CINCINNATI, June 27,
2024 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR)
Board of Directors approved a dividend increase from $1.16 to $1.28 per
year. The next quarterly dividend of 32
cents per share will be paid on September 1, 2024, to shareholders of record as
of close of business on August 15,
2024.
Kroger's quarterly dividend has grown at a 13.5% compounded
annual growth rate since it was reinstated in 2006. This marks the
18th consecutive year of dividend increases. The
company continues to expect, subject to board approval, an
increasing dividend over time.
"The dividend increase is a reflection of the Board of
Directors' confidence in the strength of our diverse model," said
Rodney McMullen, Kroger's Chairman
and CEO. "Kroger is delivering consistent operating results and
generating strong free cash flow, which enables us to return value
to shareholders while investing to grow our business."
Capital Allocation Strategy
Kroger's capital allocation strategy is to use its free cash
flow to invest in the business to drive long-term sustainable net
earnings growth while also maintaining its current investment grade
debt rating and returning capital to shareholders. The company
actively balances the use of its free cash flow to achieve these
goals.
About Kroger
At The Kroger Co. (NYSE: KR),
we are dedicated to our Purpose: to Feed the Human Spirit™. We are,
across our family of companies nearly 420,000 associates who serve
over eleven million customers daily through a seamless digital
shopping experience and retail food stores under a variety
of banner names, serving America through food inspiration and
uplift, and creating #ZeroHungerZeroWaste communities by 2025. To
learn more about us, visit our newsroom and investor
relations site.
This press release contains certain statements that constitute
"forward-looking statements" about the future performance of the
company. These statements are based on management's assumptions and
beliefs in light of the information currently available to it. Such
statements are indicated by words or phrases such as "continues,"
"deliver," "expect," "goals," and "strategy." Various
uncertainties and other factors could cause actual results to
differ materially from those contained in the forward-looking
statements. These include the specific risk factors identified in
"Risk Factors" in our annual report on Form 10-K for our last
fiscal year and any subsequent filings, as well as the
following:
Kroger's ability to achieve sales, earnings, incremental FIFO
operating profit, and adjusted free cash flow goals may be affected
by: the risks relating to or arising from our proposed nationwide
opioid litigation settlement, including our ability to finalize and
effectuate the settlement, the scope and coverage of the ultimate
settlement and the expected financial or other impacts that could
result from the settlement; our proposed transaction with
Albertsons, including, among other things, our ability to
consummate the proposed transaction and related divestiture plan,
including on the terms of the merger agreement and divestiture
plan, on the anticipated timeline, with the required regulatory
approvals, and/or resolution of pending litigation challenging the
merger; labor negotiations; potential work stoppages; changes in
the unemployment rate; pressures in the labor market; changes in
government-funded benefit programs; changes in the types and
numbers of businesses that compete with Kroger; pricing and
promotional activities of existing and new competitors, and the
aggressiveness of that competition; Kroger's response to these
actions; the state of the economy, including interest rates, the
inflationary, disinflationary and/or deflationary trends and such
trends in certain commodities, products and/or operating costs; the
geopolitical environment including wars and conflicts; unstable
political situations and social unrest; changes in tariffs; the
effect that fuel costs have on consumer spending; volatility of
fuel margins; manufacturing commodity costs; supply constraints;
diesel fuel costs related to Kroger's logistics operations; trends
in consumer spending; the extent to which Kroger's customers
exercise caution in their purchasing in response to economic
conditions; the uncertainty of economic growth or recession; stock
repurchases; changes in the regulatory environment in which Kroger
operates; Kroger's ability to retain pharmacy sales from third
party payors; consolidation in the healthcare industry, including
pharmacy benefit managers; Kroger's ability to negotiate
modifications to multi-employer pension plans; natural disasters or
adverse weather conditions; the effect of public health crises or
other significant catastrophic events; the potential costs and
risks associated with potential cyber-attacks or data security
breaches; the success of Kroger's future growth plans; the ability
to execute our growth strategy and value creation model, including
continued cost savings, growth of our alternative profit
businesses, and our ability to better serve our customers and to
generate customer loyalty and sustainable growth through our
strategic pillars of fresh, our brands, personalization, and
seamless; and the successful integration of merged companies and
new partnerships. Our ability to achieve these goals may also be
affected by our ability to manage the factors identified above. Our
ability to execute our financial strategy may be affected by our
ability to generate cash flow.
Kroger assumes no obligation to update the information contained
herein unless required by applicable law. Please refer to Kroger's
reports and filings with the Securities and Exchange Commission for
a further discussion of these risks and uncertainties.
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SOURCE The Kroger Co.