Kroger (NYSE:KR) Announces Earnings Results

Key Points

• Kroger exceeded earnings expectations: Quarterly EPS was $1.09 versus the $1.05 consensus, while revenue increased 2.0% year over year.
• Digital and retail-media businesses showed strong momentum: Adjusted e-commerce sales grew 20% and Kroger Precision Marketing profit rose 24%, although identical sales excluding fuel increased only 0.2%.
• Full-year EPS guidance was updated to $5.10-$5.30, and Kroger raised its quarterly dividend to $0.39 per share, representing a 2.7% yield.

Kroger (NYSE:KR - Get Free Report) released its quarterly earnings data on Friday. The company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.05 by $0.04, reports. Kroger had a net margin of 0.71% and a return on equity of 44.33%. During the same quarter last year, the business posted $1.04 EPS. The firm's revenue was up 2.0% compared to the same quarter last year. Kroger updated its FY 2026 guidance to 5.100-5.300 EPS.

Kroger Stock Performance

Shares of Kroger stock opened at $56.87 on Friday. The firm has a market capitalization of $34.84 billion, a P/E ratio of 33.45, a price-to-earnings-growth ratio of 1.58 and a beta of 0.41. Kroger has a 12 month low of $54.15 and a 12 month high of $76.58. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. The business's fifty day simple moving average is $57.78 and its 200 day simple moving average is $63.69.

Kroger Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Saturday, August 15th were issued a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 2.7%. This is an increase from Kroger's previous quarterly dividend of $0.35. The ex-dividend date was Friday, August 14th. Kroger's dividend payout ratio is currently 91.76%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Guggenheim restated a "buy" rating and issued a $71.00 price objective on shares of Kroger in a report on Thursday, July 2nd. Telsey Advisory Group set a $78.00 price target on Kroger and gave the stock an "outperform" rating in a report on Monday, June 22nd. Wells Fargo & Company set a $58.00 target price on shares of Kroger in a research report on Monday, June 22nd. JPMorgan Chase & Co. decreased their price target on Kroger from $72.00 to $70.00 and set a "neutral" rating on the stock in a research report on Thursday, June 11th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. Ten investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $71.31.

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Digital and retail-media momentum remained strong. Adjusted eCommerce sales grew 20%, while Kroger Precision Marketing profit increased 24%, supporting the company’s higher-margin growth initiatives. Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026
• Positive Sentiment: Profitability exceeded the anticipated adjusted EPS result. Kroger reported adjusted EPS of $1.09, versus the $1.05 expectation cited ahead of the release, and adjusted FIFO operating profit of $1.076 billion. Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026
• Neutral Sentiment: Core sales were nearly flat. Identical sales excluding fuel rose just 0.2%, indicating limited underlying traffic or volume growth despite continued grocery demand.
• Negative Sentiment: Full-year EPS guidance was set at $5.10-$5.30, with a midpoint of $5.20 below the $5.27 consensus estimate. This leaves limited room for upside and reinforces concerns about cautious consumer spending, pharmacy headwinds and rising operating costs.
• Negative Sentiment: Pre-release positioning had been cautious. Several analysts had reduced price targets, while options pricing implied potential post-earnings weakness. Kroger’s stock has also lagged the broader market over the past year, increasing investor sensitivity to execution and forward guidance.
• Positive Sentiment: Store expansion provides a longer-term growth catalyst. Kroger is planning a new North Texas Marketplace location, continuing grocery investment in a growing regional market. Kroger planning new store in North Texas

Institutional Investors Weigh In On Kroger

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC purchased a new stake in Kroger during the 2nd quarter worth approximately $201,000. Brighton Jones LLC boosted its holdings in Kroger by 27.3% during the 4th quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock valued at $962,000 after acquiring an additional 3,373 shares during the period. Wealth Watch Advisors INC increased its stake in Kroger by 112.0% during the 4th quarter. Wealth Watch Advisors INC now owns 3,065 shares of the company's stock worth $192,000 after buying an additional 1,619 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in Kroger in the fourth quarter valued at approximately $50,000. Finally, Sunbelt Securities Inc. lifted its stake in Kroger by 98.9% during the third quarter. Sunbelt Securities Inc. now owns 2,249 shares of the company's stock worth $152,000 after purchasing an additional 1,118 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors.

About Kroger

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.