Kroger is laying off nearly 1,000 corporate employees while increasing its quarterly dividend to $0.35 per share. The company operates thousands of supermarkets and convenience stores across the U.S., with a market capitalization of $44.93 billion. Despite recent stock price declines, analysts remain optimistic about Kroger’s future earnings and stock performance.

In the first quarter of fiscal 2025, Kroger reported a slight drop in sales but an increase in gross margin and adjusted EPS. The company plans to close approximately 60 stores to reinvest savings in improving the customer experience. Analysts project a 7.5% YoY increase in EPS for Q2 FY2025 and a 6.5% annual surge for the current fiscal year.

Wall Street analysts have varying views on Kroger’s stock, with price targets ranging from $66 to $85. While some express concerns about layoffs and store closures, Kroger’s dividend and growing margins make it an attractive long-term investment option. Analysts recommend a cautious approach, with a consensus “Moderate Buy” rating and a potential 25% upside from current levels.

Read more at Yahoo Finance: Layoffs Just Hit This Dividend Stock. Should You Buy the Dip?