Kroger Charts New Course with CEO Search After McMullen's Resignation

Portfolio - People | Mar 07, 2025 | EIN

The Kroger Co. enters fiscal 2025 with interim leadership following the resignation of long-time CEO Rodney McMullen due to a breach of the company's ethics policy. While a search committee looks for a new CEO, led by interim chairman and CEO Ronald Sargent, Kroger continues to show positive financial momentum. In fiscal 2024, Kroger reported net income of $2.67 billion and adjusted net earnings of $3.25 billion, despite incurring substantial costs from a terminated merger with Albertsons. Kroger's financial outlook remains optimistic with plans for store expansion and a projected increase in identical sales growth for 2025. The company is also set to welcome David Kennerley of PepsiCo Europe as CFO, succeeding Todd Foley. The leadership transition comes with challenges, including navigating inflation and adjusting CEO selection criteria to secure long-term growth and shareholder value.

Sectors

Retail
Corporate Governance

Geography

United States – Kroger is based in Cincinnati, Ohio, and operates throughout the United States.

Industry

Retail – The article discusses Kroger, a major player in the supermarket and grocery retail industry.
Corporate Governance – The article highlights changes in leadership and corporate governance at Kroger.

Financials

$24.6 billion – The planned acquisition price for Albertsons, which was later terminated.
$2.67 billion – Kroger's net income for fiscal 2024.
$3.25 billion – Kroger's adjusted net earnings for fiscal 2024.
$4.47 per share – Kroger's adjusted earnings per share for fiscal 2024.
$13 billion – Digital sales for Kroger in fiscal 2024.
2% to 3% – Kroger's projected identical sales growth for fiscal 2025.
$4.60 to $4.80 – Projected adjusted EPS for Kroger in fiscal 2025.
29 – Major store projects completed in 2024.
30 – Expected number of major store projects to be completed in 2025.

Participants

Name	Role	Type	Description
The Kroger Co.	Target Company	Company	Kroger is a leading supermarket chain based in the United States.
Rodney McMullen	Former CEO and Chairman	Person	McMullen served as Kroger's CEO until resigning due to a policy breach.
Ronald Sargent	Interim CEO and Chairman	Person	Sargent is serving as Kroger's interim CEO during the executive search.
Mark Sutton	Lead Director	Person	Sutton has assumed the role of lead director.
David Kennerley	Incoming CFO	Person	Kennerley, from PepsiCo Europe, will soon assume the CFO role at Kroger.
Todd Foley	Interim CFO	Person	Foley has been serving as interim CFO after Gary Millerchip's departure.
Albertsons Cos.	Merger Counterparty	Company	Albertsons was Kroger's intended merger partner before the deal was terminated.