Kroger Under Scrutiny for CEO Replacement Amid Albertsons Merger Dispute

Kroger is under scrutiny for CEO Rodney McMullen's departure, with Albertsons seeking disclosure on the circumstances surrounding his exit. McMullen played a key role in the merger with Kroger and his ethical standards are crucial for ongoing legal proceedings. Analysts forecast an average target price of $75.59, with a high estimate of $85 and a low of $58. The average target implies an upside of 9.05% from the current price.

Kroger is facing intense scrutiny following the abrupt resignation of its CEO, Rodney McMullen, amidst an internal ethics investigation. Albertsons Companies, the supermarket rival, has filed a lawsuit demanding details about the circumstances surrounding McMullen's departure, which occurred just days after the failed $25 billion merger attempt between the two companies [1].

The Boise, Idaho-based Albertsons is seeking transparency regarding McMullen's conduct, which led to his resignation after 11 years at Kroger. The company has cited the merger process as a key area of concern, suggesting that McMullen's ethical standards may have played a role in the deal's collapse [2]. Kroger, however, has dismissed Albertsons' demands, labeling them as an attempt to distract from its own misconduct during the regulatory process [2].

The failed merger has resulted in ongoing litigation between Albertsons and Kroger, with Albertsons seeking a $600 million termination fee and additional damages. Kroger has counter-sued, focusing on the conduct of then-COO Susan Morris, who is now the company's CEO. The legal battle is ongoing, with analysts forecasting an average target price of $75.59 for Kroger, with a high estimate of $85 and a low of $58, implying an upside of 9.05% from the current price [3].

References:
[1] https://www.cincinnati.com/story/money/2025/07/29/albertsons-wants-kroger-to-reveal-why-ceo-resigned-after-merger-bid/85415833007/
[2] https://boisedev.com/news/2025/07/30/albertsons-kroger-mcmullen/
[3] https://www.newsbreak.com/gobankingrates-522888/4145177289874-6-grocery-items-that-are-way-cheaper-at-costco-than-target-walmart-and-kroger