Jun. 20 at 6:10 PM
$CPB $MCD $KR Kroger Stock Jumps as Shoppers Dine More at Home
Kroger shares surged 9.7% Friday—its biggest gain in over 3 years—after beating Q1 earnings. CEO Ron Sargent said consumers are eating at home more due to economic uncertainty and tariff concerns, favoring value, promotions, and private-label (KR) brands.
Campbell’s (CPB) noted similar trends, while restaurants like McDonald’s (MCD) and Chipotle (CMG) face weaker traffic. Roth Capital says at-home dining is resilient to tariff-related inflation.
Sargent said tariffs haven’t materially impacted KR so far and the company aims to avoid price hikes, calling them a last resort. KR lowered prices on 2,000 more items this quarter.
Since Albertsons (ACI) ended its Kroger deal in Dec., KR is up 17.2%, while the S&P 500 (SPX) is down 1.8%.