Kroger Sets New Long-Term Targets: 7%-11% EPS Growth Through 2029, Reaffirms 2026 Guidance
KR sits 17% above its 52-week low of $54.15.
Summary
At its investor update, Kroger introduced 2029 targets of ~3% comparable sales growth, 3%-6% adjusted EBITDA CAGR and 7%-11% adjusted EPS CAGR through 2029, replacing its prior total-return target, and reaffirmed 2026 guidance.
Key Events · Earnings and Guidance · KR
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New Long-Term Financial Framework
Kroger targets ~3% comparable sales growth in 2029 (ex-fuel and pharmacy), 3%-6% adjusted EBITDA CAGR and 7%-11% adjusted net EPS CAGR for FY2027-FY2029.
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EPS Target Replaces Total-Return Goal
The 7%-11% adjusted EPS growth target measures earnings alone and replaces the prior 8%-11% total shareholder return target, which included dividend yield — implying a stronger earnings outlook.
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2026 Guidance Reaffirmed
Full-year 2026 guidance issued at the second-quarter earnings report is reiterated, following the September cut to identical sales growth of 0.2%-0.8%.
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Three-Pillar Operating Strategy
Plan centers on customer value (Fresh, Our Brands, Boost membership), profitable digital growth (eCommerce and Kroger Precision Marketing retail media), and modernization via direct sourcing, streamlined processes and AI.
Analysis · KR · Trade & Services
Kroger used its investor day to reset the market's expectations for the next three years. The headline change: the old 8%-11% total shareholder return target — which counted the dividend — is replaced by a 7%-11% adjusted EPS growth target that measures earnings alone, implying a stronger underlying earnings outlook. Management also put a number on 2029 sales growth (~3% comparable, ex-fuel and pharmacy) and 3%-6% adjusted EBITDA growth, and reaffirmed 2026 guidance despite the September cut to identical sales. The plan leans on self-funded customer investment, eCommerce and retail media growth, and cost savings from AI and a leaner operating model — the same cost program behind the 3,000 corporate role cuts announced in mid-October. The targets exclude the pending Giant Eagle acquisition, so the framework describes the core grocery business only.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 29.2% of the 1466 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, KR was trading at $63.52 on NYSE in the Trade & Services sector, with a market capitalization of approximately $37.2B. The 52-week trading range was $54.15 to $76.58. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.