Kroger Co (NYSE:KR, XETRA:KOG) shares added more than 6% on Monday morning following the grocery chain's announcement that Greg Foran has been named as its new CEO.
Foran succeeds Ron Sargent, who had served as interim CEO since March 2025, and will also join Kroger’s Board of Directors.
Foran brings more than 40 years of experience leading complex consumer businesses through periods of growth and digital transformation, according to Kroger.
He spent six years leading Walmart US, overseeing a turnaround of the company’s largest division, driving 20 consecutive quarters of positive comparable sales growth, and managing over 4,600 stores and one million associates. Most recently, he served as CEO of Air New Zealand, guiding the airline through digital transformation, operational challenges, and union negotiations during the pandemic.
“Greg is a highly respected operator who knows how to run large-scale retail businesses, strengthen store execution, and lead high-performing teams,” Sargent said. “His leadership style, focus on the customer, commitment to associates, and disciplined approach to execution are the perfect fit for Kroger.”
Foran described Kroger as “one of the most dynamic companies in retail.” “The company is built on a strong foundation, supported by a talented leadership team, and caring associates who are dedicated to the customers and communities they serve,” he said. “At this moment in Kroger's journey, I can honestly say this is the best job on the planet.”
Additionally, the company reaffirmed its previously issued fiscal year 2025 guidance.
Jefferies analysts view Foran’s appointment favorably, reaffirming their ‘Buy’ rating and $80 price target, implying upside from levels of $67.50 at their time of writing.
“Given his operational track record, we view the appointment favorably, as KR enters a transitional period, reshaping its e‑comm strategy and stepping up value investments as it competes notably with Mr. Foran’s former employer,” the analysts wrote.
They highlighted Foran’s previous success at Walmart US, where he led a turnaround and accelerated digital initiatives, as a positive indicator for Kroger as it navigates e-commerce strategy shifts following the closure of three Ocado facilities. The analysts added that these exits are expected to contribute roughly $400 million to operating profit, with much of that earmarked for reinvestment, giving Foran flexibility to pursue his strategic agenda.
At the same time, Jefferies cautioned that Kroger faces broader headwinds, including pressures on lower- and middle-income consumers, GLP‑1–related volume changes, SNAP eligibility updates, and shifting shopping channels. Even so, they said, “KR should have sufficient cash flow to support meaningful near- to medium-term investment, creating an opportunity to accelerate Mr. Foran’s strategic agenda and set up KR to be a stronger competitor moving forward.”