In the recent annual meeting, Kroger (NYSE:KR) Co. shareholders voted on several key issues, including the election of directors and shareholder proposals. The meeting, held on June 27, 2024, saw the re-election of eleven directors to serve until the next annual meeting in 2025. Notably, the shareholders approved the company’s executive compensation on an advisory basis and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year 2024.
However, four shareholder proposals did not pass. These included a report on the public health costs from the sale of tobacco products, a listing of charitable contributions of $10,000 or more, the adoption of a living wage policy, and a just transition report. The proposals concerning public health costs from tobacco sales and a just transition report received notably higher support but still fell short of the majority.
The detailed voting results for the director elections revealed varying levels of support, with Karen M. Hoguet receiving the highest number of affirmative votes and Clyde R. Moore receiving the lowest. The votes against ranged from approximately 6 million to over 51 million, with broker non-votes consistently around 63 million for each director.
The advisory vote on executive compensation passed with over 518 million votes in favor, while the ratification of the independent auditor saw a strong endorsement with over 566 million votes for the appointment. The shareholder proposals, despite being rejected, did see a range of support, from around 33 million to 98 million votes in favor.
All decisions made at the annual meeting are based on the information provided in the company's SEC filing. The Kroger Co ., headquartered in Cincinnati, Ohio, is listed on the New York Stock Exchange under the ticker symbol NYSE:KR. The company, classified under the retail-grocery stores industry, is incorporated in Ohio and ends its fiscal year on February 1. The election results and the dismissal of the shareholder proposals will guide the company's governance and policies for the following year.
"In other recent news, Kroger Co. has announced an increase in its quarterly dividend to 32 cents per share, marking the 18th consecutive year of dividend growth. The increase reflects the Board's confidence in the company's business model and its ability to generate strong free cash flow. In their recent quarterly results, Kroger reported a modest growth with identical sales up by 0.5% and digital sales increasing by over 8%. The company's delivery solutions have expanded by 17%, contributing to an adjusted FIFO operating profit of $1.499 billion. Despite a slight decline in adjusted EPS, Kroger maintains a strong financial position with a net debt to adjusted EBITDA ratio of 1.25. "
InvestingPro Insights
The recent Kroger Co. annual meeting provided insights into the company's governance and shareholder sentiment. Complementing this, InvestingPro data and tips offer a financial perspective on the company's performance and outlook. With a market capitalization of $35.74 billion and a P/E ratio of 16.56, Kroger stands as a significant player in the retail sector. Notably, the company's revenue over the last twelve months as of Q1 2025 reached $150.14 billion, with a modest growth rate of 0.89%. This steady revenue stream underlines Kroger's stability in a competitive industry.
From an investment standpoint, Kroger's financial health appears robust, holding more cash than debt on its balance sheet, which is a reassuring sign for investors. Additionally, the company has demonstrated a commitment to returning value to shareholders, having raised its dividend for 18 consecutive years and maintaining those payments for 19 consecutive years. This consistency is further reflected in the dividend yield of 2.35% as of mid-2024, coupled with a notable dividend growth rate of 11.54% over the last twelve months as of Q1 2025.
For those considering adding Kroger to their portfolio, InvestingPro offers further analysis and tips, including the fact that the stock's Relative Strength Index (RSI) suggests it is currently in oversold territory. This could indicate a potential buying opportunity for investors. Moreover, while 14 analysts have revised their earnings expectations downwards for the upcoming period, the company is still predicted to be profitable this year and has shown a strong return over the last five years. For a deeper dive into Kroger's financials and more exclusive tips, including 9 other InvestingPro Tips, visit https://www.investing.com/pro/KR. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, adding even more value to your investment research.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.