March 7 (Reuters) - Kroger ( KR ) on Thursday forecast

annual sales and profit largely above Wall Street estimates on

higher demand for groceries at its stores as more Americans

prepare meals at home amid persistent inflation.

Shares of the company, whose $24.6 billion deal to buy

smaller rival Albertsons ( ACI ) is facing an antitrust

roadblock, rose more than 5% in premarket trading.

Consumers are cooking more at home, instead of eating out,

as grocery prices ease at a faster pace than menu prices at

restaurants, propping up sales at retailers such as Kroger ( KR ) and

Walmart ( WMT ).

Data from the U.S. Department of Agriculture showed

food-at-home prices were only 1.2% higher in January, compared

with a year earlier, whereas food-away-from-home prices were

5.1% higher than January 2023.

Kroger ( KR ) said it saw higher customer visits in the quarter,

helping the company post a smaller-than-expected drop of 0.8% in

quarterly same-store sales. Analysts expected a 1.47% decrease,

according to LSEG data.

Earnings reports from other retailers also showed grocery

demand held strong. Grocery Outlet ( GO ) saw increased store

traffic, Albertsons ( ACI ) posted strong pharmacy sales growth and

Walmart ( WMT ) reported robust sales of grocery and consumables.

Kroger ( KR ) has also benefited from its online business, as

investments to expand delivery services and roll out same-day

delivery in multiple markets have boosted sales, while perks

like extra savings and fuel points on its loyalty program also

drove more purchases.

The supermarket chain said it expected fiscal 2024 identical

sales, excluding fuel, to increase 0.25% to 1.75%, compared with

analysts' average estimate for a 0.7% increase, according to

LSEG data.

It projected adjusted earnings of $4.30 to $4.50 per share

for fiscal 2024, compared with analysts' estimate of $4.34 per

share.

The company said it planned to lower prices and increase

worker wages this year.