Kroger remains a Buy, offering a solid margin of safety as the new CEO advances a turnaround strategy focused on cost savings and price cuts. KR's Q2 performance was resilient despite outbreak-related headwinds, with 5% Adj. EPS growth and e-commerce sales are up 20%, while maintaining strong net debt levels at 1.91x EBITDA. Strategic cost reductions, including ~3,000 corporate job cuts and AI-driven efficiencies, are expected to fund price cuts and store investments, supporting long-term traffic and margin protection.
A sweet treat can turn a bad day around and make a good one great.
Kroger Co. plans to cut more than a third of its corporate workforce in the next three years under new CEO Greg Foran, according to an internal memo obtained by Fast Company. Foran joined the grocery giant in February to succeed interim CEO Ron Sargent.
Kroger (NYSE: KR | KR Price Prediction), the century-old grocery giant, will cut 37% of its corporate workforce as it battles the headwinds of high energy prices, rising costs of certain foods, and the success of rival Walmart (NYSE: WMT).
Kroger (KR) reached $62.56 at the closing of the latest trading day, reflecting a +1.49% change compared to its last close.
Kroger is making big cuts to its corporate workforce. CEO Greg Foran said about 3,000 roles will go away in the next three years.
Kroger is planning to cut about a third of its corporate roles over the next three years as CEO Greg Foran moves to adopt AI into the grocer's workflow, Bloomberg News reported on Monday, citing a memo.
Kroger is rated a buy, with a low valuation hurdle requiring only modest free cash flow growth to justify current pricing. KR's eCommerce restructuring, KPM unit growth, and the pending Giant Eagle acquisition offer significant upside, though integration risk remains. Management's capital allocation is aggressive, with 2026 buybacks and dividends exceeding projected free cash flow, raising leverage concerns.
KR's 20% e-commerce growth and improving digital profits support its mix, but softer identical-sales guidance and cost pressures cloud fiscal 2026.
KR's low valuation, resilient earnings and digital growth offer support, but slower identical sales and rising costs keep the near-term outlook balanced.
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A hard-charging former Walmart executive who now helms Kroger has brought its emphasis on everyday low prices to his turnaround efforts.