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KRSupermarkets & grocery retail

Kroger

Not investment advice. Kevin may own this stock. How we value stocks

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Updated

Price
$69.49
Analysts view
Bullish
Discount category
Far above intrinsic value
Pick status
Research only
Next earnings
Earnings Dec 3 · · estimated
History
Market cap
$41B
Shares of Sep 15, 2026
Yield at current rate
2.2%
Current annual rate, at the price of Nov 12, 2026
Dividend yield
2.1%
Last 12 months, at the price of Nov 12, 2026
P/E (trailing)
37.6
Price of Nov 12, 2026
EPS (trailing)
$1.85
12 months to Aug 15, 2026
52-week range
$54.15 – $76.58
To Nov 12, 2026
Beta
0.35
Vs S&P 500, 5 years monthly, to Oct 30, 2026
Average volume
6.9M
3 months, to Nov 12, 2026

Check the numbers:ExchangeGoogle FinanceYahoo FinanceSEC filings

In short

Thesis
Kroger trades above its intrinsic value because investors pay for steady earnings and a new plan under a new chief executive, and only sales that grow again with rising earnings per share can support this price.
Gap
Can close. The Q3 report in December 2026 and the Q4 report with 2027 guidance in March 2027 show whether sales growth improves and the new targets hold.

Company guidance: 2026 adjusted EPS $5.10 to $5.30, identical sales without fuel 0.2% to 0.8%; 2027-29 EPS growth 7% to 11% a year (, Investor update and 2026 guidance (8-K))

Price history

About

The Kroger Co. (Kroger) is one of the largest retailers in the United States, based in Cincinnati, Ohio. It sells food, pharmacy products, fuel and general goods in supermarkets and multi-department stores under many banners, and through eCommerce. It serves more than 11 million customers a day and has more than 400,000 associates. Its other profit lines include Kroger Precision Marketing, a retail media business, and its own brands.

Total sales were $34.6 billion in Q2 2026, the quarter that ended on August 15, 2026. On July 1, 2026, Kroger agreed to buy the grocer Giant Eagle for about $1.65 billion. The deal is not closed. Greg Foran is Chief Executive Officer and David Kennerley is Chief Financial Officer.

590,588,700 shares were outstanding on September 15, 2026. The shares trade on the NYSE in US dollars.

Thesis

Kroger trades above its intrinsic value because investors pay for steady grocery earnings and a new plan under a new chief executive, even though sales growth is weak. Identical sales without fuel rose only 0.2% in Q2 2026, and Kroger lowered its 2026 range to 0.2% to 0.8%, which includes a drag of about 140 basis points from the Inflation Reduction Act. Profit held up.

Adjusted EPS rose 5% to $1.09, helped by buybacks, and Kroger kept its 2026 adjusted EPS range of $5.10 to $5.30. Costs rose faster than sales, because of wages, health care and lower sales leverage. Kroger is also buying Giant Eagle while it changes its plan.

For the price to hold, sales growth must improve toward the 2029 target of about 3% growth of comparable sales without fuel and pharmacy. Adjusted EPS must also grow at the new target of 7% to 11% a year for fiscal 2027 to 2029. The Q3 report in December 2026 and the Q4 report with 2027 guidance in March 2027 are the next tests.

Checkpoints

  1. Sep 11, 2026Passed
    Q2 2026 results: adjusted EPS guidanceKroger keeps its 2026 adjusted EPS range of $5.10 to $5.30 passes; a cut fails.Outcome: Kroger kept the range. Adjusted EPS rose to $1.09 from $1.04.
  2. Dec 3, 2026 · est.Pending
    Q3 2026 results: identical salesIdentical sales without fuel growth of 0.2% or more and a kept 2026 adjusted EPS range pass; a cut to the EPS range fails.
  3. Mar 2027 · est.Pending
    Q4 2026 results: 2027 guidance2027 adjusted EPS guidance that implies growth of 7% or more over 2026 passes; weaker guidance fails.

Every passed and failed checkpoint across all picks

Recent events

  • October 20, 2026At an investor update, Kroger set targets of about 3% comparable sales growth without fuel and pharmacy in 2029, adjusted EBITDA growth of 3% to 6% a year and adjusted EPS growth of 7% to 11% a year for fiscal 2027 to 2029, without Giant Eagle. It kept its 2026 guidance.
  • September 28, 2026Kroger priced $650 million of 5.800% senior notes due 2032 and $850 million of 6.200% senior notes due 2036.
  • September 11, 2026Kroger reported Q2 2026 results. Identical sales without fuel rose 0.2%, operating profit was $971 million and adjusted EPS was $1.09 against $1.04. It lowered its 2026 identical sales range to 0.2% to 0.8% and kept its adjusted EPS range. It bought back $1.0 billion of shares in the quarter, and about $800 million of its $2 billion authorization is left.
Show 3 older events
  • August 31, 2026Kroger appointed Mark Ibbotson as Executive Vice President and Chief Store Operations Officer from September 14, 2026. He came from advisory work and earlier worked at Walmart U.S. and Asda.
  • July 1, 2026Kroger agreed to buy Giant Eagle for about $1.65 billion, which is $1.25 billion in cash and about $400 million of assumed debt. Kroger and Giant Eagle expect to sell some stores to get approval, and the deal should close in fiscal 2027.
  • March 5, 2026Kroger reported fiscal 2025 results. Adjusted EPS was $4.85, and the company gave 2026 guidance of adjusted EPS of $5.10 to $5.30. The board had approved a new $2 billion buyback in December 2025.

Latest news and filings

Last earnings
September 11, 2026 (8-K on sec.gov)
Next earnings
Expected about December 3, 2026. The company has not confirmed the date.

Every filing on SEC EDGAR (CIK 56873)

Risks

  • Sales growth may stay weak. Identical sales without fuel rose 0.2% in Q2 2026 and the 2026 range fell to 0.2% to 0.8%. Competitors and discounters pressure prices, and the Inflation Reduction Act lowers pharmacy sales.
  • Costs may keep growing faster than sales. The operating, general and administrative rate rose 33 basis points in Q2 2026 because of wages, health care costs and sales deleverage. Shrink and transport costs also rose.
  • The Giant Eagle deal adds risk. It costs about $1.65 billion, regulators may ask for store sales, and Kroger must join two businesses while it runs a new plan. The new targets leave Giant Eagle out.
  • Opioid claims remain. Kroger recorded $133 million as current and $845 million as long-term liabilities at August 15, 2026. It pays over 11 years and still defends other lawsuits.
  • Debt is above the level of last year. Total debt including finance leases was about $17.0 billion at August 15, 2026, and Kroger sold $1.5 billion of new notes on September 28, 2026. Its net total debt to adjusted EBITDA of 1.91 times is below its target range of 2.30 to 2.50.

Balance sheet

Kroger had cash and temporary cash investments of $1.7 billion at August 15, 2026. Total debt including finance leases was about $17.0 billion, down $569 million from $17.6 billion at the end of fiscal 2025, after Kroger paid $500 million of 3.5% senior notes.

Dividends

Yield at the current rate
2.2% (current annual rate, at today’s price)
Dividend yield
2.1% (last 12 months, at today’s price of $69.49)
Paid per share
$1.44 in the last 12 months (4 payments)
Current annual rate
$1.56 ($0.39 × 4 a year)
Payout ratio
87% of the last fiscal year’s earnings (the year that ended January 31, 2026)
Latest ex-dividend date
August 14, 2026, $0.39 per share

Dividends per share by year

Kroger dividends per share by year
2016
$0.45
2017
$0.49
2018
$0.53
2019
$0.60
2020
$0.68
2021
$0.78
2022
$0.94
2023
$1.10
2024
$1.22
2025
$1.34

From 2020 to 2025, the dividend grew by about 14.5% a year. From 2015 to 2025, the dividend grew by about 13.0% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.

Questions about Kroger

What does Kroger do?

The Kroger Co. (Kroger) is one of the largest retailers in the United States, based in Cincinnati, Ohio. It sells food, pharmacy products, fuel and general goods in supermarkets and multi-department stores under many banners, and through eCommerce. Its market cap is $41B at the current price of $69.49.

When does Kroger report earnings next?

This is an estimate: Kroger may report on December 3, 2026. It last reported results on September 11, 2026.

Is Kroger stock below its intrinsic value?

Kroger stock is far above intrinsic value. This is general information, not advice.

What changed recently at Kroger?

The latest update is from October 20, 2026. At an investor update, Kroger set targets of about 3% comparable sales growth without fuel and pharmacy in 2029, adjusted EBITDA growth of 3% to 6% a year and adjusted EPS growth of 7% to 11% a year for fiscal 2027 to 2029, without Giant Eagle.

What are the main risks for Kroger?

Sales growth may stay weak. Costs may keep growing faster than sales. The Giant Eagle deal adds risk.

How much debt and cash does Kroger have?

Kroger had cash and temporary cash investments of $1.7 billion at August 15, 2026. This is as of August 15, 2026.

Does Kroger pay a dividend?

Yes. The current annual dividend of Kroger is $1.56 per share. That is a dividend yield of 2.2% at the current price of $69.49. In the last 12 months, it paid $1.44 per share (2.1%). The latest ex-dividend date was August 14, 2026.

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