# The Kroger Co. (KR) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/KR/thesis · /stocks/KR/memo

## Financial 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/KR/fundamental

## Navigation

- Overview: /stocks/KR
- Financials (this page): /stocks/KR/financials
- Thesis: /stocks/KR/thesis
- Investment Memo: /stocks/KR/memo
- Coverage universe: /stocks