The largest United States supermarket retailer Kroger Co. has reported a 23 percent rise in quarterly profit, which is partly attributed to low fuel costs, Reuters reports.
The recent acquisition of Harris Teeter Supermarkets Inc. is also said to have contributed to the fourth-quarter success.
"Kroger continues to execute well and demonstrate that it's the best grocer in the industry," Telsey Advisory Group analyst Joe Feldman said, according to Market Watch.
The company "remains our favorite in the grocery-store space, as it has the strongest price position of the traditional supermarkets."
Following news of the fourth-quarter report, Kroger's shares were up more than 7.5 percent on Thursday. Its earnings surpassed the expectations of many analysts.
The supermarket retailer has been praised as being Whole Foods' biggest threat, given that they both focus on selling organic and natural food.
In fact, Kroger is expected to surpass its industry rival in two years, especially with the popularity surrounding its online ordering program and sales of prepared meals.
"Millennials and Boomers alike are focusing more on healthy eating choices and creatively prepared meals," analysts from the real estate investment firm JLL write in an analysis of company.
Kroger was founded in 1883 in Cincinnati, Ohio.
