Kroger Co, NYSE: KR, announced its fourth-quarter results on Thursday morning, and management is confident enough to believe the latest trend will continue into 2021 and make the outlook bullish.
Trust Guidelines: Kroger forecasts same-store sales to grow 9.1% to 11.1% every two years by 2021, while earnings per share are projected to grow 12% to 16% every two years.
Management believes the latest trends in families could continue into 2021 and beyond, and has found that nearly 60% of Kroger’s customers refer to their most important activity day as family dinners, McMullen said. Kroger customers have come to appreciate its products and have expressed their willingness to spend more on advanced products.
Inflation expectations: Kroger predicts that food inflation will remain within the “perfectly normal” range of 1% to 2% by 2021. Despite the rise in meat prices in the second quarter of last year, however, the development trajectory remains “very bumpy”.
Resolve the store closure dispute: In February, City Council ordered a $ 4 wage increase for groceries, Kroger closed several West Coast stores and made headlines.
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The CEO said that even before the pandemic and the supermarket sector operating with “very meager” profit margins, closed stores were still “struggling”.
At the same time, he said the median hourly wage for Kroger workers was over $ 15.50 an hour, while pensions and other benefits increased by another $ 5 an hour.