Kroger's stock soared 5% during intraday trading on Thursday, driven by the company's better-than-expected fourth-quarter earnings and optimism surrounding new CEO Greg Foran's plans to cut costs and improve competitiveness.

The grocer reported adjusted earnings per share of $1.28 for the quarter, surpassing the consensus estimate of $1.20. While sales of $34.73 billion slightly missed expectations, investors focused on the expansion of the gross margin to 23.1%, attributed to sourcing improvements and lower supply chain costs.

Market sentiment was buoyed by commentary from new Chief Executive Greg Foran, a former Walmart executive who took the helm last month. He outlined a strategy to lower operational costs and pass savings on to customers through lower prices, aiming to boost the company's market share. Analysts noted that despite a cautious full-year sales and profit forecast, the market is betting on Foran's ability to execute a successful turnaround.