Opinions Stockchase Insights
Kroger Co.KRHOLDSep 20, 2024
Stockchase InsightsUnknown
$55.39
Stock price when the opinion was issued
$62.96
As of Jun 08, 2026. Market Open.
food stores
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
You might be interested:
COMMENT
proposed merger Kroger is buying Albertson's, but the White House won't allow it, he thinks. The deal is worth $24.6 billion. Now, he's changing his mind. If the deal goes through, then Albertson's will gain huge. Both stocks have been lagging before this deal. Together, they would have a lot of heft with suppliers, boosting free cash flow and lower admin costs (among other benefits), reaching $1 billion in synergies in four years (say the companies). They would be the second-largest grocer in the U.S. But the merger of Albertson's and Safeway was a disaster, and the FTC definitely remembers that. It will be a long slog (the chances don't look good).
food stores
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentPAST TOP PICK
(A Top Pick Nov 18/20, Up 21.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KR has triggered its stop at $40. We recommend covering the balance of the position at this time. Combined with the previous recommendation to cover half the position, this results in a net investment return over 21%. We will monitor for another entry level in the future.
food stores
EPS of 93c beat estimates of 91c; revenue of $33.91B marginally missed estimates. Kroger appears well-positioned to navigate an increasingly complex consumer-spending environment. Mainstream households led sales growth in fiscal 2Q amid loyal households and increased visits, a trend that could extend in 3Q, aiding same-store sales gains. Volume expansion appears to be slowly improving, buoyed by strategic promotions. Private-label product sales growth outpaced that of national brands, helping bolster gross margin, which the company believes will expand slightly for the full year, yet might be flat in 3Q. Kroger indicated adjusted EPS in 3Q could be slightly stronger than in 4Q. The company noted that e-commerce profitability is improving, boosted by more orders for its delivery network and store pickup. KR lowered its CEO pay by 18% recently, and it does vary on performance. He needs to get by on $15.7 million total compensation this year. Excessive, but at least it varies with performance, and we have seen much worse.
Unlock Premium - Try 5i Free