Anders Myhre's questions to Kroger Co (KR) leadership • Q2 2024
Question
Anders Myhre, on for John Heinbockel, asked if P&L benefits from cost cuts, media growth, and lower digital losses would increase, and how much would be reinvested versus flowing to the bottom line.
Answer
Interim CFO Todd Foley confirmed these initiatives fund reinvestments that support slight operating margin expansion over time. CEO Rodney McMullen reiterated the 8-11% long-term TSR model, which assumes these gains are used to invest in wages and prices, with business growth, not just buybacks, driving future returns.