The Kroger Co. (KR), headquartered in Cincinnati, Ohio, operates supermarkets, multi-department stores, and fulfillment centers. The company is valued at $46.3 billion by market cap and offers meat, seafood, bakery, dairy, frozen, cleaning, kitchen, beverages, health, electronics, toys, vegetables, fruits, beauty, and household products.
Shares of this supermarket chain have outperformed the broader market over the past year. KR has gained 42.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.6%. In 2025, KR stock is up 7%, surpassing the SPX’s 3.1% rise on a YTD basis.
Zooming in further, KR’s outperformance is also apparent compared to the iShares US Consumer Staples ETF (IYK). The exchange-traded fund has gained about 1.5% over the past year. Moreover, KR’s single-digit gains on a YTD basis outshine the ETF’s marginal returns over the same time frame.
KR's stock price experienced a rise due to the official denial of the proposed acquisition of Albertsons Companies, Inc. (ACI). This decision by federal judges was based on concerns about consumer protection laws and competition reduction. Market sentiments shifted in favor of Kroger as Albertsons was seen as more reliant on the failed merger, ultimately contributing to KR's outperformance.
On Dec. 5, KR shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $0.98 met Wall Street expectations. The company’s revenue was $33.6 billion, missing Wall Street forecasts of $34.3 billion. KR expects full-year adjusted EPS in the range of $4.35 to $4.45.
For the current fiscal year, ended in January, analysts expect KR’s EPS to decline 6.7% to $4.44 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 20 analysts covering KR stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, and nine “Holds.”
This configuration is more bullish than a month ago, with 10 analysts suggesting a “Strong Buy.”
On Feb. 4, The Goldman Sachs Group, Inc. (GS) reinstated a “Buy” rating on KR with a $70 price target, implying a potential upside of 7% from current levels.
The mean price target of $65.42 is in line with KR’s current price levels. The Street-high price target of $75 suggests an upside potential of 14.6%.
