Kroger's Strategic $5 Billion Buyback Plan: A Boost for Shareholders

Zacks12-20 20:59

The Kroger Co. KR has made a significant move in returning value to its shareholders by entering into Accelerated Share Repurchase (“ASR”) agreements worth $5 billion. The agreements are part of ...

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The agreements are part of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/krogers-strategic-5-billion-buyback-125900447.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Kroger's Strategic $5 Billion Buyback Plan: A Boost for Shareholders</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKroger's Strategic $5 Billion Buyback Plan: A Boost for Shareholders\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 20:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/krogers-strategic-5-billion-buyback-125900447.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Kroger Co. KR has made a significant move in returning value to its shareholders by entering into Accelerated Share Repurchase (“ASR”) agreements worth $5 billion. The agreements are part of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/krogers-strategic-5-billion-buyback-125900447.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/krogers-strategic-5-billion-buyback-125900447.html","article_id":"2492449954","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/x_9tDBRvijQEdUheNcHYcA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/ce1f6029b6b998b98e4d6aeab07a59d5"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492449954","pubTimestamp":1734699540,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The Kroger Co. KR has made a significant move in returning value to its shareholders by entering into Accelerated Share Repurchase  agreements worth $5 billion. The agreements are part of Kroger's broader $7.5 billion share repurchase authorization. This step underscores Kroger's commitment to maximizing shareholder returns while leveraging its strong financial position.The ASR transactions will be funded using Kroger's existing cash on hand. The company will pay $5 billion to the dealers and, in return, receive about 65.6 million shares of its common stock as initial delivery. These shares are expected to be delivered on Dec. 20, 2024. The final settlement under the ASR agreements is anticipated to take place before the third quarter of fiscal 2025.In addition to the immediate $5 billion ASR, Kroger retains $2.5 billion in capacity for future share repurchases. This provides the company with the flexibility to continue its share repurchase program as market conditions evolve. With thi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","FRPT":"Freshpet","BK4113":"食品零售","LU0053671581.USD":"摩根大通美国小盘成长股 A(dist)","LU2355687059.USD":"NORDEA 1 GLOBAL IMPACT  \"BP\" (USD) ACC","LU0345770308.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) ACC","BK4504":"桥水持仓","LU0029874061.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" YDIS INC","LU0345770993.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","KR":"克罗格","BK4212":"包装食品与肉类","BK4532":"文艺复兴科技持仓","LU0128526141.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" ACC","BK4585":"ETF&股票定投概念","BK4533":"AQR资本管理(全球第二大对冲基金)","BRFS":"BRF SA","LU1941712264.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"A\" (USD) INC","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","LU1941712348.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"AT\" (USD) ACC","SFM":"Sprouts Farmers Market Inc","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","BK4559":"巴菲特持仓"},"translate_title":"克罗格50亿美元战略回购计划：对股东的提振","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BRFS":1,"FRPT":1,"KR":1,"SFM":0.9},"content_text":"The Kroger Co. KR has made a significant move in returning value to its shareholders by entering into Accelerated Share Repurchase (“ASR”) agreements worth $5 billion. The agreements are part of Kroger's broader $7.5 billion share repurchase authorization. This step underscores Kroger's commitment to maximizing shareholder returns while leveraging its strong financial position.\nDigging the Details of KR’s Share Repurchase Agreement\nThe ASR transactions will be funded using Kroger's existing cash on hand. The company will pay $5 billion to the dealers and, in return, receive about 65.6 million shares of its common stock as initial delivery. These shares are expected to be delivered on Dec. 20, 2024. The final settlement under the ASR agreements is anticipated to take place before the third quarter of fiscal 2025.In addition to the immediate $5 billion ASR, Kroger retains $2.5 billion in capacity for future share repurchases. This provides the company with the flexibility to continue its share repurchase program as market conditions evolve. With this bold initiative, Kroger is not only enhancing shareholder value but also signaling confidence in its ongoing business strategy. Investors will be keen to see how this repurchase impacts the stock's performance and how the remaining repurchase capacity will be utilized moving forward.\nKR Stock Past-Year Performance\nImage Source: Zacks Investment Research\nFactors Driving Kroger’s Growth\nKroger's growth is fueled by strong digital and e-commerce performance, with digital sales up 11% and delivery sales increasing 18% year over year in the third quarter of fiscal 2024, driven by customer fulfillment centers that ensure timely deliveries and excellent in-stock levels. The investment in its \"Our Brands\" portfolio is another key driver, with private label products outperforming national brands through quality and cost control, meeting demands for free-from, organic and multicultural products.Kroger's personalized offers and loyalty programs, like the Kroger Plus program and Boost membership with streaming benefits, have further enhanced customer engagement and satisfaction. These strategies collectively bolster Kroger's growth by adapting to consumer preferences and improving the overall shopping experience.\nWrapping Up\nKroger's $5 billion buyback initiative not only underscores its confidence in the company’s business trajectory but also rewards its shareholders through enhanced value and returns. Coupled with its strong operational performance in digital sales, private label products and customer engagement strategies, Kroger is well-positioned to navigate future market dynamics. Shares of this Zacks Rank #3 (Hold) company have gained 35.5% in past year compared with the industry’s 77.4% growth.\nKey Picks\nHere, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market, Inc. SFM, BRF Brasil Foods SA BRFS and Freshpet Inc. FRPT.Sprouts Farmers operates in a highly fragmented grocery store industry, with a unique model featuring fresh produce, a food section and a vitamin department focused on overall wellness. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SFM delivered a trailing four-quarter earnings surprise of 15.3%, on average. The Zacks Consensus Estimate for SFM’s current financial-year earnings and sales indicates growth of 29.6% and 12.2%, respectively, from the year-ago reported figures.BRF Brasil Foods, formerly Perdigao S.A., is a Brazil-based food company. It presently carries a Zacks Rank of 2 (Buy). BRFS delivered a trailing four-quarter average earnings surprise of 51.5%. The Zacks Consensus Estimate for BRFS' current financial-year earnings and sales indicates growth of 260% and 14.7%, respectively, from the year-ago reported figures.Freshpet manufactures and markets natural fresh foods, refrigerated meals and treats for dogs and cats in the United States and Canada. FRPT has a Zacks Rank #2 at present. The Zacks Consensus Estimate for Freshpet’s current financial-year earnings and sales indicates growth of 228.6% and 27.3%, respectively, from the year-ago reported figures. FRPT delivered a trailing four-quarter average earnings surprise of 144.5%.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Kroger Co. (KR) : Free Stock Analysis Report\nFreshpet, Inc. (FRPT) : Free Stock Analysis Report\nBRF S.A. (BRFS) : Free Stock Analysis Report\nSprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"shareholding","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492449954"}