
Kroger (KR) Stock Forecast & Price Target
Kroger (KR) Analyst Ratings
Bulls say
Kroger has demonstrated strong operational performance, with a 3Q25 operating margin expansion to 3.1% and an adjusted gross margin increase to 22.8%, reflecting robust efficiency and cost management. Digital sales have surged approximately 17%, contributing around $14 billion, which signifies Kroger's successful transition into e-commerce and diversification into areas such as health and wellness, further enhancing its profit potential. Additionally, the company plans to accelerate store openings by 30% in 2026, showcasing its strategic growth initiatives and commitment to expanding its market presence.
Bears say
Kroger's outlook is negatively impacted by anticipated flat-to-slightly lower core non-fuel gross margins, reflecting a projected erosion of five basis points. Additionally, there are significant concerns regarding the company's ability to pass on price increases amid near-term pressures on personal incomes and heightened competition from e-commerce and non-traditional food retailers, which may further contribute to gross and EBIT margin erosion. Furthermore, Kroger's leverage ratio of 1.63x indicates that there is $6 billion of incremental borrowing capacity, which may not be utilized effectively in a challenging market environment, creating uncertainty regarding operational sustainability.
This aggregate rating is based on analysts' research of Kroger and is not a guaranteed prediction by Public.com or investment advice.
Kroger (KR) Analyst Forecast & Price Prediction
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