Compare · Consumer Staples
Costco vs. Kroger: how they make money
The same facts for both companies, in the same order, from each company's own page and filings. This is not a ranking and says nothing about which share to own.
Each company in 5 points
Costco
1 · What it sells
Costco sells food, household goods, gasoline and other products from 939 membership warehouses, with $297.2 billion of net sales in FY2026.
Sources and detail on the Costco page2 · Who pays it
In FY2026, shoppers buying goods and services paid 98.05% of revenue and members paying yearly fees paid 1.95%; Costco does not split sales between household and business members.
Sources and detail on the Costco page3 · What it keeps from $100
Of every $100 that came in during FY2026, Costco kept $3.04 as net income, including $711 million of interest and other income, a tariff refund benefit and net tax benefits of $83 million and $72 million, while operating income was $3.85 per $100 of revenue.
Sources and detail on the Costco page4 · Where the operating profit comes from
The United States earned 65.4% of FY2026 operating income on 72.5% of revenue, and Costco reports no separate profit on its $5.9 billion of membership fees.
Sources and detail on the Costco page5 · The one thing to watch
Membership fees grew 14.0% in Q1 FY2026 and 7.3% in Q4 FY2026, while the worldwide renewal rate was 89.7% and 89.8% in those quarters.
Sources and detail on the Costco page
Kroger
1 · What it sells
Kroger sells groceries, prescriptions and fuel in 2,697 supermarkets across 35 states and Washington, D.C., and online, with sales of $147.6 billion in FY2025 (February 2025 to January 2026).
Sources and detail on the Kroger page2 · Who pays it
In FY2025, shoppers spent 77.7% of Kroger's sales on groceries, 12.3% at its pharmacies and 9.2% on fuel, and other sales such as media and data services were 0.8%.
Sources and detail on the Kroger page3 · What it keeps from $100
Of every $100 of FY2025 sales, Kroger kept $0.7 as net income after a one-off $2.5 billion charge for closing automated fulfillment centers, and operating profit was $1.3 per $100.
Sources and detail on the Kroger page4 · Where the operating profit comes from
Kroger reports one retail segment and gives no profit by product line, though its FY2025 10-K says its alternative profit businesses, including ads and data, contributed $1.5 billion of operating profit in 2025.
Sources and detail on the Kroger page5 · The one thing to watch
In Q2 FY2026 total sales rose 2.0%, with fuel sales up 25.6%, while identical sales without fuel, Kroger's own measure, rose 0.2% against 3.4% a year earlier.
Sources and detail on the Kroger page
Where each $100 went
Each company's own receipt for its latest full fiscal year, with matching lines in the same order where both have them.
Costco
Where $100 went · FY2026
| Merchandise costs | $87.0 |
|---|---|
| Running costs | $8.9 |
| Interest and tax | $1.0 |
| Kept as net income | $3.0 |
| Total | $100 |
Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue plus interest income and other): each line = line ÷ $303.9 billion × 100. Net income was $3.04.
Kroger
Where $100 went · FY2025 (year ended Jan 31, 2026)
| Merchandise costs | $76.7 |
|---|---|
| Store, staff and office costs | $17.5 |
| Fulfillment network charge (one-off) | $1.7 |
| Rent and depreciation | $2.8 |
| Net interest and other non-operating items | $0.5 |
| Income tax | $0.1 |
| Kept as net income | $0.7 |
| Total | $100 |
Cityfort calculation from FY2025 10-K. Of every $100 of FY2025 sales: each line = line ÷ $147.6 billion × 100. Store, staff and office costs leave out the $2.5 billion fulfillment network charge, shown on its own line; both sit in the 10-K's operating, general and administrative costs.
Line items differ because each company groups its costs its own way in its filings. Only on Costco's receipt: Running costs; Interest and tax. Only on Kroger's receipt: Store, staff and office costs; Fulfillment network charge (one-off); Rent and depreciation; Net interest and other non-operating items; Income tax.
Revenue, net income and free cash flow
Up to five fiscal years for each company, drawn on one shared scale per measure. Amounts in US$ as reported (GAAP).
Revenue
Costco
Kroger
See the numbers
Net income
Costco
Kroger
See the numbers
Free cash flow
Costco
Kroger
See the numbers
Who pays each company
Costco
- Shoppers buying goods and services · 98.1% of revenueNet sales from warehouses and online. Executive members, who pay a higher fee, made up about 75.2% of worldwide net sales in FY2026.
- Members paying yearly fees · 2.0% of revenue84.1 million paid members at Aug 30, 2026, including a small share whose memberships expired in the prior 12 months. The US fee is $65, or $130 for Executive.
Kroger
- Grocery shoppers · 77.7% of revenuePeople buying non-perishable goods ($77.6 billion) and fresh food ($37.2 billion) in stores and online: 77.7% of FY2025 sales.
- Pharmacy customers · 12.3% of revenuePrescriptions filled at Kroger pharmacies: 12.3% of FY2025 sales ($18.2 billion).
- Drivers buying fuel · 9.2% of revenueGasoline at Kroger fuel centers: 9.2% of FY2025 sales ($13.6 billion).
- Other · 0.8% of revenueOther sales, the 10-K category that includes media and data analytics services: 0.8% of FY2025 sales ($1.1 billion).
Revenue by segment
Costco
FY2026
| Segment | Revenue | Share |
|---|---|---|
| United States | $219.8B | 72.5% |
| Canada | $40.6B | 13.4% |
| Other International | $42.8B | 14.1% |
Kroger
FY2025 (year ended Jan 31, 2026)
| Segment | Revenue | Share |
|---|---|---|
| Non-perishable | $77.6B | 52.5% |
| Fresh | $37.2B | 25.2% |
| Pharmacy | $18.2B | 12.3% |
| Supermarket fuel | $13.6B | 9.2% |
| Other | $1.1B | 0.8% |
Debt and cash
Costco
- Debt
- $6.2B
- Cash and investments
- $21.3B
On Aug 30, 2026.
At Aug 30, 2026 Costco's cash and short-term investments exceeded its debt by $15.1 billion, up from $9.5 billion a year earlier.
Kroger
- Debt
- $17.0B
- Cash and investments
- $1.7B
On Aug 15, 2026.
At Aug 15, 2026 Kroger's debt exceeded its cash by $15.3 billion, about 2.1 times its $7.3 billion of cash from operations in FY2025.
Who owns each company
Costco
- One class of shares.
- Officers and directors as a group: 0.1% of shares (as of Nov 7, 2025).
- The Vanguard Group, Inc.: 9.8% (as of Nov 7, 2025).
- BlackRock, Inc.: 7.8% (as of Nov 12, 2025).
- Vanguard Capital Management LLC: 7.5% (as of Apr 29, 2026).
Kroger
- One class of shares.
- Officers and directors as a group: 0.4% of shares (as of Apr 28, 2026).
- BlackRock, Inc.: 7.5% (as of Mar 31, 2025).
- Berkshire Hathaway Inc.: 7.0% (as of Dec 31, 2022).
- Vanguard Capital Management: 6.9% (as of Mar 31, 2026).
- 2 more holders on the Kroger page.
Sources: Costco S32, S1, S48, S33, S34 · Kroger S5, S16, S29, S30, S33
Risks only one page tracks
Risks whose type the other company's page does not list. Both pages track risks of these types: regulation, legal cases, execution. Every risk is on each company's page.
Costco
- Thin margins (pricing)Costco kept $3.85 of operating income per $100 of FY2026 revenue. Its 10-K says it may cut prices, or hold them despite higher costs, which lowers gross margin.
- Reliance on the US, Canada and California (customer or supplier concentration)The US and Canada made 86% of FY2026 net sales and 83% of operating income. California alone was 26% of US net sales.
- Membership growth and renewals (demand)The 10-K says growth in members and high renewal rates materially influence profit. The worldwide renewal rate fell from 90.5% in Q2 FY2025 to 89.8% in Q4 FY2026; Costco attributes this to international growth and digital sign-ups.
- Gasoline price swings (commodity costs)Gasoline was 11% of FY2026 net sales. Higher gas prices added $3.5 billion to net sales. FY2026 gross margin was 11.09% of net sales, against 11.12% in FY2025.
- Currency moves (currency)292 warehouses, 31% of the total, were outside the US at FY2026 year end. Canada and Other International made 27.5% of FY2026 revenue. Currency changes added $1.3 billion to FY2026 net sales.
Kroger
- Many kinds of rivals and thin margins (competition)Kroger's 10-K lists online retailers, mass merchants, club stores, discounters, dollar stores and specialty food stores as competitors. Operating profit was $1.3 per $100 of FY2025 sales, so small price or cost changes move profit.
- Debt and a pending purchase (debt)Kroger had $17.0 billion of debt and $1.7 billion of cash at Aug 15, 2026, then issued $1.5 billion of notes in October 2026. Kroger agreed to pay $1.25 billion in cash for Giant Eagle and take on about $400 million of its liabilities. Its senior notes were rated Baa1 by Moody's and BBB by S&P on Sep 28, 2026.
- Leadership changes (governance)Kroger had three CEOs in 2025 and 2026: W. Rodney McMullen until Mar 2, 2025, Ronald Sargent as interim CEO, and Gregory Foran from Feb 10, 2026.
Sources: Costco S1, S28, S16 · Kroger S1, S8, S20, S22, S23, S17, S19, S16
Key facts
- How does Costco make money compared with Kroger?
- Costco's revenue by segment in FY2026: United States 72.5%, Canada 13.4%, Other International 14.1%. Kroger's revenue by segment in FY2025 (year ended Jan 31, 2026): Non-perishable 52.5%, Fresh 25.2%, Pharmacy 12.3%, Supermarket fuel 9.2%, Other 0.8%.
- Which is bigger by revenue, Costco or Kroger?
- Costco reported $303.2B of revenue in FY2026, and Kroger reported $147.6B in FY2025. The two fiscal years end in different months.
- How much net income did Costco and Kroger report?
- Costco reported net income of $9.2B in FY2026, and Kroger reported $1.0B in FY2025.
- How much of every $100 did Costco and Kroger keep as net income?
- Costco kept $3.0 of every $100 that came in during FY2026, and Kroger kept $0.7 in FY2025 (year ended Jan 31, 2026) (Cityfort calculation from each company's annual report).
- How much debt and cash do Costco and Kroger have?
- Costco had $6.2B of debt and $21.3B of cash and investments on Aug 30, 2026. Kroger had $17.0B of debt and $1.7B of cash and investments on Aug 15, 2026.
- When do Costco's and Kroger's fiscal years end?
- Costco: Sunday nearest the end of August. Kroger: Saturday closest to Jan 31.
Built from each company's page. Costco updated Nov 1, 2026; Kroger updated Nov 6, 2026.
Sources
Costco
- S1Form 10-K for fiscal year 2026 (ended Aug 30, 2026), Costco Wholesale Corporation (SEC EDGAR), Oct 7, 2026
- S2Form 10-K for fiscal year 2025, Costco Wholesale Corporation (SEC EDGAR), Oct 8, 2025
- S3Form 10-K for fiscal year 2024, Costco Wholesale Corporation (SEC EDGAR), Oct 9, 2024
- S4Form 10-K for fiscal year 2023 (53 weeks), Costco Wholesale Corporation (SEC EDGAR), Oct 11, 2023
- S5Form 10-K for fiscal year 2022, Costco Wholesale Corporation (SEC EDGAR), Oct 5, 2022
- S16Form 8-K Exhibit 99.2: Q4 FY2026 supplemental information, Costco Wholesale Corporation (SEC EDGAR), Sep 24, 2026
- S28Form 8-K Exhibit 99.2: Q2 FY2025 supplemental information, Costco Wholesale Corporation (SEC EDGAR), Mar 6, 2025
- S32Definitive proxy statement (DEF 14A) for the Jan 15, 2026 annual meeting, Costco Wholesale Corporation (SEC EDGAR), Dec 4, 2025
- S33Schedule 13G/A (Amendment No. 10), The Vanguard Group, event Mar 13, 2026, The Vanguard Group (SEC EDGAR), Mar 26, 2026
- S34Schedule 13G, Vanguard Capital Management LLC, event Mar 31, 2026, Vanguard Capital Management LLC (SEC EDGAR), Apr 29, 2026
- S48EDGAR submissions index for CIK 0000909832, SEC EDGAR, Nov 1, 2026
Kroger
- S1Form 10-K for fiscal year 2025 (52 weeks ended Jan 31, 2026), The Kroger Co. (SEC EDGAR), Mar 31, 2026
- S3Form 10-K for fiscal year 2023 (53 weeks ended Feb 3, 2024), The Kroger Co. (SEC EDGAR), Apr 2, 2024
- S5Form 10-Q for the quarter ended Aug 15, 2026 (Q2 FY2026), The Kroger Co. (SEC EDGAR), Sep 18, 2026
- S8Form 8-K Exhibit 99.1: Q2 FY2026 earnings release (Sep 11, 2026), The Kroger Co. (SEC EDGAR), Sep 11, 2026
- S162026 proxy statement (DEF 14A), The Kroger Co. (SEC EDGAR), May 13, 2026
- S17Form 8-K filed Mar 3, 2025 (Items 2.02, 5.02: CEO resignation, interim CEO), The Kroger Co. (SEC EDGAR), Mar 3, 2025
- S19Form 8-K filed Feb 9, 2026 (Item 5.02: CEO appointment), The Kroger Co. (SEC EDGAR), Feb 9, 2026
- S20Form 8-K filed Jul 1, 2026 (Item 8.01: agreement to acquire Giant Eagle), The Kroger Co. (SEC EDGAR), Jul 1, 2026
- S22Free writing prospectus: pricing term sheet for 5.800% notes due 2032 and 6.200% notes due 2036 (Sep 28, 2026), The Kroger Co. (SEC EDGAR), Sep 28, 2026
- S23Form 8-K filed Oct 5, 2026 (Item 8.01: $1.5 billion of senior notes issued), The Kroger Co. (SEC EDGAR), Oct 5, 2026
- S29EDGAR submissions record for The Kroger Co. (CIK 0000056873), The Kroger Co. (SEC EDGAR), Nov 6, 2026
- S30Schedule 13G filed by Vanguard Capital Management (event date Mar 31, 2026), The Kroger Co. (SEC EDGAR), Apr 30, 2026
- S33Schedule 13G/A filed by The Vanguard Group (event date Mar 13, 2026), The Kroger Co. (SEC EDGAR), Mar 27, 2026
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