Boston, MA 03/03/2014 (wallstreetpr) – The Kroger Co. (NYSE:KR)’s shares were up almost $4.5 percent to $41.94 Friday. That boost in stock price came just when the company announced how it has been a big creator of job opportunity over the past several years. But also, a reputation issue still continues to linger around the company.
Look, The Kroger Co. (NYSE:KR) declared that it hired more than 7,000 employees last year and has hired roughly 40,000 people in the last six years. It also emerged that the company has been giving first priority to its supermarket division in its job hiring. Thus, about 90 percent of the new hiring has been at its supermarket arm. That the company has been hiring for new positions is testament enough that its business has been expanding, thus growing need for a bigger workforce.
In its most recent quarter results issued The Kroger Co. (NYSE:KR) December 5, the company posted earnings per share of 53 cents, thus meeting the expectation of analysts at $0.53. The EPS however exceeded the 46 cents that was realized in the corresponding quarter in the previous year. Revenue in the quarter was $22.52 billion, about 3.2 percent higher than the same quarter in the previous year, but lower than the $22.77 billion that analysts modeled for the quarter. Nonetheless, the revenue and earnings figures were an excitement for the stock. So then, the company has its hopes pegged on earning $2.79 per share in the current year.
The Kroger Co. (NYSE:KR) is in for accusation that it mislead customers with “Simple Truth” label on certain products. A lawsuit was brought against the company in California early February whereby it was claimed that it wrongly labeled certain chicken products as cage-free, meaning they were not raised under standard commercial environment, yet plaintiffs claimed that they were not raised in humane environment as the description “cage-free” denotes.
However, The Kroger Co. (NYSE:KR) has stuck with its guns and has promised that it will defend its label because it is accurate.