Kroger (NYSE:KR) Issues Earnings Results

Kroger (NYSE:KR) posted its quarterly earnings results on Friday. The company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.05 by $0.04, reports. Kroger had a return on equity of 49.90% and a net margin of 0.73%.The firm had revenue of $34.62 billion during the quarter, compared to the consensus estimate of $34.64 billion. During the same quarter in the previous year, the business earned $1.04 earnings per share. The firm’s quarterly revenue was up 2.0% compared to the same quarter last year. Kroger updated its FY 2026 guidance to 5.100-5.300 EPS.

Here are the key takeaways from Kroger’s conference call:

• Sales outlook was reduced: Kroger lowered full-year identical sales growth without fuel guidance to 0.2%-0.8% from 1%-2%, citing consumer pressure, lingering Cyclospora effects, pharmacy pricing headwinds, and tougher comparisons later in the year.
• Despite soft sales, Kroger maintained adjusted FIFO operating profit guidance of $5.0-$5.2 billion and adjusted EPS guidance of $5.10-$5.30, supported by cost savings, margin management, pharmacy mix, and expected earnings growth in the second half.
• E-commerce and retail media continued to accelerate. Adjusted e-commerce sales rose 20% with a second consecutive quarter of profitable growth, while retail media increased 24% and monetization improved 88 basis points.
• Kroger reported continued momentum in Our Brands, particularly Private Selection and Simple Truth; Our Brand sales grew faster than national brands, penetration increased approximately 50 basis points, and Private Selection sales rose more than 14%.
• Management emphasized a multi-year customer value plan combining lower prices and simpler promotions with sourcing, procurement, and productivity savings. The company also resumed share repurchases, buying back approximately $1.2 billion of stock in the first half, while continuing to expect the Giant Eagle acquisition to close in 2027 subject to regulatory review.

Kroger Stock Up 2.1%

KR stock opened at $62.21 on Wednesday. The stock has a market cap of $38.11 billion, a PE ratio of 33.81, a price-to-earnings-growth ratio of 1.67 and a beta of 0.41. The firm’s 50-day simple moving average is $57.91 and its 200 day simple moving average is $63.53. Kroger has a fifty-two week low of $54.15 and a fifty-two week high of $76.58. The company has a quick ratio of 0.31, a current ratio of 0.70 and a debt-to-equity ratio of 2.59.

Kroger Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th were given a $0.39 dividend. This is a boost from Kroger’s previous quarterly dividend of $0.35. This represents a $1.56 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Friday, August 14th. Kroger’s dividend payout ratio is 84.78%.

Analyst Ratings Changes

KR has been the topic of several recent research reports. Citigroup reissued a “neutral” rating and set a $57.00 price target (down from $61.00) on shares of Kroger in a research report on Tuesday, September 1st. UBS Group reiterated a “neutral” rating on shares of Kroger in a research note on Friday, September 4th. Wells Fargo & Company set a $58.00 target price on shares of Kroger in a research report on Monday, June 22nd. Deutsche Bank Aktiengesellschaft set a $68.00 target price on shares of Kroger in a research note on Wednesday, September 9th. Finally, Barclays set a $61.00 price target on shares of Kroger and gave the stock an “equal weight” rating in a research note on Monday, June 22nd. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, Kroger currently has an average rating of “Moderate Buy” and a consensus price target of $70.00.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Profitability exceeded expectations. Kroger reported second-quarter EPS of $1.09 versus the $1.05 consensus, while operating profit rose to $971 million from $863 million and net earnings increased to $641 million from $609 million. Cost savings, pharmacy, fuel, e-commerce and retail-media growth supported results. Kroger Q2 Earnings Beat on Cost Savings, Sales Outlook Cut
• Positive Sentiment: Management maintained its profit outlook. Kroger held fiscal 2026 EPS guidance at approximately $5.10–$5.30, indicating that efficiency initiatives and higher-margin businesses may protect earnings even as sales slow. Strong private-label demand and improved product availability are additional supports. Kroger records strong private label growth
• Positive Sentiment: Store technology and growth investments could improve execution. Harris Teeter plans a $253 million Charlotte-area investment, including three new stores, while some Central Ohio Kroger locations are deploying inventory robots. These initiatives may improve availability, productivity and long-term competitiveness. Harris Teeter investment announcement
• Neutral Sentiment: Analyst views remain constructive but more cautious. Telsey maintained an “outperform” rating while reducing its price target to $75 from $78. The change reflects lower sales expectations rather than a loss of confidence in Kroger’s earnings potential.
• Negative Sentiment: Comparable-sales guidance was cut sharply. Kroger lowered its fiscal 2026 identical-sales forecast excluding fuel to 0.2%–0.8% from 1%–2%. Second-quarter identical sales rose only 0.2%, below the 0.9% estimate, as lower- and middle-income consumers became more price-sensitive; a Cyclospora outbreak and drug-price changes also weighed on performance. Kroger trims 2026 sales outlook
• Negative Sentiment: Reported checkout pricing discrepancies create reputational risk. A new report alleging that shelf prices did not consistently match checkout totals could lead to customer dissatisfaction, regulatory scrutiny or remediation costs if substantiated. Report on Kroger shelf-price discrepancies

Kroger Company Profile

The Kroger Co (NYSE: KR) is one of the largest grocery retailers in the United States. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates supermarkets, multi-department stores, pharmacies, convenience stores and fuel centers across the country.

Kroger sells a broad range of fresh foods, packaged groceries, household products, health and beauty items, prepared foods and general merchandise. Its private-label offerings include Simple Truth, Private Selection and Kroger brands.