The Kroger Co.
KRFinancial Snapshot
ticker: KR step: 04 generated: 2026-05-12 source: quick-research
The Kroger Co. (KR) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $137.9B | $148.3B | $147.1B | -0.8% |
| Gross Margin | ~21.5% | ~21.8% | ~22.3% | +0.5pp |
| Operating Margin | ~2.1% | ~2.0% | ~2.0% | flat |
| Net Income | ~$2.2B | ~$2.2B | ~$1.8B | -18% |
| EPS (diluted) | ~$3.01 | ~$3.05 | ~$2.60 | -15% |
FY2024 net income/EPS includes costs related to the Albertsons merger termination. FY2025: Revenue ~$146–147B (slight decline from specialty pharmacy divestiture Oct 2024); gross margin ~22.7–22.9% (+0.5pp from pharmacy exit and private label mix); operating margin ~2.6%; FCF ~$1.8B. FY2025 gross margin improvement driven by pharmacy business divestiture (lower-margin), better shrink/supply chain, and continued Our Brands mix shift.
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$4.5B |
| Free Cash Flow | ~$1.8B (-38% YoY due to higher capex) |
| FCF Margin | ~1.2% |
| Cash & Equivalents | ~$0.5B |
| Total Debt | ~$13B |
| Net Debt / Adj. EBITDA | ~1.73x (well within 2.3–2.5x target) |
Key Ratios (approximate, FY2025)
- P/E: ~17–19x | EV/EBITDA: ~8–9x | FCF Yield: ~3.5–4%
- Revenue Growth (FY2025): ~flat to -1% (specialty pharmacy divestiture headwind)
- Gross Margin: ~22.7% | Operating Margin: ~2.6%
- Dividend Yield: ~2.5% | Buyback: $2.9B remaining authorization
Growth Profile
Kroger is a low-growth, high-stability business with margin expansion as the primary earnings driver. Revenue is essentially flat (grocery comps +1–2% underlying, offset by fuel price volatility and divestitures). The investment thesis rests on: (1) Our Brands mix shift adding ~30–50 bps of gross margin per year; (2) precision marketing (retail media) scaling from $500M to $1B+ operating profit contribution; (3) e-commerce profitability inflection (targeted by 2026); and (4) capital return via $2.9B buyback authorization. Identical sales without fuel (the key comp metric) have been 1–3% in recent quarters.
Forward Estimates
- FY2026: Identical sales without fuel growth ~2–3%; adjusted EPS $4.60–$4.80 (consensus); operating margin ~2.5–2.8%; FCF $2.0–2.2B as CFC restructuring reduces capex
- Precision marketing: Target $1B+ operating profit contribution by 2027–2028 — transforms Kroger's earnings quality
- E-commerce: Targeted profitability by end of FY2026 via in-store fulfillment shift and CFC closures
- Dividend: ~$0.98/share annual; ~2.4% yield; ~5% annual growth history
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $KR.