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Kroger Under Scrutiny for CEO Replacement Amid Albertsons Merger Dispute
ByAinvest
Thursday, Jul 31, 2025 1:19 am ET1min read
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
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