Kroger introduces new long-term targets for 2029 sales, EBITDA and EPS growth

The Kroger Co. (KR) on Tuesday introduced financial targets through 2029 as part of a multi-year plan to build what it calls “America’s Favorite Grocer,” the company said in a press release filed with the Securities and Exchange Commission.

The company is targeting comparable sales growth of approximately 3% in 2029, excluding fuel and pharmacy.

It is also targeting adjusted EBITDA growth of 3%-6% and adjusted net EPS growth of 7%-11%, each as a compound annual growth rate, or CAGR, for fiscal 2027 through fiscal 2029. The targets exclude the pending acquisition of Giant Eagle.

The EPS target replaces an 8%-11% total shareholder return target that included the dividend yield. Kroger said the new measure captures earnings growth alone and implies a stronger earnings outlook.

The plan rests on three pillars. The first, Win With the Customer, calls for a self-funded plan to deliver more value. It includes investment in Fresh and meals, growth in Our Brands penetration and Boost membership, and expansion into markets where the company sees attractive returns.

The second, Drive Profitable Digital Growth, centers on growing eCommerce sales and Retail Media revenue. It also aims to accelerate growth in Kroger Precision Marketing.

The third, Modernize How We Operate, expects savings from more direct sourcing, disciplined purchasing, streamlined processes and a more scalable operating model. The company said technology and AI will improve execution, and that the savings will fund greater customer value and growth across the business.

“Kroger has a clear opportunity to unlock our full potential and build America’s Favorite Grocer,” said Greg Foran, CEO of Kroger.

In the same release, CFO David Kennerley said the framework gives a clearer view of the core grocery business. “Our financial framework reflects our renewed focus on the core grocery business and provides a clearer line of sight from operating performance to shareholder value,” Kennerley said.

The company said its capital allocation strategy remains unchanged. It is focused on high-return growth investments, maintaining financial strength and returning surplus capital to shareholders through dividends, subject to board approval, and share buybacks.

Kroger reaffirmed its full-year 2026 guidance, which it provided with its second quarter earnings. The release does not restate those guidance figures.

The update includes presentations on customer value, eCommerce, Retail Media, store execution, operations and the long-term financial framework. A live webcast is scheduled to begin at 9:00 a.m. ET and conclude at about 12:00 p.m. ET, with a replay to follow on the company’s investor relations website.