Kroger: Solid Execution And Momentum Justify Current Valuation

Kroger's growth inflection is clear, with ID sales accelerating to 3.2% and management raising FY25 guidance, validating my bullish thesis. The new ROI-focused store strategy—opening in high-growth markets and closing underperformers—boosts efficiency, margins, and reinvestment in pricing and operations. KR's core growth drivers are firing: private label outpaces national brands, eCommerce revenue accelerates with margin improvement, and value focus drives loyalty.