SFMSprouts Farmers Market Inc
Earnings Recap
• Reported GAAP EPS of $0.94 up 17.50% YoY • Reported revenue of $2.15B up 7.64% YoY • Sprouts Farmers Market plans over 40 new store openings in fiscal 2026, with capital expenditures projected between $280 million and $310 million, funded by cash on hand and operating activities. Interest payments for 2026 are estimated at $800K.
Bullish
Sprouts Farmers Market is expanding with new, smaller-format stores and targeting 10% annual unit growth. Enhanced customer engagement through a new loyalty program and the launch of over 7,000 new products, alongside supply chain efficiencies, are driving profitable growth.
Bearish
Sprouts Farmers Market faces risks from geographic concentration, particularly in California, making it vulnerable to regional downturns. Reliance on key third-party distributors and new CBD and PFAS regulations also pose supply chain and product offering challenges.