Kroger Co Reports Q3 Revenue Growth Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy KR?
Source: Newsfilter
Kroger Co's stock fell by 5.00% and crossed down the 20-day SMA, reflecting broader market challenges.
Despite reporting a Q3 revenue of $33.9 billion with a 17% growth in eCommerce, the stock faced downward pressure amid a mixed market environment, with the Nasdaq-100 down 0.24%.
The company's strong performance in eCommerce and ongoing holiday promotions may help stabilize its stock in the long term, but current market conditions pose significant challenges.
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Analyst Views on KR
Wall Street analysts forecast KR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KR is 75.00 USD with a low forecast of 68.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 66.670
Low
68.00
Averages
75.00
High
85.00
Current: 66.670
Low
68.00
Averages
75.00
High
85.00
About KR
The Kroger Co. is a food and drug retailer. The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. It operates approximately 2,731 supermarkets, 2,273 pharmacies and 1,702 fuel centers in over 35 states and the District of Columbia while also operating online through a digital ecosystem to offer customers an omnichannel shopping experience. The Company also manufactures and processes food for sale in its supermarkets and online. It offers Pickup and Harris Teeter ExpressLane personalized, order online, pick-up at the store services at approximately 2,412 of its supermarkets and provides delivery, which allows it to offer digital solutions to substantially all of its customers. Its delivery solutions include orders delivered to customers at retail store locations, customer fulfillment centers and orders placed through third-party platforms. The Company also offers customer-facing apps and interfaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New CEO Appointment: Kroger plans to appoint Greg Foran as its new CEO, concluding a months-long search, with an announcement expected as soon as Monday, aimed at bringing fresh perspectives to tackle current challenges.
- Intensifying Market Competition: Facing food price pressures and increased competition from discount grocers, Kroger is under significant strain, particularly after its $20 billion acquisition of Albertsons collapsed in 2024, necessitating new leadership to drive growth.
- Leadership Transition Context: Since the resignation of former CEO Rodney McMullen due to ethical issues last year, Kroger has been managed on an interim basis by chairman Ron Sargent, during which the company cut about 1,000 corporate jobs and closed underperforming stores to optimize resource allocation.
- Financial Performance and Market Share: Despite fierce competition from Aldi and Walmart, Kroger reported $147 billion in revenue for fiscal 2024, indicating that its strategies have helped the company gain a larger share of the grocery market.
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- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
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- Live Streaming Platform: The event will be broadcast live on Kroger's website under the 'Quarterly Results' section, ensuring that investors and analysts can access real-time updates, thereby enhancing transparency and communication efficiency.
- Replay Availability: An on-demand replay of the conference will be available at approximately 1:00 p.m. ET on March 5, 2026, allowing investors who cannot attend live to catch up on the discussions, thus improving information accessibility.
- Company Background: Kroger employs over 400,000 associates and serves more than 11 million customers daily, committed to achieving 'Zero Hunger, Zero Waste' communities through food inspiration and uplift, highlighting its significant role in the industry.
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Kroger Co. Announces Q4 2025 Earnings Conference Call
- Earnings Call Announcement: Kroger Co. will host its Q4 2025 earnings conference call on March 5, 2026, at 8:00 a.m. ET, where management will discuss financial and operational results, providing crucial insights for investors.
- Online Access: The event will be broadcast live on Kroger's website, allowing investors to participate by visiting ir.kroger.com and clicking on the 'Quarterly Results' link, ensuring transparent information dissemination and timely financial updates.
- Replay Availability: An on-demand replay of the webcast will be available approximately at 1:00 p.m. ET on March 5, 2026, enabling investors who cannot attend live to access key information, thereby enhancing communication between the company and its stakeholders.
- Company Overview: Kroger employs over 400,000 associates and serves more than 11 million customers daily, focusing on food inspiration and community uplift through various banner names and eCommerce platforms, reflecting its leadership in the retail sector.
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- Low Industry Valuations: Excluding giants like Walmart and Costco, Kroger Company (KR) trades at 12.7x forward earnings estimates, significantly below the S&P 500, indicating a cautious market sentiment reflected in the grocery sector's average valuation of just 11.3x.
- Stagnant Revenue Growth: Over the past five years, revenues at major grocery chains have barely budged, with inflation-adjusted figures showing declines; Kroger's net income margin is projected at only 2.1% for FY 2026, while Albertson's (ACI) is even narrower at 1.4%.
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- New CEO Appointment: Kroger plans to appoint Greg Foran as its new CEO, concluding a months-long search, with an announcement expected as soon as Monday, aimed at bringing fresh perspectives to tackle current challenges.
- Intensifying Market Competition: Facing food price pressures and increased competition from discount grocers, Kroger is under significant strain, particularly after its $20 billion acquisition of Albertsons collapsed in 2024, necessitating new leadership to drive growth.
- Leadership Transition Context: Since the resignation of former CEO Rodney McMullen due to ethical issues last year, Kroger has been managed on an interim basis by chairman Ron Sargent, during which the company cut about 1,000 corporate jobs and closed underperforming stores to optimize resource allocation.
- Financial Performance and Market Share: Despite fierce competition from Aldi and Walmart, Kroger reported $147 billion in revenue for fiscal 2024, indicating that its strategies have helped the company gain a larger share of the grocery market.
See More
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- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
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Jennifer Garner's Characters: Garner is known for her roles as Sidney Bristow in Alias and Elektra in Marvel films, where she faced tough adversaries.
Current Challenge: The actress is now dealing with the challenges posed by unpredictable investors in her entrepreneurial ventures.
Entrepreneurial Success: Despite the challenges, Garner appears to be successfully navigating the investment landscape.
Transition from Acting to Business: Garner's shift from acting to entrepreneurship highlights her versatility and determination in facing new challenges.
See More
Kroger Co. Announces Q4 2025 Earnings Call Schedule
- Earnings Call Announcement: Kroger Co. will host its fourth quarter 2025 earnings conference call on March 5, 2026, at 8:00 a.m. ET, where management will discuss financial and operational results, which is expected to significantly impact investor sentiment.
- Live Streaming Platform: The event will be broadcast live on Kroger's website under the 'Quarterly Results' section, ensuring that investors and analysts can access real-time updates, thereby enhancing transparency and communication efficiency.
- Replay Availability: An on-demand replay of the conference will be available at approximately 1:00 p.m. ET on March 5, 2026, allowing investors who cannot attend live to catch up on the discussions, thus improving information accessibility.
- Company Background: Kroger employs over 400,000 associates and serves more than 11 million customers daily, committed to achieving 'Zero Hunger, Zero Waste' communities through food inspiration and uplift, highlighting its significant role in the industry.
See More
Kroger Co. Announces Q4 2025 Earnings Conference Call
- Earnings Call Announcement: Kroger Co. will host its Q4 2025 earnings conference call on March 5, 2026, at 8:00 a.m. ET, where management will discuss financial and operational results, providing crucial insights for investors.
- Online Access: The event will be broadcast live on Kroger's website, allowing investors to participate by visiting ir.kroger.com and clicking on the 'Quarterly Results' link, ensuring transparent information dissemination and timely financial updates.
- Replay Availability: An on-demand replay of the webcast will be available approximately at 1:00 p.m. ET on March 5, 2026, enabling investors who cannot attend live to access key information, thereby enhancing communication between the company and its stakeholders.
- Company Overview: Kroger employs over 400,000 associates and serves more than 11 million customers daily, focusing on food inspiration and community uplift through various banner names and eCommerce platforms, reflecting its leadership in the retail sector.
See More
Grocery Sector Faces Challenges and Opportunities
- Low Industry Valuations: Excluding giants like Walmart and Costco, Kroger Company (KR) trades at 12.7x forward earnings estimates, significantly below the S&P 500, indicating a cautious market sentiment reflected in the grocery sector's average valuation of just 11.3x.
- Stagnant Revenue Growth: Over the past five years, revenues at major grocery chains have barely budged, with inflation-adjusted figures showing declines; Kroger's net income margin is projected at only 2.1% for FY 2026, while Albertson's (ACI) is even narrower at 1.4%.
- Emerging Market Opportunities: Sprouts Farmers Market (SFM) is forecasted to achieve approximately 10% revenue growth in FY 2026 with a net income margin of 5.7%, highlighting its competitive edge in the natural and organic food sector against traditional grocers.
- Attractive Options Strategy: Given SFM's recent weak stock performance, investors can sell cash-secured puts to earn about 5% returns; if the stock remains above $65 by expiration, profits are realized, while a drop allows acquisition at a discount, showcasing the appeal of value investing.
See More
