Kroger Co., The
Kroger Co. (KR) is one of the largest supermarket operators in the United States, running grocery stores, multi-department outlets, convenience stores and digital grocery services. Its business combines in-store sales, online fulfilment and a loyalty programme that supports targeted promotions and private-label growth. Kroger has focused on efficiency improvements — such as supply-chain optimisation, store automation and partnerships for last-mile delivery — to offset tight industry margins. Recurring, necessity-driven revenues can make the company relatively defensive, but profitability is sensitive to food inflation, labour costs and fierce competition from discounters, big-box retailers and online grocers. The firm also leverages customer data and a growing digital advertising opportunity, which can enhance margins over time. Investors should consider Kroger’s scale, dividend history and strategic execution, while remembering that past performance does not guarantee future results. This is educational information, not personal financial advice; suitability depends on individual circumstances.
Why It's Moving
Kroger Beats Q3 Earnings but Faces Analyst Price Target Cuts Amid Revenue Miss
Kroger reported third-quarter 2025 earnings that topped EPS expectations at $1.05 versus $1.03 forecast, yet revenue of $33.86 billion fell short of the $34.27 billion consensus, signaling softer demand in grocery retail. The company reaffirmed its fiscal 2025 adjusted EPS guidance of $4.75-$4.80, close to analyst estimates, but a wave of Wall Street price target reductions reflects caution on near-term pressures.
- EPS of $1.05 beat consensus by $0.02, with revenue up 0.7% year-over-year, demonstrating operational resilience despite top-line shortfall[3].
- Multiple analysts trimmed price targets this week, including Citigroup to $68 on Dec 10, Morgan Stanley to $72 on Dec 8, and Wells Fargo to $70 on Dec 5, while maintaining ratings like Neutral or Overweight[1][5].
- Stock dipped 2.64% to $61.24 amid elevated volume, contrasting positive YTD gains of 2.86% as investors weigh earnings beat against guidance and sector headwinds[2].
Kroger Beats Q3 Earnings but Faces Analyst Price Target Cuts Amid Revenue Miss
Kroger reported third-quarter 2025 earnings that topped EPS expectations at $1.05 versus $1.03 forecast, yet revenue of $33.86 billion fell short of the $34.27 billion consensus, signaling softer demand in grocery retail. The company reaffirmed its fiscal 2025 adjusted EPS guidance of $4.75-$4.80, close to analyst estimates, but a wave of Wall Street price target reductions reflects caution on near-term pressures.
- EPS of $1.05 beat consensus by $0.02, with revenue up 0.7% year-over-year, demonstrating operational resilience despite top-line shortfall[3].
- Multiple analysts trimmed price targets this week, including Citigroup to $68 on Dec 10, Morgan Stanley to $72 on Dec 8, and Wells Fargo to $70 on Dec 5, while maintaining ratings like Neutral or Overweight[1][5].
- Stock dipped 2.64% to $61.24 amid elevated volume, contrasting positive YTD gains of 2.86% as investors weigh earnings beat against guidance and sector headwinds[2].
Stock Performance Snapshot
Analyst Rating
Analysts suggest buying Kroger's stock with a target price of $74.63, indicating growth potential.
Financial Health
Kroger is producing strong cash flow and has a solid book value per share, indicating financial stability.
Dividend
Kroger's average dividend yield of 2.19% offers a moderate return for investors seeking dividends. If you invested $1000 you would be paid $21.90 a year in dividends (based on the last 12 months).
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Explore BasketWhy You’ll Want to Watch This Stock
Scale and reach
Kroger’s large store network and loyalty programme offer stable, recurring revenue — though margins in grocery are typically modest and competitive.
Digital expansion
Investors may watch online fulfilment, delivery partnerships and digital advertising as potential margin drivers, while execution risks remain.
Cost and inflation
Food inflation and labour costs can squeeze profits; cost programmes help, but performance can vary with macro trends and competition.
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