Kroger Co Analysis
Fares Kamal
Sep. 4, 13
Dr. Justin Matus Company Analysis: Kroger Co. One of the world largest retailers, with over 2400 stores that operate in 31 states is Kroger Co. The retailer supermarket chain started in 1883, when Barney Kroger made an investment of $372 and opened a grocery shop in Cincinnati. The basic motto that Kroger ran his business with was “be particular. Never sell anything you would not want yourself”(Stevenson). Barney Kroger recognized the need to produce his own goods and manufacture his own products for cost saving and more profit. In early 1900’s, Kroger stores used to buy bread from independent bakeries. In 1901, Kroger baked it’s own bread and reduced the price for his costumers and still profited. Kroger was the first grocer that has its bakeries (Stevenson). The need to make its own product was recognized when Kroger bought cabbage more than what the costumer was expected to buy. Kroger brought the cabbage to his mother “who, following her favorite recipe, turned it into tangy sauerkraut that proved hugely popular with his German customers.” Today, Kroger operate 37 food processing facilities that produce and make thousands of products “ ranging from bread, cookies and milk to soda pop, ice cream and peanut butter” (Stevenson). The company biggest merger was in 1999, when the company aligned with Fred Meyer, Inc. With a $13 billion “deal that created a supermarket chain with the broadest geographic coverage and widest variety of formats in the food retailing industry.” Barney Kroger, by a simple motto, had made his business expand and made it one of the top companies in America (Stevenson). The current ratio of the company is decreasing where it was 96% in 2010. In 2011 was at 94%, and 2012 at 80%. Now it’s 72% in 2013. It shows that that company is having more liabilities than assets every year. The stock price is at $36.82, and the range within 52 weeks is $22.05 - $39.98. Revenue is increasing on an average of $7
Sep. 4, 13
Dr. Justin Matus Company Analysis: Kroger Co. One of the world largest retailers, with over 2400 stores that operate in 31 states is Kroger Co. The retailer supermarket chain started in 1883, when Barney Kroger made an investment of $372 and opened a grocery shop in Cincinnati. The basic motto that Kroger ran his business with was “be particular. Never sell anything you would not want yourself”(Stevenson). Barney Kroger recognized the need to produce his own goods and manufacture his own products for cost saving and more profit. In early 1900’s, Kroger stores used to buy bread from independent bakeries. In 1901, Kroger baked it’s own bread and reduced the price for his costumers and still profited. Kroger was the first grocer that has its bakeries (Stevenson). The need to make its own product was recognized when Kroger bought cabbage more than what the costumer was expected to buy. Kroger brought the cabbage to his mother “who, following her favorite recipe, turned it into tangy sauerkraut that proved hugely popular with his German customers.” Today, Kroger operate 37 food processing facilities that produce and make thousands of products “ ranging from bread, cookies and milk to soda pop, ice cream and peanut butter” (Stevenson). The company biggest merger was in 1999, when the company aligned with Fred Meyer, Inc. With a $13 billion “deal that created a supermarket chain with the broadest geographic coverage and widest variety of formats in the food retailing industry.” Barney Kroger, by a simple motto, had made his business expand and made it one of the top companies in America (Stevenson). The current ratio of the company is decreasing where it was 96% in 2010. In 2011 was at 94%, and 2012 at 80%. Now it’s 72% in 2013. It shows that that company is having more liabilities than assets every year. The stock price is at $36.82, and the range within 52 weeks is $22.05 - $39.98. Revenue is increasing on an average of $7