The locally-based grocer, which operates 2,473 supermarkets and multi-department stores in 31 states under two dozen local banners, including Kroger, Fry's, Ralphs and Smith's, earned $214.7 million, or 30 cents a share, in the quarter ended Nov. 4, compared with $185.4 million, or 25 cents, earned a year earlier. Revenue was also up 5% to $14.7 billion in the 90-day period.

"Our results are being achieved by a balanced approach and are being impacted by more than just the price," David B. Dillon, Kroger's chairman and chief executive, said in a conference call with analysts. "These results clearly show what we can achieve by focusing on improving the service, product selection, quality and pricing we offer customers throughout the year."

Despite tough competition from discount chains like Wal-Mart and specialty players such as Whole Foods Market, sales at stores open at least five quarters were up 5.3%, excluding fuel sales, and 4.9% with gasoline sales included. Comparative store sales, excluding gasoline, are expected to top 5% in the next quarter, the company says.