Kroger Co.

Kroger Co.

KR

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Market Cap$38.32B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Kroger Co.Kroger Co.38.52.25%46%0.45.2

Earnings Call Q4 2025

March 5, 2026 - AI Summary

Q4 / FY performance (good): - Q4 identical sales ex-fuel: +2.4% YoY (includes ~40 bps headwind from the Inflation Reduction Act (IRA); weather neutral). - FY identical sales ex-fuel: +2.9% (in line with guidance); nearly doubled identical sales growth ex-fuel from 1.5% to 2.9%. - EPS growth: FY adjusted EPS +9%, at the high end of their expectations. - Share trend improvement: positive market share gains in Q4; strongest share performance since 2021 (first positive year-end share period this year).
Margins, costs & profit drivers (good + mixed): - FIFO gross margin rate ex-fuel & adjustments: flat in Q4 YoY; drivers were sourcing improvements, lower supply chain costs, and lower shrink offset by price investments and pharmacy mix (pharmacy has lower margins). - FY gross margin improvement: ex-KSP/fuel/adjustments +14 bps while investing more in price. - Operating expense (Q4): OG&A rate ex-fuel/adjustments +21 bps, mainly from cycling real estate gains and labor investments to improve customer experience, partly offset by lower incentives and better productivity. - LIFO: Q4 LIFO charge $11M vs $30M prior year; FY LIFO $157M vs $95M prior year (EPS headwind ~$0.07); 2026 LIFO expected similar to 2025 (a risk to earnings visibility if costs change).
Growth initiatives & opportunities (surprising opportunities): - E-commerce acceleration: Adjusted e-commerce sales +20% in Q4; e-comm now ~$16B business; leadership highlights profitability improvements as it scales. - Omnichannel partnerships expanding reach: DoorDash + Uber Eats results exceeded original expectations; management expects convenience offerings to deliver > $1.5B sales in 2026 (with Instacart). - AI is being operationalized (opportunity): created AI leadership role; agentic shopping planned/expanding on digital properties; early proof points mentioned in shrink reduction and improved labor/work management. - Our Brands & fresh: Private label strength continues (Simple Truth/Private Selection), and egg deflation is a near-term factor in volume trends (see outlook).

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$76.60

Target Price by Analysts

25.1% upsideKroger Target Price DetailsTarget Price
$125.35

Current Fair Value

104.7% upside

Undervalued by 104.7% based on the discounted cash flow analysis.

Share Statistics

Market cap$38.32 Billion
Enterprise Value$69.23 Billion
Dividend Yield$1.40 (2.25%)
Earnings per Share$1.56
Beta0.46
Outstanding Shares629,000,000

Return

Return on Equity46.06%ROE
Return on Assets5.47%
Return on Invested Capital13.49%

Valuation & Multiples

P/E Ratio38.48P/E Ratio
PEG107.46PEG
Price to Sales0.38Price to Sales
Price to Book Ratio6.8Price to Book Ratio
Enterprise Value to Revenue0.68
Enterprise Value to EBIT16.11
Enterprise Value to Net Income25
Total Debt to Enterprise0.45
Debt to Equity5.25Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
March 5, 2026
EPS Estimate
$1.20
Average shareholder expectation
Revenue Estimate
$34.96 B
Average shareholder expectation

Next Earnings Call

Expected Date
June 11, 2026
EPS Estimate
$1.58
Average shareholder expectation
Revenue Estimate
$45.30 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8151▲ 13.40%
Total Calls4,134,856▼ 39.42%
Total Puts3,370,320▼ 27.50%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %80.23%▼ 1.67%
Total Invested$37.84B▲ 12.92%
Investors Holding1,425▲ 23.00%

ESG Score

No data

About Kroger Co.

CEO: W. Rodney McMullen

Relevant Senate Committees

Joint Committee on Taxation

This committee's analysis and influence on tax legislation, including corporate tax structures and capital investment credits, directly impacts Kroger's financial obligations and investment decisions.

Finance

This powerful committee's control over taxation, trade tariffs (affecting imported goods costs), and entitlement spending (impacting consumer disposable income) directly influences Kroger's profitability and pricing strategies.

Agriculture, Nutrition, and Forestry

This committee's jurisdiction over agricultural policy, the Farm Bill (including nutrition programs like SNAP), and food production directly impacts Kroger's supply chain, product costs, and customer base.

Health, Education, Labor, and Pensions

This committee directly impacts Kroger through labor laws (minimum wage, unionization), food safety regulations (FDA), and healthcare policies, which significantly affect its workforce and product offerings.

Judiciary

The committee's oversight of antitrust laws and M&A regulations is highly relevant to Kroger, particularly given its size and potential for consolidation activities within the grocery sector.

Commerce, Science, and Transportation

This committee has broad jurisdiction over interstate commerce, consumer protection (FTC), and e-commerce regulations, all of which directly impact Kroger's retail operations, advertising, and online presence.