KR: Potential for Reset Grows with Stock Decline; Credible Deck Clearing Could Spark Investor Interest

研报英文原文证据摘录

KR: Potential for Reset Grows with Stock Decline; Credible Deck Clearing Could Spark Investor Interest

Equity Research

Company Update — June 29, 2026

Food & Staples Retail

The Kroger Co.

Potential for Reset Grows with Stock Decline; Credible Deck Equal Weight

Clearing Could Spark Investor Interest Price Target: $58.00

Our Call Ticker KR

Upside/(Downside) to Target 0.5%

KR has drifted lower despite mgmt's pitch of a funded investment cycle. Concerns over

industry headwinds and a "Thread the Needle" plan weigh. Door is opening for a rebase - Price (06/26/2026) $57.73

could be the turning point. Still early in this story; stay sidelined. 52 Week Range $55.60 - 76.58

Market Cap (MM) $35,504

KR Looking to Thread the Needle, Market Saying Pedal to the Metal: KR is pursing Enterprise Value (MM) $49,626

a repositioning under new CEO Greg Foran as the company battles weak end demand, Average Daily Value (MM) $380

intensifying competition, and drifting value gaps. The plan is focused on improving store Dividend Yield 2.6%

ops/execution while generating cost saves that can more than fund price investments

over time. While there is investor energy around new leadership, the market isn't buying a $ (Jan) Q1 Q2 Q3 Q4 FY

slower "Thread the Needle" approach and is starting to price in a rebase. EPS

2026E 1.63 A 1.05 E 1.22 E 1.30 E 5.15 E

Success Possible; Investors Fear the Unknown: KR's '02-13 investment fly wheel drove 2027E 1.64 E 1.07 E 1.24 E 1.41 E 5.35 E

share gain and earnings growth ('05-13 avg. annual ID of 4%, EBITDA growth of 5%). This

Source: Company Data, Wells Fargo Securities estimates, and Factset.

seems repeatable, as the industry is still filled with weaker players (est. 1/3+ of the share NA = Not Available, NC = No Change, NE = No Estimate

in KR's markets).