Kroger Board of Directors Approves $1 Billion Share Buyback

Raises Quarterly Dividend 9.5 Percent

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Sep 15, 2011, 11:58 ET

CINCINNATI, Sept. 15, 2011 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors today approved a $1 billion share repurchase program, replacing the existing authorization that has approximately $213 million remaining. The timing of the repurchases will vary according to market conditions. The authorization is expected to be used over the next 12 months.

Also today, Kroger's Board of Directors raised the quarterly dividend by 9.5 percent, to 11.5 cents per share, payable on December 1, 2011 to shareholders of record as of the close of business on November 15, 2011. This equates to 46 cents per share on an annual basis.

"Kroger remains committed to using our substantial free cash flow to reinvest in our business through our Customer 1st strategy and capital expenditures, and returning cash to shareholders through solid earnings per share growth, dividends and share repurchases," said David B. Dillon, Kroger's chairman and chief executive officer. "Since Kroger reinstated dividends in 2006, we have returned more than $4.6 billion back to shareholders through dividends and share repurchases."

Kroger, the nation's largest traditional grocery retailer, employs more than 338,000 associates who serve customers in 2,439 supermarkets and multi- department stores in 31 states under two dozen local banner names including Kroger, City Market, Dillons, Jay C, Food 4 Less, Fred Meyer, Fry's, King Soopers, QFC, Ralphs and Smith's. The company also operates 788 convenience stores, 361 fine jewelry stores, 1,046 supermarket fuel centers and 40 food processing plants in the U.S. Kroger, headquartered in Cincinnati, Ohio, focuses its charitable efforts on supporting hunger relief, health and wellness initiatives, and local organizations in the communities it serves. For more information about Kroger, please visit www.kroger.com.

This press release contains a forward-looking statement, as that term is defined in the Private Securities Litigation Reform Act of 1995, about the future performance of the company. This statement is based on management's assumptions and beliefs in light of the information currently available to it. Our ability to use the billion dollar authority under our stock repurchase program within the next 12 months will depend primarily on the price at which our shares trade and our ability to generate cash flow sufficient to make those purchases. This forward-looking statement is subject to uncertainties and other factors that could cause actual results to differ materially. We assume no obligation to update the information contained herein. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.

SOURCE The Kroger Co.