The Kroger Co. (NYSE:KR) is among the best Warren Buffett stocks.
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Buffett added The Kroger Co. (NYSE:KR) to his portfolio in 2019, with the initial stake comprising 18.94 million shares ($549 million), making the stock Warren Buffett’s 35th biggest holding as of Q4 2019. Berkshire now owns 50 million shares worth $3.12 billion as of the fourth quarter of 2025, reflecting Buffett’s increased confidence in the company’s growth story.
Other hedge funds also remain bullish on The Kroger Co. (NYSE:KR). As of Q4 2025, 49 hedge funds hold the stock, with the combined hedge fund stake totaling $4.80 billion.
That bullish sentiment reflects strength in areas such as cost discipline, value positioning, and digital execution.
Last year, after the company’s proposed merger with Albertsons collapsed, The Kroger Co. (NYSE:KR) focused on resetting its cost base, including corporate layoffs and the planned closure of underperforming stores. At the same time, it reinvested capital into lower prices, new locations, and store-level jobs.
As of April 20, 2026, the stock has been up over 9% in 2026 so far, after declining over 1% over the past six months. The Grocery Stores industry is up 1.7% (YTD) and down roughly 15% (6M), reflecting Kroger’s slight outperformance compared to its peers.
The Kroger Co. (NYSE:KR) has been refining its e-commerce model by shutting down underperforming automated facilities and shifting toward a hybrid model that uses stores as fulfillment centers, alongside Instacart, DoorDash, and Uber Eats, to reduce last-mile costs and improve delivery speed.
With these moves, The Kroger Co. (NYSE:KR) aims to simplify the organization and shift resources toward customer-facing priorities.
Amid those efforts, the company’s underlying operating resilience remained intact in 2025 despite a pressured consumer environment.
In the third quarter of 2025, identical sales excluding fuel increased 2.6% while adjusted earnings per share of $1.05 exceeded expectations. Meanwhile, in the fourth quarter reported in March 2026, digital sales grew 20%, and adjusted earnings per share of $1.28 came in above expectations.
Looking ahead, under new CEO Greg Foran, The Kroger Co. (NYSE:KR) is sharpening its focus on affordable fresh offerings, sharper everyday pricing, and improved service to drive improvements in traffic, basket size, and the company’s market share.
The following reflects what the company’s newly appointed Chief Executive Officer, Greg Foran, shared regarding the company’s outlook during the March 26, 2026, earnings call:
“The team has done excellent work, particularly over the past year to strengthen the business. And my focus is on how we operationalize our strategy to make us even better. It starts with the top line. We need to grow sales faster. And in my experience, that comes down to giving customers a compelling reason to shop with you by offering great value, great products and a great experience.”
He further added:
“Price is an important part of that equation. Customers need to trust that they’re getting a fair deal every time they walk into our stores. We’ve made progress on price, and I want to keep pushing by pulling unproductive costs out of the business, investing in everyday value, sharpening our promotions and making sure customers see and feel the difference when they shop with us.”
The Kroger Co. (NYSE:KR) is one of the largest U.S. grocery retailers, operating supermarkets, multi-department stores, and convenience stores. It offers food, pharmacy, and household products, emphasizing private-label brands, digital shopping, and customer loyalty programs across its extensive retail network.
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