Kroger Operating Chief Ellis Retires

Kroger Co.'s Chief Operating Officer Mike Ellis has retired after 40 years with the company, the supermarket-chain operator said Tuesday.

Mr. Ellis started as a parcel clerk at Fred Meyer, which in 1999 merged with Kroger in a $13 billion deal. He took on the COO post on Jan. 1, 2014.

A replacement is yet to be named, the company said. Kroger's Chief Executive W. Rodney McMullen will temporarily take on the added responsibilities.

A securities filing said Mr. Ellis and Kroger reached a deal in which his granted but unvested stock options became vested and exercisable in exchange for "certain confidentiality, cooperation and other restrictions."

Cincinnati-based Kroger, buoyed by acquisitions, has reported better results in recent quarters. Last week, it raised its quarterly dividend to 21 cents, from 18.5 cents a share, and launched a 2-for-1 stock split and set aside $500 million to buy back stock. It also raised by half a percentage point its projection for sales at grocery stores open for at least 15 months to grow 3.5% to 4.5%, excluding gas pumps. Earnings also came in better than expected.

Shares, up 13% this year, were up three cents Tuesday to $72.70.

Angela Chen contributed to this article

Write to Maria Armental at [e-mail]

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