Shares of the company, whose $24.6 billion deal with smaller rival Albertsons (ACI.N) is under an antitrust review, rose 2.3% in early trading.
As food prices start to ease faster than restaurant menu prices, American consumers on a tight budget are cooking more of their meals at home rather than going out to dine, helping lift sales at grocery stores.
Kroger has been offering promotions and lowering grocery prices in a bid to attract more consumers, while also investing in its online business and adding products to its private-label portfolio to boost sales.
Customer visits were up 5.1% year-over-year on average between February and May this year, according to data from Placer.ai.
"Q1 is expected to mark the low point of the year, meaning the top- and bottom-line should see stronger growth as this year progresses," said CFRA Research's Arun Sundaram.
Identical sales, excluding fuel, rose 0.5% at Kroger in the first quarter, compared with analysts' estimate for a 0.13% growth, according to LSEG data. Digital sales grew 8%.
Kroger posted an adjusted profit of $1.43 per share, topping estimates of $1.35.
It reaffirmed its forecast for annual identical sales growth, excluding fuel, to come in between 0.25% and 1.75%, and adjusted profit expectations between $4.30 and $4.50 per share.
"Investors will be pleased to see the reiterated guidance because there were worries Kroger could cut its outlook," Sundaram noted.
Last month, membership-only retailer Costco (COST.O) also saw strong demand for fresh foods and bakery items, while customers also grabbed its low-priced discretionary products.
