Press Release

Kroger Board of Directors Declares Quarterly Dividend, Approves Incremental $500 Million Share Repurchase Program

Company Release - 9/15/2016 1:30 PM ET

CINCINNATI, Sept. 15, 2016 /PRNewswire/ -- The Kroger Co.'s (NYSE: KR) Board of Directors today declared a quarterly dividend of 12¢ per share to be paid on December 1, 2016, to shareholders of record as of the close of business on November 15, 2016.

The Kroger Co. Logo (PRNewsFoto/The Kroger Co.)

Kroger today also announced an incremental $500 million share repurchase program, supplementing the current authorization, which has $392 million remaining as of September 14, 2016.

"Kroger's share repurchase authorization reflects our Board of Directors' confidence in our Customer 1st Strategy and our ability to create value for shareholders," said Rodney McMullen, Kroger's chairman and CEO. "We are committed to delivering long-term growth investors can count on."

In June, Kroger's Board raised the quarterly dividend by 14 percent. Kroger has delivered double-digit compound growth in its dividend since it was reinstated in 2006. The company continues to expect an increasing dividend over time.

Over the last four quarters, the company has returned more than $1.5 billion to shareholders through share buybacks and dividends combined.

Every day, the Kroger Family of Companies makes a difference in the lives of eight and a half million customers and 431,000 associates who shop or serve in 2,781 retail food stores under a variety of local banner names in 35 states and the District of Columbia. Kroger and its subsidiaries operate an expanding ClickList offering – a personalized, order online, pick up at the store service – in addition to 2,240 pharmacies, 785 convenience stores, 323 fine jewelry stores, 1,423 supermarket fuel centers and 38 food production plants in the United States. Kroger is recognized as one of America's most generous companies for its support of more than 100 Feeding America food bank partners, breast cancer research and awareness, the military and their families, and more than 145,000 community organizations including schools. A leader in supplier diversity, Kroger is a proud member of the Billion Dollar Roundtable.

This press release contains forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, about the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by the words "expect" and "continues."  Our ability to continue to repurchase shares, fund dividends, and increase our dividend over time will be affected by our ability to generate free cash flow at the levels anticipated and our ability to generate expected operating results. These forward-looking statements are 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.

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SOURCE The Kroger Co.

The Kroger Family of Companies