10 Cheap Food Stocks to Buy According to Hedge Funds

3. The Kroger Co. (NYSE:KR)

Forward P/E: 14.71

Number of Hedge Fund Holders: 60

The Kroger Co. (NYSE:KR) is a food and drug retailer that operates supermarkets, fulfillment centers, and multi-department stores, offering a range of food items. Its brand portfolio includes Smart Way, Big K, Heritage Farm, Simple Truth Organic, and Simple Truth. The company operates approximately 2,722 supermarkets, 2,257 pharmacies, and 1,665 fuel centers in 35 US states and the District of Columbia.

The Kroger Co. (NYSE:KR) has various plans to improve its standing. It is focusing on enhancing customer loyalty, expanding its digital footprint, and, engaging in competitive pricing to drive sales and strengthen profit margins. The company’s performance reflects that it can remain profitable under various market circumstances.

The company has an established digital presence that it has attained by investing in automation, creating distribution channels in delivery and pickup, building out its own properties, and enhancing personalization over nearly a decade. The Kroger Co. (NYSE:KR) is benefiting from this presence, as its digital sales increased by 11% in the fiscal Q3 2024. Delivery sales were up by 18%, primarily driven by customer fulfillment centers. Overall, the company has raised its payouts for 18 consecutive years and supports a dividend yield of 1.96% as of February 10. It ranks third on our list of the 10 best cheap food stocks to buy now.