Key Points
The Kroger Co. (KR) finished the session materially lower, closing at $61.74 versus a previous close of $66.20. The move left shares down 6.74% intraday, declining $4.46 as investors repriced near-term expectations. The pullback follows a period of relative resilience for Consumer Staples names and marks one of the sharper single-day moves for KR in recent weeks.
Trading unfolded on below-average volume, indicating the move was driven more by recalibrated guidance and sentiment than by heavy positioning changes. At $61.74, KR sits 18% below its 52-week high of $74.90, set on 08/11/2025, placing the stock back into a range where investors often reassess valuation and fundamentals. From a technical standpoint, the decline pulled shares away from recent highs and into areas where traders typically watch prior consolidation zones for potential support, while resistance likely strengthens near the mid-$60s until momentum improves.
In recent sessions, KR had been range-bound, reflecting a market balancing defensiveness in groceries against questions about top-line acceleration. The broader Consumer Staples sector has contended with shifting consumer behavior as shoppers trade down and seek value, factors that can compress sales growth while sustaining steady traffic. Against that backdrop, the latest move underscores how incremental changes to sales outlooks can trigger outsized reactions, even when profitability metrics remain intact. For longer-term holders, the day’s action resets the stock closer to levels where fundamentals and valuation tend to drive the next leg of direction.
Why The Kroger Co. Price is Moving
KR closed at $61.74, with a market capitalization of $43.87 billion. The company generates trailing twelve-month EPS of $3.94, and shares remain 18% below the 52-week high of $74.90. Within Consumer Staples Distribution and Retail, the setup reflects a large-scale grocer with stable earnings power but sensitivity to small changes in revenue expectations, which can quickly shift sentiment around defensively positioned stocks.
The immediate catalyst was Kroger’s Q3 earnings release and guidance update on Dec. 4, 2025. Adjusted EPS of $1.05 edged past the $1.03 consensus. However, revenue of $33.86 billion missed expectations of $34.15 billion and grew just 1% year over year, a pace that reinforced concerns about a price-sensitive consumer and slower top-line momentum. Management narrowed its full-year identical sales growth outlook (excluding fuel) to 2.8%–3.0% from 2.7%–3.4%, signaling a tighter range and tempered growth expectations. Notably, gross margin improved to 22.8% from 22.4% a year ago, and the company remains active on capital returns, continuing repurchases under its $7.5 billion authorization after completing $5 billion. Kroger also raised full-year EPS guidance to $4.75–$4.80 from $4.70–$4.80, pointing to ongoing profitability discipline.
Investors, however, focused on the revenue shortfall and trimmed sales outlook, which overshadowed the earnings beat and margin progress. The market reaction suggests a preference for clearer top-line acceleration, even as management highlights improved eCommerce profitability targets in 2026 and ongoing cost controls. With Consumer Staples customers increasingly price-conscious, the trade-off between margin management and sales growth remains central to the KR narrative. In valuation context, a P/E that aligns with defensive peers and a 2.02% dividend yield can support total return, but near-term stock direction hinges on restored confidence in sales trajectories and sustained operating efficiency.
What is the The Kroger Co. Rating - Should I Sell or Buy?
Weiss Ratings assigns KR a B rating. Current recommendation is Buy.
The rating is built on six indices: the Fair Growth Index (measures revenue and earnings expansion), consistent with modest 0.08% revenue growth; the Excellent Efficiency Index (measures operational effectiveness and profit margins), supported by a strong 25.05% ROE despite a thin 1.85% profit margin typical for grocery; the Good Solvency Index (measures financial health and debt management), reflecting a solid balance sheet capable of supporting operations and capital returns. The Fair Total Return Index (measures stock price appreciation plus dividends) indicates average risk-adjusted performance, while the Fair Volatility Index (measures price stability and risk) points to typical price swings for a large Consumer Staples name. Lastly, the Fair Dividend Index (measures dividend payments and yield) aligns with a 2.02% yield and steady, but not high, income contribution. At a 16.81 P/E ratio, valuation is reasonable relative to earnings durability.
Against peers, Walmart (WMT) also carries a B rating, indicating a similar balance of risk and reward. Costco (COST) and Procter & Gamble (PG) at C ratings rank as more neutral on a risk-adjusted basis in our system, reflecting different mixes of growth, valuation, and stability versus KR’s efficiency-led profile.
Overall, KR’s B rating reflects a constructive risk/reward profile: excellent efficiency and good solvency offset only fair growth, total return, volatility, and dividend characteristics. In our framework, that combination supports a Buy recommendation, recognizing that while growth is measured, profitability discipline and balance sheet strength underpin the company’s ability to navigate a value-conscious consumer backdrop.
About The Kroger Co.
The Kroger Co. is a leading U.S. grocery retailer operating across the Consumer Staples sector and the Consumer Staples Distribution and Retail industry. Founded in 1883 and headquartered in Cincinnati, Ohio, Kroger serves communities through a network of supermarket and multi-department store banners. The company focuses on food retail, health and wellness, and everyday essentials, supporting customers’ needs through both in-store and digital channels.
Kroger’s offerings span fresh and packaged groceries, private brands such as Simple Truth and Private Selection, and meal solutions including Home Chef. Many locations include in-store pharmacies and health clinics, as well as fuel centers for added convenience. The company’s digital ecosystem features order pickup, delivery, and ship-to-home options that integrate with its loyalty program, enabling personalized promotions and a seamless customer experience. Kroger also operates manufacturing facilities that produce a range of private-label items, enhancing product availability and cost control.
Kroger’s market position is built on scale, a broad geographic footprint, and a comprehensive omnichannel strategy. Proprietary data capabilities and a robust loyalty platform help tailor promotions and improve basket economics. Vertical integration through private brands and manufacturing provides sourcing and cost advantages, while store remodels and supply chain investments support in-stock levels and fresh offerings. Together, these elements underpin Kroger’s competitive standing in mainstream grocery, where value, convenience, and consistency are primary customer priorities.
Investor Outlook
For KR, investors should monitor how sales trends evolve against value-seeking consumer behavior, along with management’s progress on margins and digital profitability. With a Weiss B rating and a Buy recommendation, key watchpoints include identical sales growth, cost efficiencies, and whether shares stabilize above recent support zones. See full rankings of all B-rated Consumer Staples stocks inside the Weiss Stock Screener.