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Kroger's CEO Suddenly Steps Down After Board Investigation
Big shake-up at Kroger (KR): Rodney McMullen, who’s been running the show as Chairman and CEO, just resigned following a Board probe into his personal conduct. Nothing to do with the business itself, but the Board wasn’t taking any chances.
Ronald Sargent, currently the lead director, is stepping in as interim CEO and Chairman while the company hunts for a permanent replacement. Mark Sutton takes over as lead independent director.
Here’s what matters for investors: Kroger is actually crushing it operationally. The company just raised guidance, expecting full-year identical sales (excluding fuel) to hit the high end of their range, with adjusted EPS coming in slightly above their upper guidance estimate. So despite the leadership drama, the business fundamentals remain solid.
Sargent’s no newbie—he’s been on Kroger’s board since 2006 and spent a decade working there early in his career. Plus, he’s got serious retail credentials: ran Staples as Chairman and CEO from 2002-2016 and currently sits on the boards of Wells Fargo and Five Below. The guy knows how to navigate retail turbulence.
The Board’s already kicked off a formal CEO search with outside help. Sargent’s agreed to hold the fort until they find the next permanent leader.