Kroger's 1Q profit soars 12.7 as more eat at home

Grocery operator Kroger Co. says first-quarter profit shot up 12.7 percent, as recession-hit households continue to eat at home more and seek food bargains.

The nation's largest traditional grocery store chain reported Tuesday that profits jumped to $435.1 million, or 66 cents per share, compared to $386 million, or 58 cents last year. Sales were $22.8 billion, down slightly from $23.1 billion last year. Kroger blamed the drop on lower gas prices at its service stations.

Analysts surveyed by Thomson Reuters expected 62 cents a share, on sales of $23.28 billion.

Same-supermarket sales, a key retailer gauge that compares sales at stores open at least 60 weeks, rose 3.9 percent, excluding fuel.