Kroger Co.

Kroger Co.

KR

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Market Cap$34.9B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Kroger Co.Kroger Co.32.72.47%16%0.23.6

Earnings Call Q1 2026

June 18, 2026 - AI Summary

Core results & momentum (good): Kroger delivered identical sales ex-fuel of +1% in Q1 2026, led by eCommerce, fresh, and Our Brands. Grocery mix increased as a share, reinforcing improving underlying core grocery trends. eCommerce grew +19%, aided by improved delivery performance (notably better “perfect order” rates +8%) and a record number of new households.
Profitability/financial performance (mixed but improving): Adjusted EPS was $1.58 (+6% YoY) and adjusted FIFO operating profit was ~$1.5B. FIFO gross margin rate (ex-rent/depr/amort, fuel, and adjustments) declined 9 bps YoY, mainly driven by unexpected transportation costs, egg deflation, and planned pricing investments, partially offset by pharmacy mix, improved eCommerce profitability, and sourcing benefits. Company expects FIFO gross margin to remain positive full-year, with cost savings ramping through the year.
Key challenges & headwinds (bad/risks): - Customer pressure: higher gas prices and reduced SNAP benefits squeezed budgets; traffic improved (value message landing) but food-at-home growth decelerated ~100 bps vs last quarter. - Pharmacy headwinds: brand-to-generic shift created an additional ~40 bps headwind (total company) plus ~130 bps headwind from the Inflation Reduction Act; management notes pharmacy profit still grew ahead of expectations, but the headwinds persist. - Transportation/oil risk: diesel/oil impacts created ~15 bps pressure in the quarter; expect some pressure to persist while oil markets remain elevated.

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$76.88

Target Price by Analysts

37.9% upsideKroger Target Price DetailsTarget Price
$128.55

Current Fair Value

130.5% upside

Undervalued by 130.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$34.90 Billion
Enterprise Value$58.21 Billion
Dividend Yield$1.40 (2.47%)
Earnings per Share$1.56
Beta0.42
Outstanding Shares613,000,000

Return

Return on Equity16.26%ROE
Return on Assets2.09%
Return on Invested Capital5.89%

Valuation & Multiples

P/E Ratio32.72P/E Ratio
PEG-50.3PEG
Price to Sales0.23Price to Sales
Price to Book Ratio5.58Price to Book Ratio
Enterprise Value to Revenue0.39
Enterprise Value to EBIT30.57
Enterprise Value to Net Income55
Total Debt to Enterprise0.4
Debt to Equity3.63Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
June 19, 2026
EPS Estimate
$1.58
Average shareholder expectation
Revenue Estimate
$45.35 B
Average shareholder expectation

Next Earnings Call

Expected Date
September 10, 2026
EPS Estimate
$1.14
Average shareholder expectation
Revenue Estimate
$34.55 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 %80.24% 1.66%
Total Invested$37.85B 12.94%
Investors Holding1,431 28.00%

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.