Kroger targets 7%-11% annual EPS growth through 2029, replacing its shareholder-return goal

Kroger is giving investors a new yardstick. The grocer said Tuesday it is targeting 7% to 11% compound annual growth in adjusted net earnings per share from fiscal 2027 through fiscal 2029, replacing its previous goal of 8% to 11% total shareholder return.

The new long-term framework, released ahead of an investor update in New York, also calls for 3% to 6% adjusted EBITDA growth a year over the same period and approximately 3% comparable sales growth in 2029, excluding fuel and pharmacy, according to a press release filed with an 8-K. All three targets exclude the pending acquisition of Giant Eagle.

Kroger also reaffirmed the full-year 2026 guidance it provided with its second-quarter earnings.

Why the switch

The old total shareholder return target included the dividend yield. The new EPS target measures earnings growth alone, and Kroger said it "implies a stronger earnings outlook." The company said the framework is meant to give investors a clearer view of its core grocery business.

"We are targeting higher sales by 2029, with stronger adjusted EBITDA and adjusted EPS growth over the next three years," CFO David Kennerley said in the release.

Capital allocation is unchanged, Kroger said: high-return growth investments, financial strength, and returning surplus capital through dividends, subject to board approval, and share buybacks.

The plan behind the numbers

CEO Greg Foran framed the strategy around building "America's Favorite Grocer," resting on three pillars:

• Win With the Customer: a self-funded plan to deliver more value, investing in Fresh and meals, growing Our Brands penetration and Boost membership, and expanding into markets with attractive returns.
• Drive Profitable Digital Growth: growing eCommerce sales and Retail Media revenue and accelerating growth in Kroger Precision Marketing.
• Modernize How We Operate: savings from more direct sourcing, disciplined purchasing, streamlined processes and a more scalable operating model, with technology and AI improving execution. Kroger said the savings will fund customer value and growth.

"We are making value more visible and focusing resources closer to the customer where we see the highest returns," Foran said.

By the numbers

• Adjusted net EPS growth target, FY2027-FY2029: 7%-11% a year
• Adjusted EBITDA growth target, FY2027-FY2029: 3%-6% a year
• Comparable sales growth target for 2029, ex fuel and pharmacy: about 3%
• Retired target: 8%-11% total shareholder return
• Full-year 2026 guidance: reaffirmed

Sources

1. The Kroger Co., Form 8-K (Item 7.01) with Exhibit 99.1 press release, filed Oct. 20, 2026, accession 0001104659-26-117103

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