Why did Kroger stock jump today?

Scott Olson/Getty Images News

• Kroger (NYSE:KR) is up 11.45% and trades at its highest level since early September after boosting its full-year sales forecast on strong demand.
• There was not much of post-vaccine letdown in grocery demand based on the sales tally. "We believe the food at home change is structural and not temporary, with most people consuming meals at home and grocery stores continuing to capture the majority share of stomach," noted Kroger CEO Rodney McMullen.
• The impact of labor and commodity inflation on Kroger's (KR) margin line was not quite as bad as feared.
• Dig onto Kroger's earnings call transcript for more details.

Comments

[RickyC]

The reason the stock increased so dramatically today is because the earnings report/webcast knocked the socks off expectations.

Seeking Alpha provides transcripts of quarterly webcasts. I always scroll down to the CFO reports. Then, I focus on the analysts questions.

Some incredibly smart analysts follow this company.

[Fobe]

It appears some people have found the joy of cooking and the reduced expenses compared to dining out. Some of this will stick and some are still not comfortable in restaurants with Covid still a threat.

[Just Some Guy]

Nice, but not entirely convincing. Need a few days of follow-up. At least a bit more info from the earnings call.

[thirdcamper]

The majority share of stomach.