Linda Meyer, a Cincinnati woman, complained about the item, which led to it being pulled from Kroger shelves.
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Kroger Co. on Friday reported non-fuel identical store sales increased by 1.7% in the fiscal second quarter, and forecast still narrower sales gains for the remainder of the fiscal year as it deals with persistent food price deflation.
Analysts on average had expected the company to earn 45 cents per share and revenue of $26.74 billion. The company had revenue of $26.60 billion for the quarter, compared to analyst estimates of $26.79 billion. Street analysts predicted an EPS of $0.45. In the same period of a year ago it had $1.20 billion.
Over the long term, the company expects to achieve its net earnings per share growth rate guidance of 8 – 11%, plus a growing dividend.
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Zacks Rank: Currently, Kroger carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. Kroger’s dividend payout ratio (DPR) is now 22.43%. Finally, Royal Bank Of Canada restated a “sector perform” rating and set a $39.00 price objective on shares of Kroger in a research note on Monday, June 13th. For example, the price of corn, cocoa and lean hogs futures are lower by 10 percent, wheat is lower by 20 percent and cattle futures have plunged 30 percent.
KR stock was up slightly as of Noon Friday. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has a consensus rating of Buy and a consensus target price of $40.37.
In other news, VP Oflen Mary Elizabeth Van sold 12,000 shares of the firm’s stock in a transaction on Friday, July 8th. The stock was sold at an average price of $37.85, for a total transaction of $454,200.00. Following the transaction, the vice president now owns 82,349 shares in the company, valued at approximately $3,116,909.65. The sale was disclosed in a legal filing with the SEC, which is accessible through this link.
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Kroger operates 2,781 stores in 35 states under a range of retail banners. The company also reduced its full year forecast. “Their execution of our Customer 1st Strategy in a deflationary environment helped deliver growth in identical store sales, units and market share”, Rodney McMullen, Kroger’s CEO, said in a statement.
