One of the biggest grocery store chains in the country, Kroger Co. Registered highest growth in last two year period. The company also reported more profits than estimated by analysts.
According to the statement release by Cincinnati-based company Net income saw the growth of 23 percent to $512 million, which means $1.08 a share compared to $422 million last year.
As per the projections by analysts, the company was projected to earn 90 cents a share on an average. Chief Executive officer Rodney McMullen, who was appointed last year, has started integrating the acquisition of Harris Teeter, another American supermarket chain, The recent increase in spending at retail stores by Americans has benefited the Kroger Co and they have successfully managed to snatch the profit from the rivals.
In order to serve the growing demands of the market, the company has hired more workforces. According to the estimates by Kroger, the firm has contributed 25,000 jobs last year in the United States workforce.
On being asked about the future of the company, Chief Financial Officer Mike Schotman said,” Our strong business core will take us ahead in 2015, as per the expectations. We believe in undying focus on the customer and I think that will continue to deliver performance to us in future,”
Shares of Kroger rose 6.7 percent on Thursday at the New York Stock Exchange. It closed at $74.31, gain of $4.66, biggest since June 2010. 8.5 percent was added to stock this year through Wednesday’s close.
Last month, Wal-Mart Stores Inc. declared that company would raise wages of around 500,000 workers. This development will increase wages by $9 per hour and $10 per hour by next February. Other bigger players, including Kroger are also expected to join this club. However Kroger official didn’t confirm increase in wage.
Over 2,600 supermarkets are managed by Kroger in 34 states today. Kroger has a total workforce of 400,000 employees to operate these supermarkets along with convenience stores and food-processing plants.