The Kroger Co. (NYSE:KR) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: 17 analysts give Kroger a consensus rating of "Moderate Buy" with an average 1‑year price target of $74.56 (9 buys, 8 holds), and several brokers have recently raised targets.
• Financials & guidance: Kroger beat EPS at $1.28 vs. $1.20 but missed revenue ($34.73B vs. $35.10B), reported thin net margins (0.69%) and a high debt‑to‑equity ratio (2.66); FY2026 EPS guidance is $5.10–$5.30.
• Operations & shareholder return: The company is investing in promotions, store remodels, gas pricing advantages and new product rollouts to drive traffic, and declared a $0.35 quarterly dividend (2.1% yield) though the payout ratio is elevated at 91.5%.

Shares of The Kroger Co. (NYSE:KR - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seventeen analysts that are currently covering the stock, Marketbeat reports. Eight analysts have rated the stock with a hold recommendation and nine have given a buy recommendation to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $74.5625.

Several equities analysts have recently issued reports on KR shares. Citigroup lifted their price target on Kroger from $68.00 to $71.00 and gave the company a "neutral" rating in a research report on Monday, March 9th. Roth Mkm reiterated a "buy" rating and set a $78.00 price target (up from $75.00) on shares of Kroger in a research report on Friday, March 6th. BMO Capital Markets reiterated a "market perform" rating and set a $70.00 price target on shares of Kroger in a research report on Thursday, March 5th. Barclays reiterated a "positive" rating on shares of Kroger in a research report on Monday, February 9th. Finally, Erste Group Bank started coverage on Kroger in a research report on Thursday, April 2nd. They set a "buy" rating on the stock.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is boosting customer value with targeted promotions and pricing initiatives (Online Deal Days and other savings) to protect market share amid rising grocery costs. Kroger launches online deal days amid rising food costs
• Positive Sentiment: Retail footprint and store investment: multiple store remodels and a new, large Kroger Marketplace (Mechanicsville) signal continued capital reinvestment to drive sales and compete with big-box rivals. Kroger Completes $2M Store Remodel in Illinois
• Positive Sentiment: Grocery + fuel strategy: reporting and analysis highlight Kroger’s gas pricing competitiveness vs. Costco and Walmart — a differentiated traffic driver that can protect basket spend. Kroger quietly builds a massive gas edge over Costco, Walmart
• Positive Sentiment: New product partnerships and assortment expansion (Beyond Meat nationwide rollout in 2,000+ stores; Rancher’s Premium Smokehouse products hitting Kroger shelves) support incremental sales and fresh inventory buzz. Rancher’s Premium Smokehouse Teams Up with Kroger
• Neutral Sentiment: Workforce and talent initiatives (Pearl Street Academy, Platinum workforce rating, expanded associate education) are long-term positives for retention but increase near-term operating investment. How Kroger’s New Shelf Registration and Workforce Push Could Shape Kroger (KR) Investors’ Outlook
• Neutral Sentiment: Kroger filed an omnibus shelf registration (debt, preferred/common, warrants) — provides financing flexibility but raises the possibility of future issuance that investors will watch closely. Shelf registration article
• Neutral Sentiment: Community initiatives (drug take-back events across multiple states) support brand and local engagement but are unlikely to move near-term financials. Kroger hosting drug take back events across metro Atlanta
• Negative Sentiment: Financial/valuation concerns: last quarter Kroger beat EPS modestly but missed revenue estimates, reported thin net margins and carries elevated debt-to-equity — investors may be selling into the company’s continued investment cycle and the risk of margin pressure from inflation and higher associate costs.

Kroger Stock Down 2.7%

Shares of Kroger stock opened at $67.26 on Friday. The business's fifty day moving average price is $70.56 and its two-hundred day moving average price is $66.83. The company has a debt-to-equity ratio of 2.66, a current ratio of 0.80 and a quick ratio of 0.42. The company has a market capitalization of $41.20 billion, a P/E ratio of 43.96, a PEG ratio of 1.84 and a beta of 0.55. Kroger has a 1-year low of $58.60 and a 1-year high of $76.58.

Kroger (NYSE:KR - Get Free Report) last issued its quarterly earnings results on Thursday, March 5th. The company reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.08. Kroger had a return on equity of 41.08% and a net margin of 0.69%.The company had revenue of $34.73 billion for the quarter, compared to analysts' expectations of $35.10 billion. During the same period last year, the firm earned $1.14 EPS. The firm's revenue for the quarter was up 1.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. As a group, research analysts forecast that Kroger will post 5.24 EPS for the current year.

Kroger Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 15th will be given a dividend of $0.35 per share. The ex-dividend date is Friday, May 15th. This represents a $1.40 annualized dividend and a dividend yield of 2.1%. Kroger's dividend payout ratio (DPR) is 91.50%.

Hedge Funds Weigh In On Kroger

A number of hedge funds have recently modified their holdings of KR. Brighton Jones LLC grew its holdings in shares of Kroger by 27.3% in the 4th quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock worth $962,000 after acquiring an additional 3,373 shares during the last quarter. Woodline Partners LP grew its holdings in shares of Kroger by 40.7% in the 1st quarter. Woodline Partners LP now owns 56,243 shares of the company's stock worth $3,807,000 after acquiring an additional 16,270 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Kroger in the 2nd quarter worth $201,000. NewEdge Advisors LLC grew its holdings in shares of Kroger by 11.5% in the 2nd quarter. NewEdge Advisors LLC now owns 97,288 shares of the company's stock worth $6,978,000 after acquiring an additional 10,051 shares during the last quarter. Finally, Nebula Research & Development LLC acquired a new position in shares of Kroger in the 2nd quarter worth $1,840,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

About Kroger

The Kroger Co NYSE: KR is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger's stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.

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