Kroger unveils multi‑year growth plan with 3% sales, 3‑6% EBITDA and 7‑11% EPS targets by 2029
Kroger announced a new strategic framework aimed at becoming “America’s Favorite Grocer.” The company set long‑term targets of roughly 3% comparable‑sales growth in 2029 (excluding fuel and pharmacy), 3%‑6% adjusted EBITDA compound annual growth rate for FY2027‑FY2029, and 7%‑11% adjusted net EPS CAGR for the same period, all excluding the pending Giant Eagle acquisition. CEO Greg Foran and CFO David Kennerley said the plan will be self‑funded through higher‑return investments, AI‑driven cost cuts and expanded digital and retail‑media revenue. Kroger also reaffirmed its full‑year 2026 guidance.
Why it matters
The company’s guidance signals higher earnings growth than previously projected, which could lift valuation multiples for KR. The self‑funded investment and cost‑saving targets suggest stronger cash generation to support dividends and share‑repurchase programs, as noted in the SEC filing (4).
Key facts
- 1Kroger targets approximately 3% comparable sales growth in 2029, excluding fuel and pharmacy. sec.gov
- 2The firm aims for a 3%‑6% adjusted EBITDA CAGR for FY2027 through FY2029. sec.gov
- 3Kroger projects a 7%‑11% adjusted net EPS CAGR for FY2027 through FY2029. sec.gov
- 4The targets exclude the pending acquisition of Giant Eagle. sec.gov
- 5Kroger reaffirmed its FY2026 guidance during the Investor Update. sec.gov
- 6CEO Greg Foran said the plan will focus on customer value, digital growth and operational modernization. sec.gov
Summary written by AlphAI AI Desk from 20 of 24 sources. Not investment advice. Figures are as stated by the linked sources.