Summary
Kroger (NYSE:KR) shares climbed on Monday after Wolfe Research reiterated an Outperform rating with a $75.00 price target and pointed to the company’s announcement of Greg Foran as its new chief executive officer. The stock traded at $70.51, moving closer to its 52-week high of $74.90 and sitting slightly above InvestingPro’s Fair Value estimate.
Analyst reaction and market movement
Wolfe Research framed Foran’s arrival as "incrementally positive for the Kroger story as they combat headwinds on multiple fronts." The firm argued that replacing nearly a year of interim leadership with a permanent CEO should help Kroger navigate the post-McMullen transition. Kroger, which carries a market capitalization of $44.5 billion and a two-decade streak of consecutive dividend increases, remains a significant name in the Consumer Staples sector.
Wolfe also emphasized Foran’s operational track record. During his tenure leading Walmart U.S., Foran accelerated digital initiatives, rolled out online ordering and pickup services, and delivered positive same-store sales growth for 20 consecutive quarters, according to Wolfe Research. The firm added that Foran’s "deep understanding of the Walmart business and how they compete should be an invaluable asset to Kroger" as the grocer addresses competitive pressures within the grocery market.
Other broker updates and corporate actions
Following the leadership change, several brokerages reiterated or revised their views on Kroger. Evercore ISI raised its price target to $84 while maintaining an Outperform rating. Jefferies reiterated a Buy rating with an $80 price target. BMO Capital held to a Market Perform rating with a $70 price target.
Separately, Kroger declared a quarterly dividend of $0.35 per share, continuing its history of dividend increases. The company has grown its dividend at a compounded annual rate of 13% since 2006, and it has reported consecutive annual dividend raises for 20 years.
Near-term calendar and research resources
Investors should note Kroger’s forthcoming earnings release on March 5. For additional context, InvestingPro provides a Pro Research Report that includes 10+ exclusive tips and more comprehensive analysis for this stock and over 1,400 other U.S. equities.
Conclusion
Market participants reacted positively to the combination of a favorable analyst note from Wolfe Research and the appointment of an experienced retail executive as CEO. Multiple brokerages have voiced support or maintained cautious stances with revised targets, and Kroger’s ongoing dividend policy remains a highlighted element of its shareholder proposition. The company’s performance around the upcoming earnings date and the effectiveness of leadership transition will be focal points for investors.