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Call me sentimental, but there are many things I miss about my old stomping grounds of Cincinnati, Ohio. The trendy but well-run restaurants lining the Hyde Park neighborhood. Joseph-Beth, the best bookstore I've ever entered. Certain karaoke bars. Cincinnati chili, of course.
And Kroger. Yes, Kroger Co. (NYSE: KR), headquartered in the Queen City, is the top grocery chain in the country, but has no locations in Chicago. I miss its store-brand crackers, its salad bar, and occasionally, even its commercials.
And maybe I'm not alone in my loyalty to the brand. This morning, Kroger announced fourth-quarter earnings per share of 53 cents, a jump of a nickel per share from year-ago results. Total sales inched higher to $17.3 billion from $17.2 billion. Analysts were expecting per-share results of 52 cents, with a "whisper number" right on target at 53 cents per share.
CEO David B. Dillon said in a statement that the results were helped by "lower prices, led by our high-quality Kroger brands." In fact, about 27% of all fourth-quarter grocery revenue came from store-brand sales.
Forecasting its results for the current fiscal year, Kroger expects same-store sales (excluding fuel) to rise 3% to 4%, amounting to per-share earnings of $2.00 to $2.05 for the year.
Kroger shares are stronger today, shooting more than 8% higher out of the gate. The stock, despite its earnings stability, could use a little momentum. The shares have been drifting lower for all of 2009 -- losing about 20% -- and are hovering near a two-year low.
Beth Gaston Moon works for WeSeed.com, "The stock market for the rest of us." The above comments are not intended as trading or investment advice.
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