Kroger Just Gave Its Shareholders a $1.2 Billion Surprise

Earlier this year, shares of Kroger (NYSE: KR)irrationally sold off after it released its fourth-quarter earnings report. After the company met or beat quarterly expectations, shares dropped 12%due to investor aversion to Kroger's plans to distribute the benefits of the recently enacted corporate tax cut between employees, capital investments, and shareholders to create what it refers to as a "more-sustainable business model.

" Later the company announced an aggressive hiring spree of up to 11,000 new employeesto improve the consumer experience and roll out online ordering.