KR - Kroger: Why The Albertsons Merger Is A Win-Win

2024-06-26 05:37:15 ET

Summary

• Kroger's Q1 2024 earnings beat expectations, but the stock dropped due to underperformance and the FTC blocking merger with Albertsons.
• Proposed merger with Albertsons would provide a scale advantage against competitors like Walmart and Costco.
• Kroger's digital engagement growth, private label business, debt, dividend, and valuation make it a potential buy opportunity.

Kroger ( KR ) provided Q1 2024 earnings late last week, and the stock dropped roughly 4% before leveling off in the following days.

Although Kroger beat on the top and bottom lines, the results were a bit lackluster, and the company faces fierce competition from the likes of Walmart ( WMT ), and Costco ( COST ) as well as from discount grocers....

For further details see: