CNBC Pro

Goldman downgrades Kroger and Albertsons, says inflation will hit grocers' margins

Share
A woman pushes a cart of groceries to her car outside an Albertson's store in Denver, Colorado.
Matthew Staver | Bloomberg | Getty Images

The return of restaurants and rising food prices should put pressure on supermarket stocks in the months ahead, Goldman Sachs said in a note to clients on Tuesday.

Analyst Kate McShane downgraded Kroger to sell from neutral and Albertsons to neutral from buy, saying the companies were likely to be pinched by weakening demand and higher costs.

More In Street Calls

CNBC ProGambling stocks like Penn are tanking. Deutsche Bank says these are the names to buy in the sell-off
CNBC ProVirgin Galactic is losing space tourism first-mover advantage to Blue Origin, says UBS
CNBC ProHere are Thursday's biggest analyst calls of the day: GM, Peloton, Foot Locker, Uber & more