The Kroger Co. (KR)
Kroger is one of America's largest grocery chains, operating thousands of supermarkets and multi-department stores across the country.
Is The Kroger Co. a good stock for a UK beginner?
The honest version: Kroger is one of America's largest grocery chains, operating thousands of supermarkets and multi-department stores across the country.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Significant expansion of high-margin services
Structural decline in physical store footfall
What does The Kroger Co. do?
Kroger makes its money by selling food, household goods, and pharmacy items to millions of shoppers every day. Because people need to eat regardless of the economy, it is considered a defensive business, though it operates on very thin profit margins. How they handle costs and competition while trying to grow their digital shopping services is worth following.
On our factor screen it looks strongest on value and income, and weakest on quality.
- ✓Pays a dividend - about 2.5% a year
- ✓Growing - revenue up about 2% over the year
- !Thin profits - turns only about 1% of sales into profit
- !High P/E of 34 - big growth is already priced in
- !Carries a lot of debt - roughly 3.7x its equity
- Essential nature of the business provides steady demand
- Low beta suggests lower volatility than the broader market
- Consistent history of paying dividends to shareholders
- Quality screens low (22/100)
- Growth screens low (31/100)
- Momentum screens low (22/100)
- Rising labour and supply chain costs
- Potential for price wars to erode profitability
What do The Kroger Co.'s numbers mean?
How much money does The Kroger Co. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does The Kroger Co. pay a dividend?
Yes - The Kroger Co. currently pays a dividend of about 2.5% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
More in Consumer Defensive
Altria Group
McCormick & Company, Incorporated
The Coca-Cola Company
Kenvue Inc.
Philip Morris International Inc.
Monster Beverage Corporation
Target Corporation
PepsiCo, Inc.What are the scenarios for The Kroger Co.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of The Kroger Co.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Essential nature of the business provides steady demand
- Low beta suggests lower volatility than the broader market
- Consistent history of paying dividends to shareholders
- Extremely thin profit margins leave little room for error
- High competition from both traditional and discount grocers
- Recent share price performance has been lacklustre
- Rising labour and supply chain costs
- Potential for price wars to erode profitability
- Changing consumer preferences towards online-only delivery services
The write-up's own warning lights — if these start happening, the case above changes.
- A major shift in the grocery industry landscape
- A sustained period of negative earnings growth
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.