The Kroger Co. (NYSE:KR) is included among the 7 Best Fortune 500 Dividend Stocks to Invest in Now.
The Kroger Co. (NYSE:KR) operates as a food and drug retailer, running supermarkets, multi-department stores, and fulfillment centers across the United States.
On December 10, Citi analyst Paul Lejuez cut his price target on The Kroger Co. (NYSE:KR) to $68 from $74 and kept a Neutral rating on the stock.
Less than two weeks later, on December 23, Kroger’s board approved an additional $2 billion for share repurchases. This adds to the $7.5 billion program announced in December 2024. After the latest approval, the company has about $2.9 billion remaining under its buyback authorizations as of December 23, 2025. Management expects to fund these repurchases through operating cash flow and existing liquidity, while preserving its investment-grade credit rating.
Earlier in December, The Kroger Co. (NYSE:KR) narrowed its full-year sales outlook. Shoppers have become more selective, especially when it comes to groceries and fresh produce, and are relying more on promotions. The company also missed third-quarter sales estimates. Interim CEO Ron Sargent said the pressure is no longer limited to lower-income households, with middle-income shoppers now feeling the same strain.
Competition has intensified across the sector as larger rivals like Walmart and Target have cut prices to attract customers. Kroger responded by stepping up price reductions late in the quarter to hold on to budget-conscious shoppers. Behind the scenes, the company has been moving to reduce costs and reset parts of the business. The Kroger Co. (NYSE:KR) has closed facilities and cut jobs while reshaping its e-commerce strategy following the removal of CEO Rodney McMullen in March. As part of that shift, it plans to close three of the eight automated fulfillment centers developed with British partner Ocado. The change will result in a $2.6 billion charge as Kroger transitions to a hybrid fulfillment model and deepens partnerships with Instacart, DoorDash, and Uber Eats.
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