Argus
•
Jun 26, 2025
The Kroger Co.: Raising our 12-month target price to $84 from $75
Sector(s)
Consumer Defensive
Summary
Kroger, based in Cincinnati, operated more than 2,700 retail supermarkets and multidepartment stores in 35 states at the end of 1Q26. We estimate that these stores generated over 90% of the company's $147 billion in sales in FY25. KR also operated 1,702 supermarket fuel centers, 33 food processing plants, and 43 distribution centers in the U.S. at the end of FY25. These plants make about 31% of KR's private-brand units. The company's name plates include Kroger, Ralphs, Fred Meyer, Food 4 Less, King Scoopers, Smith's, Fry's, Dillon's, City Market, and Harris Teeter. Some 11% of the supermarkets are in California, 8% are in Ohio, and 8% are in Texas. Wal-Mart and Sam's Club are primary competitors in most major markets. KR has pharmacies in about 83% of its food stores. The company has 182 million square feet of supermarket space. KR completed the sale of 782 convenience stores in the first quarter of FY19.
Non-Perishables
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Analyst Profile
Chris Graja, CFA
Senior Analyst: Retail
Chris covers the Consumer sector for Argus. He was the #1 Stock Picker in the Household Durables sector, winning the 2019 StarMine U.S. Analyst award from Refinitiv. He was the #1 Stock Picker in Food and Staples Retailing, winning back-to-back U.S. Analyst Awards in 2015 and 2016. He received a prestigious Volunteer of the Year award from the New York Society of Security Analysts in 2000. Prior to Argus, Chris spent 16 years at Bloomberg Financial Markets. He was the Director of Training and a Senior Researcher for Bloomberg’s research division before joining the new Bloomberg magazine as Technical Studies Editor in 1993. He rose to Executive Markets Editor of the publishing group. Chris co-authored the book “Investing in Small-Cap Stocks,” which was published in three U.S. editions, an audio book, and two Chinese editions. Chris earned an MBA from Rutgers University. He is a CFA charterholder.
