The Kroger Co. (KR)

Analyst Report: Kroger Co.Kroger, based in Cincinnati, operated about 2,700 retail supermarkets and multidepartment stores in 35 states at the end of FY22. We estimate that these stores generated over 90% of the company's $138 billion in sales in FY22. KR also operated 137 fine jewelry stores, 1,600 supermarket fuel centers, and 33 food processing plants in the U.S. These plants make about 31% of KR's private-brand units. The company's name plates include Kroger, Ralphs, Fred Meyer, Food 4 Less, King Scoopers, Smith's, Fry's, Dillon's, City Market and Harris Teeter. Some 15% of the supermarkets are in California, 9% are in Ohio and 8% are in Texas. Wal-Mart and Sam's Club are primary competitors in most major markets. KR has pharmacies in about 82% of its food stores. The company has 179 million square feet of supermarket space. KR completed the sale of 782 convenience stores in the first quarter of FY19. Non-Perishables represented 50% of FY22 sales, Fresh foods were 25%, Supermarket Fuel 11%, Pharmacy 9% and Other 5%. The company's fiscal year ends on the Saturday closest to January 31. Kroger's fiscal first quarter is 16 weeks. The second, third and fourth quarters are each 12 weeks.