News & Analysis

Kroger tops third quarter expectations

1 December 2023 By Klavs Valters

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One of the largest food retailers in the United States, Kroger Co. (NYSE: KR), announced Q3 earnings results before the opening bell in Wall Street on Thursday.

Company overview

  • Founded: 1883
  • Headquarters: Cincinnati, Ohio, United States
  • Number of employees: 465,000 (2022)
  • Industry: Retail
  • Key people: Rodney McMullen (CEO & Chairman)

The results

  • Korger reported revenue of $33.957 billion for the quarter, narrowly beating analyst estimate of $33.903 billion.
  • Earnings per share reported at $0.95 per share vs. $0.907 per share expected.
  • CEO commentary

Rodney McMullen, CEO of the company had this to say in the letter to investors after the release of Q3 results: “Kroger’s third quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth. As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalised promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth. We appreciate our associates and continue to invest in wages, benefits and training, which is resulting in continued improvements in our customer experience.

“Our model’s strength allows us to navigate many economic environments. We remain committed to balancing investments in associates and greater value for our customers while continuing to generate attractive and sustainable returns for our shareholders,” McMullen highlighted the importance of the companies strategy to continue deliver solid results in the future.

Stock reaction

The stock had a positive reaction following the Q3 results announcement. Shares were up by just over 2% at $44.59 a share.

Stock performance

  • 1 month: -1.59%
  • 3 months: -3.69%
  • Year-to-date: +0.22%
  • 1 year: -7.71%

Kroger stock price targets

  • Telsey Advisory Group: $44.88
  • Roth MKM: $48
  • Deutsche Bank: $50
  • Bernstein: $54
  • BMO Capital: $45
  • Northcoast Research: $60

Kroger Co. is the 549th largest company in the world with a market cap of $32.29 billion.

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Sources: Kroger Co., TradingView, MarketWatch, TipRanks, Benzinga, CompaniesMarketCap, FactSet

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