How does Kroger's 84.51° analytics business work?

84.51° (named for Cincinnati, Ohio's longitude — Kroger's headquarters city) is Kroger's retail data analytics arm — a wholly owned subsidiary that uses Kroger's purchase data to offer targeted marketing services to CPG (Consumer Packaged Goods) companies. When a Kroger loyalty card holder buys Tide detergent, buys Cheerios, or searches for gluten-free products on the Kroger app, 84.51° captures that behavioral data (de-identified at the individual level, aggregated and analyzed at the category level). CPG companies (Procter & Gamble, General Mills, Nestlé) pay 84.51° for: targeted promotional placement in Kroger's app or website based on purchase history; category insights and shopper behavior analysis; attribution analytics measuring whether a promotion drove incremental sales; and retail media advertising placed in Kroger's digital and in-store channels. This data business has high margins and grows with digital engagement.

What is a farmers market format and how does Sprouts use it?

A farmers market is an open-air market where vendors (typically farmers and food producers) sell fresh produce, meats, baked goods, and specialty foods directly to consumers. Key aesthetic elements are fresh abundance — large displays of colorful produce, bins of vegetables, and the visual richness of fresh food. Sprouts adopted these visual cues for its grocery store design: a large central produce section runs through the middle of each Sprouts store with display bins modeled on outdoor market vendor stalls, creating an immersive fresh food environment. This format signals freshness and natural food quality to shoppers before they've seen prices or products. The farmers market aesthetic differentiates Sprouts' shopping experience from conventional grocery stores where produce is arranged in standard refrigerated cases at store edges. Sprouts combines this produce-focused environment with a large bulk foods section, vitamin/supplement department, and extensive organic/specialty food selection.

What was the Kroger-Albertsons merger and why did the FTC block it?

Kroger announced its acquisition of Albertsons Companies (owner of Safeway, Vons, Jewel-Osco, Shaw's) for approximately $25 billion in 2022. Combined, Kroger and Albertsons would have created a grocery company with approximately 5,000 stores, over $200 billion in revenue, and number-two market position behind Walmart in U.S. grocery. Kroger's strategic rationale was scale advantages to better compete with Walmart's Supercenter grocery dominance and Amazon's expanding grocery presence. The FTC filed suit to block the merger in 2023, arguing it would reduce competition in hundreds of local markets where Kroger and Albertsons are primary grocery competitors — consumers would have less price and quality competition. Despite Kroger's proposed divestiture of hundreds of stores to C&S Wholesale Grocers, a federal judge blocked the merger in December 2024, ruling the divested stores were insufficient to preserve competition. The blocked merger forced Kroger back to an organic growth strategy.

brimindinvest.com / compare / kr-vs-svsLIVE

KR

The Kroger Co. · Consumer Staples - Supermarkets

$56.61

-19.82% this month

VERSUS

⟷

COMPARE

SFM

Sprouts Farmers Market, Inc. · Consumer Staples - Specialty Grocery

$80.49

-10.59% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

KR

3

SFM

1

KR LEADS 3/5

Comparison scoreboard

KR LEADS 3/5

AI Score

KR 41.0

SFM ✓44.2

1Y Return

KR ✓-14.16%

SFM -50.27%

Fwd P/E

KR ✓11.53

SFM 13.55

Target Up.

KR ✓+16.46%

SFM +14.83%

Op. Margin

KR 3.44%

SFM N/A

Metrics last refreshed: 6/20/2026

Quick take

KR vs SFM Stock Comparison: AI Score, Valuation, Performance and Upside

KR (Kroger) and SFM (Sprouts Farmers Market) are both U.S. grocery retailers but serving different consumer segments and using different formats — Kroger is a massive conventional supermarket chain competing on price, private label, and digital capabilities for broad grocery shopping, while Sprouts is a specialty natural and organic grocery format targeting health-conscious shoppers with a produce-centric farmers market environment. Kroger is scale and value; Sprouts is specialty and health.

KR vs SFM is conventional supermarket scale navigating competitive disruption (Kroger's massive store network, private label investment, and digital capabilities competing against Walmart, Amazon, and discount grocers in the mainstream grocery market) versus specialty natural grocery growth format (Sprouts' health-conscious positioning with attractive unit economics enabling profitable new store expansion in an underserved specialty grocery segment) — scale incumbent versus focused specialty grower.

Live analysis · updated 6/20/2026

KR holds the edge across 3 of 5 key metrics in this comparison. KR leads on both 1-year return (-14.16%) and forward P/E (11.53x vs 13.55x for SFM), a relatively favorable combination of momentum and valuation. Analyst consensus implies similar upside for both: +16.46% for KR and +14.83% for SFM.

Normalized 1Y performance

KR

SFM

Recent returns

KR

SFM

Analyst price targets & sentiment

KR

Price target range

analyst mean$75.36
current price$56.61

+16.5% upside to analyst mean

SFM · 14 analysts

Price target range

analyst low$70.00
analyst high$140.00
analyst mean$92.43
current price$80.49

+14.8% upside to analyst mean

Who should consider this stock?

KR may suit investors who:

→Want a dividend-paying conventional supermarket holding with scale advantages in procurement, private label, and loyalty data that create competitive differentiation from smaller grocery competitors
→Value Kroger's pharmacy and health clinic presence as differentiated from pure-play food retailers and providing additional customer touchpoints
→Are comfortable with Kroger's competitive pressure from Walmart and Amazon as manageable for a scale operator with strong regional market positions and digital investment

SFM may suit investors who:

→Want specialty grocery growth exposure with Sprouts' combination of health-conscious consumer positioning and attractive unit economics enabling profitable new store openings
→Value Sprouts' format differentiation — smaller stores, produce-centric display, bulk foods, and vitamin/supplement focus creating a distinct shopping environment that doesn't directly compete with Walmart or Amazon's core grocery proposition
→See Sprouts' accelerating new store program as a durable growth driver as health-conscious consumers represent a growing customer segment that conventional grocers don't fully serve

Performance & AI score

Metric	KR	SFM
AI score	41.0	44.2
AI rank	#992	#783
Latest close	$56.61	$80.49
1M return	-19.82%	-10.59%
6M return	-11.28%	-0.57%
1Y return	-14.16%	-50.27%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	KR	SFM
1Y ago	$8.64K (-13.6%) started 2025-06-18	$4.97K (-50.3%) started 2025-06-18
5Y ago	$17.04K (+70.4%) started 2021-06-21	$29.19K (+191.9%) started 2021-06-18
10Y ago	$24.05K (+140.5%) started 2016-06-20	$35.62K (+256.2%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	KR	SFM
Market cap	$39.9B	$7.57B
Trailing P/E	42.02	15.45
Forward P/E	11.53	13.55
Price/Sales	N/A	0.85
EV/Revenue	0.49	1.09
Analyst target	$75.36	$92.43
Target upside	+16.46%	+14.83%

Growth, profitability & risk

Metric	KR	SFM
Revenue growth	1.20%	4.10%
Earnings growth	50.90%	-5.50%
EPS growth	+50.90%	-5.50%
FCF margin	+2.30%	+4.94%
Operating margin	3.44%	N/A
Profit margin	0.69%	5.70%
ROIC proxy	14.41%	37.28%
Return on equity	14.41%	37.28%
Dividend yield	2.16%	0.00%
Beta	0.42	0.67
Debt/equity	415.97	143.69
Current ratio	0.80	0.92
Quick ratio	0.30	0.38

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

KR max drawdown25.12%

SFM max drawdown62.17%

KR max wkly drop11.71%

SFM max wkly drop28.66%

5Y risk snapshot

KR max drawdown31.07%

SFM max drawdown63.48%

KR max wkly drop11.71%

SFM max wkly drop28.66%

10Y risk snapshot

KR max drawdown46.25%

SFM max drawdown63.48%

KR max wkly drop27.58%

SFM max wkly drop28.66%

Performance metrics by period

Period	Metric	KR	SFM
1Y	Growth	-13.60%	-50.27%
	CAGR	-13.62%	-50.30%
	Sharpe ratio	-0.52	-1.37
	Max drawdown	25.12%	62.17%
	Max daily drop	8.43%	26.11%
	Max wkly drop	11.71%	28.66%
5Y	Growth	+55.85%	+191.95%
	CAGR	+9.30%	+23.90%
	Sharpe ratio	0.30	0.63
	Max drawdown	31.07%	63.48%
	Max daily drop	8.43%	26.11%
	Max wkly drop	11.71%	28.66%
10Y	Growth	+96.30%	+256.15%
	CAGR	+6.98%	+13.55%
	Sharpe ratio	0.22	0.41
	Max drawdown	46.25%	63.48%
	Max daily drop	18.89%	26.11%
	Max wkly drop	27.58%	28.66%

Business comparison

Category	KR	SFM
Company	The Kroger Co.	Sprouts Farmers Market, Inc.
Sector	Consumer Defensive	Consumer Staples - Specialty Grocery
Industry	N/A	N/A
Core business	Kroger is the largest pure-play grocery retailer in the U.S. — operating approximately 2,700 supermarkets under 20+ banner names (Kroger, Fred Meyer, Ralphs, King Soopers, Harris Teeter, Smith's). Kroger's strategy combines conventional supermarket formats with pharmacy (The Little Clinic), fuel stations, Simple Truth private label natural food brands, and a growing digital/delivery business. Kroger's digital capabilities include home delivery, ClickList curbside pickup, and a grocery advertising data business (84.51° analytics).	Sprouts Farmers Market is a specialty grocery chain with approximately 400 stores focused on natural, organic, and health-focused foods — particularly known for its large, fresh produce sections (displayed in a farmers market-style format), bulk foods, vitamins and supplements, and specialty dietary products (gluten-free, keto, plant-based, Paleo). Sprouts targets health-conscious consumers who prioritize clean ingredients, organic produce, and specialized dietary products.
Investor focus	Investors track Kroger's identical store sales growth (same-store metric excluding fuel), gross margin management (private label mix helps margins), digital sales penetration, pharmacy performance, and the competitive landscape against Walmart, Amazon Fresh, Albertsons (proposed merger blocked by FTC in 2024), and Aldi/Lidl discount grocers.	Investors track Sprouts' comparable store sales, new store openings (Sprouts has been accelerating store count), store-level economics (attractive unit economics make new stores high-return investments), gross margin (specialty formats typically carry higher margins than conventional grocers), and Sprouts' differentiation from Whole Foods and conventional grocery natural food sections.

KR strengths

→Scale advantages in procurement and private label — Kroger's massive scale allows it to negotiate favorable supplier terms and invest in private label (Simple Truth, Kroger brand) which carries significantly higher margins than national brand equivalents
→Loyalty data through fuel program and digital — Kroger's fuel points program drives supermarket loyalty while collecting extensive purchase data; 84.51° analytics monetizes this data through targeted advertising to CPG brands selling in Kroger stores
→Pharmacy and health clinic integration — Kroger's pharmacy and Little Clinic health clinics differentiate from pure-play food retailers and drive regular customer visits that provide more touchpoints for overall grocery shopping

SFM strengths

→Health-focused consumer positioning with loyal customer base — Sprouts' core shoppers are health-conscious and value the specialty product selection and produce quality; this creates above-average loyalty and basket sizes among its target demographic
→Attractive unit economics enabling accelerated expansion — Sprouts' stores are typically smaller than conventional supermarkets (25,000-30,000 sq ft vs. 50,000+ for Kroger), require lower capital investment to open, and reach profitability faster; this enables Sprouts to open new stores profitably and expand its store count
→Differentiated from conventional grocers and Whole Foods — Sprouts occupies a positioning between standard grocery (Kroger, Safeway) and ultra-premium (Whole Foods); it offers a large organic produce selection and specialty products at lower average price points than Whole Foods, serving consumers who want natural grocery shopping without Whole Foods' higher prices

Risks to watch — KR

→Walmart and Amazon competition — Walmart's grocery market share continues growing driven by lower prices and Supercenter convenience; Amazon Fresh and Whole Foods compete in the premium tier; Kroger must maintain price competitiveness while investing in digital capabilities
→FTC blocked Kroger-Albertsons merger — the FTC blocked Kroger's proposed acquisition of Albertsons in 2024, preventing Kroger from achieving the scale to better compete with Walmart and Amazon; Kroger must pursue organic growth strategy instead
→Inflationary environment pressuring gross margins — food cost inflation and labor cost increases pressure Kroger's operating margins; price investments to remain competitive with Walmart reduce margin as volumes are maintained

Risks to watch — SFM

→Conventional grocery expansion into natural and organic — Kroger, Albertsons, and other conventional grocers have significantly expanded natural and organic sections (Kroger's Simple Truth natural line) and may erode Sprouts' differentiation
→Whole Foods Amazon integration potential — Whole Foods under Amazon could become more price-competitive or improve its shopping experience, creating more direct pressure on Sprouts' value proposition
→Smaller scale limits private label investment versus conventional grocers — Sprouts' smaller revenue base limits its ability to develop deep private label programs; Kroger's Simple Truth organic private label provides similar products at Kroger's scale with Kroger's brand

Frequently asked questions

Private label (or store brand) grocery products are manufactured by third-party suppliers but sold under the retailer's own brand rather than the manufacturer's brand. A customer buying Kroger Simple Truth Organic chicken broth instead of Swanson chicken broth is choosing a private label product. Private label is strategically important for grocers for several reasons: gross margins on private label are typically 25-35% versus 10-15% for national brands (the retailer captures the brand premium and marketing savings); private label products differentiate the retailer because they're only available in that retailer's stores, increasing customer loyalty; and private label products signal value leadership to consumers comparing prices. Kroger's Simple Truth natural and organic line has become a multi-billion dollar brand, allowing Kroger to offer organic products at conventional grocery prices — directly competing with Sprouts and Whole Foods' positioning in the organic segment.

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