KR changes
Pick any two versions below to diff them.
- Price
- $69.49
- Discount category
- Far above intrinsic value
- Next earnings
- Dec 3, 2026
- Next earnings is estimate
- Yes
- Company name
- added: Kroger
- Sector
- added: Supermarkets & grocery retail
- About
- added: 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
- added: 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.
- Risks
- added: 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
- added: 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. Debt without finance leases was $15,367 million. Kroger had no commercial paper and no borrowings on its $2.75 billion revolving credit facility, which ends on September 13, 2029. Net total debt to adjusted EBITDA was 1.91 times, against a target range of 2.30 to 2.50. After the quarter, Kroger priced $1.5 billion of senior notes on September 28, 2026. It bought back $1.0 billion of shares in Q2 and has about $800 million left of its $2 billion authorization. The quarterly dividend is $0.39 per share. As of Aug 15, 2026.
- Checkpoints
- added: Sep 11, 2026: Q2 2026 results: adjusted EPS guidance. Passed. Watch: Kroger 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. Dec 3, 2026 (estimate): Q3 2026 results: identical sales. Pending. Watch: Identical sales without fuel growth of 0.2% or more and a kept 2026 adjusted EPS range pass; a cut to the EPS range fails. Mar 2027 (estimate): Q4 2026 results: 2027 guidance. Pending. Watch: 2027 adjusted EPS guidance that implies growth of 7% or more over 2026 passes; weaker guidance fails.
- Recent events
- added: Oct 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. It kept its 2026 guidance. Sep 28, 2026: Kroger priced $650 million of 5.800% senior notes due 2032 and $850 million of 6.200% senior notes due 2036. Sep 11, 2026: Kroger 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. Aug 31, 2026: Kroger 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. Jul 1, 2026: Kroger 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. Mar 5, 2026: Kroger 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.