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    Kroger (KR): Assessing Valuation as DoorDash Partnership Expands Nationwide Delivery and Digital Reach

    Simply Wall St·10/03/2025 08:50:26
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    Kroger (KR) and DoorDash have deepened their relationship by rolling out nationwide delivery of Kroger’s full grocery selection through nearly 2,700 stores on DoorDash’s platform. With this move, Kroger becomes the largest grocer featured on the app. This positions the company to capture more digital shoppers and open new advertising opportunities amid growing competition in grocery delivery.

    See our latest analysis for Kroger.

    Kroger’s expanded partnership with DoorDash follows recent product launches and a consistent approach to shareholder returns, including dividends and share repurchases. The one-year total shareholder return is 21.7%, reflecting steady momentum over the long term, even though short-term share price movements have been relatively muted.

    If you’re curious about what else is gaining traction in retail, now is a good time to broaden your search and discover fast growing stocks with high insider ownership

    With Kroger’s stock trading below analyst price targets and benefiting from robust recent performance, the question for investors is clear: Is there still value left to uncover, or has the market already priced in the next stage of growth?

    Most Popular Narrative: 12.4% Undervalued

    With Kroger’s latest close at $66.36 and a most-followed fair value estimate at $75.73, the narrative signals meaningful upside versus today’s price. The following insight from the widely watched narrative captures a major growth catalyst at play.

    Kroger's continued focus on fresh and health-oriented offerings, including expansion of its Simple Truth and Private Selection lines (with 80 new protein products targeting current consumer trends), positions it to benefit from heightened consumer emphasis on health and premiumization. This supports larger basket sizes, higher gross margins, and improved earnings quality over time.

    Read the complete narrative.

    Why does this narrative see so much hidden value? The answer lies in a bold growth formula of margin improvement, future profit expansion, and a projected market multiple that is hard to ignore. Unpack the specific numbers and assumptions driving this valuation to understand what could really propel Kroger shares forward.

    Result: Fair Value of $75.73 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent e-commerce losses and ongoing labor cost pressures could challenge Kroger’s margin growth and put its optimistic projections at risk.

    Find out about the key risks to this Kroger narrative.

    Build Your Own Kroger Narrative

    As always, if this perspective isn’t quite your own or you’d rather dig into the details yourself, you can quickly generate your own take in just a few minutes with Do it your way.

    A great starting point for your Kroger research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.