Shares of the company, which has struck a $24.6 billion deal to buy smaller rival Albertsons (NYSE:ACI), rose about 4% in premarket trading.
Consumers are cooking more at home, instead of eating out, as grocery prices ease at a faster pace than menu prices at restaurants, propping sales of retailers such as Kroger (NYSE:KR) and Walmart (NYSE:WMT).
Data from the U.S, Department of Agriculture showed food-at-home prices were only 1.2% higher in January, compared with a year earlier, whereas food-away-from-home prices were 5.1% higher than January 2023.
The supermarket chain said it expected fiscal 2024 identical sales, excluding fuel, to increase 0.25% to 1.75%, compared with analysts’ average estimate for a 0.7% increase, according to LSEG data.
The company projected adjusted earnings of $4.30 to $4.50 per share for fiscal 2024, compared with analysts’ estimate of $4.34 per share.
Source: Economy - investing.com
