Kroger profits tumble

Kroger Co.’s first-quarter earnings dropped 25 percent, depressed largely by the impact of a 4 1/2-month California supermarket strike.

Kroger said Tuesday it earned $262.8 million, or 35 cents per share, for the three months ended May 22, down from $351.5 million, or 46 cents per share, a year ago. Analysts surveyed by Thomson First Call projected earnings of 34 cents per share.

David B. Dillon, Kroger’s chief executive officer and a Kansas University graduate, said the company was pleased with the recovery of its stores from the strike. But he said the loss of sales to competitors as a result of the strike remained a problem.

Kroger operates the Dillons stores in the Lawrence area.

Development

Argosy to add hotel, garage at its K.C. casino

Argosy Gaming Co., which completed a $105 million expansion of its Kansas City, Mo., casino in December, has announced plans for a new hotel and parking garage.

The company, based in Alton, Ill., said Monday it planned to spend $75 million on the 250-room resort hotel and 1,400-space parking garage at Argosy Casino Riverside.

In December, Argosy finished a new 60,000-square-foot, one-level casino replacing Argosy’s original riverboat, which opened 10 years ago as the Kansas City area’s first casino.

The firm said it expected the project to provide between 300 and 400 construction jobs, and 50 new permanent jobs once it was completed.

Tourism

July Fourth weekend to attract more travelers

Thinking of taking a road trip over the July Fourth holiday weekend? So are 34.4 million other American motorists, AAA reported Tuesday, an increase of 3 percent from last year despite high gasoline prices.

Thirty-five percent of travelers will stay with friends or family, 33 percent at hotels or motels and 11 percent in RVs or tents, the report said. The beach is the most popular destination, accounting for 24 percent of the survey’s respondents.

AAA’s report was based on a national telephone survey of 1,300 adults conducted by the Travel Industry Association of America.