Tuesday, March 10, 2009

Kroeger Needs To Isolate Fuel In Their EPS

Kroeger (KR) reported Q4 and year end sales pointing out same store sales and margins are up. Which, is good news of course. They keep cautioning that some of their numbers do not include fuel. This does make sense because of the volatility. Kroeger provides some supplemental tables that attempt to show the effect of fuel. What they need to do is show the effect on EPS.

The fuel business is completely distinct from traditional groceries and the accounting would not be difficult to strip out. Competitors in the fuel business know what the margins and other important metrics are; so why not share the information with investors.

If we ever get focused on energy efficient vehicles this will be critical to understanding Kroeger.