Kroger (NYSE:KR) is a prominent food and drug retailer in the United States, operating a variety of store formats such as combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. As the company gears up to report its Q1 2025 earnings on June 20, analysts on Wall Street are anticipating an EPS of $1.54, showing growth from $1.43 in the previous year. Revenue for the quarter is expected to reach $45.17 billion, slightly down from $45.27 billion in the same period last year.
Investors may find it interesting to note that 10 years ago, Kroger’s stock was trading at around $38.04 per share. A hypothetical investment of $10,000 would have allowed you to purchase approximately 263 shares. Fast forward to today, with shares currently trading at $65.47, the value of your investment could have grown to $17,211 solely from stock price appreciation. Additionally, Kroger pays dividends, with a current yield of 1.99%. Over the past decade, the company has paid out about $7.82 in dividends per share, resulting in a potential $2,056 in dividend earnings.
When combining the stock price appreciation and dividend earnings, the total value of your investment would be $19,267, showcasing a total return of 92.67%. However, it’s worth noting that this return falls below the S&P 500 total return for the same period, which stood at 235%.
Kroger holds a consensus rating of “Buy” with a price target of $63.22, based on assessments from 23 analysts. This price target suggests a potential downside of over 3% from the current stock price. In its Q4 2024 earnings announcement on March 6, the company surpassed expectations with adjusted earnings per share of $1.14, exceeding the street view of $1.11. While quarterly sales of $34.308 billion slightly missed analyst estimates of $34.509 billion, the company provided full-year 2025 guidance. Kroger expects adjusted EPS in the range of $4.60 to $4.80, compared to the consensus of $4.79, with full-year identical sales growth excluding fuel projected to be between 2.0% to 3.0%.
As investors await the upcoming earnings report, Kroger continues to be a key player in the food and drug retail industry, navigating through market challenges and opportunities to deliver value to its shareholders and customers.
