Kroger Expands Share Repurchase Program with $2 Billion Authorization

Kroger Expands Share Repurchase Program with New Authorization

In a continued effort to bolster shareholder confidence and showcase its robust growth trajectory, Kroger Co. (NYSE: KR) has announced an additional $2.0 billion share repurchase authorization. This decision was formally approved by the company’s Board of Directors and comes on the heels of a previously announced $7.5 billion repurchase program in December 2024. With this new authorization, Kroger now holds approximately $2.9 billion under its share repurchase plans as of December 23, 2025.

Confidence in the Future

Ron Sargent, Kroger’s Chairman and CEO, emphasized the significance of this additional authorization, noting it reflects the Board’s solid belief in Kroger’s sustained growth potential and strong balance sheet. Sargent stated, “Kroger continues to generate durable free cash flow and remains committed to disciplined capital allocation – investing in opportunities that strengthen our business and returning capital in a way that maximizes long-term value for shareholders.” This sentiment highlights the retailer's focus on combining growth investments with returns to shareholders, reinforcing its position in the competitive retail landscape.

Kroger has consistently demonstrated its dedication to returning capital to its shareholders over the past several years. Since 2015, around 35% of its outstanding shares have been repurchased, showcasing a strong commitment to providing value to its investors.

Funding the Buybacks

Kroger plans to finance these share repurchases primarily through cash generated from its operations along with its existing liquidity. Maintaining an investment-grade credit rating remains a priority for the company, ensuring that its financial health is reinforced as it engages in capital allocation strategies. The authorization allows Kroger to repurchase its outstanding common shares through various methods, including open market purchases and accelerated share repurchase arrangements, all in accordance with SEC regulations.

The timing of these buybacks will be influenced by a host of factors, such as market conditions, business developments, and overall economic circumstances. It's worth noting that while the company is committed to this repurchase program, repurchases can be suspended or discontinued based on its operational needs.

Strategic Focus Ahead

Kroger is optimistic about the future, expecting continued strong free cash flow generation and a commitment to investing in its operations to foster long-term sustainable net earnings growth. Furthermore, the company plans to maintain and gradually increase its quarterly dividend, contingent upon Board approval. This balanced approach to managing its capital structure aligns with Kroger’s financial strategy and underscores its ultimate goal of maximizing value for shareholders.

The company operates through a large network comprising over 400,000 associates and is dedicated to serving more than 11 million customers each day. With a variety of eCommerce and store experiences across its numerous banners, Kroger remains dedicated to creating a positive impact in the communities it serves through initiatives like #ZeroHungerZeroWaste.

Conclusion

Kroger’s proactive measures in expanding its share repurchase program emphasize its intent to reward shareholders while simultaneously investing in future growth. As it navigates through a competitive retail environment, its strategic focus on capital allocation and operational efficiency will be critical to maintaining its market position and achieving sustainable growth over the long term. The future looks promising for Kroger as it continues to engage with its community and stakeholders effectively.