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The Kroger Co.
S&P 500
$37.8B
Market Cap
40.8
P/E
1.83
PEG
6.0%
ROCE
14.4%
ROE
3.74
D/E
1.3%
OPM
-21.7%
% from 52W High
23
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for KR including FX impact
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📈 Price History
Ratio Health
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By Category
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About

The Kroger Co. operates as a food and drug retailer in the United States.

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📈 Growth Pattern
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⭐ Superinvestors Holding KR
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 27.26M $2.0B 0.75% Mar 2026
Warren Buffett Berkshire Hathaway Inc 16.11M $1.2B 0.44% Mar 2026
Warren Buffett Berkshire Hathaway Inc 5.37M $388.4M 0.15% Mar 2026
Warren Buffett Berkshire Hathaway Inc 768.5K $55.6M 0.02% Mar 2026
Warren Buffett Berkshire Hathaway Inc 500.0K $36.2M 0.01% Mar 2026
Jim Simons Renaissance Technologies LLC 10.0K $724K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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In-line quarter Investor Presentation One-Pager? Q1 2027
Revenue
$46.1B
+2.2% YoY
Operating Income
$1.407B
+6.4% YoY
Operating Margin
3.1%
+0.12pp YoY
What Went Right
  • eCommerce (incl. media) turned profitable; adjusted eCommerce sales +19%
  • COGS savings 30% ahead of plan; loyal households grew for 17th straight quarter
  • Kroger Precision Marketing profit grew over 20%
What to Watch
  • Transportation/diesel costs added 15 bps pressure to gross margin and are expected to persist
  • Pharmacy headwinds: IRA (130 bps) and brand-to-generic shift (40 bps) pressured identical sales
  • Egg deflation was a 64 bps identical sales drag; consumer spending strained by gas and SNAP cuts
Management Guidance
  • Q2: identical sales without fuel roughly in line with Q1 (~1%)
  • Q2: adjusted EPS in line with last year
  • FY26: identical sales 1.0%-2.0% (incl. 130 bps IRA headwind)
  • FY26: FIFO operating profit $5.0-$5.2B; EPS $5.10-$5.30
  • FY26: free cash flow $2.7-$2.9B; capex $3.8-$4.0B
Investor Lens
The thesis is slightly stronger after this call: eCommerce turned profitable ahead of schedule and cost savings are running 30% ahead of plan, giving credibility to the cost-funded price investment strategy. Still, top-line growth remains tepid at 1% identical sales, with pharmacy and egg deflation headwinds persisting into Q2. The real test is October's investor update, where Kroger needs to show a concrete multi-year savings and margin framework. Until then, expect investors to hold judgment on whether the business is truly breaking away from traditional grocery.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED In-line Q1 with 1% identical sales and 6% adjusted EPS growth.
Revenue
Total company sales rose 2.2% YoY to $46.1B, but excluding fuel and Vitacost growth was just 0.5%. Identical sales (ex-fuel) increased 1.0%, led by eCommerce (+19%), fresh, and Our Brands.
Profitability
GAAP operating profit grew 6.4% to $1,407M, while adjusted EPS rose 6% to $1.58 from $1.49. Adjusted FIFO operating profit reached $1,544M, up modestly from $1,518M.
Margins
FIFO gross margin declined 9 bps due to transportation costs, egg deflation, and planned price investments, partly offset by pharmacy mix and eCommerce improvements. GAAP gross margin fell 30 bps to 22.7%, while OG&A rate rose 16 bps on associate investments.
Balance Sheet
Net total debt to adjusted EBITDA came in at 1.75x, well below the 2.30-2.50x target. The company reaffirmed FY26 free cash flow of $2.7-$2.9B and capex of $3.8-$4.0B.
Key Risks
Management flagged persistent diesel cost inflation (15 bps gross-margin hit), pressure on consumers from higher gas prices and reduced SNAP benefits, and ongoing pharmacy headwinds from IRA and generic conversion. Egg deflation remains a 64 bps identical-sales drag.
Outlook
Q2 identical sales ex-fuel are expected to be roughly in line with Q1 (~1%), with adjusted EPS flat YoY. Full-year guidance was reaffirmed, relying on cost savings ramp and accelerating eCommerce profitability in H2.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-06-18
First quarter results showed 1% identical sales growth excluding fuel, strong eCommerce and media profitability, and cost savings ahead of plan. Management reaffirmed full-year guidance, with growth expected to accelerate in the second half as cost initiatives ramp and digital businesses expand.
Q4 2026 Q4 2026 2026-03-05
Q4 and full year results showed strong EPS and sales growth, driven by e-commerce, pharmacy, and fresh categories. 2026 guidance anticipates continued investment in price, technology, and new stores, with cost savings funding these initiatives despite headwinds from the Inflation Reduction Act.
Q3 2026 Q3 2026 2025-12-04
Q3 saw 2.6% Identical Sales growth, led by pharmacy and e-commerce, with strong margin management and a shift to a hybrid e-commerce model. Guidance was raised for EPS and narrowed for sales, while $400M in e-commerce profit improvements and a $2.6B impairment were announced.
Q2 2026 Q2 2026 2025-09-11
Q2 saw strong sales and profit growth, led by e-commerce, pharmacy, and fresh categories. Guidance was raised for sales and earnings, with continued cost optimization, AI investments, and store expansion planned. Consumer sentiment remains cautious, but operational and financial momentum is strong.
Q1 2026 Q1 2026 2025-06-20
First quarter saw 3.2% identical sales growth (ex-fuel), 15% e-commerce growth, and a 4% rise in adjusted EPS. Guidance for identical sales was raised, with store closures and new openings planned to optimize the network. Margin improvements were driven by mix, cost savings, and specialty pharmacy sale.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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