Kroger sets 3% to 6% EBITDA growth target through 2029

The Kroger Co. (NYSE: KR) introduced a new long-term financial framework on October 20, 2026, targeting 3% to 6% adjusted EBITDA compound annual growth and 7% to 11% adjusted net earnings per share growth for fiscal years 2027 through 2029. The company also set a target of approximately 3% comparable sales growth excluding fuel and pharmacy for 2029. These targets exclude the pending acquisition of Giant Eagle.

Kroger CEO Greg Foran stated the company is making value more visible and focusing resources closer to the customer to deliver a better experience and long-term shareholder value. The updated strategy rests on three pillars: winning with the customer through self-funded value investments in fresh products, meals, and brand penetration; driving profitable digital growth by expanding e-commerce and retail media revenue; and modernizing operations through direct sourcing, streamlined processes, and technology to generate savings.

CFO David Kennerley explained that the new framework provides a clearer view of core grocery performance. The adjusted net EPS target replaces the previous total shareholder return target, which included dividend yield, implying a stronger earnings outlook. The company’s capital allocation strategy remains focused on high-return investments, maintaining financial strength, and returning surplus capital via dividends and share buybacks, subject to board approval.

Kroger reiterated its full-year 2026 guidance provided during its second-quarter earnings report. The company’s Investor Update, held in New York, featured presentations on customer value, e-commerce, retail media, store execution, and operations. The event webcast ran from 9:00 a.m. ET to approximately 12:00 p.m. ET.

The press release notes that forward-looking statements are based on management assumptions and could be affected by labor negotiations, economic conditions, competition, fuel costs, supply constraints, and regulatory changes. Actual results may differ materially from these targets due to various uncertainties outside the company’s control.