Kroger Outlines Plan to Build America's Favorite Grocer and Introduces New Long-Term Financial Targets
Kroger introduced new long-term financial targets at its 2026 Investor Update, targeting approximately 3% comparable sales growth (ex-fuel and pharmacy) in 2029, 3%-6% adjusted EBITDA growth, and 7%-11% adjusted net EPS growth through FY2029. The new EPS target replaces the prior 8%-11% total shareholder return framework, and management said it implies a stronger earnings outlook. Targets exclude the pending Giant Eagle acquisition. The strategy rests on three pillars: customer value investment, profitable digital growth via eCommerce and Retail Media, and operating modernization with self-funded cost savings.
Key figures
- Guidance
- ~3% comparable sales growth excluding fuel and pharmacy in 2029; 3%-6% adjusted EBITDA CAGR and 7%-11% adjusted net EPS CAGR for FY2027-FY2029 (both excluding pending Giant Eagle acquisition); FY2026 guidance reaffirmed
- Prior target
- 8%-11% total shareholder return
- Adjusted eps cagr target
- 7%-11%
- Comp sales growth target
- ~3% (2029, ex-fuel/pharmacy)
- Adjusted ebitda cagr target
- 3%-6%
AI analysis
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