CINCINNATI – The Kroger Co.'s board of directors approved an incremental $2.0 billion share repurchase authorization, in addition to the $7.5 billion share repurchase authorization announced in December 2024. With the addition of this $2.0 billion authorization, Kroger has approximately $2.9 billion available under its share repurchase authorizations as of December 23, 2025.
"This additional authorization reflects the Board's confidence in Kroger's strong growth outlook and balance sheet," said Ron Sargent, Kroger's chairman and CEO. "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."
Kroger expects to fund share repurchases with cash generated from operations and existing liquidity and remains committed to maintaining its investment-grade credit rating. Since 2015, Kroger has repurchased approximately 35% of its outstanding shares, demonstrating a consistent focus on returning capital to shareholders.
Under the share repurchase authorizations, Kroger may repurchase its outstanding common shares from time to time in open market or privately negotiated transactions, including accelerated share repurchase transactions, block trades, or pursuant to trading plans intended to comply with SEC Rule 10b5-1. The share repurchase authorizations have no expiration date. The timing of repurchases will depend upon several factors, including market and business conditions, and repurchases may be suspended or discontinued at any time.
Capital Allocation Strategy
Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. Kroger expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval. Kroger plans to manage its capital structure towards its target leverage ratio over time, consistent with its disciplined financial strategy and capital allocation priorities.
