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Kroger Co (KR)
Staples Retailing Consumer Staples
Stock AI

Kroger Co. Announces $2.0 Billion Share Repurchase Authorization

Last updated: December 23, 2025
Taurigo

1. Board's Confidence in Growth

On December 23, 2025, The Kroger Co. (NYSE: KR) made headlines with the announcement that its Board of Directors has approved an additional $2.0 billion share repurchase authorization. This new authorization comes on the heels of a previously announced $7.5 billion repurchase authorization in December 2024. With this latest move, Kroger now has approximately $2.9 billion available under its share repurchase programs.

Ron Sargent, Kroger's chairman and CEO, expressed the Board's confidence in the company’s robust growth outlook and solid balance sheet. "This additional authorization reflects the Board's confidence in Kroger's strong growth outlook and balance sheet," Sargent stated. He emphasized that Kroger is generating durable free cash flow and remains committed to disciplined capital allocation, focusing on investments that strengthen the business while also returning capital to shareholders.

2. Funding and Commitment to Shareholders

Kroger intends to fund these share repurchases through cash generated from operations and existing liquidity. The company is committed to maintaining its investment-grade credit rating while executing this strategy. Since 2015, Kroger has been proactive in its capital distribution, having repurchased approximately 35% of its outstanding shares, illustrating a consistent focus on returning value to shareholders.

Under the new share repurchase authorization, Kroger may buy back its outstanding common shares through various methods, including open market transactions or privately negotiated deals. The Board has granted no expiration on the repurchase authorizations, allowing the company to time its buybacks based on market and business conditions, although these repurchases may be suspended or discontinued at any time.

3. Capital Allocation Strategy

Kroger aims to continue generating strong free cash flow and remains committed to investing in its business to drive sustainable net earnings growth. In line with its disciplined financial strategy, Kroger plans to manage its capital structure toward its target leverage ratio over time. The company expects to continue paying its quarterly dividend and anticipates increasing this over the years, subject to Board approval.

Kroger's commitment to a balanced capital allocation strategy underscores its focus on long-term growth while ensuring that shareholder returns remain a priority.

4. About Kroger

The Kroger Co. is one of America's largest supermarket chains, employing more than 400,000 associates who serve over 11 million customers daily. The company is dedicated to food inspiration and community upliftment, with a mission of creating #ZeroHungerZeroWaste communities.

As Kroger continues to navigate the complexities of the retail landscape, the recent share repurchase authorization signals the company's confidence in its future, bolstered by a strong operational performance and a commitment to shareholder value.

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