Core Insights - Kroger has announced its top six food trends for 2026, predicting shifts in customer behaviors and popular products for the upcoming year [1][2] Group 1: Food Trends - **Dairy's Cultured Comeback**: Customers are expected to embrace gut-friendly dairy options, with a focus on cottage cheese and Greek yogurt being used in various meals beyond breakfast, including savory dips and protein-rich desserts [3] - **Protein + Fiber Synergy**: The combination of protein and fiber will be popular, with products like cheesy chickpea pasta and whey-packed oat snacks catering to consumers seeking gut health and sustained energy [4] - **One-Bite Snacks & Mini Meals**: There will be a rise in one-bite snacks and mini meals, as customers look for portion control and convenience, transforming snacking into satisfying mini meals [5] Group 2: Flavor Trends - **Citrus Celebration**: Citrus flavors, including yuzu and blood orange, will gain popularity, offering adventurous yet familiar tastes in beverages and desserts [6] - **Home Cooking, Reimagined**: Consumers will seek restaurant-style home cooking experiences, experimenting with bold flavors and elevated ingredients at home [7] - **Asian Inspired Mashups**: There will be an increase in Asian-inspired flavors like gochujang and matcha in various food products, reflecting cultural curiosity and culinary exploration [9] Group 3: Customer Experience - Kroger emphasizes that customers can enjoy these food trends affordably, ensuring high-quality products without compromising on price, supported by their Fresh & Quality Guarantees [10]

Company Performance - Kroger's stock increased by 2.69% to $61.11, outperforming the S&P 500's daily gain of 0.16% [1] - Over the past month, Kroger's shares experienced a decline of 5.82%, underperforming the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 1.89% [1] Upcoming Earnings - Analysts project Kroger's earnings per share (EPS) to be $1.2, reflecting a 5.26% increase from the same quarter last year [2] - Revenue is expected to reach $35.19 billion, indicating a 2.57% increase compared to the year-ago quarter [2] Full Year Estimates - For the full year, earnings are estimated at $4.79 per share and revenue at $148.11 billion, representing changes of +7.16% and +0.67% respectively from last year [3] Analyst Estimates - Recent modifications to analyst estimates for Kroger reflect near-term business trends, with positive changes indicating a favorable outlook on business health and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which assesses estimate changes, currently ranks Kroger at 3 (Hold) [6] - Kroger's Forward P/E ratio is 12.43, compared to the industry average of 15.08, suggesting it is trading at a discount [7] - The PEG ratio for Kroger is 1.67, while the Retail - Supermarkets industry has an average PEG ratio of 2.2 [8] Industry Context - The Retail - Supermarkets industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 170, placing it in the bottom 31% of over 250 industries [9]

Core Insights - Kroger is expanding its partnership with Google Cloud to implement the Gemini Enterprise for Customer Experience (CX) platform, aiming to enhance customer shopping experiences through advanced technology [1][2] Group 1: Customer Experience Transformation - The rollout of Gemini Enterprise for CX will include an integrated Meal assistant and Shopping assistant, designed to simplify grocery planning and shopping while catering to individual customer preferences [2] - The Customer Experience Agent Studio will be utilized to analyze customer interactions, allowing Kroger to proactively address issues and improve associate productivity, thereby delivering a more seamless shopping experience [3] Group 2: Features of the Shopping Assistant - The Shopping assistant will streamline complex tasks, enabling customers to complete their shopping with minimal input, incorporating AI-enabled features for enhanced efficiency [6] - It will provide an "inspiration-to-cart" flow, allowing customers to convert requests into guided recipes with a single click, thus simplifying the shopping process [7] - Recommendations will be based on Kroger's proprietary data, ensuring that suggestions are relevant and actionable, enhancing the overall shopping experience for families [7]

Core Insights - iHerb Holdings, LLC has completed the acquisition of Vitacost.com, Inc. from The Kroger Co., which is expected to enhance iHerb's market presence in the U.S. and establish it as a leading online destination for health and wellness products [1] Company Overview - iHerb is a major online retailer specializing in health and wellness products, offering a wide selection of vitamins, minerals, supplements, and other related items from nearly 2,000 reputable brands [7] - Vitacost is a respected e-commerce brand with over 40,000 health-conscious products, including vitamins, minerals, and eco-friendly consumer goods, and has been a trusted source for health-focused consumers for over 30 years [2][8] Strategic Rationale - The acquisition of Vitacost is expected to accelerate iHerb's scale in the U.S. market by integrating Vitacost's brand, intellectual property, and inventory, which includes a diverse range of National and Owned Brands [3] - The combination of iHerb and Vitacost is anticipated to create significant benefits, including an expanded customer base and strengthened relationships with key brands, aligning with iHerb's mission to make health and wellness accessible [3] Transaction Details - The financial terms of the acquisition were not disclosed, with Ducera Partners, LLC acting as the exclusive financial advisor to iHerb and RBC Capital Markets, LLC advising Kroger [4] Expanded Reach and Offerings - iHerb gains immediate access to Vitacost's loyal U.S. customer base, enhancing its market reach [6] - Vitacost customers will benefit from iHerb's global supply chain efficiency and extensive international brand portfolio, improving their shopping experience [6] Category Leadership - The acquisition strengthens iHerb's brand relationships and leadership in high-growth categories such as vitamins, minerals, and natural products, including beauty and personal care [6]

Core Insights - The Kroger Co. has finalized the sale of its subsidiary, Vitacost.com, Inc., to iHerb, with the transaction closing on January 8, 2026 [1] - This sale is part of Kroger's strategy to review non-core assets and focus on its key priorities, including simplifying the organization and enhancing customer experience [2] - iHerb views the acquisition of Vitacost as a strategic investment that will enhance its leadership in the online health and wellness market, leveraging Vitacost's brand equity and established customer base [3] Company Overview - Kroger operates with over 400,000 associates and serves more than 11 million customers daily through various retail and eCommerce platforms [5] - iHerb is a leading online retailer in health and wellness products, serving 14 million active customers across 180 countries, supported by a global workforce of 3,000 [6]

Core Insights - Kroger reported that customers saved billions in 2025 through discounts, promotions, and everyday savings, highlighting the effectiveness of their Yearly Checkout feature which allows customers to view personalized annual savings and shopping habits [1][3] Group 1: Customer Savings and Features - The Yearly Checkout feature enables customers to access a summary of their annual savings, shopping habits, and grocery preferences by logging into their loyalty accounts [3] - In 2025, Kroger emphasized record savings on essential items and additional discounts during special occasions, showcasing their commitment to helping customers manage their budgets [3] Group 2: Community Impact - Kroger directed 518 million meals to communities in 2025 as part of its Zero Hunger | Zero Waste impact plan, contributing to a total of over 3.9 billion meals since the plan's inception in 2017 [4] Group 3: Product Recognition - Kroger's Our Brands products received multiple awards in 2025, including recognition for Spicy Dill Pickle Potato Chips, Chili Cheese Bratwurst, and Creamy Chorizo Breakfast Bowl, indicating strong customer trust and product quality [4][8] Group 4: Company Overview - Kroger operates with over 400,000 associates serving more than 11 million customers daily through various retail food stores and e-commerce platforms, reinforcing its mission to create ZeroHungerZeroWaste communities [6]

Group 1 - The analyst has over a decade of experience researching various industries, including commodities like oil, natural gas, gold, and copper, as well as technology companies such as Google and Nokia [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on hundreds of companies has been conducted [1] - The analyst expresses a particular interest in covering metals and mining stocks, while also being comfortable with sectors like consumer discretionary/staples, REITs, and utilities [1]

Company Overview - The Kroger Co. operates as a food and drug retailer, managing supermarkets, multi-department stores, and fulfillment centers across the United States [2]. Financial Actions - On December 23, Kroger's board approved an additional $2 billion for share repurchases, adding to the previously announced $7.5 billion program in December 2024. After this approval, the company has approximately $2.9 billion remaining under its buyback authorizations as of December 23, 2025 [3]. Sales and Market Conditions - Kroger narrowed its full-year sales outlook, indicating that shoppers are becoming more selective, particularly regarding groceries and fresh produce, and are increasingly relying on promotions. The company missed third-quarter sales estimates, with interim CEO Ron Sargent noting that the financial pressure is affecting not only lower-income households but also middle-income shoppers [4]. Competitive Landscape - Competition has intensified in the retail sector, with larger rivals like Walmart and Target reducing prices to attract customers. In response, Kroger has increased price reductions to retain budget-conscious shoppers [5]. Strategic Changes - The company is undergoing significant restructuring, including the closure of facilities and job cuts, as well as a shift in its e-commerce strategy following the removal of CEO Rodney McMullen in March. Kroger plans to close three of the eight automated fulfillment centers developed with British partner Ocado, resulting in a $2.6 billion charge as it transitions to a hybrid fulfillment model and strengthens partnerships with Instacart, DoorDash, and Uber Eats [5].

Core Insights - As the transition from 2025 to 2026 occurs, investors are seeking stability amid signs of fatigue in the high-growth tech sector and mixed economic forecasts for 2026, leading to a rotation into stable sectors like retail grocery [2] - Kroger Co. has become a focal point in this rotation, moving past its complex merger efforts with Albertsons and refocusing on cash generation and shareholder returns [3] - A new buyback program signals management's belief that Kroger's stock is undervalued, transforming it from a speculative merger play into a fundamental value play for cautious investors [4] Buyback Program - On December 23, 2025, Kroger's Board of Directors authorized a $2 billion share repurchase program, adding to a total of approximately $2.9 billion available for stock buybacks [5] - This significant buyback serves to create consistent demand for the stock, acting as a price floor and offsetting selling pressure during market dips [5] - The buyback also aims to enhance shareholder value through EPS Accretion, supporting stock prices and increasing per-share earnings [6] Market Context - The consumer backdrop for 2026 is favorable for grocery demand, as at-home eating remains more economical than dining out, which supports Kroger's business model [7] - A major non-cash fulfillment impairment has been cleared, removing an overhang on the company's performance, while digital sales growth continues to be a positive aspect [7]

Core Insights - Ocado Group is expanding its grocery technology offerings after ending mutual exclusivity arrangements with retailers, including Kroger in the U.S. [1][2] - The company aims to add new partners in various international grocery markets while maintaining existing partnerships [2][3] Group 1: Business Strategy - CEO Tim Steiner stated that Ocado is well-positioned to assist retailers in capturing market share in the rapidly growing online grocery sector [3] - The company's technology includes AI-powered and robotic solutions that provide delivery options such as immediate, same-day, next-day, and click-and-collect [4] Group 2: Market Developments - Ocado has evolved its market-leading solutions over the past five years, broadening its offerings to support retailers at different stages of their online journey [5] - Kroger plans to close three automated customer fulfillment centers (CFCs) in January 2026, while continuing to operate five others and compensating Ocado over $250 million for the closures [6][8] Group 3: Partnerships and Expansion - Ocado continues to support Kroger in optimizing logistics and driving profitable growth at remaining sites, with ongoing discussions about further technology use [7] - The company has launched new CFCs and partnerships globally, including in Poland with Auchan Polska, Spain with Bon Preu, and South Korea with Lotte [9]