10 Best Food Stocks to Buy According to Billionaires

2. The Kroger Co. (NYSE:KR)

Total Number of Billionaires: 14 

Dollar Value of Billionaire Holdings: $4,457,191,128 

The Kroger Co. (NYSE:KR) is a major U.S. grocery retailer with 2,750 stores under banners like Kroger and Fred Meyer. It offers groceries, pharmacy products, fuel, and private-label goods such as Simple Truth. The company earns revenue mainly through retail sales, with additional income from pharmacy services, fuel, e-commerce, and advertising partnerships.

The Kroger Co. (NYSE:KR)’s Q4 2024 earnings call, held on March 6, 2025, highlighted steady growth and strategic progress across key areas of its business. Its Identical sales without fuel rose by 2.4%, which reflected strong momentum in grocery, pharmacy, and digital sales. This performance was supported by the business’s customer-focused approach, which emphasizes fresh, high-quality products and personalized promotions.

The company’s gross margin improved by 54 basis points, which was driven by the sale of Kroger Specialty Pharmacy and reduced inventory shrink. At the same time, digital sales remained a strong contributor to overall performance, with continued investments in automation and technology aimed at improving profitability in this channel.

The Kroger Co. (NYSE:KR)’s alternative profit businesses also played a key role in boosting margins, with media revenue growing 17% year-over-year (excluding the extra week in 2023). The company’s strategy to expand into health and wellness and media continues to deliver high-margin gains, supporting overall earnings stability. Adjusted EPS stood at $1.14, flat compared to the previous year when excluding the 53rd week.

On the profitability front, the corporation’s improved gross margin and strong performance from its private-label “Our Brands” offset rising operating expenses. These expenses were influenced by incentive plans, wage investments, and the Specialty Pharmacy divestiture.

Looking ahead, a notable development is The Kroger Co. (NYSE:KR)’s new agreement with Express Scripts, which grants ESI customers access to medications and health services at KR pharmacies. Though not yet factored into guidance, this deal could strengthen the company’s position in the growing health and wellness segment.