Kroger Co

Kroger is the largest traditional grocery retailer in the United States, operating approximately 2,700 supermarkets under the Kroger banner and regional names including Ralphs, Fred Meyer, King Soopers, Harris Teeter, and Mariano's. Beyond selling groceries, it operates pharmacy counters, fuel centers, and a growing digital/delivery business. Kroger also manufactures and sells its own Simple Truth and Private Selection store brands, which carry higher margins than national brands and now represent a substantial share of total sales.

Grocery retail is fundamentally defensive—people eat regardless of economic conditions—giving Kroger relatively stable revenue through cycles. Its private label penetration has grown as consumers trade down, supporting margins. The failed merger with Albertsons, blocked by regulators, removed a transformational growth catalyst. Walmart's grocery dominance and Amazon's grocery ambitions create persistent competitive pressure on volume and price. Kroger's pharmacy and fuel operations provide margin diversification beyond traditional grocery economics.

Walmart is the dominant force in US grocery, with its supercenter format capturing more grocery market share than any other retailer. Albertsons (Safeway, Vons, Jewel-Osco) is the closest traditional supermarket competitor geographically. Costco takes significant grocery wallet share through its warehouse model. Amazon Fresh and Amazon-owned Whole Foods compete in the premium and delivery-oriented segments. Aldi and Lidl compete aggressively on price at the value end.

Kroger has paid a consistent and growing quarterly dividend, building a track record of annual increases that income investors have relied on. The company supplements its dividend with share repurchases, often deploying substantial capital into buybacks when the stock trades at what management considers attractive valuations. The payout ratio has remained moderate, leaving room for continued dividend growth alongside earnings, even in competitive grocery margin environments.

KR last closed at $65.64, down 1.16% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $58.60 and a high of $76.58. The current price represents 39% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 33 analysts covering KR, the consensus rating is Buy — 19 rate it a buy, 14 hold, and 0 sell. The average price target sits at $216.46, implying 230% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Kroger Co generated $138.13B in revenue during fiscal year 2026, with $950.52M reaching the bottom line as net income. The net profit margin of 0.7% reflects the competitive nature of its industry.

KR trades at a P/E ratio of 40.88 on trailing earnings of $1.56 per share. That's above the S&P 500 historical average, suggesting the market expects above-average earnings growth ahead. Comparing this multiple against Retail sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: -3.50% (3M), +0.37% (6M), -4.92% (1Y), +4.26% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether KR is outperforming or lagging the broader market.