The Kroger Co. (KR) is one of the largest U.S. grocery retailers, operating more than 2,700 supermarkets, 1,700 fuel centres, 2,270 pharmacies, and 32 food manufacturing facilities. The company sells groceries, pharmacy products, fuel, and private-label brands while providing affordable food and healthcare services across the United States. The Cincinnati, Ohio-based company has a market capitalization of approximately $34.8 billion.
KR is set to report its Q2 earnings soon. Ahead of the release, analysts expect the company to report a diluted EPS of $1.05, up marginally from $1.04 in the year-ago quarter. KR has exceeded Wall Street's EPS estimates in three of the last four quarters, while missing expectations in the remaining quarter.
For fiscal 2027, analysts expect the company to report EPS of $5.21, reflecting a 7.4% increase from $4.85 in fiscal 2026. Moreover, EPS is projected to increase another 6.3% year over year to $5.54 in fiscal 2028.
KR stock has declined 21.4% over the past 52 weeks, underperforming both the S&P 500 Index ($SPX), which returned 16.5%, and the State Street Consumer Staples Select Sector SPDR ETF (XLP), which gained 3.4% over the same period.
Kroger has underperformed the broader market over the past year as investors worried that rising competition, price-cutting efforts, and cost inflation would pressure margins and limit earnings growth. Additionally, cautious consumer spending and a challenging grocery environment further dampened sentiment.
On July 23, 2026, Kroger shares fell 3.3% after reports showed that nearly half of U.S. consumers were cutting grocery spending due to ongoing economic pressures. Investors grew concerned that lower purchase volumes and increased competition from peer discounters could weigh on Kroger's sales growth, margins, and near-term earnings.
Analysts remain somewhat optimistic on KR, with the stock carrying a consensus "Moderate Buy" rating. Among the 21 analysts covering the stock, 11 recommend a “Strong Buy”, while the remaining 10 suggest a “Hold.” Additionally, the average analyst price target of $71.71 implies a potential upside of 26.1% from the current share price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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