Company Overview - Kroger is based in Cincinnati and operates in the Retail-Wholesale sector, with a year-to-date share price change of 4.3% [3] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 2.01%, which is higher than the Retail - Supermarkets industry's yield of 1.82% and the S&P 500's yield of 1.59% [3] Dividend Performance - Kroger's annualized dividend of $1.28 has increased by 4.9% from the previous year [4] - Over the past five years, Kroger has raised its dividend five times, achieving an average annual increase of 16.66% [4] - The current payout ratio is 27%, indicating that Kroger pays out 27% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Kroger's earnings per share for 2025 is $4.77, reflecting a year-over-year earnings growth rate of 6.71% [5] Investment Considerations - Kroger is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

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Shares of Kroger Co KR rose in early trading on Friday after the company reported upbeat fourth-quarter earnings.The results came in amid an exciting earnings season. Here are some key analyst takeaways.BMO Capital Markets On KrogerAnalyst Kelly Bania maintained a Market Perform rating and price target of $63.Kroger finished 2024 on a strong note, although its earnings declined by 2% excluding the extra week, Bania said in a note. The company expects volumes to improve slightly through 2025, he added.Kroger ...

Core Viewpoint - The S&P 500 and Nasdaq have experienced declines due to ongoing tariff discussions in the U.S., raising inflation concerns, while Kroger and Albertsons stocks remain resilient as defensive investments [1][2]. Market Performance - The Nasdaq is down 6% year-to-date in 2025, while the S&P 500 has decreased by 1%. Albertsons' stock has increased by 7% to $21 per share, and Kroger's shares are up 5% to $63 [3]. Valuation Metrics - Kroger and Albertsons are trading below the optimal sales level of less than 2X, with Kroger at 0.3X and Albertsons at 0.15X. Kroger's forward earnings multiple is 13.1X, while Albertsons is at 9X [4]. Growth Outlook - Kroger's total sales are expected to decline by 2% in fiscal 2025 but are projected to stabilize and rise by 1% in FY26 to $148.78 billion. Annual earnings are anticipated to drop by 6% to $4.46 per share in 2025, with a forecasted rebound of 7% to $4.77 in FY26 [7]. - Albertsons' revenue is expected to grow by 1% in FY25 and by another 3% in FY26 to $82.58 billion. However, annual earnings are projected to decrease to $2.29 per share, with a slight recovery to $2.34 in FY26 [10]. Dividend Yields - Both Kroger and Albertsons offer attractive dividend yields, with Albertsons at 2.89% and Kroger at 2.05%, surpassing the S&P 500 average of 1.23% [11]. Investment Consideration - Currently, both Kroger and Albertsons hold a Zacks Rank 3 (Hold), making them potential defensive options in a portfolio amid macroeconomic uncertainties, although there may be better growth prospects in other essential operation stocks [14].

Core Insights - Kroger experienced significant growth in digital sales, with an 11% increase in the fourth quarter, surpassing the overall identical sales growth of 2.4% [1][2] - Digital sales contributed $13 billion to Kroger's total sales of $147.1 billion for fiscal 2024, highlighting the importance of digital channels for the company [2] - The company views digital engagement as a key growth driver, noting that digitally engaged households spend nearly three times more than non-digitally engaged ones [3] Digital Sales and AI Tools - Kroger's digital sales are seen as an "important growth accelerator," with the company implementing two new AI tools in 2024 to enhance productivity [3][4] - One AI tool focuses on inventory management using real-time sales and shipment data, while the other serves as a virtual assistant for associates, aiding in onboarding and HR interactions [4] - Approximately 70,000 associates are currently utilizing the AI tool for over 70 different use cases [4] Personalization and Customer Engagement - The company achieved a 10% increase in digital coupon savings for customers and enhanced its Boost membership by adding Disney streaming options [5] - Kroger's strategy of offering high-quality products with personalized offers has led to strong customer engagement, reflected in growth in both households and loyalty [5] Future Outlook - Kroger anticipates identical sales growth of 2% to 3% in 2025, with plans to build more stores and attract new households to enhance loyalty and shareholder value [6] - The company is focused on identifying a new CEO to drive growth and enhance shareholder value following the recent resignation of the previous CEO [7]

The Kroger Co. (NYSE:KR) Q4 2024 Earnings Call Transcript March 6, 2025 10:00 AM ET Company Participants Robert Quast - VP, IR Ron Sargent - Interim CEO Todd Foley - Interim CFO Conference Call Participants Simeon Gutman - Morgan Stanley Leah Jordan - Goldman Sachs Michael Lasser - UBS John Heinbockel - Guggenheim Partners Michael Montani - Evercore ISI Rupesh Parikh - Oppenheimer Ed Kelly - Wells Fargo Ken Goldman - JPMorgan Karen Short - Melius Research Chuck Cerankosky - Northcoast Research Krisztina Kat ...

The Kroger Co. (KR) reported fourth-quarter fiscal 2024 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year. Management announces guidance for fiscal 2025.Kroger’s fiscal 2024 results highlight the resilience of its value creation model, driving solid performance and strong free cash flow. Strategic investments have diversified the business, supporting sustainable growth. With a strengthened balance sheet, Krog ...

Kroger Q4 2024 Earnings Release March 6, 2025 Safe Harbor This presentation includes certain statements that constitute "forward-looking statements" about Kroger's financial position and expected performance, including our proposed transaction with Albertsons Companies. These statements are based on management's assumptions and beliefs in light of currently available information. Such statements are indicated by words or phrases such as "committed," "could," "delivering," "guidance," "may," "model," "opport ...

Kroger (KR) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.79%. A quarter ago, it was expected that this supermarket chain would post earnings of $0.98 per share when it actually produced earnings of $0.98, delivering no surprise.Over the last four quarters, the company has surpass ...

Kroger delivered mixed Q4 earnings, marking a resilient performance amid economic challenges.Grocery chain giant Kroger (KR -1.03%) reported mixed fourth-quarter and full-year 2024 results on Thursday, March 6. Adjusted EPS was $1.14, topping consensus expectations while matching last year's figure. Q4 revenue of $34.3 billion was below the $34.75 billion estimate and fell 7% year over year. Operating profit fell nearly 24% year over year.The overall performance was solid, but the report raised concerns abo ...