Core Viewpoint - Albertsons has filed a lawsuit against Kroger after a US judge blocked their proposed $25 billion merger, claiming Kroger did not make sufficient efforts to secure regulatory approval and is seeking billions in damages [1][4][7]. Group 1: Lawsuit Details - Albertsons alleges that Kroger failed to exercise "best efforts" to obtain regulatory approval for the merger [2][4]. - The lawsuit seeks a $600 million termination fee along with additional damages to compensate Albertsons and its shareholders [1][4]. - Kroger has responded by calling Albertsons' claims "baseless" and an attempt to deflect blame for the merger's failure [3][6]. Group 2: Merger Background - The merger, agreed upon in October 2022, aimed to create the largest grocery chain in the US with nearly 5,000 stores across 48 states and Washington, D.C. [7]. - The Federal Trade Commission (FTC) intervened in February, arguing that the merger would harm competition, particularly citing Kroger's plan to divest 579 stores for $2.9 billion as insufficient [7][9]. - FTC Chair Lina Khan expressed concerns that the merger could lead to higher prices for consumers due to reduced competition [8][9]. Group 3: Market Reactions - Following the news of the lawsuit and merger blockage, Albertsons' shares fell by 0.1%, while Kroger's shares increased by 1.4% [4].

Albertsons has sued fellow grocery giant Kroger over the failure of their $24.6 billion merger.The company said Wednesday (Dec. 11) that it has filed a lawsuit in the Delaware Court of Chancery, accusing Kroger of breach of contract.The suit came one day after a judge blocked Kroger’s planned acquisition of Albertston’s, pointing to concerns that the deal would hinder competition in the U.S. grocery space. It accuses Kroger of “willfully” violating the merger agreement between the two companies by doing thi ...

The deal is over. The story isn't.  A day after a federal judge blocked the long-planned merger between Kroger (KR) and Albertsons (ACI) that would’ve created a U.S. grocery giant, both companies were looking forward—to what’s next for their businesses and to the possibility of action in court.  Albertsons, which agreed in 2022 to link up with Kroger, this morning terminated the merger agreement, saying that it filed a lawsuit against Kroger seeking damages that go beyond a $600 million termination fee. In ...

CINCINNATI, Dec. 11, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today issued the following statement:Albertsons' claims are baseless and without merit.Kroger refutes these allegations in the strongest possible terms, especially in light of Albertsons' repeated intentional material breaches and interference throughout the merger process, which we will prove in court.This is clearly an attempt to deflect responsibility following Kroger's written notification of Albertsons' multiple breaches of the agreeme ...

Traders work as screens display the trading information for Kroger Co. and Albertsons Companies Inc. on the floor of the New York Stock Exchange, Oct. 14, 2022.Albertsons on Wednesday formally terminated its proposed $25 billion merger with Kroger and filed a lawsuit against its supermarket competitor, saying Kroger violated its contract and didn't follow through on commitments to help get the deal approved.It comes a day after a judge blocked the planned tie-up.In a news release, Albertsons said Kroger bro ...

The Kroger Co. (NYSE:KR) Q3 2024 Earnings Conference Call December 5, 2024 10:00 AM ET Company Participants Robert Quast - Senior Director, Investor Relations Rodney McMullen - Chairman and CEO Todd Foley - Interim Chief Financial Officer Conference Call Participants Simeon Gutman - Morgan Stanley Rupesh Parikh - Oppenheimer Leah Jordan - Goldman Sachs Ken Goldman - JPMorgan Ed Kelly - Wells Fargo Michael Lasser - UBS John Heinbockel - Guggenheim Partners Michael Montani - Evercore ISI Robert Dickerson - Je ...

Kroger (KR) came out with quarterly earnings of $0.98 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this supermarket chain would post earnings of $0.92 per share when it actually produced earnings of $0.93, delivering a surprise of 1.09%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Kroger, which belongs to the Za ...

Kroger (KR) shares slipped Thursday after the grocery giant reported third-quarter results mostly below analysts' estimates. The company reported $33.63 billion in revenue, below the $34.22 billion expected by analysts polled by Visible Alpha. Net income came in at $618 million, beneath the $659.3 million projection. After stripping out one-time charges like costs related to the chain's proposed merger with Albertsons (ACI), Kroger's adjusted earnings per share (EPS) of $0.98 came in a penny above estimate ...

Sales Performance - Identical sales without fuel increased by 2.3% in Q3 2024[2] - Digital sales grew by 11% in Q3 2024[2] - Total company sales for Q3 2024 were $33.6 billion, a decrease from $34.0 billion in Q3 2023, primarily due to the sale of Kroger Specialty Pharmacy and lower fuel sales[8] - Sales for Q3 2024 were $33.634 billion, a slight decrease from $33.957 billion in Q3 2023, representing a 100% sales ratio for both periods[31] - Year-to-date sales for 2024 were $112.815 billion, compared to $112.975 billion in 2023, maintaining a 100% sales ratio[31] - Identical sales excluding fuel for Q3 2024 increased by 2.3% to $29.47 billion, compared to $28.818 billion in Q3 2023[44] - Year-to-date identical sales excluding fuel for 2024 increased by 1.2% to $97.595 billion, compared to $96.397 billion in 2023[44] Profitability Metrics - Operating profit for Q3 2024 was $828 million, with an EPS of $0.84[2] - Adjusted FIFO operating profit reached $1,017 million, and adjusted EPS was $0.98[2] - Operating profit for Q3 2024 was $828 million (2.5% of sales), down from $912 million (2.7% of sales) in Q3 2023[31] - Year-to-date operating profit for 2024 was $2.937 billion (2.6% of sales), up from $1.902 billion (1.7% of sales) in 2023[31] - Net earnings attributable to The Kroger Co. for Q3 2024 were $618 million (1.8% of sales), compared to $646 million (1.9% of sales) in Q3 2023[31] - Year-to-date net earnings for 2024 were $2.031 billion (1.8% of sales), up from $1.428 billion (1.3% of sales) in 2023[31] - Net earnings including noncontrolling interests for 2024 is $2.038 billion, a 42.5% increase from $1.430 billion in 2023[39] - Net earnings attributable to The Kroger Co. for Q3 2024 were $618 million, compared to $646 million in Q3 2023[54] - Year-to-date net earnings for 2024 were $2,031 million, up from $1,428 million in 2023[54] - Adjusted net earnings excluding adjustment items for Q3 2024 were $719 million, compared to $698 million in Q3 2023[54] - Year-to-date adjusted net earnings excluding adjustment items for 2024 were $2,447 million, down from $2,500 million in 2023[54] - Net earnings per diluted share for Q3 2024 were $0.84, compared to $0.88 in Q3 2023[54] - Adjusted net earnings per diluted share excluding adjustment items for Q3 2024 were $0.98, compared to $0.95 in Q3 2023[54] - Year-to-date adjusted net earnings per diluted share excluding adjustment items for 2024 were $3.34, down from $3.42 in 2023[54] - Operating profit for Q3 2024 was $828 million, compared to $912 million in Q3 2023[63] - Year-to-date operating profit for 2024 was $2,937 million, up from $1,902 million in 2023[63] - Adjusted FIFO operating profit excluding adjustment items for Q3 2024 was $1,017 million, compared to $1,022 million in Q3 2023[63] Gross Margin and LIFO Charges - Gross margin for Q3 2024 was 22.9%, with FIFO gross margin rate excluding fuel increasing by 51 basis points[9] - LIFO charges for Q3 2024 were $4 million, compared to $29 million in Q3 2023[35] - Year-to-date LIFO charges for 2024 were $66 million, down from $131 million in 2023[35] Debt and Financial Ratios - Kroger's net total debt to adjusted EBITDA ratio improved to 1.21 from 1.40 a year ago[14] - Total debt increased by $9.838 billion to $22.601 billion in 2024, compared to $12.763 billion in 2023[48] - Net total debt decreased by $1.814 billion to $9.478 billion in 2024, compared to $11.292 billion in 2023[48] - Adjusted EBITDA for the rolling four quarters ended November 9, 2024, is $7.845 billion, compared to $8.078 billion for the same period in 2023[49] - Net total debt to adjusted EBITDA ratio improved to 1.21 in 2024 from 1.40 in 2023[49] Cash Flow and Capital Expenditures - Adjusted free cash flow guidance for 2024 remains at $2.5 – $2.7 billion[16] - Net cash provided by operating activities for 2024 is $4.39 billion, compared to $4.868 billion in 2023[39] - Payments for property and equipment, including lease buyouts, increased to $3.133 billion in 2024 from $2.907 billion in 2023[39] - Proceeds from issuance of long-term debt in 2024 is $10.499 billion, compared to none in 2023[39] Assets and Liabilities - Total assets as of November 9, 2024, were $62.418 billion, up from $51.021 billion as of November 4, 2023[37] - Total liabilities as of November 9, 2024, were $49.524 billion, compared to $39.830 billion as of November 4, 2023[37] Guidance and Forecasts - Full-year 2024 guidance for identical sales without fuel was narrowed to 1.20% – 1.50%[16] - Adjusted FIFO operating profit guidance for 2024 was narrowed to $4.6 – $4.7 billion[16]

Third Quarter Highlights Identical Sales without fuel increased 2.3% Operating Profit of $828 million; EPS of $0.84 Adjusted FIFO Operating Profit of $1,017 million and Adjusted EPS of $0.98 Achieved strong Adjusted Free Cash Flow Executed its go-to-market strategy to deliver value for customers Grew digital sales 11% Our Brands sales growth outpaced total grocery sales growth Increased total households and loyal households CINCINNATI, Dec. 5, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today reporte ...