Kroger Co. (KR)

In the past six months, The Kroger Co. stock price increased by 43.04% from June 28, 2024, to June 27, 2025, and was up 18% for the year as of June 24, 2025. In March 2025, Kroger's stock price saw a 2% increase to $63.80 per common share. However, the proposed merger with Albertsons was blocked by a federal judge in December 2024, and former Chairman and CEO Rodney McMullen resigned in March 2025. Approximately 45,000 employees authorized a strike in June 2025, and Kroger plans to close 60 stores, expecting a $100 million loss but ultimately a "modest financial benefit." Kroger reported Q1 2025 net earnings of $866 million, a decrease from $947 million, with total company sales at $45.1 billion. The company increased its quarterly dividend by 9% to 35 cents per share. For fiscal year 2024, net sales totaled $147.12 billion, and Q3 2024 earnings were largely in line with expectations.

Demand for Kroger's products and services exhibits seasonality, typical for the grocery retail industry. The company actively leverages seasonal trends, particularly for fresh produce, with a focus on in-season fruits and vegetables during spring and summer. Kroger employs data-driven promotions and personalized offers for seasonal events, such as Father's Day, to capture holiday spending and cultivate sustained customer loyalty. The company's private label brands, which offer value, are a key strategy to appeal to budget-conscious consumers. Kroger also utilizes promotions to maintain sales volumes, especially when consumers are facing financial constraints. Furthermore, the company is adopting AI for dynamic batching and routing to optimize delivery operations, which can help in responding to fluctuating demand patterns, including seasonal ones. There is also an indication that dynamic pricing might be used to adjust prices based on demand, including seasonal variations.

The Kroger Co.'s core business involves the retail sale of food and non-food products. The company also manufactures and processes food products for sale in its stores and online, and operates fuel centers, pharmacies, and jewelry stores. Kroger is categorized within the Consumer Defensive sector and the Food & Drug Retailing or Grocery Stores industry. The company offers a diverse portfolio of private label brands, including Kroger, Private Selection, Simple Truth, Big K, Smart Way, Heritage Farm, Mercado, and Field & Vine.

Kroger operates in 35 states and the District of Columbia, with approximately 2,757 stores as of June 2025. The company has a strong presence in the South, Midwest, and West, with California, Texas, and Ohio leading in the number of Kroger locations. Additionally, Kroger's operations extend to 33 manufacturing plants, 1,642 supermarket fuel centers, 2,254 pharmacies, 225 in-store medical clinics under "The Little Clinic" banner, and 127 jewelry stores.

Kroger's brand reputation has seen mixed developments in the past year. Newsweek recognized Kroger as one of the "World's Most Trustworthy Companies" for 2024 in September 2024. However, Kroger dropped six spots to No. 35 in the Axios Harris Poll 100 corporate reputation rankings in May 2025. The failed merger with Albertsons, the resignation of CEO Rodney McMullen, and the authorization of a strike by employees have impacted Kroger's reputation. Kroger has fostered trust and loyalty through an influencer content series for Kroger Delivery, which saw a 300% increase in influencer impressions in the last year. They have also driven brand awareness and trial for their "Our Brands" products through direct-to-consumer mobile experiences and partnered with celebrity ambassadors. Kroger continues to emphasize its "Fresh for Everyone" promise.

The Kroger Co. is heavily dominated by institutional owners, holding approximately 75% to 85.34% of the shares. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., Berkshire Hathaway Inc., and State Street Corp. Other significant institutional investors include Jane Street Group, Llc, Geode Capital Management, Llc, and Dimensional Fund Advisors Lp. Individual investors, or the general public, hold about a 17% stake in the company, while insiders own approximately 1.99%. The CEO, William McMullen, held 0.5% of the company's shares as of October 2024. Notably, insiders have recently been selling shares.