Kroger (NYSE:KR) Announces Earnings Results

Kroger (NYSE:KR) announced its quarterly earnings data on Thursday. The company reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.20 by $0.08, FiscalAI reports. The firm had revenue of $34.73 billion for the quarter, compared to analysts’ expectations of $35.10 billion. Kroger had a net margin of 0.69% and a return on equity of 41.08%. The business’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period last year, the firm earned $1.14 earnings per share. Kroger updated its FY 2026 guidance to 5.100-5.300 EPS.

Here are the key takeaways from Kroger’s conference call:

• Leadership change: Greg Foran is the new CEO and plans to accelerate top‑line growth by focusing on price, fresh execution, e‑commerce, AI and faster operational execution across stores and digital channels.
• E‑commerce acceleration and profitability target: Adjusted e‑commerce grew 20% in Q4 to a $16 billion business, and Kroger expects e‑commerce to reach profitability in 2026 driven by a hybrid store‑based fulfillment model and third‑party partners (Instacart, DoorDash, Uber Eats).
• Solid near‑term results: Q4 identical sales without fuel rose 2.4% (FY +2.9%), Q4 adjusted EPS was $1.28 (+12%) and full‑year adjusted EPS was $4.85 (+9%), with positive market share gains in the final period.
• 2026 guidance and investments: Kroger guided identical sales without fuel of 1–2% (2.3–3.3% ex‑IRA), adjusted FIFO operating profit of $5.0–$5.2B and adj. EPS $5.10–$5.30 while planning bigger price and service investments funded by targeted cost savings in procurement and e‑commerce and higher store openings.
• Cost actions and cash‑flow/headwinds: Management is selling Vitacost and closing ~50 Little Clinic sites, reported a $157M LIFO charge ($0.07 EPS headwind), and guided 2026 adjusted free cash flow down to $2.7–$2.9B despite strong 2025 cash generation, which could pressure near‑term liquidity and execution risk.

Kroger Stock Performance

Shares of Kroger stock opened at $74.31 on Friday. The stock’s fifty day simple moving average is $65.35 and its 200 day simple moving average is $65.92. The company has a current ratio of 0.80, a quick ratio of 0.45 and a debt-to-equity ratio of 2.66. The company has a market capitalization of $47.03 billion, a PE ratio of 48.57, a PEG ratio of 1.83 and a beta of 0.62. Kroger has a 12 month low of $58.60 and a 12 month high of $74.90.

Kroger Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Sunday, March 1st. Investors of record on Friday, February 13th were given a $0.35 dividend. The ex-dividend date was Friday, February 13th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.9%. Kroger’s dividend payout ratio is currently 129.63%.

Wall Street Analyst Weigh In

KR has been the topic of several recent research reports. UBS Group restated a “neutral” rating and issued a $70.00 price target (down from $74.00) on shares of Kroger in a research report on Friday, December 5th. JPMorgan Chase & Co. dropped their price objective on Kroger from $73.00 to $71.00 and set a “neutral” rating for the company in a report on Friday, December 5th. Guggenheim reissued a “buy” rating and issued a $78.00 target price on shares of Kroger in a research note on Tuesday, February 10th. Evercore set a $77.00 target price on Kroger and gave the stock an “outperform” rating in a report on Friday, December 5th. Finally, Wells Fargo & Company lowered Kroger from an “overweight” rating to an “equal weight” rating and decreased their target price for the stock from $70.00 to $68.00 in a research report on Wednesday, February 25th. Eight equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $74.38.

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Q4 results beat on profit and margins: Kroger reported adjusted EPS above estimates, delivered gross‑margin expansion and 20% e‑commerce growth; management also rolled out FY‑26 adjusted EPS guidance above consensus and approved further buybacks — a clear catalyst for earnings per‑share growth. PR Newswire
• Positive Sentiment: Large, sustained capital returns: Management completed accelerated repurchases in 2025 and the board approved an additional $2B repurchase authorization on top of a $7.5B program; analysts and commentators say buybacks plus a growing dividend underpin long‑term per‑share upside. MarketBeat
• Positive Sentiment: Street support and upgrades: Several shops have reiterated/raised ratings and price targets (e.g., Roth MKM reaffirmed buy with a $78 PT; Telsey lifted its target), reinforcing positive sentiment into the print. Benzinga
• Positive Sentiment: Unusual bullish options flow: Call buying spiked (large single‑day activity), suggesting some traders are positioning for additional upside or event‑driven moves.
• Neutral Sentiment: New CEO’s playbook: Greg Foran is pushing lower prices, sharper promotions, AI and e‑commerce improvements to accelerate sales — a credible strategic pivot but execution and timing remain uncertain. FoodBusinessNews
• Neutral Sentiment: Analyst consensus is broadly constructive (moderate buy), but median price targets leave limited near‑term upside absent stronger top‑line revisions. AmericanBankingNews
• Negative Sentiment: Revenue and sales outlook are muted: Q4 revenue slightly missed estimates and management offered modest identical‑sales guidance for 2026 (1–2% ex‑fuel), tempering a rally based solely on EPS strength. Retail Insight Network
• Negative Sentiment: Product recalls: Kroger‑branded and partner rice/frozen products were included in a glass‑fragment recall, creating short‑term inventory, sales and reputational headwinds in affected markets. MSN
• Negative Sentiment: Labor and legal exposure: Class‑action suits over e‑commerce worker classification and heightened union friction (Teamsters commentary) add regulatory/legal risk and potential costs. GroceryDive
• Negative Sentiment: Dividend sustainability question: Commentary flagged a high payout ratio on a GAAP basis (dividend > GAAP net income), which could worry income investors despite strong cash flow and buybacks. 24/7 Wall St.

Institutional Investors Weigh In On Kroger

Several large investors have recently modified their holdings of KR. JPL Wealth Management LLC bought a new position in shares of Kroger during the 3rd quarter valued at about $31,000. Zions Bancorporation National Association UT lifted its stake in Kroger by 59.6% in the fourth quarter. Zions Bancorporation National Association UT now owns 509 shares of the company’s stock valued at $32,000 after buying an additional 190 shares in the last quarter. Prosperity Bancshares Inc acquired a new position in shares of Kroger in the fourth quarter valued at approximately $33,000. Quattro Advisors LLC acquired a new position in shares of Kroger in the fourth quarter valued at approximately $39,000. Finally, Rakuten Securities Inc. increased its position in shares of Kroger by 253.9% during the second quarter. Rakuten Securities Inc. now owns 584 shares of the company’s stock worth $42,000 after acquiring an additional 419 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

About Kroger

The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.