Albertsons' improved balance sheet and recent dividend increase highlight its potential for future growth. See why I rate ACI stock as a buy.

Albertsons said on Monday its CEO Vivek Sankaran will retire and insider Susan Morris would assume the top role, as the supermarket chain shifts focus to build its digital sales and retail media business.

Albertsons operating chief Susan Morris has held that post since January 2018. The disclosure of Sankaran’s impending departure comes the same day Kroger said CEO Rodney McMullen would resign.

Shares of Albertsons Cos. are trading higher in the after-hours market following news the company will be joining the S&P MidCap 400. Albertsons is slated to replace Aspen Technology on the index on March 11. After the bell Tuesday, Albertsons stock was trading 4.5% higher at $20.65. The stock finished the regular session at $19.76, losing 4.4%.

The Cincinnati company's results come just days after the abrupt resignation of long-time Chief Executive Officer and Chairman Rodney McMullen over personal conduct. They're also the first since a federal judge blocked a $20 billion deal to takeover smaller rival Albertsons.