Kroger Co. shares had one of their biggest days in two years after the company announced that it may sell its convenience stores.
A regulatory filing this week revealed that Kroger has been exploring strategic options for its $1.4 billion business after a review found that the business may have more value outside of the company.
Kroger Chief Financial Officer Mike Schlotman commented, “Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review.”
Shares experienced their biggest intra-day gain since September of 2015 after the news.
The company has 784 convenience stores that span 18 states with around 11,000 employees.
Disclaimer: We have no position in Kroger Co. (NYSE: KR) and have not been compensated for this article.