The Kroger Co.

KR: Is The Kroger Co. Halal?

The Kroger Co.

NYSEConsumer DefensiveUS

$57.73

-0.07%

Market Cap: 35.6B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is The Kroger Co. (KR) halal? Not Halal. Based on AAOIFI screening, The Kroger Co. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

44.1% of 30.0% limit

What this means for you

Most scholars advise not holding KR

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About The Kroger Co.

The Kroger Co. functions as a significant retail entity throughout the United States, encompassing a varied collection of store formats. Its operations include integrated food and drug stores, which stock a broad range of products from natural and organic sections to pharmacies, general merchandise, pet centers, fresh seafood, and organic produce. The company also runs multi-department stores that broaden their offerings to include apparel, home fashion and furnishings, outdoor living goods, electronics, automotive products, and toys. Furthermore, Kroger's marketplace stores blend comprehensive grocery services, pharmacies, health and beauty care, and perishable items with general merchandise such as clothing and household goods. Its price impact warehouse stores, on the other hand, concentrate on providing groceries, health and beauty essentials, meat, dairy, baked goods, and fresh produce at competitive prices. Beyond its retail presence, Kroger is involved in manufacturing and processing food products, which it then sells through its own supermarkets and online platforms. The company also operates 1,613 fuel centers, selling fuel to customers. As of January 29, 2022, The Kroger Co. managed 2,726 supermarkets, operating under numerous brand names across 35 states and the District of Columbia. Established in 1883, the company is headquartered in Cincinnati, Ohio.

Sector: Consumer Defensive · Industry: Grocery Stores

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)
3.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

  • Grocery Stores: estimated 3.0% peripheral exposure (AAOIFI industry average)

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

Halal Alternatives in Consumer Defensive

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is The Kroger Co. (KR) halal to invest in?
The Kroger Co. (KR) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did The Kroger Co. get a F compliance rating?
The Kroger Co. (KR) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 44.1% (limit 30%); interest-bearing deposits of 9.3% (limit 30%); prohibited income of 0.08% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change The Kroger Co.'s Shariah verdict?
The Kroger Co.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is The Kroger Co. re-screened for Shariah compliance?
The Kroger Co. (KR) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.