Kroger Sets 11% Annual Earnings Growth Target Under New Three-Year Plan

Kroger set a target for up to 11% annual earnings growth under a new three-year plan on Tuesday, giving equity investors a longer earnings framework for the US grocer. Reaction pending.

The company said the plan targets 3% to 6% annual adjusted EBITDA growth, referring to earnings before interest, taxes, depreciation and amortization. That measure is commonly used to compare operating profitability before financing and accounting costs.

Kroger's 2029 targets

Kroger also set a target for about 3% comparable-sales growth in 2029, excluding Giant Eagle. Comparable sales track revenue from stores and digital channels on a like-for-like basis, making the figure a gauge of underlying demand rather than growth from new locations or acquisitions.

For Kroger, the plan gives investors three variables to test: sales growth, profit expansion and the path from EBITDA to earnings. If comparable sales hold near the 2029 target and margins improve, the company’s earnings growth goal becomes easier to defend. If food inflation slows or price competition cuts into margins, the EBITDA range becomes the pressure point.

For the wider grocery sector, the plan sets another benchmark for companies competing on price, loyalty programs and store productivity. The dated marker is 2029, when investors can compare Kroger’s reported comparable-sales performance with the company’s about 3% target.