Kroger Targets 7%-11% Annual EPS Growth Through 2029, Reaffirms 2026 Outlook
Kroger reaffirmed fiscal 2026 adjusted EPS guidance of $5.10-$5.30 and set a 7%-11% annual adjusted EPS growth target for fiscal 2027-2029. The EPS target replaces its prior 8%-11% total shareholder return goal, which included dividends.
The Kroger Co. (NYSE: KR ) on Tuesday reaffirmed its full-year 2026 outlook, which it issued alongside its second-quarter results. The company sees fiscal 2026 adjusted EPS guidance of $5.10-$5.30, compared with analyst estimates of $5.21. For fiscal 2027-2029, the company targets 7%-11% annual adjusted EPS growth and 3%-6% adjusted EBITDA growth.
The EPS target replaces the previous 8%-11% total shareholder return goal, which included dividends. It also targets about 3% comparable sales growth, excluding fuel and pharmacy, in 2029. The company's guidance excludes the pending Giant Eagle acquisition. Management Commentary CEO Greg Foran said the company plans to strengthen its grocery business by making value more visible, directing resources toward areas with stronger returns and simplifying operations to improve customer experience and shareholder value.
The company's strategy focuses on three priorities: offering greater value through fresh food, meals, private-label products and Boost memberships; expanding eCommerce sales and retail media revenue; and improving efficiency through sourcing, purchasing, streamlined processes, technology and AI. Cost savings are expected to help fund customer investments and future growth. CFO David Kennerley said the revised framework offers investors a clearer view of the core grocery business. Kroger plans to prioritize high-return investments, disciplined cost savings, financial strength and shareholder returns through dividends, subject to board approval, and share repurchases.
KR earnings preview and analyst price-target outlook Looking further out, the next major catalyst for the stock arrives with the Dec. 3, 2026 (estimated) earnings report. Analysts expect EPS of $1.17, up from $1.05 a year earlier, and revenue of $34.67 billion, compared with $33.86 billion in the prior-year period. The stock trades at a P/E ratio of 34.1x, indicating a premium valuation relative to peers.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $66.13. Recent analyst moves include: Guggenheim: Buy (Lowers Target to $66.00) (Sept. 15) Telsey Advisory Group: Outperform (Lowers Target to $75.00) (Sept. 14) Evercore ISI Group: Outperform (Lowers Target to $70.00) (Sept.
14) Read Also: Kroger Analysts Cut Their Forecasts After Q2 Earnings Kroger Edge scorecard: momentum improves, growth still weak Below is the Edge scorecard for The Kroger, highlighting its strengths and weaknesses compared to the broader market: Momentum: Neutral (Score: 40.96) — The stock is improving, but the trend profile still looks more "grind higher" than breakout. Quality: Neutral (Score: 46.45) — The fundamentals screen as middle-of-the-road versus the broader market, not a clear standout. Value: Neutral (Score: 44) — Valuation looks closer to average than deeply discounted, which can limit "cheap stock" appeal.
Growth: Weak (Score: 9.19) — Growth factors are lagging, so the bull case leans more on stability and execution than rapid expansion. The Verdict: Kroger's Edge signal shows a neutral, defense-leaning profile with modest momentum and limited growth support. For longer-term bulls, the cleaner technical story is continued acceptance above the 200-day area; for bears, the risk is that the June death-cross backdrop reasserts itself if price slips back into the prior range.
Top ETF exposure: XCEM, JEMA, and EMKT weightings Columbia EM Core ex-China ETF (NYSE: XCEM ): 9.27% Weight JPMorgan ActiveBuilders Emerging Markets Equity ETF (NASDAQ: JEMA ): 9.21% Weight Lazard Emerging Markets Opportunities ETF (NYSE: EMKT ): 9.81% Weight Significance: Because KR carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. KR stock today: shares higher in Tuesday trading KR Stock Price Activity: Kroger shares are trading lower by 0.68% at $62.62 at the time of publication on Tuesday, according to Pro data. Photo via Shutterstock