Investors punish Kroger for conservative outlook

Kroger turned in pretty sunny fourth quarter finances, reporting that it had matched expectations with net income rising to $854 million, or 96 cents a share, from $506 million, or 53 cents a share. And yet, on news that the company expects its same-store sales growth this year to hit in the 1.5 percent to 2.0 percent range — below the 2.5 percent gain analysts were hoping for — investors sent stocks down more than 7 percent. Along with its report, Kroger said today that it plans to make about $3 billion in capital investments this year, outside of mergers, acquisitions and buying back leased buildings.