Kroger remains committed to balanced capital allocation by investing in the business to drive sustainable growth, maintaining its current investment grade debt rating and returning capital to shareholders.
About Kroger
The Kroger Co. (NYSE: KR) is one of America's largest retailers, serving more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. With more than 400,000 associates across our family of companies, Kroger is committed to providing America with affordable, great-tasting food and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
This press release contains certain statements that constitute "forward-looking statements" about Kroger's financial position and the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "committed," "continue," "expect," and variations of such words and similar phrases. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as the following:
Kroger's ability to achieve sales, earnings, incremental FIFO operating profit, and adjusted free cash flow goals may be affected by: labor negotiations; potential work stoppages; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with Kroger; pricing and promotional activities of existing and new competitors, and the aggressiveness of that competition; Kroger's response to these actions; the state of the economy, including interest rates, the inflationary, disinflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment including wars and conflicts; unstable political situations and social unrest; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; supply constraints; diesel fuel costs related to Kroger's logistics operations; trends in consumer spending; the extent to which Kroger's customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; stock repurchases; changes in the regulatory environment in which Kroger operates, along with changes in federal policy and at state and federal regulatory agencies; Kroger's ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger's ability to negotiate modifications to multi-employer pension plans; our ability to attract and retain qualified individuals; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; the potential costs and risks associated with potential cyber-attacks or data security breaches; the potential costs and risks associated with new technologies, including artificial intelligence; the success of Kroger's future growth plans; the ability to execute our growth strategy and value creation model, including continued cost savings, growth of our alternative profit businesses, and our ability to better serve our customers and to generate customer loyalty and sustainable growth through Fresh, Our Brands, Personalization, and eCommerce; the outcome of litigation matters, including those relating to the terminated transaction with Albertsons Companies, Inc.; and the risks relating to or arising from our opioid litigation settlements, including the risk of litigation relating to persons, entities, or jurisdictions that do not participate in those settlements. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
Key Takeaways Kroger's grocery engine remains steady, with identical sales excluding fuel up 1% in fiscal Q1.Adjusted e-commerce sales rose 19%, led by delivery and under-one-hour convenience orders.Kroger's Our Brands gained share and outpaced national brands by 175 basis points in Q1. The Kroger Co. (KR - Free Report) is being judged on more than store traffic. Its investment case now depends on whether grocery momentum, digital growth, retail media and private-label strength can offset cost and consumer pressures.
The latest results show that Kroger still has durable operating advantages. They also show why investors are likely to keep watching margins and sales acceleration closely.
Why KR’s Grocery Engine Still MattersKroger’s identical sales excluding fuel increased 1% in the first quarter of fiscal 2026. That growth came despite a 130-basis-point headwind tied to the Inflation Reduction Act and 64 basis points of pressure from egg deflation.
The company expects identical sales without fuel to rise 1-2% in fiscal 2026. That outlook points to steady progress in the core grocery business, but not a sharp acceleration.
Walmart Inc. (WMT - Free Report) remains a relevant comparison because grocery value and convenience are central to how consumers choose where to shop. Costco Wholesale Corporation (COST - Free Report) also matters in the sector context, as membership-based food retail keeps pressure on traditional grocers to defend traffic and value perception.
Image Source: Zacks Investment Research
How Kroger Is Expanding Beyond StoresKroger has built a broad omnichannel network that includes supermarkets, pharmacies, fuel centers and digital commerce platforms. As of Jan. 31, 2026, it operated 2,697 supermarkets, 2,250 pharmacies and 1,731 fuel centers.
The company offers pickup and delivery to substantially all customers. Store-based fulfillment, third-party delivery partnerships and automated capabilities are becoming more important as shoppers shift between in-store and online purchases.
KR’s Digital Business Is Becoming More ImportantAdjusted e-commerce sales grew 19% in the first quarter, led by delivery. Under-one-hour convenience orders represented roughly 50% of digital growth, showing how speed is becoming a larger part of Kroger’s customer proposition.
Kroger also reached a key milestone as e-commerce, including media, turned profitable. That matters because lower cost to serve, better store-based fulfillment and digital scale can help protect margins while the company continues investing in convenience.
Why Kroger’s Private Labels Stand OutKroger’s Our Brands portfolio gained share and outpaced national brands by 175 basis points in the first quarter. Momentum was supported by Simple Truth and Private Selection, with innovation helping the company sharpen its merchandising position.
Private label gives Kroger two advantages in a cautious spending environment. It helps customers manage affordability while giving the company more control over assortment, differentiation and margin flexibility.
What KR’s Ratings Say About the SetupThe bottom line is that Kroger has useful operating levers, but the setup is not without near-term friction. Digital profitability, private-label gains and grocery traffic trends support the bull case, while pharmacy pressure, diesel-related transportation costs and cautious consumers keep the story balanced.
The stock currently carries a Zacks Rank #3 (Hold). That rank fits a company with visible strengths but also execution questions as investors wait for clearer evidence of stronger sales momentum and margin stabilization. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger’s Value Score of A and VGM Score of A support investor interest from a valuation and blended-style standpoint. Its Momentum Score of D is a reminder that timing remains less favorable, which may keep some investors on the sidelines until operating trends become cleaner.
Key Takeaways KR is tied to food retail shifts as investors watch digital demand, value trends and margin pressure.Kroger Precision Marketing profit rose over 20%, aided by traffic and advertiser commitments.Our Brands gained share, while e-commerce sales rose 19% and turned profitable with media. The Kroger Co. (KR - Free Report) is increasingly a window into the forces reshaping food retail. Investors are watching more than identical sales as grocery operators adapt to digital demand, value-seeking shoppers and margin pressure.
Kroger’s scale, loyalty data, private-label reach and omnichannel model give it several structural levers. The question is whether those trends can translate into cleaner earnings momentum.
Why Kroger Is Leaning Into Retail MediaKroger Precision Marketing remains one of KR’s clearest high-margin growth drivers. Profit from the business grew more than 20% in the first quarter of fiscal 2026, supported by stronger on-site traffic and increased advertiser commitments.
The appeal is Kroger’s data advantage. Management noted that 95% of transactions are tied to a loyalty card, backed by more than 20 years of history. Partnerships with Google’s Display & Video 360 and TikTok, along with artificial intelligence tools for audience creation and budget allocation, widen the retail media opportunity.
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How KR Benefits From Trade-Down BehaviorA pressured consumer backdrop makes private label more important. Kroger’s Our Brands portfolio helps the company meet affordability needs without relying only on price cuts.
Our Brands was described as an approximately $39 billion business in fiscal 2025. In the first quarter of fiscal 2026, it gained share and outpaced national brands by 175 basis points, with Simple Truth and Private Selection showing momentum.
Why Kroger’s Digital Model Is EvolvingKroger’s digital growth is shifting toward faster and more practical convenience. Adjusted e-commerce sales increased 19% in the first quarter, led by delivery.
Under-one-hour convenience orders represented roughly 50% of digital growth. E-commerce, including media, also turned profitable for the first time, helped by store-based fulfillment, lower cost to serve and the closure of three fulfillment centers.
What KR Reveals About Margin PressuresKroger also shows that scale does not remove pressure from the grocery model. Gross margin was 22.7% in the first quarter of fiscal 2026, down from 23% a year earlier.
The decline reflected higher transportation costs, egg deflation, planned price investments and mix factors. Transportation alone created a 15-basis-point headwind, while pharmacy-related sales pressure included a 130-basis-point Inflation Reduction Act impact.
Walmart Inc. (WMT - Free Report) remains a key comparison because it competes across grocery, value and retail media. Target Corporation (TGT - Free Report) is also relevant as retailers use owned brands and advertising platforms to protect customer engagement and improve economics.
How KR’s Signals Fit These Industry ShiftsKroger’s emerging trends are attractive, but the investment case is not one-sided. Retail media, private label and profitable digital growth point to better long-term optionality, while transportation inflation, promotional investment and pharmacy sales drag keep near-term expectations measured.
The stock currently carries a Zacks Rank #3 (Hold). That rank suggests a balanced near-term outlook rather than a clear positive or negative earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KR has a Value Score of A and a VGM Score of A, indicating favorable valuation and combined style characteristics. Its Growth Score of B also supports the longer-term case, but the Momentum Score of D shows weaker price action. For now, the market still wants more proof that these industry shifts can lift stock performance.
KR's low valuation, cash returns and balance-sheet flexibility support its value case, but consumer, pharmacy and margin pressures keep the buy case cautious.
The Kroger Co (KR) Q1 2026 Earnings Call Highlights: Strong eCommerce Growth and Profitability Amid Operational Challenges The Kroger Co (KR) reports a 19% increase in eCommerce and turns profitable in its media segment, while addressing rising operating costs and market share stagnation. Summary
Identical Sales Growth (Excluding Fuel): 1% growth, led by eCommerce, Fresh, and Our Brands.eCommerce Growth: 19% increase, with delivery leading the growth.Adjusted FIFO Operating Profit: $1.5 billion.Adjusted EPS: $1.58, reflecting 6% growth compared to last year.Gross Margin Rate (Excluding Rent, Depreciation, Amortization, Fuel, and Adjustment Items): Decreased by 9 basis points.Operating, General, and Administrative Rate (Excluding Fuel and Adjustment Items): Increased by 16 basis points.Free Cash Flow: Strong adjusted free cash flow driven by operating results.Net Total Debt to Adjusted EBITDA: 1.75x, compared to target range of 2.3 to 2.5.eCommerce and Media Profitability: Turned profitable this quarter.Fuel Rewards Program: Outpaced industry benchmarks by more than 400 basis points.Media Business Growth: Over 20% growth this quarter.
Release Date: June 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points The Kroger Co KR reported strong growth in eCommerce, with a 19% increase led by delivery, and achieved profitability in its eCommerce business, including media, for the first time.The company's 'Our Brands' segment gained market share and outpaced national brands by 175 basis points, showing strong momentum in private label offerings.Kroger's omnichannel customers spend nearly 2.5 times more than in-store-only customers, highlighting the success of its integrated shopping experience.The company is making significant progress in cost savings, achieving savings 30% ahead of plan in the first quarter, which supports its pricing investments.Kroger's media business, Kroger Precision Marketing, grew over 20% this quarter, leveraging its extensive customer data to drive high-margin growth. Negative Points Operating costs have been growing faster than sales, which is unsustainable and requires urgent cost-cutting measures.There is a significant execution gap between the best-performing stores and the rest, indicating inconsistency in store operations.The company has not been opening enough new stores, which has led to a stagnation in market share growth compared to competitors.Higher transportation costs, particularly due to increased diesel prices, have put unexpected pressure on margins.The shift from branded to generic prescriptions in the pharmacy segment has created a 40-basis-point headwind to total company sales. Q & A Highlights Q: Execution gap between really good stores and laggards, how do you think about closing that? And how impactful would that be to market share? What's your thought on food volumes?
A: Gregory Foran, CEO: I've visited over 100 stores and noticed that 2 out of 5 are in very good condition, 2 out of 5 are moderate, and 1 out of 5 needs improvement. We focus on improving all stores by spending time with division presidents, VPs, and district managers. Improving store conditions can quickly impact sales positively. Regarding food volumes, we're starting to pull away from traditional grocery competitors, and while we're not yet where we want to be, there's a meaningful break, and we're focused on getting into positive territory.
Q: When Kroger did big pricing investments in the early 2000s, it took years for sales to move. Can you give a sense of the time frame for current pricing strategies?
A: Gregory Foran, CEO: We'll provide more details on October 20. It's too early to comment on specifics, but we're learning as we go. The market has changed since the early 2000s, especially with eCommerce. We have a significant cost opportunity to fund price investments, and we'll share more in the fall.
Q: Can you talk about operating costs growing faster than sales and areas of opportunity for cost savings?
A: Gregory Foran, CEO: There are opportunities both above and below the gross margin line, such as shrinkage rates, replenishment, and productivity. We're already ahead of expectations for cost savings in Q1, and we expect savings to ramp up throughout the year and beyond, supporting our ability to improve affordability for customers.
Q: How are you weighing the speed of price investments versus competition?
A: Gregory Foran, CEO: It's about threading the needle, balancing short-term and long-term goals, and ensuring store readiness. Our objective is not to match discount prices but to offer fair and reasonable prices. We're being surgical and thoughtful, and we'll share more on October 20.
Q: How are you thinking about the headwind related to the Inflation Reduction Act and branded generic for the balance of the year?
A: David Kennerley, CFO: The Inflation Reduction Act is a 130-basis-point headwind to sales but neutral to profit. The shift from branded to generic drugs is a 40-basis-point headwind to sales but profit positive. Despite these pressures, we're gaining share in core scripts and GLP-1s, and the overall Kroger ecosystem is well-positioned to serve customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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].
Kroger’s revenues ticked up slightly last quarter as its shoppers felt increased financial strain.
“The customer is under pressure,” Greg Foran, chief executive of America’s largest traditional supermarket chain, said Thursday (June 18) as Kroger reported earnings showing revenues up 1%, compared to a 3.2% rise in the same quarter last year.
“High gas prices and reduced SNAP benefits are squeezing budgets,” Foran continued. “Customers are managing spend carefully and shopping with real intent. That pressure is showing up in the market.”
SNAP, he said later in the call, is impacted the most in three states in particular, a phenomenon that shows up in terms of the price of fuel impacting “when that price gets up to what it has.”
“I think we see that some of the basket sizes, some of the items that people buy tend to be traded down a bit. I think that helps probably with Our Brands and how we’re operating,” he added, referring to the company’s private label products.
Those brands outpaced national brands by 175 points during the quarter, said Foran, a Walmart vet who became CEO in February. The quarter also saw Kroger’s eCommerce business turn a profit, with revenues from that unit up 19% and attracting a record number of new households.
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Foran also noted that Kroger’s omnichannel customers — those who shop both online and in person — spend nearly two and a half times more than in store-only shoppers. And 95% of all transactions, he said, are tied to the company’s loyalty card.
The selective behavior Kroger is witnessing from its shoppers is in keeping with PYMNTS Intelligence research, which found that financially stressed consumers across generations continually cite grocery prices as a hardship.
Foran told Bloomberg News in May that the company was considering significant price reductions as it tries to reclaim market share from companies such as Walmart that have pushed into the traditional grocery space.
During Thursday’s call, the executive spoke of opportunities for Kroger to “sharpen” its pricing and “make value simpler” for its shoppers.
“Over time our promotions have gotten too complicated and our price position has not kept pace where it needed to,” Foran said.
“Let me be clear on what this means. We do not need to be the lowest price retailer. We need to be more competitive, more consistent and easier for customers to understand. When a customer is deciding where to shop, we want more of them.”
Meanwhile, rival grocery chain Aldi is spending $9 billion as it tries to compete with Kroger in the U.S. According to a Financial Times (FT) report Thursday, the German company plans to have 4,000 stores nationwide, giving it more locations than Kroger.
“We don’t know what the ceiling is,” Scott Patton, Aldi USA’s chief commercial officer, told the FT. “We’re trying to take market share from anyone who sells groceries.”
The Kroger Co. delivered a mixed Q1, with a slight revenue beat, a minor EPS miss, and a cautious management tone highlighting operational challenges. KR's management is proactively addressing pricing complexity and unsustainable operating costs, aiming to sharpen competitiveness without directly matching Walmart or Costco. eCommerce sales grew 19% YoY and turned profitable, supporting a bullish pillar alongside initiatives in Pharmacy, Ads, and Media.
Kroger Co. is upgraded to Buy after a post-earnings drop, with valuation offering a solid margin of safety amid potential business improvements. KR maintains 2026 guidance for 1–2% identical sales growth, $5.10–$5.30 EPS, and $2.7B–$2.9B FCF despite macro headwinds. The new CEO is pursuing price cuts to drive long-term differentiation and growth alongside their mixed (digital and brick-and-mortar) expansion.
Shares of Kroger (KR +2.31%) sank on Thursday after the supermarket operator's earnings fell a bit short of investors' expectations.
Image source: Getty Images.
Q1 challenges Kroger's adjusted sales inched up 0.5% year over year to $46 billion in its fiscal first quarter, which ended on May 23.
Excluding fuel, the retailer's identical sales, which measure revenue at stores open for at least five full quarters, rose by 1%.
During a conference call with analysts, CEO Greg Foran said he's working to bring more consistency to the supermarket chain's operations.
"Today, the gap between our best stores and the rest of the fleet needs to improve," Foran said. "Closing it is one of our biggest near-term opportunities."
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Kroger's gross margin declined to 22.7% from 23% in the year-ago quarter, driven in part by higher shipping costs and price reductions. Higher labor costs further impacted the company's operating margin.
All told, Kroger's adjusted operating profit increased by less than 2% to $1.5 billion. Its adjusted earnings per share, boosted by stock buybacks, rose 6% to $1.58. That was slightly below Wall Street's estimates, which had called for per-share profits of $1.59.
Leadership is laser-focused on stripping out costs Still, Kroger said it's on track to achieve its full-year financial forecast. Management continues to expect an adjusted operating profit of roughly $5.1 billion and earnings per share of $5.10 to $5.30.
Foran noted that operating costs have been growing faster than Kroger's sales, a trend he intends to reverse.
"Taking costs out of this business is not optional," Foran said. "It's the starting point for everything else we want to do."
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
Kroger faces mounting pressure as weak Q1 gross margins and volume losses drive a notable earnings miss and stock decline. KR's guidance remains intact, but I expect full-year results at the low end of ranges, with continued volume losses and gross margin pressure. KR's defensive compounder status is in jeopardy; I assign a Hold rating and a $51 price target, reflecting limited upside and better value elsewhere.
Kroger Co (NYSE:KR, XETRA:KOG) shares closed more than 8% lower on Thursday after the grocery retailer reported first-quarter results that largely met expectations and reaffirmed its full-year outlook, while investors looked for greater clarity on planned investments and cost savings.
Jefferies analysts maintained a ‘Buy’ rating on the stock and a $74 price target, describing Kroger's strategy as becoming more defined under CEO Greg Foran.
"Kroger's Q1 results were in-line with expectations, with identical sales excluding fuel up 1% led by e-commerce, fresh products and private-label brands," the analysts wrote. They added that grocery volumes remained negative but improved relative to prior periods, while management indicated unit market share performance was the strongest in two to three years.
Jefferies wrote that fiscal 2026 is expected to be "an H2 story," with Kroger anticipating earnings growth to accelerate in the second half of the year as cost-saving initiatives and investments increase. Management expects second-quarter identical sales to be roughly in line with the first quarter and adjusted earnings per share to be flat year over year, while acknowledging continued pressure on consumers.
The analysts noted that cost savings in the quarter exceeded internal plans by about 30%, with opportunities identified across merchandise costs and non-resale expenses. E-commerce sales increased 19%, driven by delivery services, and Kroger's combined e-commerce and retail media business became profitable.
Jefferies wrote that Foran's strategy is centered on narrowing Kroger's price gap with competitors, simplifying promotions and fostering a faster-paced operating culture. Management has indicated that planned price and value investments will be fully funded by cost reductions and that savings are expected to exceed investments.
However, the company declined to quantify either the amount of expected savings or the scale of planned investments, instead directing investors to its Oct. 20 investor day for additional details.
"Importantly, management was explicit that the strategy is not about being the lowest-price retailer, rather, it's about being more competitive," Jefferies wrote, adding that Kroger is resisting supplier price increases while maintaining pricing discipline.
Despite reducing earnings estimates to account for ongoing consumer weakness, Jefferies wrote that accelerating market share gains, profitable e-commerce operations and a greater focus on execution support its positive view on the company.
Thistle Resources (TSX-V:TRCG, OTC:TRCGF) has completed the second anniversary payment under its option agreement for the Brunswick antimony project in New Brunswick, keeping the company on track to acquire full ownership of the property.
The payment comprised $25,000 in cash and 250,000 common shares issued to optionor Prospect 'Or Corp.
The Brunswick project spans approximately 199 mineral claim units across four blocks, known as Pabineau River 1, Pabineau Falls Granite, Brunswick East and Knights Brook.
Under the staged earn-in arrangement, Thistle may acquire a 100% interest in the project by making aggregate cash payments of $90,000 and issuing a total of 1 million common shares over the term of the option agreement, subject to a 2% net smelter return royalty in favour of Prospect 'Or Corp.
Retailer shares easy meals, grill-ready favorites and fuel rewards to help families celebrate Dad
, /PRNewswire/ -- The Kroger Co. (NYSE: KR) is helping customers celebrate Dad with convenient and delicious summer meal inspiration to make Father's Day memorable. From grilling to gifting, Kroger is helping dads relax and refuel this holiday.
Retailer shares easy meals, grill-ready favorites and fuel rewards to help families celebrate Dad "Father's Day is about celebrating the moments that matter most – whether that's firing up the grill, sharing a great meal or simply spending time together," said Mary Ellen Adcock, executive vice president and chief merchant and marketing officer. "At Kroger, we're making it easy to relax, refuel and repeat with ready-to-enjoy meals, simple recipe inspiration and fuel rewards that help families go further while creating meaningful memories."
Kick Off the Day with Heart (and Fuel Points)
Make the moment meaningful with a heartfelt card and the perfect gift. Kroger offers a wide selection of Father's Day cards featuring a buy 2, save $3 offer until June 21 along with gift cards for restaurants, home improvement and more to match dad's interests. Plus, customers can earn 4x Fuel Points on select gift card purchases with a digital coupon, helping families celebrate and save on the road ahead.
Ready-to-Go Meals
Make Father's Day effortless with ready-to-enjoy favorites perfect for grilling or gathering. Customers can pick up fully cooked Home Chef St. Louis-style ribs for $13.99; fresh, fried or baked chicken meals; and deli-prepared party trays and sushi platters ready to serve. For backyard cookouts, grab Private Selection Angus beef patties (4 for $8), pre-seasoned burgers, or 8-piece fried chicken for only $8.99, for a quick, satisfying spread.
Make His Cookout Complete
Whether Dad is a grill master or just getting started, Kroger offers simple ingredients and inspiration to build a standout meal. Fire up the grill with ribeye steaks for as low as $9.99/lb, pork ribs and Johnsonville brats, pair with fresh summer sides like corn, watermelon and snacking tomatoes, and finish with crowd-pleasing desserts like Bakery Fresh cookies for $3 a dozen or select varieties of cakes for $9.99. From marinades and BBQ sauces like Sweet Baby Ray's for $1.49 or Kinder's Mix and Match buy 1, get 1 to fresh-cut veggies and easy sides, Kroger makes it simple to create a memorable meal.
Cheers to Dad
Raise a glass to dad with a wide assortment of refreshing beverages for every celebration. Stock the cooler with fan-favorite beers like Michelob Ultra, Bud Light and Modelo, or keep it family-friendly with buy 3, get 3 free of equal or less value of Pepsi, Coca-Cola, Gatorade or Waterloo Sparkling Water products. Whether celebrating big or keeping it casual, Kroger has everything needed to toast dad all weekend long.
Take Care of Dad and His Health
Celebrate dad's special day by prioritizing his wellness and showing you care. Equip him with sunscreen to protect against summer's most intense rays and stock up on vitamins and supplements that support his vitality year-round. Kroger Health pharmacists are ready to offer a variety of health screenings and convenient vaccines, including flu, pneumonia and Tdap, which is recommended for expecting fathers every ten years. From skincare essentials to preventive care, Kroger has everything dad needs to live his healthiest life.
Save even more with Kroger's hot features, BOGOs and weekly digital deals, including*:
Mix and match buy 1, get 1 of equal or lesser value free of Tillamook Cheese 4/$10 Lay's Potato Chips Make clean up easy with Kroger paper plates for $2.99 Stock up on everyday items like Kroger 80% lean ground beef for $5.99/lb, Kroger cheese for $1.49, 3/$5 20oz Kroger bread or 16oz Kroger peanut butter Kroger frozen dairy dessert sandwiches for $2.99 Kroger 15.4lb bags of charcoal for $5.99 No matter how you 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 your local store and delivered directly to your door.
Find even more Father's Day inspiration at Kroger's blog, The Fresh Lane brimming with grill out recipes, party essentials and even more gift ideas for dad.
*Prices valid beginning June 17. Prices and products may vary by geography. Discount and number of items vary by location.
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.
Key Takeaways Kroger's Q1 earnings missed estimates, while sales rose 2.2% and topped expectations. Adjusted e-commerce sales grew 19%, led by delivery and convenience orders under an hour. Kroger reaffirmed fiscal 2026 guidance for identical sales growth, profits and free cash flow. The Kroger Co. (KR - Free Report) reported first-quarter fiscal 2026 adjusted earnings of $1.58 per share, which missed the Zacks Consensus Estimate of $1.59 by 0.63%. The bottom line improved 6% from $1.49 reported in the year-ago quarter.
Total sales of $46,121 million increased 2.2% year over year and beat the consensus mark of $45,524 million by 1.31%. The quarter benefited from solid e-commerce gains, continued strength in Our Brands and higher customer traffic, though cost pressures and price investments weighed on margins.
KR's Sales Reflect Grocery MomentumKroger’s identical sales, excluding fuel and adjustment items, increased 1% year over year. This included an unfavorable 130-basis-point impact from the Inflation Reduction Act.
Excluding fuel and Vitacost, sales rose 0.5% from the year-ago period. Management noted that grocery sales represented a larger portion of the overall mix, pointing to improving trends in the company’s core business.
Kroger's Digital Business Shows StrengthAdjusted e-commerce sales grew 19% year over year, led by delivery. Convenience orders delivered in under an hour represented approximately 50% of digital growth.
The company also achieved profitability in e-commerce, including media, for the first time. Management attributed the improvement to store-based fulfillment, reduced the cost to serve and continued scaling of its hybrid fulfillment model.
KR's Brands and Pharmacy Support GrowthOur Brands gained share and outpaced national brands by 175 basis points. The performance was driven by innovation in Private Selection and momentum in Simple Truth.
Pharmacy delivered profit growth despite top-line pressure. The business was supported by core script growth, GLP-1 demand and an accelerating shift from branded to generic medications, which hurt sales but aided profitability.
Kroger's Margins Face Cost HeadwindsGross margin was 22.7% of sales compared with 23% in the prior-year quarter. The decline stemmed from a higher fuel sales mix, higher transportation costs, egg deflation and planned price investments.
FIFO gross margin rate, excluding rent, depreciation and amortization, fuel and adjustment items, declined 9 basis points. Transportation costs created a 15-basis-point headwind, as higher oil prices increased fuel-related logistics costs.
KR's Operating Profit Edges HigherOperating profit came in at $1,407 million compared with $1,322 million in the year-ago quarter. Adjusted FIFO operating profit was $1,544 million, up from $1,518 million.
The operating, general and administrative rate, excluding fuel and adjustment items, rose 16 basis points. The increase reflected planned investments in associate wages, store hours, training and uniforms, partly offset by productivity initiatives and the lapping of higher multi-employer pension contributions.
Kroger's Cash Flow and Debt PositionKroger generated $1,774 million in net cash provided by operating activities in the quarter compared with $2,149 million in the prior-year period. Capital investments, excluding lease buyouts, totaled $1,450 million.
The company ended the quarter with cash and temporary cash investments of $2,873 million. Total debt was $16,995 million, while net total debt to adjusted EBITDA was 1.75, below the company’s target range of 2.30-2.50.
Image Source: Zacks Investment Research
KR's Guidance Remains IntactKroger reaffirmed its fiscal 2026 outlook. The company expects identical sales without fuel to grow 1-2%, including about 130 basis points of unfavorable impact from the Inflation Reduction Act.
The company continues to expect FIFO operating profit of $5-$5.2 billion and adjusted earnings of $5.10-$5.30 per share. Free cash flow is projected at $2.7-$2.9 billion, while capital expenditures are expected to be $3.8-$4 billion.
Shares of this Zacks Rank #3 (Hold) company have declined 21.3% over the past year compared to the industry’s growth of 20.3%.
Picks You Can’t Miss Out OnRoss Stores, Inc. (ROST - Free Report) is one of the largest off-price apparel and home fashion chains in the United States. ROST sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings implies growth of 9.1% and 17.1%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.
Casey's General Stores, Inc. (CASY - Free Report) is one of the leading convenience store chains in the United States. CASY currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Casey's current fiscal-year sales and earnings calls for growth of 17.8% and 9.1%, respectively, from the year-ago reported figures. CASY delivered a trailing four-quarter earnings surprise of 18.4%, on average.
The Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Kroger's NYSE: KR share price is under pressure due to slowing growth, sluggish results relative to high-flying AI names, and an expected slowdown in buybacks. However, despite the headwinds, the fundamental forces remain bullish, and the stock price is at long-term lows. Look for the company, institutions, and analysts to signal a buy that soon shows up in the charts.
Technically, KR shares are testing critical support with long-term implications. The level represents a convergence of lesser targets, including previous lows and a long-term exponential moving average that has provided support numerous times.
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A sustained dip below this level is unlikely, as it would indicate a significant change in the fundamental outlook; more likely, the June price implosion triggers a robust market response, confirming support and the long-term uptrend.
Kroger Isn’t a Growth Investment: Kroger Is About Cash Flow and Capital ReturnBoiled down to its essence, Kroger is not so much a growth story as an inflation-resistant buy-and-hold story for long-term investors. Its attractions include a strong industry position, robust cash flow, and capital returns. Its industry position is that of a retailer focused on daily necessities and essentials like food, health and family care. Its benefits to investors include predictable cash flows, a healthy balance sheet, and the capacity for capital returns to increase over time.
Capital returns, specifically buybacks, are aggressive this year, the result of 2024's failed Albertsons NYSE: ACI bid, and are likely to slow in the upcoming year, remaining a driver for this market. The dividend is the base payment, yielding approximately 2.5% as of mid-year 2026, and the distribution is expected to grow. Kroger has increased its dividend for 19 years, is on track to be included in the Dividend Champions, and is unlikely to alter its trajectory without dire need.
Buybacks are the bonus. Accelerated in 2026 to utilize unneeded cash, which had been hoarded in anticipation of an acquisition, Kroger reduced its share count by an average of over 8% over the trailing 12 months. It is on track to exhaust a multi-billion-dollar authorization by year’s end. The question is what comes next, and an additional authorization is likely, albeit with a slower implied pace of share count reduction.
Kroger Analysts and Institutions Limit Downside RiskAnalysts and institutional trends highlight the quality of capital returns. MarketBeat tracks 17 analysts, high for such a mundane name, rating the stock as a consensus of Moderate Buy with a 53% Buy-side bias and no Sell rating logged.
Overall MarketRank™85th Percentile
Analyst RatingModerate Buy
Upside/Downside26.0% Upside
Short Interest LevelBearish
Dividend StrengthStrong
News Sentiment0.43 Insider TradingN/A
Proj. Earnings Growth6.86%
See Full Analysis
They forecast approximately 30% upside at consensus, up from last year and steady over the trailing three-month period. It is unlikely that the Q1 release will catalyze price target revisions, whether bullish or bearish. The more likely outcome is for targets to fall, but sentiment and outlook to remain otherwise positive.
Institutional trends also reflect bullish behavior, with them owning more than 80% of the stock and accumulating shares. Selling has intensified in recent months, but is offset by greater buying, underpinning support for this market. The likely outcome from this vector, given the low share price and technical setup, is that selling pressure dwindles while buying ramps up. Kroger provides value at its current levels relative to its long-term forecasts and competitors. Competitors trade at double the valuation, while long-term forecasts suggest the stock could double over time while maintaining the current valuation.
Kroger’s Mixed Results Were Priced Into the MarketKroger’s Q1 earnings release was mixed, providing reasons for caution but no impetus to shed shares. Revenue grew 2.2% to $46.12 billion, more than $500 million above expectations, but the margin was weak. The caveat is that margin contraction was minimal, leaving cash flow in solid shape. While lower than expected, the cash flow provides ample coverage of capital returns.
Looking ahead, guidance is also insufficient to catalyze a bullish market response but does not alter the capital return outlook. Near-term pressures will ease over time, enabling buybacks and distribution growth to do their work on the share price.
Kroger’s biggest risk this year is capital-intensive store updates. The company is rolling out nationwide digital shelf labels and supply chain enhancements expected to pay off over time. The risk is that they don’t translate into improved revenue or profits as quickly as hoped, and drag on results moving forward. Catalysts include systemwide price reductions intended to improve competitiveness and private label. The near-term headwind is margin pressure, but market share gains and private label strength will offset it over time.
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Stock to Watch: Kroger (KR - Free Report) The Kroger Co., which operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery. The company is focusing on plant-based products as well as eyeing technological expansion. It acquired meal kit company Home Chef and partnered with British online grocery delivery firm Ocado that reinforces its position in the online ordering, automated fulfillment and home delivery space. It has also introduced grocery delivery service Kroger Ship and inked a deal with driverless car company Nuro.
KR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.78; value investors should take notice.
For fiscal 2027, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $5.25 per share. KR boasts an average earnings surprise of +2.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, KR should be on investors' short list.
Kroger Co (NYSE:KR, XETRA:KOG) shares closed more than 8% lower on Thursday after the grocery retailer reported first-quarter results that largely met expectations and reaffirmed its full-year outlook, while investors looked for greater clarity on planned investments and cost savings. Jefferies analysts maintained a ‘Buy' rating on the stock and a $74 price target, describing Kroger's strategy as becoming more defined under CEO Greg Foran.
This Sunday, June 21, is the Summer Solstice in the Northern Hemisphere, which officially marks the first day of summer. To celebrate the arrival of many people’s favorite time of the year, the supermarket giant Kroger is giving away 100,000 free pints of ice cream. But if you want one, you’ll have to act fast today.
How do I get my free ice cream from Kroger?Kroger and its subsidiaries are giving away 100,000 pints of ice cream through a coupon system.
Today, Friday, June 19, beginning at 12 p.m. ET, Kroger will give away the 100,000 coupons on a first-come, first-served basis, while supplies last.
To grab one, you’ll need to go to the website FreeKrogerIceCream.com and choose a participating store from the drop-down list provided. You’ll then be given access to your digital coupon, which can be redeemed for one free pint of ice cream.
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What type of ice cream can the coupon be redeemed for?The digital coupon can be redeemed for any pint of Kroger® Brand Ice Cream.
Kroger offers numerous flavors of branded ice cream, including traditional ones like vanilla, chocolate, mint chocolate chip, and rocky road.
And to celebrate the summer, the company is also introducing a limited-time All-American Ice Cream collection featuring three new flavors: Seventh Inning Swirl, Sweet As Cherry Pie, and Banana Split Social.
The collaboration consists of flowers, ornaments, candles and plant care accessories
, /PRNewswire/ -- The Kroger Co. (NYSE: KR) today announced the expansion of Vanderpump Blooms x Bloom Haus, a floral collection curated by businesswoman, TV personality, author and philanthropist Lisa Vanderpump to include Vanderpump Home featuring several new products available in stores now with more to be released throughout the year. Available exclusively at Kroger Family of Stores, the additional items include an assortment of floral-inspired candles, a plant care starter kit, ornaments, preserved and silk roses, a "VanderPUMP" glass shoe with preserved mini roses, a preserved rose glass handbag, preserved rose hatboxes, individual blossoms as well as more bouquets and arrangements in the same sophisticated style that customers have come to love from Vanderpump's expert aesthetic.
The collaboration consists of flowers, ornaments, candles and plant care accessories "Bloom Haus was created to help customers celebrate life's moments with beautiful, high-quality florals, and our continued collaboration with Lisa Vanderpump brings that vision to life in a truly special way," said Carlo Baldan, group vice president of Fresh Merchandising at Kroger. "This collection blends Lisa's signature style with thoughtful design and seasonal inspiration, making it easy for customers to add a touch of elegance to everyday moments."
"I have loved creating and expanding my floral line with Kroger, it's been such a passion project from day one," said Lisa Vanderpump. "From gorgeous blooms to decadent candles, I've been able to embrace my love of flowers and create things that are truly unique and beautiful. I am so thrilled to expand my line with Kroger into all of these different areas – the candles are delicious, the line of preserved roses are stunning keepsakes that last indefinitely, everything is perfect for gifts or to adorn your home."
New Expansion Items:
Vanderpump Home Pillar Candles: Let Lisa Vanderpump show you the best new trends for your table. Hand poured, this set of three candles is chic and elegant to round out any dinner party. Vanderpump Home Three Wick Candles: Gorgeous frosted glass in three shades of Vanderpump pink, these three wick candles are richly scented and beautiful in any room. Three scents are available - Royal Garden, Villa Blanca and of course Lisa's Signature Pink. Vanderpump x Bloom Haus Plant Care Starter Kit: The Vanderpump Plant Care Collection brings a polished touch to everyday plant care. Packaged in a soft pink display box, it includes a glass mister with a coated plastic pump, precision pruning shears and a moisture sensor that come together as a simple care set for watering, trimming and checking soil moisture. VanderPUMP: Chic, playful, and undeniably glamorous, the VanderPUMP is a stunning shoe featuring delicate preserved roses nestled inside. Displayed in an upscale gifting box and finished with a branded Lisa Vanderpump ribbon, this signature piece is an iconic keepsake that captures Lisa's timeless style. Vanderpump Blooms x Bloom Haus Sphere Ornament: Romantic and beautifully balanced, the Lisa Vanderpump Sphere Ornament features a real preserved rose in a delicate glass sphere. Accented with a gold-toned bracelet adorned with dainty pearls, and a signature Lisa Vanderpump charm. Vanderpump Blooms x Bloom Haus Teardrop Ornament: Elevate your décor with the Lisa Vanderpump Teardrop Ornament. This ornament features elegant gold and pearl detailing in a teardrop shape with a preserved red rose placed inside. This piece blends beauty and elegance, creating a decorative accent that adds a graceful touch of luxury to any space. Vanderpump Blooms x Bloom Haus Rose Purse: Bold and sophisticated, the Lisa Vanderpump Rose Purse features real preserved roses within a sleek glass purse. Designed to deliver a dramatic take on floral elegance. This striking piece blends fashion with florals, capturing Lisa's signature glamour and timeless style. A perfect gift or standout accent piece for special occasions. The collection presents an easy way to achieve Vanderpump's signature refined aesthetic. Vanderpump Blooms x Bloom Haus bouquets can be placed directly into a vase, or customers can style the flowers by following a QR code to view step-by-step video tutorials instructed by Vanderpump. For an effortless ready for display option, customers may purchase floral arrangements or kalanchoes already in custom vases or hat boxes, all designed or selected by Vanderpump and beautifully executed, requiring zero effort.
Vanderpump Blooms x Bloom Haus can be shopped while products last exclusively at Kroger Family of Stores and through Door Dash and Uber Eats. Find a location here. Customers on the search for these items can join in on the fun on social media tagging @lisavanderpump and @veryvanderpump and visit VanderpumpBlooms.com for tutorials, videos, tips and tricks.
Media assets available for download here.
About Lisa Vanderpump
Businesswoman, TV personality, author, and philanthropist, Lisa Vanderpump hails from London, England. Lisa and her husband Ken Todd have been entrenched in the restaurant and nightclub industry since they started their partnership over 30 years ago. Their very successful restaurants and bars in Los Angeles SUR and Tom Tom Restaurant and Bar, as well as Vanderpump Cocktail Garden at Caesars Palace Las Vegas and Vanderpump à Paris at the Paris Las Vegas, are just a peek into their joint ventures; Wolf by Vanderpump marks their 37th restaurant and bar, recently opened at Caesars Entertainments' Harvey's Casino & Hotel in Lake Tahoe and Pinky's by Vanderpump marks their 38th restaurant venture which opened at the Flamingo Hotel in Las Vegas.
Vanderpump became known for the hit Bravo TV series, The Real Housewives of Beverly Hills, as well as her spinoff show Vanderpump Rules, of which she is an Executive Producer.
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 e-Commerce 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.
Last Thursday was a rough day for Kroger (KR +2.31%) shareholders. The stock fell nearly 8% -- its largest single-day drop in close to five years -- after the grocery chain's first-quarter results landed one penny below Wall Street's earnings estimate. One penny. The irony of that drop is almost too on-the-nose for a company whose new CEO has spent his first 100 days publicly declaring that lower prices and more value for shoppers are his top priorities.
This is how the market works sometimes. A company posts $46.12 billion in quarterly revenue (beating expectations) and maintains its full-year guidance -- and yet the stock falls 8% because of a rounding error in earnings per share.
The reaction has little to do with what Kroger actually is and everything to do with how investors feel right now: scared. Inflation just hit its fastest annual pace in more than three years. The Federal Reserve signaled the possibility of a rate hike in its most recent meeting, sending stocks to their worst "Fed day" since 1994. Consumer confidence sat at 93.1 in May. People are rattled, and rattled people sell.
But that creates a window -- in this case, for Kroger investors.
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What Kroger is building Greg Foran took over as CEO in February with a resume investors should know: he ran Walmart's U.S. division and is credited with one of the most successful operational turnarounds in modern retail history. His strategy at Kroger isn't complicated. "The basket has to come down," he said publicly in May. He plans to cut prices on thousands of products, funded by better supplier sourcing and technological efficiency, not by squeezing margins blindly.
Behind that price-cut strategy is a digital business that has posted seven consecutive quarters of double-digit growth and is expected to reach profitability in the first half of 2026. Kroger's e-commerce operation is now a $16 billion business. It has partnerships with Instacart and DoorDash for same-day delivery. It launched an agentic AI shopping tool -- the kind that helps customers build grocery baskets, plan meals, and find deals -- that it is rolling out to more divisions this year.
Image source: Getty Images.
Kroger also introduced more than 1,100 new private-label products in fiscal 2025, up from 900 the prior year. Private label is what happens when a retailer becomes a brand. These are the products where margins are highest, loyalty is deepest, and consumers return regardless of what the economy is doing.
Why this dip is a great buying opportunity Kroger's shares are now trading near a 52-week low. The stock yields around 2.26% at current prices. The company is planning capital expenditures of $3.8 billion to $4 billion in 2026, with a 30% increase in new store openings and expansion into two new geographic regions.
None of that changed yesterday. The grocery category is one of the most durable in all of retail. People eat regardless of what the Fed does.
Kroger is not a growth stock. It is a compounding machine for patient capital -- a business with 2,700 stores, a growing digital arm, and a CEO who knows how to turn the flywheel. For investors with a long time horizon, the fear-driven sell-off looks less like a warning and more like the kind of entry point that, in hindsight, looks obvious.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash and Walmart. The Motley Fool recommends Instacart and Kroger. The Motley Fool has a disclosure policy.
