Foundation leading conversations on food access, food security and waste challenges CINCINNATI, April 9, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) Zero Hunger | Zero Waste Foundation today announced it is sponsoring the 2024 National STEM Festival co-presented by EXPLR and the U.S. Department of Education April 12-13 in Washington, D.C. The festival is the first-ever nationwide initiative to foster creativity, critical thinking and a passion for science, technology, engineering and mathematics (STEM) s ...

Core Insights - Kroger has launched MCoBeauty, Australia's fastest-growing beauty brand, exclusively in the U.S. market, offering over 250 beauty and skincare products priced under $30 [1][2] - MCoBeauty aims to provide high-quality, affordable beauty solutions, aligning with Kroger's commitment to accessibility and convenience for customers [1][2] Group 1: Company Overview - Kroger operates nearly half a million associates serving over 11 million customers daily through various retail formats and a seamless digital shopping experience [4] - MCoBeauty is recognized for its premium-quality, vegan, and cruelty-free products, focusing on innovative beauty solutions [5] Group 2: Product Offering and Customer Engagement - MCoBeauty's product range includes popular items like XtendLash Tubular Mascara and Lip Lights Shine Gloss, along with a premium-quality Korean-made skincare line [5] - Customers can purchase MCoBeauty products in-store or via Kroger's Pickup and Delivery service, with additional savings available through the Boost membership program [2][3]

Company Operations - Kroger operates 2,722 supermarkets across 35 states and the District of Columbia, with 2,257 having pharmacies and 1,665 featuring fuel centers[25]. - Approximately 62 million households are served annually, with over 95% of transactions linked to a Kroger loyalty card, enhancing customer data utilization[34]. - Kroger operates a seamless digital ecosystem, offering Pickup, Delivery, and Ship services across 2,350 supermarkets, enhancing customer convenience[30]. - The company has over 200 business continuity plans to manage risks from natural disasters and supply chain disruptions[50]. - As of February 3, 2024, Kroger operated approximately 2,800 supermarkets, distribution warehouses, and food production plants, with total owned assets and finance leases valued at $56.7 billion and accumulated depreciation of $31.5 billion[107]. Financial Performance - Sales for fiscal year 2023 reached $150.039 billion, a 1.2% increase from $148.258 billion in 2022[132]. - Net earnings attributable to The Kroger Co. decreased by 3.6% to $2.164 billion, with diluted earnings per share at $2.96, down 3.3% from $3.06 in 2022[135]. - Adjusted net earnings per diluted common share, excluding the Extra Week, increased by 7.8% to $4.56, compared to $4.23 in 2022[135]. - Operating profit fell by 25% to $3.096 billion, reflecting significant charges related to opioid settlements[135]. - Cash flows from operations increased by 51% to $6.8 billion compared to 2022[135]. - The company returned $796 million to shareholders through dividends, marking a 16.7% increase from $682 million in 2022[135]. - Digital sales reached $12 billion, with a 12% increase excluding the Extra Week, driven by a 25% growth in Delivery solutions[135]. - Total sales to retail customers in 2023 were $132,284 million, representing a 0.9% increase compared to $129,868 million in 2022, excluding fuel[155]. Strategic Initiatives - The proposed merger with Albertsons aims to accelerate Kroger's market strategy, focusing on Fresh, Our Brands, Personalization, and Seamless[35]. - Kroger's value creation model focuses on enhancing customer experience through its four pillars: Fresh, Our Brands, Personalization, and Seamless[125]. - The company is investing in four strategic pillars: Seamless, Personalization, Fresh, and Our Brands, to enhance customer loyalty and sustainable growth[65]. - The proposed merger with Albertsons includes a comprehensive divestiture plan with C&S Wholesale Grocers, which poses various regulatory and operational risks[62]. Workforce and Labor Relations - Kroger invested approximately $210 million in associate training in 2023, emphasizing the importance of workforce development[40]. - The average hourly wage for Kroger associates is nearly $19, reflecting a 33% increase over the last five years, with total wage investments exceeding $2.4 billion[42]. - Nearly two-thirds of associates are covered by collective bargaining agreements, and labor relations could materially affect financial condition if negotiations fail[69]. - The company is committed to fair wages and benefits, but changes in labor regulations could impact future financial performance[70]. Environmental and Climate Initiatives - The company is committed to managing climate impacts as part of its Environmental, Social & Governance strategy, focusing on operational efficiency and renewable energy[46]. - Kroger aims to reduce absolute greenhouse gas emissions from operations by 30% by 2030, using a 2018 baseline[51]. - The company is replacing its refrigerant infrastructure to comply with climate-related legislation, which may incur significant costs[49]. - Kroger has implemented emission reduction projects, including energy efficiency improvements and renewable energy installations[51]. - Kroger monitors energy availability and costs to anticipate impacts from changing climate patterns on energy-sourcing costs[50]. Risks and Challenges - The food retailing industry is experiencing intense competition from various formats, including online retailers and discount stores, which could adversely affect sales and profitability if customer preferences are not met[64]. - Evolving customer preferences and advancements in online and delivery channels increase competitive pressures, necessitating effective fulfillment options and technology implementation[66]. - Cybersecurity risks pose a significant threat, with potential data breaches leading to reputational damage and financial losses[76]. - Legal proceedings could result in substantial losses, and adverse outcomes may negatively impact the company's financial condition[82]. - The company faces risks from climate change, including increased costs for compliance and potential disruptions in operations due to extreme weather events[94]. - Disruptions in the global supply chain could adversely affect Kroger's ability to source products, impacting financial performance[95]. Shareholder Returns and Investments - In 2023, Kroger paid quarterly cash dividends of $0.26 and $0.29 per share, with a total expected increase in dividends over time based on earnings and Board approval[113]. - Kroger's total shareholder return target range is 8% to 11% over time, excluding the impact of the proposed merger with Albertsons[128]. - The company expects to maintain a net total debt to adjusted EBITDA ratio target range of 2.30 to 2.50 while continuing to generate strong free cash flow[127]. - Total debt decreased by $1.2 billion to $12.2 billion as of year-end 2023, primarily due to the payment of senior notes[219].

Finally, US equities are beginning to see early signs of a correction, with the volatility index jumping 10% on the day as of this writing. That is not to say that I am expecting anything too severe, but a ‘garden variety’ pull-back would be productive for the longer-term bull run.Now, while this pullback should create opportunities to buy the dip on some of the leading stocks, I still like big-tech and artificial intelligence adjacent stocks, they still have some room to fall before they are again attracti ...

With a combination of organic waste recycling and food donations, Home Chef diverts food from landfillsCHICAGO, April 2, 2024 /PRNewswire/ -- Home Chef, the leading meal solutions company available online and in stores, is launching a new sustainability-focused program aimed at redirecting surplus food and reducing waste in its manufacturing and production processes. This newly expanded program is now implemented at all four of Home Chef's nationwide facilities and supports Home Chef's environmental impact ...

Retailer recognizing Earth Month by protecting wildlife, introduces new reusable bagsCINCINNATI, April 1, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR), today announced it is celebrating Earth Day the entire month of April, kicking off with a contribution from its Zero Hunger | Zero Waste Foundation to World Wildlife Fund (WWF). The company is also sharing progress on its Zero Hunger | Zero Waste milestones and introducing a new reusable bag campaign. Beginning this month, Kroger will offer specially de ...

With Kroger selling off its specialty pharmacy business, it seems that retailers’ efforts to pack more and more into their stores may not always be the right move.The Kroger Company announced plans to sell the business to CarelonRx, a subsidiary of Elevance Health, earlier this week, with the sale expected to close in the second half of the year.“As part of our regular review of assets, it became clear that our strong specialty pharmacy business unit will better meet its full potential outside of our busine ...

Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Kroger (KR) or Walmart (WMT) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings esti ...

Core Viewpoint - The Kroger Co. (KR) is identified as a strong value investment opportunity, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is likely undervalued compared to its peers [2][4]. Valuation Metrics - KR has a P/E ratio of 12.72, significantly lower than the industry average of 23.74, suggesting it is undervalued [2]. - The Forward P/E for KR has fluctuated between 9.49 and 12.75 over the past year, with a median of 10.46 [2]. - The PEG ratio for KR stands at 2.63, compared to the industry average of 3.73, indicating a favorable valuation relative to expected earnings growth [2]. - KR's PEG has ranged from 1.65 to 2.89 in the last 12 months, with a median of 2.08 [2]. - The P/B ratio for KR is 3.52, which is lower than the industry average of 5.58, further supporting the notion of undervaluation [3]. - KR's P/B has varied between 2.73 and 3.57 over the past year, with a median of 3.06 [3]. - The P/CF ratio for KR is 6.97, well below the industry average of 17.53, indicating strong cash flow relative to its market value [3]. - KR's P/CF has been between 5.09 and 6.97 in the last 12 months, with a median of 5.77 [3]. Investment Outlook - The combination of these valuation metrics suggests that The Kroger Co. is likely undervalued at present, making it an attractive value stock based on its earnings outlook [4].

Specialty pharmacy serves patients with chronic illnesses who require complex care CINCINNATI, March 18, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) announced that it has entered into a definitive agreement for the sale of its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health. "Kroger Specialty Pharmacy has been part of our company since 2012, and we want to thank our management team and associates for their enduring commitment to their patients," said Colleen Lindholz, President ...