CINCINNATI - The Kroger Co . (NYSE: NYSE:KR) announced today that its Boost by Kroger Plus membership program will now offer Disney streaming services as an added benefit. Members can choose from Disney+ Basic (With Ads), Hulu (With Ads), or ESPN+ as part of their annual subscription at no extra cost.
This enhancement to the Boost program aims to provide greater value for Kroger Plus members. According to Stuart Aitken, Kroger's senior vice president and chief merchant and marketing officer, the collaboration with Disney elevates the savings and benefits for members, enriching the company's industry-leading loyalty program.
Boost members have the option to select a complimentary subscription to one of the three streaming services for the duration of their membership. The $99 annual membership includes an ongoing subscription, while the $59 annual membership offers a one-time six-month subscription, with the option for these members to upgrade for a continuous service.
In addition to streaming benefits, Boost members can save on fuel and groceries, with the potential to save up to $1,000 annually. The program also offers free delivery on orders over $35, with membership tiers providing next-day or two-hour delivery options. Furthermore, members earn double fuel points on purchases and have access to exclusive monthly offers and free virtual appointments with Kroger Health nutrition experts.
The Kroger Family of Companies Rewards World Elite Mastercard (NYSE:MA)® cardmembers can also take advantage of a free one-year Boost membership or a complimentary one-year extension for current members.
Kroger underlines that the Boost program savings are based on specific shopping and fuel consumption patterns, and restrictions apply to certain benefits like fuel points earning and redemption.
The inclusion of Disney streaming options with the Boost membership reflects Kroger's commitment to enhancing its customer loyalty program and providing a diversified range of benefits. This information is based on a press release statement from The Kroger Co.
In other recent news, The Kroger Co. has finalized the sale of its specialty pharmacy business to Elevance Health, with the transaction not expected to affect its financial guidance for 2024. The grocery giant also reported a modest increase in its second-quarter earnings for 2024, including a 1.2% rise in identical sales excluding fuel, an 11% boost in digital sales, and a 17% growth in delivery solutions. Despite a 3% decrease, adjusted earnings per share (EPS) were at $0.93.
The company's merger with Albertsons (NYSE:ACI) continues to progress, backed by a $10.5 billion senior unsecured notes offering. Analysts from Roth/MKM and BMO Capital have shared their views on Kroger's performance, with Roth/MKM maintaining a Neutral rating on Kroger shares, and BMO Capital reaffirming an Outperform rating.
Further, Kroger declared a quarterly dividend of 32 cents per share, indicating an expectation for the dividend to continue to grow over time. These are the recent developments in Kroger's operations and performance.
InvestingPro Insights
Kroger's strategic move to enhance its Boost membership program with Disney streaming services aligns well with its position as a prominent player in the Consumer Staples Distribution & Retail industry, as highlighted by InvestingPro Tips. This initiative could potentially boost customer retention and attract new members, contributing to the company's solid financial performance.
According to InvestingPro data, Kroger's revenue for the last twelve months stands at an impressive $150.2 billion, with a gross profit of $34.79 billion. The company's focus on providing value to customers through its loyalty program is reflected in its strong financial metrics, including a P/E ratio of 14.53, which suggests the stock may be reasonably priced relative to its earnings.
InvestingPro Tips also reveal that Kroger has raised its dividend for 19 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend growth, coupled with the current dividend yield of 2.29%, may appeal to income-focused investors.
It's worth noting that Kroger's stock has shown robust performance, with a one-year price total return of 31.96% as of the latest data. This strong return aligns with another InvestingPro Tip highlighting Kroger's strong return over the last five years.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 10 more InvestingPro Tips available for Kroger, providing a deeper understanding of the company's financial health and market position.
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