olivLaw · US equity research
Sprouts Farmers Market, Inc. SFM
Retail-Grocery Stores · SIC 5411 · Vertical: Retail-Grocery Stores (SIC 5411)
Sprouts Farmers Market is a specialty grocer of natural and organic food in the United States, with fresh produce placed at the centre of its stores. The company has grown its footprint and sales, yet comparable store sales declined in the second quarter of 2026 amid a cautious consumer backdrop, making it relevant to watch how the growth strategy translates into results.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 30 Oct 2026, Sprouts Farmers Market, Inc. (SFM) stock was 49.70 USD (+3.54% on the day), with market capitalisation 4.6 bn USD, P/E 9.5 on diluted EPS of 5.21 USD over the last 12 months, beta 0.48, 52-week range 48.00–90.02 USD. Latest reported quarter (Q3 2026): revenue of 2.3 bn USD (+4.7% YoY), net income of 113.4 m USD (−5.6% YoY), diluted EPS 1.21 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 25.4
- oversold (≤ 30)
- Bollinger (20, 2)
- 53.39 – 73.66
- below the lower band · %B -0.18 · band width 31.9%
- SMA 50 / 200
- 69.68 / 76.29
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -3.52 / -2.23
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −25.1% | −0.9% | −24.2 pp | — |
| 3 months | −43.0% | +1.2% | −44.2 pp | — |
| 6 months | −38.8% | +4.8% | −43.6 pp | — |
| Year to date | −37.6% | +10.7% | −48.3 pp | — |
| 1 year | −35.7% | +11.1% | −46.8 pp | −0.0% |
| 3 years | +18.3% | +80.7% | −62.5 pp | +9.6% |
| 5 years | +124.5% | +64.6% | +59.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.0 bn | 2.2 bn | 2.2 bn | 2.2 bn | 2.1 bn | 2.3 bn | 2.3 bn | 2.3 bn |
| Cost of revenue | 1.2 bn | 1.4 bn | 1.4 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.4 bn | 1.4 bn |
| Gross profit | 759.9 m | 886.4 m | 862.6 m | 851.1 m | 816.4 m | 917.3 m | 900.6 m | 880.8 m |
| SG&A | 614.9 m | 623.2 m | 645.1 m | 653.3 m | 653.0 m | 658.8 m | 682.6 m | 683.3 m |
| Operating income | 106.5 m | 226.3 m | 179.4 m | 157.4 m | 123.1 m | 215.3 m | 174.2 m | 152.8 m |
| Depreciation & amortisation | 36.3 m | 36.8 m | 36.6 m | 38.9 m | 41.7 m | 44.3 m | 43.1 m | 44.9 m |
| Pre-tax income | 108.3 m | 227.3 m | 179.8 m | 158.1 m | 123.7 m | 215.4 m | 174.1 m | 151.4 m |
| Income tax | 28.7 m | 47.2 m | 46.1 m | 38.0 m | 33.8 m | 51.7 m | 44.9 m | 37.9 m |
| Net income | 79.6 m | 180.0 m | 133.7 m | 120.1 m | 89.8 m | 163.7 m | 129.2 m | 113.4 m |
| Diluted EPS | 0.79 ≈ | 1.81 | 1.35 | 1.22 | 0.92 ≈ | 1.71 | 1.37 | 1.21 |
| Operating cash flow | 124.9 m | 299.1 m | 111.2 m ≈ | 167.1 m ≈ | 138.5 m | 235.3 m | 133.7 m ≈ | 186.1 m ≈ |
| Capex | 68.7 m | 59.5 m | 60.8 m ≈ | 55.8 m ≈ | 72.2 m | 101.2 m | 88.8 m ≈ | 94.3 m ≈ |
| Share repurchases | 98.8 m | 218.8 m | 73.5 m ≈ | 49.7 m ≈ | 130.0 m | 140.0 m | 70.0 m ≈ | 89.2 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 6 percentile of its own 32-quarter history (min 8.2, median 18.0, max 34.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.7 bn | 5.2 bn | 5.6 bn | 6.5 bn | 6.1 bn | 6.8 bn | 7.7 bn | 8.8 bn |
| Revenue YoY | +29.8% | +11.6% | +8.2% | unavailable | −5.7% | +12.1% | +12.9% | +14.1% |
| Net income | 158.4 m | 158.5 m | 149.6 m | 287.5 m | 244.2 m | 258.9 m | 380.6 m | 523.7 m |
| Net income YoY | +22.8% | +0.1% | −5.6% | unavailable | −15.1% | +6.0% | +47.0% | +37.6% |
| Diluted EPS | 1.15 | 1.22 | 1.25 | 2.43 | 2.10 | 2.50 | 3.75 | 5.31 |
| Diluted EPS YoY | +38.6% | +6.1% | +2.5% | unavailable | −13.6% | +19.0% | +50.0% | +41.6% |
| net % | 3.4% | 3.0% | 2.7% | 4.4% | 4.0% | 3.8% | 4.9% | 5.9% |
| Free cash flow | 110.9 m | 117.3 m | 172.0 m | 372.1 m | 262.4 m | 239.8 m | 414.8 m | 467.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 28 Dec 2025
- Cash
- 257.3 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.4 bn USD
- Total assets
- 4.2 bn USD
- Debt / equity
- unavailable
- Current ratio
- 0.93x
- ROE
- 38.4%
- ROA
- 13.4%
- FCF margin
- 5.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.6 bn | 6.5 bn | 6.1 bn | 6.8 bn | 7.7 bn | 8.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 3.7 bn | 4.1 bn | 3.9 bn | 4.3 bn | 4.8 bn | 5.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 1.9 bn | 2.4 bn | 2.2 bn | 2.5 bn | 2.9 bn | 3.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| SG&A | 1.5 bn | 1.9 bn | 1.7 bn | 2.0 bn | 2.3 bn | 2.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | 217.4 m | 391.7 m | 334.1 m | 350.2 m | 504.5 m | 686.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 122.8 m | 126.5 m | 125.5 m | 137.8 m | 140.2 m | 157.7 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 340.2 m ≈ | 518.2 m ≈ | 459.6 m ≈ | 488.0 m ≈ | 644.7 m ≈ | 843.9 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Pre-tax income | 196.2 m | 376.9 m | 322.4 m | 343.7 m | 506.7 m | 688.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | 46.5 m | 89.4 m | 78.2 m | 84.9 m | 126.1 m | 165.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | 149.6 m | 287.5 m | 244.2 m | 258.9 m | 380.6 m | 523.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | 1.25 | 2.43 | 2.10 | 2.50 | 3.75 | 5.31 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 119.7 m | 118.2 m | 116.1 m | 103.4 m | 101.4 m | 98.7 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 85.3 m | 169.7 m | 245.3 m | 201.8 m | 265.2 m | 257.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 276.0 m | 254.2 m | 265.4 m | 323.2 m | 343.3 m | 427.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 387.8 m | 466.0 m | 567.7 m | 603.8 m | 675.5 m | 809.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 741.5 m | 726.5 m | 716.0 m | 798.7 m | — | — | SEC (XBRL)· 22 Feb 2024verified |
| Goodwill | 368.1 m | 368.9 m | 368.9 m | 381.7 m | 381.8 m | 381.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 185.4 m | 185.0 m | 185.0 m | 208.1 m | 208.1 m | 208.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 2.7 bn | 2.8 bn | 2.9 bn | 3.3 bn | 3.6 bn | 4.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 122.8 m | 139.3 m | 145.9 m | 179.9 m | 213.4 m | 291.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | — | — | 250.0 m | 125.0 m | — | — | SEC (XBRL)· 22 Feb 2024verified |
| Current liabilities | 416.8 m | 496.1 m | 513.5 m | 546.9 m | 680.0 m | 870.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 2.1 bn | 1.9 bn | 2.0 bn | 2.2 bn | 2.3 bn | 2.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 582.0 m † | 881.3 m † | 959.9 m † | 1.1 bn † | 1.3 bn † | 1.4 bn † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 355.2 m | 494.0 m | 364.8 m | 465.1 m | 645.2 m | 716.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 183.2 m | 122.0 m | 102.4 m | 225.3 m | 230.4 m | 248.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 172.0 m ≈ | 372.1 m ≈ | 262.4 m ≈ | 239.8 m ≈ | 414.8 m ≈ | 467.7 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -183.2 m | -122.0 m | -102.4 m | -238.3 m | -230.4 m | -248.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | -87.4 m | -287.4 m | -186.9 m | -318.0 m | -351.5 m | -474.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 176.3 m | 0 | 188.3 m | 203.5 m | 228.5 m | 471.9 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
30 Oct 2026Source: olivLaw, closing series
Market cap: 4.6 bn USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 58.98 – 119.51 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E58.98 – 119.51 (Mid 84.43)4 companies used · median multiple 16.2x · quartiles 11.3x – 22.9xKR, NGVC, VLGEA, WMK
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 5.4% | 100 (vs peers) | 11% |
| FCF conversion · Quality | 68.0% | 54 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 13.0% | 100 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | 36.2% | 100 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 14 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 9.5x | 93 (on a fixed band) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 7.4% | 92 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 9.4% | 100 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial14/100 · 1/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality77/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation93/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Sprouts Farmers Market, Inc. (SFM). Latest full fiscal year: 2025; data up to 2026-09-27.
Figures computed from the financial statements: revenue 8.8 bn USD in 2025; YoY growth 14.1%; net margin 5.4%; ROE 33.5%.
The estimated value range is 58.98–119.51 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 84.43 USD, the price of 49.70 USD leaves a potential of 69.9% (value / price − 1) and a margin of safety of 41.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 5.4%
- Revenue CAGR 3Y: 13.0%
- EPS CAGR 3Y: 36.2%
- P/E (TTM): 9.5x
- FCF yield: 7.4%
- Shareholder yield (distributions): 9.4%
- The price is below the estimated value range
What contradicts it
- Current ratio: 1.0x
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Retail-Grocery Stores (SIC 5411) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| KRKroger Co | 39.4 bn | 36.4 | 14.3% | 0.7% | +0.4% | +5% / +47% |
| ACIAlbertsons Companies, Inc. | 6.2 bn | — | -2.3% | -0.1% | +3.5% | −26% / −40% |
| SFMSprouts Farmers Market, Inc. | 4.6 bn | 9.5 | 33.5% | 5.4% | +14.1% | −36% / +18% |
| WMKWeis Markets, Inc | 1.8 bn | 18.5 | 7.4% | 2.0% | +3.5% | +17% / +14% |
| GOGrocery Outlet Holding Corp. | 1.3 bn | — | -38.1% | -8.0% | unavailable | −5% / −53% |
| NGVCNatural Grocers by Vitamin Cottage, Inc. | 661.2 m | 13.9 | 21.6% | 3.5% | +7.2% | −11% / +128% |
| VLGEAVillage Super Market, Inc. | 179.8 m | 3.4 | 10.3% | 2.2% | +3.7% | +36% / +75% |
| HOSTHost Digital Inc. | 92.5 m | — | -207.8% | -13.3% | +12.7% | −86% / unavailable |
| MSSMaison Solutions Inc. | 17.7 m | — | — | — | +4.8% | −97% / −100% |
| TBBBBbb Foods Inc | — | — | -69.6% | -3.6% | +36.1% | +107% / unavailable |
| IMKTAIngles Markets, Incorporated | — | — | 6.3% | 1.9% | −5.4% | +22% / +5% |
1- and 3-year price returns: for SFM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 32.93 Total return -34% · Per year -34% | 57.99 Total return 17% · Per year 17% | 87.05 Total return 75% · Per year 75% |
| 3 years | 37.66 Total return -24% · Per year -9% | 74.07 Total return 49% · Per year 14% | 121.25 Total return 144% · Per year 35% |
| 5 years | 43.08 Total return -13% · Per year -3% | 94.62 Total return 90% · Per year 14% | 168.88 Total return 240% · Per year 28% |
- Exit P/E± 18.52
- Net margin± 12.96
- Annual revenue growth± 9.84
- Annual dilution± 1.09
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
In brief
Sprouts Farmers Market is a specialty grocer of natural and organic food in the United States, with fresh produce placed at the centre of its stores. The company has grown its footprint and sales, yet comparable store sales declined in the second quarter of 2026 amid a cautious consumer backdrop, making it relevant to watch how the growth strategy translates into results.12
SWOT
Strengths
- A distinct store format with fresh produce at the centre, and a farmers market image that sets the company apart from rivals.
- A broad offer of natural and organic products, with a steady flow of new products launched each year.
- An in-house network of fresh distribution centres that supports supply efficiency and freshness.
Weaknesses
- Dependence on California, where most stores are located and from which a large share of fresh produce is sourced.
- Comparable store sales declined in the second quarter of 2026, showing sensitivity to cautious consumer spending.
- Higher operating costs from network expansion and the shift to self-distribution, which are still in transition.
Opportunities
- Opening stores in areas with growth potential and good supply-chain support could sustain long-term growth if executed well.
- Expanding the loyalty programme and personalisation could raise purchase frequency among target customers.
- Completing the move to self-distribution for meat and seafood could improve availability and lower sourcing costs.
Threats
- Competition from large retailers and online channels could erode market share and pressure margins.
- If food inflation or transport costs rise, the company may be unable to pass them fully on to shoppers.
- Natural disasters or drought in producing regions could disrupt the supply of fresh produce.
Risks
- Weaker consumer spendinghigh
If shoppers remain cautious about food spending, comparable store sales could keep weakening, as seen in the second quarter of 2026.2
- Geographic concentrationhigh
Heavy exposure to California and a few other states makes the company vulnerable to regional economic downturns, natural disasters and climate effects.1
- Costs and tariffsmedium
Higher energy, fuel and tariff costs could compress margins if they cannot be passed on to customers.12
- Supply disruptionsmedium
Problems with third-party suppliers and the transition to self-distribution already caused limited product availability in 2025.1
- Capital needslow
If operating cash flow falls short of investment needs, the company could require additional financing, which could come at higher cost or cause dilution.1
Investment thesis
What would need to be true (bull case)
- The company has a distinct store format, a solid share of own-brand products and a clear plan for opening new stores, which can support long-term sales growth.13
- If investments in self-distribution and technology produce efficiencies, margins could recover and support operating profit growth.23
- Guidance for 2026 assumes growth in store count and net sales, and management describes the performance of new stores as strong.3
What would break the thesis
- Comparable store sales fell in the second quarter of 2026, and consumer caution could persist, limiting growth from existing stores.2
- Geographic concentration and dependence on a few regions make the company sensitive to local events, while competition from large retailers could pressure margins.1
- If energy and transport costs stay high and cannot be passed on to shoppers, operating results could be affected.23
What to watch
- Third-quarter results, including comparable store sales and the EPS outlookQ3 2026
- Trend in comparable store sales amid cautious consumer spendingQ3 2026
- Effect of the 53rd week in fiscal 2026, estimated at about 200 million dollars of salesQ4 2026
- Progress of the move to self-distribution for meat and seafood and its effect on margins2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
The business
Sprouts Farmers Market, headquartered in Phoenix, runs a store format modelled on a farmers market, in which fresh produce occupies the central position. As of December 28, 2025 the company had 477 stores in 24 states, and as of June 28, 2026 the number had reached 490 stores in 25 states.12 Net sales in fiscal 2025 were 8.8 billion dollars, up 14%, according to the annual report.1 The company describes its offer as focused on better-for-you, organic, plant-based and gluten-free products.1
The business model relies on decentralised purchasing, a network of fresh distribution centres it operates itself, and the nationwide launch of its Sprouts Rewards loyalty programme in 2025.1 Management aims to place new stores where its target customers live, and the company states that about 80% of its stores were within 250 miles of a distribution centre.1 To reduce reliance on third parties, it began moving meat and seafood to self-distribution in 2025.1
Quarterly results show that expansion remains the main engine of growth, but comparable store sales have weakened. In the quarter ended June 28, 2026, net sales were 2.3 billion dollars and comparable store sales fell 1%.2 For 2026 the company reaffirmed plans for 42 net new stores and expects net sales growth between 5.5% and 6.5%.3
Segments
Market context
Sprouts operates in the specialty natural and organic food segment of the United States, where it competes with conventional supermarkets, natural food stores, mass and discount retailers, and warehouse clubs.1 The company defines its market through shoppers it calls 'health enthusiasts' and 'selective shoppers', and it estimates there is room to gain share among them.1
Demand for healthier food remains a growth driver, but in 2026 consumers have become more price-conscious, slowing comparable store sales growth.2 The high concentration of stores in California, which holds about a third of the fleet, means results also depend on regional economic conditions.1
Trends
- Price-conscious consumersheadwind
Cost pressures and caution have led some shoppers to cut spending or shift towards lower-priced rivals, as described in the annual report.1 The second quarter of 2026 confirmed this pattern, with comparable store sales declining.2
- Demand for healthy eatingtailwind
Demand for organic, plant-based and gluten-free products remains strong, and the company says customer interest in attribute-driven and innovative products supports growth.1
- Online ordering and deliverymixed
Expanding online ordering and home delivery, through the company's own channels and third-party partners, opens the way to attract new customers but requires ongoing investment in technology and logistics.1
- Energy and fuel costsheadwind
Higher energy and fuel prices weighed on gross margin in the second quarter of 2026, although benefits from self-distribution partly offset the effect.2
Competitive position
Sprouts competes on several fronts: with specialty grocers, conventional supermarkets, natural food stores, mass and discount retailers, warehouse clubs, online retailers and restaurants.1 The company notes that some competitors have greater financial and marketing resources and are expanding their store counts and health and wellness offerings rapidly.1
The company's stated advantages are strong relationships with produce suppliers, a store format with produce at the centre, a steady flow of new products and a large share of own-brand products.1 Competitive risk is heightened because larger retailers could cut prices or expand the space they give to natural products.1
- Specialty natural and organic grocers
Direct rivals in the same natural and organic niche, described in the annual report as expanding aggressively.
- Conventional supermarkets
Traditional chains that are widening their healthy-product offerings and compete for the same shoppers.
- Mass and discount retailers
Lower-priced stores that could force price cuts and pressure Sprouts' margins.
- Warehouse clubs and online retailers
Channels that attract shoppers through low prices or fast delivery, named in the annual report as sources of lost share.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Sprouts Slashes Outlook After Cyclospora Outbreak Hit SalesBloomberg Markets · 28 Oct 2026 · EN
- Multistate salmonella outbreak linked to broccoli sprouts: FDAThe Hill · 10 Sept 2026 · EN
- Sprouts Farmers Market (SFM) Stock Has Crashed: Is It a Buy Now?Yahoo Finance — News · 01 Sept 2026 · EN
- Sprouts names its next CEOYahoo Finance — News · 01 Sept 2026 · EN
- Alfalfa sprouts linked to food-poisoning outbreak in 15 states, US officials sayThe Guardian — Health · 24 Aug 2026 · EN
- Alfalfa sprouts linked to E. coli and salmonella outbreakMedical Xpress · 24 Aug 2026 · EN
SEC filings
- Quarterly report28 Oct 2026
- Current report28 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report14 Oct 2026Departure or appointment of officers
- Current report01 Sept 2026Departure or appointment of officers
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report21 May 2026Shareholder vote
- Current report19 May 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report29 Apr 2026
- Current report29 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-28 · SEC / Sprouts Farmers Market, Inc. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / Sprouts Farmers Market, Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Sprouts Farmers Market, Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.