Investors Update: Kroger Co (NYSE: KR)

On 04 Oct 2019, Kroger Co (NYSE: KR) remained among the day gainers and traded with change of 0.77% on volume of 7840944 shares in the last session as compared to average volume of 9113482 shares. During last trade its minimum price was $24.5 and it gained highest price of $24.8. KR has total market capitalization of $19872185323. Its closing value stands at $24.79.

The Kroger Co. (KR) recently stated its second quarter 2019 results and provided a Restock Kroger progress update on the company’s three-year transformation plan.

Financial Strategy

Kroger’s financial strategy is to use its free cash flow to drive growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its cash flow to achieve these goals.

Consistent with its financial strategy, Kroger reduced net total debt by $1.3B over the last four quarters. Kroger’s net total debt to adjusted EBITDA ratio is 2.46, contrast to 2.59 a year ago (see Table 5). The company’s net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50.

Earlier this year, Kroger increased the dividend by 14 percent, marking the 13th consecutive year of dividend increases.

Second Quarter 2019 Restock Kroger Highlights

Redefine the Grocery Consumer Experience

  • Our Brands sales were up 3.1% vs. previous year. Kroger also released203 new Our Brands items
  • Expanded to 1,780 Pickup locations and 2,225 Delivery locations, covering over 95% of Kroger households
  • Released Simple Truth Plant Based, a collection of fresh meatless burger patties and other products to appeal to growing number of consumers exploring meat and dairy alternatives
  • Reported first Agency of Record: DDB New York to develop a refreshed, stronger brand identity to drive trips and traffic

Partner for Consumer Value

  • 84.51° reported the launch of Stratum, a breakthrough analytics solution that combines rich consumer behavior insights with retail performance measures
  • Kroger Precision Marketing increased engagement to over 300 consumer packaged goods companies
  • Reported expansion of Walgreens exploratory pilot into Knoxville, TN
  • Named the location of an additional Kroger-Ocado consumer fulfillment center in Georgia

EPS growth for this year is 251.20% and EPS growth for next year is estimated to reach at 6.45%. EPS growth in past five years was 21.00% while EPS growth in next five years is projected to arrive at 4.88%. Sales growth past 5 years was measured at 4.30%.


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