This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Dive Brief: Kroger has canceled plans to open an automated e-commerce fulfillment center in the Charlotte, North Carolina, area that it had been developing through its partnership with Ocado, the U.K. warehouse automation company disclosed in a filing with the London Stock Exchange on Friday. Kroger will pay Ocado $350 million to compensate the technology provid ...

Kroger announced that it was closing three facilities set up using Ocado’s robot warehouse technology - Kroger/Reuters US supermarket giant Kroger has agreed to pay Ocado £260m after scrapping its automated warehouses. Ocado said it expected to receive a one-off payment of $350m (£262m) from its biggest customer next month, which was “principally in lieu of future fees” it had been due to receive. Kroger recently announced it was closing three facilities set up using Ocado’s robot warehouse technology, ...

Shares in Ocado rose more than 9.5% on Friday, placing the stock among the top gainers on the FTSE 250, after the British online grocer and technology firm said it would receive a one-off $350 million... ...

Market Overview - The CNN Money Fear and Greed index showed some easing in the overall fear level, remaining in the "Fear" zone with a current reading of 38.9, up from 36.7 [1][6] - U.S. stocks settled mixed, with the Nasdaq Composite gaining around 50 points ahead of a widely expected Federal Reserve rate cut, which has a nearly 90% probability of being a 25-basis-point reduction [1] Company Performance - Dollar General Corp. led S&P 500 gainers, soaring 14% after posting stronger-than-expected earnings and upbeat guidance, reaching its highest level since August 2024 [2] - Salesforce Inc. added around 4% following positive results [2] - Kroger Co. stock fell around 5% after posting mixed quarterly results with softer-than-expected revenue [2] Economic Data - U.S. initial jobless claims declined by 27,000 to 191,000 during the last week of November [3] - U.S.-based employers announced job cuts of 71,321 in November, up from 57,727 in the year-ago period [3] - New orders for U.S.-manufactured goods increased by 0.2% month-over-month in September, compared to a revised 1.3% rise in August [3] Sector Performance - Most sectors on the S&P 500 closed negatively, with consumer staples, health care, and consumer discretionary stocks recording the biggest losses [4] - Industrials and information technology stocks bucked the overall market trend, closing higher [4] - The Dow Jones closed lower by around 32 points to 47,850.94, while the S&P 500 gained 0.11% to 6,857.12, and the Nasdaq Composite climbed 0.22% to 23,505.14 during Thursday's session [4] Upcoming Earnings - Investors are awaiting earnings results from Victoria's Secret & Co. and MoneyHero Ltd. today [5]

Core Insights - Ocado Group will receive a one-off cash payment of $350 million from Kroger due to the latter's decision to close three robotic warehouses and cancel a planned facility [1] Company Summary - Kroger, a U.S. grocery chain, has decided to close three robotic warehouses [1] - Kroger has also canceled a planned facility, impacting its partnership with Ocado Group [1] Industry Summary - The decision by Kroger reflects challenges in the grocery sector, particularly in the implementation of automated solutions [1]

Ocado will receive a one-time cash payment of $350 million from Kroger as compensation for the decision to close automated warehouses https://t.co/5kGtKWcU3d ...

Core Viewpoint - Kroger Co. is facing stock price pressure despite exceeding earnings expectations, primarily due to lower-than-expected sales figures, which has raised investor concerns [2][5]. Financial Performance - Kroger reported earnings of $1.05 per share, surpassing the anticipated $1.03, but total sales were $33.9 billion, falling short of the expected $34.2 billion [2][5]. - The company experienced a 2.6% year-over-year increase in same-store sales, while total revenue decreased by 0.9% [3][5]. - A $3 million charge related to asset impairment in its automated fulfillment network contributed to a GAAP earnings loss of $2.02 per share [3]. Market Outlook - Edward Kelly from Wells Fargo set a price target of $70 for Kroger, indicating a potential increase of 10.86% from the current price of $63.14 [1]. - Kroger maintained its full-year guidance, projecting earnings per share to approach $4.80 [4]. - The stock price has fluctuated between $60.96 and $64.25, with a market capitalization of approximately $41.84 billion [4].

Wells Fargo has adjusted its rating for Kroger (NYSE:KR) to "Overweight" and lowered its price target from $78 to $70.Kroger's Q3 results showed a decline in stock price despite an EPS beat, with revenue meeting expectations but full-year EPS guidance slightly below analyst expectations.Despite challenges such as macroeconomic uncertainties and cautious consumer spending, Kroger's gross margin improved, thanks to reduced shrinkage and a robust private-label mix.On December 4, 2025, Wells Fargo adjusted its ...

Market Overview - Major U.S. stock indices remained stable, with the S&P 500 and Nasdaq rising for three consecutive days, while the Dow Jones Industrial Average fell slightly by 31.96 points, or 0.07%, closing at 47,850.94 points [2] - The labor market showed mixed signals, with initial jobless claims dropping to a three-year low of 191,000, significantly below economists' expectations of 220,000 [4] - The Chicago Fed's model estimates the unemployment rate to remain around 4.4%, indicating a resilient labor market despite some concerns [4] Company Performance - In the technology sector, Meta's stock rose by 3.43% following news of a potential 30% budget cut for its Metaverse projects, while Amazon's stock fell by 1.41% due to ongoing discussions with the U.S. Postal Service [2] - Snowflake's stock plummeted by 11.41% as its fourth-quarter product revenue guidance fell short of high growth expectations [6] - Hormel Foods saw a stock increase of 3.82% as the company projected better-than-expected annual profits, while Dollar General's stock surged by 10.5% after raising its annual guidance [7] Commodity Performance - International oil prices increased, with light crude oil for January delivery rising by $0.72 to $59.67 per barrel, a 1.22% increase, and Brent crude for February delivery up by $0.59 to $63.26, a 0.94% increase [7] - Spot gold prices slightly rose by 0.1% to $4,210.49, while COMEX gold futures increased by 0.2%, settling at $4,243.00 [7]

Core Viewpoint - Kroger's third-quarter revenue fell short of Wall Street expectations, leading to a 6% decline in shares, attributed to lower-income consumers reducing spending and increased competition from larger rivals like Walmart [1][2] Revenue Performance - Kroger reported third-quarter revenue of $33.9 billion, missing analyst expectations of $34.28 billion [2] - The decline in revenue was influenced by reduced food-stamp benefits and a temporary interruption in SNAP payments [2] Profitability and Earnings - Despite the revenue shortfall, Kroger achieved adjusted earnings per share of $1.05, surpassing the consensus estimate of $1.03 [3] - Key contributors to the earnings beat included improved gross margins and a 17% increase in eCommerce sales [3] - The company anticipates its eCommerce business will reach profitability by 2026 [3] Operating Loss and Charges - Kroger reported a third-quarter operating loss of $1.54 billion, or $2.02 per share, primarily due to $2.6 billion in impairment and related charges linked to its automated fulfillment network [4] - Adjusted FIFO operating profit was reported at $1.09 billion [4] Gross Margin Improvement - Gross margin improved to 22.8% from 22.4% in the prior-year quarter, aided by lower supply chain costs, the sale of Kroger Specialty Pharmacy, and reduced shrink [5] - The company's full-year earnings outlook remains strong, projected at $4.75 to $4.80 per share, exceeding analyst expectations [5]