Kroger Co. (NYSE: KR) has remained a reliable defensive play in the grocery sector. The stock now trades near $66/share, up about 13% over the past year as investors leaned on its stability. Consistent demand, efficiency gains, and shareholder returns have supported the climb. But with growth slowing and competition intensifying, analysts remain cautious about what comes next.
Recently, Kroger has also made moves to expand its reach and services. In October 2025, the company broadened its partnership with DoorDash, giving customers faster access to groceries from nearly 2,700 stores. It also expanded a tie-up with GoodRx to offer discounted branded prescriptions at more than 2,200 pharmacies, a push that highlights Kroger’s effort to grow beyond traditional food retail. For investors, these partnerships show Kroger is finding new ways to stay relevant and create incremental growth opportunities.
This article explores where Wall Street analysts think Kroger could trade by 2028. We review consensus targets, growth forecasts, and valuation models to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Limited Upside
Kroger trades at about $66/share today. The average analyst price target is $76/share, which points to roughly 15% upside. Forecasts show a relatively narrow spread compared to more volatile stocks:
- High estimate: ~$85/share
- Low estimate: ~$65/share
- Median target: ~$76/share
- Ratings: 11 Buys, 3 Outperforms, 14 Holds, 1 Underperform, 1 Sell
It looks like analysts see modest room for gains, but conviction is not strong. The takeaway is that expectations are already conservative, and Kroger may need stronger growth or cost improvements to break meaningfully above the mid-$70s.
For investors, the potential 15% upside looks reasonable for a defensive stock, but it may not be enough to drive excitement when compared with higher-growth names in other industries.
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Kroger: Growth Outlook and Valuation
The company’s fundamentals point to a slow but steady path forward:
- Revenue is projected to grow ~2% annually through 2028
- Operating margins expected to remain near 3.2%
- Shares trade at ~14x forward earnings, close to the 5-year average of ~13x
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 11.9x forward P/E suggests ~$73/share by 2028
- That implies ~9.5% upside, or about 4% annualized returns
These figures suggest Kroger can continue to deliver consistent performance, but not much beyond that. The valuation looks fair relative to its modest growth profile, which means the stock is priced for dependability rather than breakout potential.
For investors, Kroger fits best as a stable dividend and income play, not a high-return growth story.
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What’s Driving the Optimism?
Kroger’s scale and efficiency help it compete in a challenging industry. Its private-label brands drive customer loyalty and support profitability, while digital sales and delivery growth add steady momentum. The company also rewards shareholders with buybacks and dividends, reinforcing its dependable profile.
For investors, the bull case is that Kroger does not need fast growth to keep delivering steady returns. Its ability to maintain efficiency and shareholder payouts makes it appealing for those seeking stability.
Bear Case: Valuation and Competition
At the same time, competition remains intense. Walmart, Costco, and Amazon continue to pressure pricing and convenience, making it difficult for Kroger to widen margins. Rising labor and supply chain costs add further strain.
The risk for investors is that Kroger’s limited growth profile leaves little cushion if results disappoint. In that scenario, the stock could remain stuck in the mid-$70s, providing stability but not much upside.
Outlook for 2028: What Could Kroger Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 11.9x forward P/E suggests Kroger could trade near $73/share by 2028. That represents about 9 to 10% total upside from today’s level, or ~4% annualized returns.
This outlook assumes revenue grows slowly and margins hold steady. To deliver stronger upside, Kroger would need faster growth in digital channels, more margin expansion, or larger shareholder returns.
For investors, Kroger looks like a dependable long-term holding that prioritizes income and stability. But in terms of growth, the upside is capped, making it more of a steady compounder than an exciting opportunity.
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