Loading...
Loading...
The Kroger
today
unveiled its long-term strategy for enhanced growth at its investor conference
in New York. Building on strong momentum from its proven Customer 1^st
strategy, the company said it will invest in a targeted expansion strategy to
increase square footage and store penetration in existing markets and enter
new markets.
Kroger raised its long term, fully-diluted earnings per share growth target
from 6 to 8 percent to 8 to 11 percent, plus a current dividend of 2.5
percent. To support its growth strategy, Kroger expects to increase capital
spending by an incremental $200 million annually and increase return on
invested capital.
Also today, Kroger's Board of Directors approved a $500 million share
repurchase program, replacing the existing authorization that had
approximately $340 million remaining.
Kroger to Accelerate Growth
During the conference, Kroger's leadership highlighted the significant
opportunities the company sees across the broad food retailing market, which
extends beyond traditional supermarkets and includes discount stores, drug
stores, restaurants and many others.
"Our proven strategy and market position provide a tremendous platform to
accelerate growth and increase value creation for Kroger shareholders," said
David B. Dillon, Kroger's chairman and chief executive officer. "We are
confident that Kroger's unmatched knowledge of the customer and disciplined
approach to deploying capital will drive growth at attractive levels of
return. We will continue to use our strong free cash flow to deliver
shareholder value through actions such as our recent 30 percent dividend
increase and the continuation of our substantial share repurchase program."
During the past five years, Kroger's customer-centric strategy has resulted in
a 200 basis point increase in market share – defined as overall share of the
products Kroger sells in the markets where the company operates – to 21.1
percent, according to Nielsen Homescan data. Today, nearly half of all U.S.
households hold a Kroger loyalty card, and that figure increases to 85 percent
in the markets where Kroger operates. The company has reported an
industry-leading 35 consecutive quarters of positive identical store sales.
"Even through the worst of the recession, Kroger created 29,000 new jobs
during the last five years. We are going to invest to grow and expand our
store base, which will create more job opportunities over the next five years,
and beyond," Mr. Dillon said.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in