Kroger Co. (KR) Dives 0.76% as Opioid Settlement, Merger Headwinds Push New Lows

The Kroger Co. (KR) fell 0.76% on Thursday, marking its third consecutive day of declines with a cumulative drop of 3.82%. The stock hit an intraday low of $29.50, the lowest since June 2025, amid renewed investor concerns over operational and regulatory headwinds.

Recent developments have weighed heavily on the stock. A $1.4 billion opioid settlement announced in early September 2023 has raised questions about Kroger’s short-term liquidity and earnings potential. The company also faces ongoing challenges from its merger with Albertsons, which includes the divestiture of over 400 stores to C&S Wholesale Grocers to address antitrust concerns. While the deal aims to streamline operations, it has sparked uncertainty among stakeholders about execution risks and market consolidation.

Internal operational pressures further cloud the outlook. Employee reports highlight 1,000 corporate job cuts and store closures tied to the merger, alongside complaints about leadership issues and supply chain inefficiencies. These factors could disrupt service quality and employee morale, potentially affecting customer retention and brand reputation. Meanwhile, rising labor costs and regulatory scrutiny over food safety and labeling add to cost pressures.

Despite strategic investments in digital transformation and private-label products—key drivers of gross margin expansion—investors remain cautious. The opioid settlement and merger-related complexities have overshadowed positive momentum, particularly as Kroger navigates a competitive grocery landscape dominated by Walmart, Target, and Amazon. While its undervalued metrics and dividend yield remain attractive, near-term volatility is likely as the company addresses these multifaceted challenges.