Shares of the large grocer and retail department chain Kroger (NYSE: KR) had surged by roughly 10%, as of 12:38 p.m. ET today, after the company reported earnings for the first quarter of 2025.

Reaffirming guidance

Kroger reported adjusted earnings per share of $1.49 for the three months ending May 24 on total revenue of $45.1 billion. Adjusted EPS beat Wall Street estimates, while revenue came in just shy of them. Perhaps more importantly, management maintained its full-year earnings outlook and raised its full-year revenue outlook.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Kroger's CFO David Kennerley said in an earnings statement:

Our strong sales results and positive momentum give us confidence to raise our identical sales without fuel guidance, to a new range of 2.25% to 3.25%. While first-quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain, and as a result, other elements of our guidance remain unchanged.

Is the stock a buy after a good quarter?

Kroger certainly surprised investors and is being rewarded right now. The positive news also comes as the company is continuing its search for a new CEO after former CEO Rodney McMullen resigned from his post in March. The company's board of directors earlier this year conducted an investigation into McMullen that concluded "his personal conduct that, while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics."

Kroger's forward price-to-earnings multiple of 15 is toward the bottom of its peer group, and it is a consumer staples stock, making it a good defensive pick for any kind of looming recession. Therefore, I think investors can definitely allocate at least some capital to the name.

Should you invest $1,000 in Kroger right now?

Before you buy stock in Kroger, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kroger wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $891,722!*

Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.