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Kroger’s Expanded US$9.5 Billion Buyback Plan Might Change The Case For Investing In KR

Simply Wall St · 01/05 19:17
  • In December 2025, Kroger completed a major share repurchase phase, buying back about 14.2% of its stock for roughly US$6.60 billion, and on December 23, 2025, the company lifted its total buyback authorization to about US$9.50 billion.
  • This sizable increase in repurchase capacity highlights Kroger’s ongoing commitment to returning cash to shareholders while it reshapes its e-commerce and fulfillment model.
  • We’ll now explore how Kroger’s expanded buyback authorization and continued repurchases could influence its investment narrative and future capital allocation.

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Kroger Investment Narrative Recap

To own Kroger today, you need to believe it can keep converting steady grocery demand into cash while working through margin pressure, e-commerce losses, and regulatory noise around the Albertsons deal. The expanded buyback plan does not materially change the near term earnings catalyst or the key risk that digital and labor costs continue to weigh on profitability.

The December 2025 decision to lift Kroger’s total repurchase authorization to about US$9,500 million ties directly into the recent completion of a US$6,600 million buyback covering 14.2% of shares. For investors focused on capital returns, this sits alongside dividend growth as a central part of the story, but it does not remove concerns about unprofitable e-commerce and heavy investment needs.

Yet investors should also be aware that Kroger’s push into online grocery could still...

Read the full narrative on Kroger (it's free!)

Kroger's narrative projects $158.1 billion revenue and $3.3 billion earnings by 2028. This requires 2.5% yearly revenue growth and a $0.7 billion earnings increase from $2.6 billion today.

Uncover how Kroger's forecasts yield a $73.82 fair value, a 17% upside to its current price.

Exploring Other Perspectives

KR 1-Year Stock Price Chart
KR 1-Year Stock Price Chart

Two fair value estimates from the Simply Wall St Community cluster in a tight US$73.82 to US$74.95 range, reminding you that even private investors can disagree on Kroger. Set against an unprofitable e-commerce arm and rising investment needs, these differing views underline why it can help to compare several perspectives before forming your own.

Explore 2 other fair value estimates on Kroger - why the stock might be worth as much as 19% more than the current price!

Build Your Own Kroger Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.