Supermarket giant Kroger is benefiting from this big shift in the U.S. economy

Company Performance - Kroger reported same-store sales growth of 3.4%, more than doubling year-over-year, leading to an increase in full-year guidance and tighter profit expectations [1] - The company achieved an operating profit of $1.09 billion on sales of $33.9 billion, with adjusted Earnings Per Share rising 11% year-over-year to $1.04 [1] Sales Forecast - Kroger now forecasts 'identical sales without fuel' growth between 2.7% and 3.4%, an increase from the previous forecast of 2.25% to 3.25% [2] Consumer Behavior Trends - There has been a disconnect between consumer sentiment surveys and reports from consumer discretionary stocks, with brands performing well despite higher inflation [3] - Recent trends indicate a shift, with more retail and fast food chains reporting mixed results, suggesting consumers are focusing on value and tightening their budgets [4] Grocery Price Trends - The Consumer Price Index (CPI) report indicated a 0.6% month-over-month increase in grocery prices, which is double the pace of food away from home, signaling potential new pressures on grocery prices [4] - Despite grocery prices rising 2.7% year-over-year, they remain cheaper compared to food away from home, which increased by 3.9% [5] Stock Performance - Kroger's stock rose by 0.24% in after-hours trading [6]