Kroger Research Paper

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This paper will give you an insight into The Kroger Company (KR). I chose this company because I shop at Kroger Marketplace in Virginia Beach, Virginia. Kroger also purchased the grocery chain Harris Teeter, where I worked as a teenager. Kroger’s 2021 Fact Book (2022) message to their shareholders states their purpose is “to feed the human spirit” and with their brand promise customers can expect “Fresh for Everyone”. I decided I would like to know more about the company I shop at bi-weekly. The Kroger Company (KR), headquartered in Cincinnati, OH, is the U.S.’s largest supermarket chain by revenue and comes in fifth on the list of the world’s largest retailers (Fortune). Kroger ranks 51st on Fortune Global 500 and 21st on the 500 list. Kroger …show more content…

In 1983 the company merged with Dillion Companies Inc. 1999 Kroger and Fred Meyer, Inc merged this gave Kroger the broadest geographic coverage for a supermarket chain. Baker’s, Harris Teeter, Pick ‘N Save, and Metro Markets have all become part of Kroger. To expand into the ever-growing online and home delivery industry, Kroger merged with Vitacost.com and Home Chef. Kroger’s biggest competitors in the grocery industry are Walmart, and Amazon. On October 14th 2022, Kroger and Albertsons Companies announced they had a proposed merger. “Under the terms of the merger agreement, which has been unanimously approved by the board of directors of each company, Kroger will acquire all of the outstanding shares of Albertsons Companies, Inc. ("Albertsons Cos.") common and preferred stock (on an as converted basis) for an estimated total consideration of $34.10 per share, implying a total enterprise value of approximately $24.6 billion, including the assumption of approximately $4.7 billion of Albertsons Cos. net debt” (Albertsons, 2022). Albertsons is the second largest grocer in America, following Kroger. This merger would create a company with close to 5,000 stores …show more content…

There are companies with higher returns and greater growth if one is looking to make a profit on the stock market. That being said, Kroger does pay dividends and does have consistent growth. CNN Business (2022) is currently recommending Kroger stock as a hold. Of the twenty-two analysts, seven rated it a buy, twelve hold, one underperforms, two sell. Wallstreetzen (2022), recommends purchasing Kroger stocks, based on their metrics. They evaluated the stock as a buy based on KR’s profit margin rising from.9% to 1.7% and their PE ratio being higher than the grocer average but below the US market average. They also accounted for the fact that Kroger has had consistent dividend growth. Morningstar Equity Analyst Zain Akbari (2022) is leaving Kroger’s fair value estimates the same, citing concerns that regulators will not approve the Albertsons deal. Overall Kroger is a decent investment as they do have consistent growth and a large pending

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