Kroger adds Disney streaming services from Investing.com to Boost membership

CINCINNATI – The Kroger Co . (NYSE: NYSE:) today announced that its Boost by Kroger Plus membership program now offers Disney streaming services as an additional benefit. Members can choose between Disney+ Basic (with ads), Hulu (with ads), or ESPN+ as part of their annual subscription at no additional cost.

This expansion of the Boost program is based on providing greater value to Kroger Plus members. According to Stuart Aitken, Kroger’s senior vice president and chief merchant and marketing officer, the collaboration with Disney enhances member capabilities and benefits and enriches the company’s industry-leading loyalty program.

Boost members have the option to choose a free subscription to one of the three streaming services for the duration of their membership. The $99 annual membership includes an ongoing subscription, while the $59 annual membership offers a one-time six-month subscription, with these members having the option to upgrade to ongoing service.

In addition to streaming benefits, Boost members can save on fuel and groceries, with the potential to save up to $1,000 annually. The program also offers free delivery on orders over $35, with membership tiers offering options for next-day or two-hour delivery. Additionally, members earn double fuel points on purchases and have access to exclusive monthly offers and free virtual appointments with Kroger Health nutrition experts.

Kroger Family of Companies Rewards World Elite Mastercard® holders can also receive a free one-year Boost membership or a free one-year extension for existing members.

Kroger emphasizes that the Boost program philosophy is based on specific purchasing and fuel consumption patterns, and restrictions apply to certain benefits such as earning and redeeming fuel points.

The addition of Disney streaming options to the Boost membership reflects Kroger’s commitment to enhancing its customer loyalty program and offering a diverse range of benefits. This information is based on a press release from The Kroger Co.

In other recent news, The Kroger Co. has completed the sale of its specialty pharmacy business to Elevance Health, with the transaction not expected to impact its 2024 financial guidance. The grocery giant also reported a moderate increase in its second-quarter 2024 earnings, including a 1.2% increase in identical sales excluding fuel, an 11% increase in digital sales and a 17% growth in delivery solutions. Despite a 3% downside, calculated earnings per share (EPS) was $0.93.

The company’s merger with Albertsons continues to progress, supported by a $10.5 billion senior unsecured note offering. Analysts from Roth/MKM and BMO Capital shared their views on Kroger’s performance, with Roth/MKM maintaining a Neutral rating on Kroger shares and BMO Capital reiterating an Outperform rating.

Additionally, Kroger declared a quarterly dividend of 32 cents per share, indicating an expectation that the dividend will continue to grow over time. These are the latest developments in Kroger’s business and performance.

InvestingPro Insights

Kroger’s strategic move to expand its Boost membership program to include Disney streaming services fits well with its position as a prominent player in the consumer goods distribution and retail industry, InvestingPro Tips points out. This initiative could potentially increase customer loyalty and attract new members, contributing to the company’s solid financial performance.

According to InvestingPro data, Kroger’s trailing 12-month revenue was an impressive $150.2 billion, with gross profit of $34.79 billion. The company’s focus on providing value to customers through its loyalty program is reflected in its strong financial metrics, including a price-to-earnings (P/E) ratio of 14.53, suggesting that the stock may have potential relative to its earnings is appropriately valued.

InvestingPro Tips also show that Kroger has increased its dividend for 19 consecutive years, demonstrating a commitment to creating value for shareholders. This consistent dividend growth, coupled with the current dividend yield of 2.29%, could be attractive to income investors.

It’s worth noting that Kroger stock has shown robust performance, with a one-year total return of 31.96% according to the most recent data. This strong return is consistent with another InvestingPro Tip that highlights Kroger’s strong returns over the past five years.

For investors looking for more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 10 additional InvestingPro Tips for Kroger available that provide a deeper understanding of the company’s financial health and market position.

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