It’s a safe bet that retailer Kroger (NYSE:KR) wasn’t happy with being left out of the weight-loss drug market. But its move to get in on the action didn’t exactly sit well with investors either. With a plan to start offering GLP-1 drugs, Kroger saw its shares fall fractionally in Friday afternoon’s trading.
The move means that both Wegovy and Zepbound, among others, will be available at Kroger as part of what’s being called a “revamped weight management program.” The relevant program will see said drugs made available for $99 per visit, to start with, through the auspices of its The Little Clinic unit.
The Little Clinic has 226 locations in nine states and offers its services through virtual and in-person visits. We all know how much this market has boomed in recent months—even “South Park” is participating with its “The End of Obesity” special—so Kroger wasn’t doing itself any favors by staying out.
45,000 Pints of Free Ice Cream
Meanwhile, Kroger is having some unexpected issues in the dairy department, which might put it somewhat at odds with an expanded weight loss program. It’s offering up to 45,000 pints of free ice cream to customers as part of a summer kick-off plan. Starting June 20—the day before summer officially starts—customers can grab a coupon online, take it to a Kroger location, and get a free pint of store-brand ice cream. At least, they can in eligible states; nine states are out of this deal, including both California and Nevada.
Is Kroger Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on KR stock based on six Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 15.8% rally in its share price over the past year, the average KR price target of $58.75 per share implies 13.65% upside potential.
