Kroger expresses financial confidence with stock split
Kroger expresses financial confidence with stock split
For the first time since 1999 and just the fifth time in company history, Kroger announced a two-for-one stock split June 25 at its annual shareholders meeting in Cincinnati.
Shareholders of record on July 6 will receive an additional share of Kroger stock, bringing the total of outstanding shares to 962 million from 481 million.
Rodney McMullen, chief executive officer of Kroger Inc., said the move reflects the company’s confidence in its future financial performance, and that the split will make the stock more affordable to small investors, including the company’s own associates.
“The stock split will increase the accessibility of our shares and liquidity in the trading of our shares,” he told shareholders.
Following the announcement, shares rose $1.38 to $74.32, but closed up one cent at $72.95.
“By all measures, 2014 was a blockbuster year,” McMullen said.
Kroger, the largest U.S. supermarket chain, operates more than 2,600 stores in 34 states under two dozen banners and has annual sales of more than $108.5 billion.