The Kroger Co "Can This Grocer "Produce" Lower Prices and Higher Earnings?"

Research evidence excerpt

The Kroger Co "Can This Grocer "Produce" Lower Prices and Higher Earnings?"

Global Research

9 June 2026ab

The Kroger Co Equities

AmericasCan This Grocer "Produce" Lower Prices and

Higher Earnings? Food Retailers & Wholesalers

12-month rating Neutral

12m price target US$70.00KR is taking the right steps to become more competitive, but it will take time to

demonstrate results

The big question ahead of Kroger's 1Q print is whether an earnings reset is coming or Price (09 Jun 2026) US$62.99

can Kroger execute a transformation agenda that is funded via the savings it can and will RIC: KR.N BBG: KR US

harvest? Most likely, the answer is that it can and will keep its earnings steady as it

executes its key priorities. But, this means that the neither the bulls or bears are going to Trading data and key metrics

be swayed, at least in the short-run. Longer-term, the success of the strategy will 52-wk range US$75.60-59.28

determine the trajectory of the stock. Market cap. US$41.4b

Shares o/s 658m (COM)

The plan is probably going to look much like what the CEO implemented during his time Free float 99%

at Walmart US in the mid-2015 time frame. This was to “clean up the house and then Avg. daily volume ('000) 1,839

invite guests over.” The clean up involved shutting some underperforming stores, Avg. daily value (m) US$126.3

enhancing store standards, investing in price, and bulking up e-commerce. As the Common s/h equity (01/27E) US$6.92b

experience improved, price investments were made to invite the customer back. P/BV (01/27E) 5.6x

Net debt to EBITDA (01/27E) 1.6x

In the case of Kroger, there’s probably some similarities and some differences. From a EPS (UBS, diluted) (USD)

commonality standpoint, Kroger can improve the baseline experience in its stores. It can 01/27E