Kroger’s DoorDash Expansion and Go Raw Rollout Could Be a Game Changer for KR

• In recent days, Kroger expanded its partnership with DoorDash to offer delivery from all 2,700 U.S. locations, while reporting robust quarterly results including a 3.4% rise in identical sales without fuel and strong eCommerce growth.
• Go Raw, a natural snack brand, announced it has broadened its presence at more than 7,000 stores nationwide through nine new partners, with Kroger among the retailers now carrying its products.
• We will examine how Kroger’s expanded DoorDash delivery partnership reflects its ongoing digital transformation and evolving market position.

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Kroger Investment Narrative Recap

To be a Kroger shareholder, you need to believe in its ability to scale digital initiatives, tap e-commerce growth, and keep margins resilient in a competitive, cost-sensitive market. The recent multi-state salad recall due to possible Listeria contamination appears contained, with no reported illnesses, and is unlikely to materially change the main short-term catalyst, advancing digital profitability, nor does it significantly amplify existing risks around cost controls and competition.

The most relevant recent announcement is Kroger’s expanded partnership with DoorDash, unlocking delivery from all U.S. stores. While this supports digital sales momentum, Kroger’s key growth driver at present, successful execution is still essential to offset rising labor and operating costs, which remain the most pressing risks as the retailer invests heavily in transformation.

By contrast, while digital growth accelerates, the e-commerce segment’s path to profitability is a factor investors should be aware of …

Read the full narrative on Kroger (it's free!)

Kroger's outlook anticipates $158.1 billion in revenue and $3.3 billion in earnings by 2028. This is based on a projected 2.5% annual revenue growth and a $0.7 billion increase in earnings from $2.6 billion today.

Uncover how Kroger's forecasts yield a $75.73 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Three independent fair value estimates from the Simply Wall St Community range from US$75.73 to US$86.82 per share. Many market participants are optimistic about e-commerce gains but remind you these investments could pressure near-term margins, so explore different scenarios before acting.

Explore 3 other fair value estimates on Kroger - why the stock might be worth as much as 30% more than the current price!

Build Your Own Kroger Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kroger research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Kroger research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kroger's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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