MW Kroger's stock may not seem so hot to investors, but the grocer keeps buying
By Tomi Kilgore
As the stock heads for its worst month in three years, Kroger boosted its stock repurchase program by $2 billion
Kroger boosts its stock buyback program, just as the shares are in danger of having their worst month in three years.
Kroger's stock may be ending 2025 on a sour note, but that seems to have emboldened the grocery giant to buy back more shares.
The company said Tuesday that it approved a $2 billion increase to its stock-repurchase program. That means the company is now authorized to buy back up to $2.9 billion worth of its stock, which represents about 7.4% of the company's market capitalization of $39.4 billion as of Monday's close.
The buyback boost comes as Kroger's stock $(KR)$ has dropped 7.4% so far in December, putting it on track for the worst monthly performance since it shed 9.4% in December 2022.
"This additional authorization reflects the Board's confidence in Kroger's strong growth outlook and balance sheet," said Kroger Chief Executive Ron Sargent.
The new $2 billion authorization adds to what was remaining in the $7.5 billion program launched in December 2024, after the company terminated the agreement to buy Albertsons Companies (ACI) amid regulatory concerns.
Including a $5 billion accelerated repurchase program also announced in December 2024, the $900 million remaining in the repurchase program prior to Tuesday's $2 billion increase means the company has spent $6.6 billion to buy back its stock over the past year.
The shares gained 0.2% in recent premarket trading Tuesday.
Kroger's stock had a rough start to December, as it sank 4.6% on Dec. 4 after the company reported fiscal third-quarter sales that missed expectations. That was the biggest one-day, postearnings decline for the stock since it slid 7.5% on Sept. 10, 2021. About a week later, the stock closed Dec. 10 at the lowest price - $61.24 - since Jan. 29, before recovering slightly.
The stock has gained 1.9% in 2025 through Monday, while the State Street Consumer Staples Select Sector SPDR ETF XLP has lost 0.9% and the S&P 500 index SPX has advanced 17%.
-Tomi Kilgore
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December 23, 2025 09:19 ET (14:19 GMT)
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