Albertsons (NYSE: ACI) and Kroger (NYSE: KR) both reported positive fiscal 2025 sales growth, but the figures available here do not establish which stock is cheaper or the better buy. Compare them as standalone grocers: align their fiscal periods and earnings measures, test sales and digital growth for quality, and then use current prices and full-year filings to assess cash flow, obligations, and valuation. Their proposed merger is not part of the base case: Albertsons terminated the agreement in December 2024.
What do the latest fiscal 2025 results show?
Both retailers reported positive comparable-sales growth excluding fuel, though their fiscal periods are not identical. Albertsons’ fiscal 2025 comprised 53 weeks and ended February 28, 2026. Kroger published its fiscal 2025 results on March 5, 2026; its fiscal year ended January 31, 2026. The figures below are company-reported. Adjusted measures are defined by each company and should not be treated as interchangeable.
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| Measure | Albertsons | Kroger | How to read it |
|---|---|---|---|
| Identical sales growth excluding fuel | 2.0% for fiscal 2025 (Albertsons Form 10-K for the year ended February 28, 2026) | 2.9% for fiscal 2025 (Kroger fiscal 2025 results, released March 5, 2026) | Both grew on this measure. The difference alone does not establish stronger underlying performance; check traffic, price and mix, market share, and fiscal-week effects. |
| Digital or eCommerce sales growth | 21% digital sales growth (Albertsons Form 10-K for fiscal 2025) | 20% adjusted eCommerce sales growth; Kroger’s measure excludes fulfillment-center exits, Vitacost, and Ship Marketplace (Kroger fiscal 2025 results) | The labels and exclusions differ, so these are not a clean like-for-like ranking. |
| Adjusted earnings disclosure | $1.209 billion adjusted net income (Albertsons Form 10-K for fiscal 2025) | $4.85 adjusted EPS and $4.9 billion adjusted FIFO operating profit (Kroger fiscal 2025 results) | Net income, per-share earnings, and FIFO operating profit are different measures and cannot be compared as raw amounts. |
| GAAP results and material reported context | $217 million net income, including a $600 million after-tax opioid settlement charge (Albertsons Form 10-K for fiscal 2025) | $1.54 GAAP EPS; reported results included $2.5 billion in impairment and related charges tied to the automated fulfillment network (Kroger fiscal 2025 results) | Review each company’s reconciliation and the nature of the charges; the items are not equivalent. |
| Operating cash flow | $2.367 billion for fiscal 2025 (Albertsons Form 10-K) | Not stated in the reviewed Kroger fiscal 2025 earnings-release excerpt; consult Kroger’s full fiscal 2025 Form 10-K | Do not rank cash generation without aligned cash-flow and capital-expenditure figures. |
How should you compare the companies’ earnings?
Start with audited GAAP results, then examine each company’s reconciliation to adjusted results. Albertsons’ adjusted net income is not directly comparable with Kroger’s adjusted EPS or FIFO operating profit. Each measure uses a different denominator or accounting basis, so a valid comparison requires a common measure calculated from the underlying filings.
Pay particular attention to whether excluded costs are truly unusual. Albertsons reported a $600 million after-tax opioid settlement charge. Kroger reported $2.5 billion of impairment and related charges tied to its automated fulfillment network. A settlement charge and an impairment are not the same kind of item. Consider whether similar costs could recur, or whether they reveal ongoing legal, investment, or execution risks, rather than simply adding every excluded amount back to earnings.
Does sales growth indicate which grocer is stronger?
Not by itself. Albertsons reported 2.0% identical-sales growth excluding fuel and Kroger reported 2.9% on its comparable measure, but sales can rise for different reasons and at different costs. Use the companies’ detailed filings to assess:
- Traffic and basket: whether growth came from more customer visits, larger baskets, or both.
- Price and mix: how inflation or deflation, product mix, and promotions affected reported growth.
- Market position: whether each company gained or lost share in the markets where it competes.
- Margins and costs: whether gross margin and operating costs held up while the companies invested in price and convenience.
- Period comparability: the effect of Albertsons’ 53-week fiscal year and each issuer’s definitions of identical or comparable sales.
The cited results do not provide a complete same-basis margin comparison. Do not infer that the higher reported sales-growth rate necessarily means better profitability or more durable growth.
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How should you assess digital growth?
Albertsons reported 21% digital sales growth and 51.2 million loyalty members in its fiscal 2025 Form 10-K. Kroger reported 20% adjusted eCommerce sales growth and specified exclusions for fulfillment-center exits, Vitacost, and Ship Marketplace in its fiscal 2025 results. These disclosures indicate digital activity, but the percentages do not measure exactly the same thing.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteTo evaluate whether digital activity adds value, look beyond growth rates. Check whether online orders are incremental or shift purchases from stores, whether pickup and delivery costs are covered, and whether digital engagement improves customer retention or basket size. The reported growth rates do not, on their own, establish those economics.
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What do cash flow and capital needs tell you?
Operating cash flow is a starting point, not a complete measure of cash available to shareholders. For Albertsons, fiscal 2025 operating cash flow was $2.367 billion and capital expenditures were $1.8336 billion, both reported in its Form 10-K for the year ended February 28, 2026. Subtracting capital expenditures gives a rough cash-flow starting point, but a full assessment also requires working-capital movements and other cash needs.
The reviewed Kroger earnings-release excerpt does not state comparable operating cash flow or capital expenditures. Consult Kroger’s full fiscal 2025 Form 10-K before comparing cash conversion or free cash flow. For both companies, examine debt maturities, lease obligations, pension commitments, dividend cash requirements, and share repurchases. Apply the same definitions and period before drawing a conclusion about financial flexibility or shareholder returns.
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How can you value ACI and KR on a like-for-like basis?
A valuation comparison needs current share prices and current financial inputs; the fiscal 2025 operating results alone cannot show which stock is undervalued. For each company, establish market capitalization from the current share price and diluted share count, then calculate enterprise value using a consistent treatment of debt, cash, and leases.
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- Choose a common earnings base. Reconcile GAAP results and company adjustments, then use the same period and metric for both companies.
- Normalize cash generation. Compare operating cash flow less capital expenditures, while accounting for working-capital swings and recurring investment needs.
- Include obligations consistently. Review debt, leases, pensions, and other commitments; decide how leases are treated in enterprise value and use that treatment for both stocks.
- Compare more than one measure. Consider enterprise value to EBITDA, normalized earnings yield, and free-cash-flow yield alongside growth and business risk.
- Check shareholder distributions. Assess dividend cash requirements and repurchases against normalized cash generation rather than relying on yield alone.
No current quote or complete, aligned balance-sheet and cash-flow comparison is established here, so a present-day valuation ranking or buy/sell recommendation would be unsupported.
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Does the Albertsons–Kroger merger affect the comparison?
No merger synergies should be included in a standalone base case. Albertsons announced on December 11, 2024 that it had terminated the merger agreement after injunctions from the U.S. District Court in Oregon and the King County Superior Court for Washington. Kroger’s Form 10-K for the fiscal year ended January 31, 2026 also records the termination.
In its termination announcement, Albertsons CEO Vivek Sankaran said, “We start this next chapter in strong financial condition with a track record of positive business performance.” That is management’s characterization in the December 11, 2024 announcement, not an independent assessment of the company’s financial condition.
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How much weight should you give store counts?
Store counts offer scale context, not a direct market-share comparison. Albertsons reported 2,244 stores across 35 states and the District of Columbia, operating under 22 banners, as of February 28, 2026. Kroger’s investor overview reports 2,688 supermarkets and multi-department stores. The categories and reporting dates differ, so the counts should not be read as directly comparable measures of market reach or competitive strength.
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