Overview

• Kroger’s identical sales excluding fuel rose 3.2% year-over-year in the first quarter, driving an operating profit of $1.3 billion, up about 2% from last year.
• CEO Ron Sargent highlighted growing demand for protein offerings partly linked to GLP-1 weight-loss medications and said Simple Truth will introduce 80 new protein bars, powders and shakes.
• The company will close 60 underperforming stores over 18 months and absorb a $100 million impairment charge while planning to open more than 30 new outlets in competitive markets.
• Kroger has cut prices on over 2,000 items this year and streamlined its promotions to help budget-conscious shoppers save more easily.
• Following the mixed earnings report, Morgan Stanley, Guggenheim and Jefferies each raised their price targets on Kroger stock.