Core Points - Kroger's CEO Rodney McMullen has resigned following an investigation into his personal conduct that was inconsistent with the company's ethics policy [1][2] - The adverse conduct was not related to Kroger's financials and did not involve any company associates [2] - Ronald "Ron" Sargent, Kroger's lead director, has taken over as interim chairman and CEO while a search committee looks for a permanent replacement [3][8] - Kroger's shares fell by 1% on the morning following the announcement of McMullen's resignation [3] - The resignation comes shortly after the Federal Trade Commission blocked Kroger's $25 billion merger with Albertsons on antitrust grounds [3][4] - Albertsons has filed a lawsuit against Kroger, claiming it failed to make "best efforts" to secure regulatory approval for the merger [7] - McMullen had been with Kroger for over 45 years, serving as CEO for more than a decade [7][8] - Kroger is expected to report its fourth quarter and annual 2024 earnings soon, with projections indicating full-year sales without fuel at the high end of expectations and adjusted earnings per share exceeding predictions [8]

Core Insights - Kroger is expected to report quarterly earnings of $1.10 per share, a decline of 17.9% year-over-year, with revenues forecasted at $34.59 billion, reflecting a 6.7% decrease compared to the previous year [1] Earnings Estimates - There has been a downward revision of 0.3% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Sales Projections - Total sales to retail customers without fuel are projected to reach $30.90 billion, indicating a year-over-year decline of 7.3% [5] - Supermarket fuel sales are expected to be $3.32 billion, reflecting a decrease of 4.1% from the same quarter last year [5] - Other sales are estimated to reach $292.52 million, suggesting a year-over-year increase of 2.6% [5] Store Metrics - The average prediction for the number of supermarkets/retail food stores is 2,734, compared to 2,722 in the previous year [6] Stock Performance - Over the past month, Kroger shares have increased by 5.2%, while the Zacks S&P 500 composite has decreased by 1.3% [7] - Kroger holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the overall market [7]

Core Points - Kroger has replaced its CEO Rodney McMullen following an investigation into personal conduct that was deemed inconsistent with the company's business ethics policy [1][5] - Ronald Sargent, a board member and former CEO of Staples, has been appointed as interim CEO and board chair while the company searches for a permanent replacement [2][5] - Mark Sutton will assume the role of lead independent director [3] Company Background - Kroger is the largest supermarket chain in the US by sales, operating grocery stores under various names, including Harris Teeter and Fry's [3] - The company is expected to report its fourth-quarter earnings on Thursday [3]

Core Insights - The Kroger Co. (NYSE: KR) has delivered significant returns for investors over the past year, achieving returns that are double those of its peers [1]. Group 1 - Kroger's stock has been a reliable source of alpha for investors, indicating strong performance in the retail grocery sector [1].

Core Viewpoint - Kroger Co.'s stock experienced a 1% decline following the resignation of CEO Rodney McMullen after a board investigation into his personal conduct, which was deemed inconsistent with the company's business ethics policy [1] Company Summary - The resignation of CEO Rodney McMullen was prompted by a board investigation regarding his personal conduct [1] - The company did not disclose specific details about the conduct that led to the investigation [1] - The stock price of Kroger Co. (KR) fell by 1% in response to the news of the CEO's departure [1]

Core Insights - Kroger's CEO has resigned following an investigation into personal conduct, leading to a decline in the company's stock price [1] Company Summary - The resignation of the CEO has raised concerns among investors, resulting in a notable drop in Kroger's stock value [1] - The investigation into the CEO's conduct may impact the company's leadership stability and future strategic direction [1] Industry Summary - The incident highlights potential governance issues within the retail sector, particularly in large corporations like Kroger [1] - Market reactions to leadership changes in major companies can significantly influence stock performance and investor confidence [1]

Core Points - Kroger's Chairman and CEO Rodney McMullen has resigned following a Board investigation into his personal conduct, which was inconsistent with the company's ethics policy [1][2] - Ronald Sargent has been appointed as the new Chairman of the Board and interim CEO, while Mark Sutton will serve as the lead independent director [1][3][8] - The Board has formed a Search Committee to find Kroger's next CEO, with Sargent committed to maintaining the company's strategic direction during this transition [3][4] Financial Performance Expectations - Kroger anticipates that full-year Identical Sales without fuel will be at the high end of its guidance range [5][8] - The company expects full-year Adjusted Earnings Per Share to be slightly above the high end of its guidance range [5][8] - Kroger will report its fourth quarter and full-year 2024 results, along with full-year 2025 guidance, on March 6, 2025 [5][8] Leadership Background - Ronald Sargent has been a Kroger director since 2006 and has extensive experience in retail, including leadership roles at Staples, Inc. [4] - Sargent's previous roles at Kroger include various positions across stores, sales, marketing, manufacturing, and strategy [4] - Mark Sutton, the newly appointed lead independent director, emphasized Sargent's integral role in developing Kroger's strategy [5]

Core Viewpoint - Kroger is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended January 2025, with the consensus outlook indicating potential impacts on its near-term stock price [1][3]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $1.09 per share, reflecting an 18.7% decrease year-over-year [3]. - Revenues are projected to be $34.62 billion, down 6.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.33% over the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Kroger is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.43%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [7][8]. - Kroger's current Zacks Rank is 3, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Kroger met the expected earnings of $0.98 per share, resulting in no surprise [12]. - Over the past four quarters, Kroger has beaten consensus EPS estimates three times [13]. Conclusion - Kroger does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered when evaluating the stock ahead of its earnings release [16].

Core Insights - Kroger is promoting soup season with a variety of cozy and convenient recipes aimed at families during winter [1][2] - The company emphasizes the simplicity and comfort of soups, stews, and chilis as ideal meals for cold weather [2][3] Recipe Highlights - Kroger offers a range of hearty recipes including Classic Chicken Noodle Soup, Baked Potato Soup, Egg Drop Soup, and Chickpea and Vegetable Minestrone Soup [6] - Stews such as Slow Cooker Beef Stew and Moroccan Lentil Stew are highlighted for their rich flavors and ease of preparation [6] - Chili options include Classic Slow Cooker Chili and Cincinnati Chili, which is traditionally served over spaghetti [6] Customer Engagement and Savings - Kroger's Boost membership can save customers up to $1,100 annually on fuel and grocery delivery, enhancing customer loyalty [4] - The Kroger app and website provide access to over $600 in weekly savings through digital coupons, encouraging customer engagement [3][4] Company Overview - Kroger serves over 11 million customers daily through a seamless digital shopping experience and various retail food stores [7] - The company is committed to its purpose of feeding the human spirit and creating communities with ZeroHungerZeroWaste [7]

Core Points - Kroger is launching its first-ever Kroger Hour Back Box to help customers adjust to daylight saving time by providing free breakfast essentials [1][3] - The promotion includes a total of 39,000 free breakfast items available to customers [2][5] Group 1: Promotion Details - The Kroger Hour Back Box will be available for free on a first-come, first-served basis starting March 4 at 12 p.m. EST [4] - Each box contains popular breakfast items such as Private Selection™ Cold Brew Coffee Concentrate, Simple Truth™ Oatmilk Creamer, and Kroger Frozen Breakfast Sandwiches [3][6] - Customers can also receive a gift card for a one-year Kroger Boost membership, valued at $59, which offers benefits like free grocery delivery and 2X fuel points [3][7] Group 2: Additional Offers - Starting March 7 at 12 p.m. EST, customers who miss the Hour Back Box can still claim one of thousands of free breakfast items by downloading a digital coupon [5] - The promotion is designed to assist families in managing their morning routines after losing an hour of sleep due to daylight saving [6] Group 3: Company Background - Kroger operates nearly 420,000 associates and serves over 11 million customers daily through various retail food stores and digital shopping experiences [10]