SPROUTS FARMERS MARKET, INC., 10-K filed on 2/19/2026
Annual Report
v3.25.4
Cover - USD ($)
 12 Months Ended
Dec. 28, 2025
Feb. 17, 2026
Jun. 27, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 28, 2025    
Current Fiscal Year End Date --12-28    
Document Transition Report false    
Entity File Number 001-36029    
Entity Registrant Name Sprouts Farmers Market, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 32-0331600    
Entity Address, Address Line One 5455 East High Street    
Entity Address, Address Line Two Suite 111    
Entity Address, City or Town Phoenix    
Entity Address, State or Province AZ    
Entity Address, Postal Zip Code 85054    
City Area Code 480    
Local Phone Number 814-8016    
Title of 12(b) Security Common Stock, $0.001 par value    
Trading Symbol SFM    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 15,781,871,524
Entity Common Stock, Shares Outstanding   94,576,393  
Documents Incorporated by Reference
Portions of the registrant’s definitive Proxy Statement for its 2026 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 28, 2025.
    
Entity Central Index Key 0001575515    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Dec. 28, 2025
Auditor Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Phoenix, Arizona
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Current assets:    
Cash and cash equivalents $ 257,282 $ 265,159
Accounts receivable, net 65,221 30,901
Inventories 427,095 343,329
Prepaid expenses and other current assets 60,306 36,131
Total current assets 809,904 675,520
Property and equipment, net of accumulated depreciation 1,085,356 895,189
Operating lease assets, net 1,652,732 1,466,903
Intangible assets 208,215 208,094
Goodwill 381,750 381,750
Other assets 20,692 13,243
Total assets 4,158,649 3,640,699
Current liabilities:    
Accounts payable 291,033 213,414
Accrued liabilities 304,419 216,842
Accrued salaries and benefits 96,017 97,991
Current portion of operating lease liabilities 177,263 150,400
Current portion of finance lease and other finance obligations 2,071 1,321
Total current liabilities 870,803 679,968
Long-term operating lease liabilities 1,682,425 1,520,272
Long-term debt and other finance obligations 81,585 7,248
Other long-term liabilities 40,283 38,259
Deferred income tax liability 80,479 73,059
Total liabilities 2,755,575 2,318,806
Commitments and contingencies (Note 17)
Stockholders’ equity:    
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding 0 0
Common stock, $0.001 par value; 200,000,000 shares authorized, 95,926,024 shares issued and outstanding, December 28, 2025; 99,255,036 shares issued and outstanding, December 29, 2024 96 99
Additional paid-in capital 841,848 808,140
Retained earnings 561,130 513,654
Total stockholders’ equity 1,403,074 1,321,893
Total liabilities and stockholders’ equity $ 4,158,649 $ 3,640,699
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 28, 2025
Dec. 29, 2024
Statement of Financial Position [Abstract]    
Undesignated preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Undesignated preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Undesignated preferred stock, shares issued (in shares) 0 0
Undesignated preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 95,926,024 99,255,036
Common stock, shares outstanding (in shares) 95,926,024 99,255,036
v3.25.4
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Net sales $ 8,806,159 $ 7,719,290 $ 6,837,384
Cost of sales 5,389,770 4,777,799 4,315,543
Gross profit 3,416,389 2,941,491 2,521,841
Selling, general and administrative expenses 2,574,687 2,291,350 2,000,437
Depreciation and amortization (exclusive of depreciation included in cost of sales) 149,969 132,748 131,893
Store closure and other costs, net 5,575 12,896 39,280
Income from operations 686,158 504,497 350,231
Interest (income) expense, net (2,626) (2,201) 6,491
Income before income taxes 688,784 506,698 343,740
Income tax provision 165,114 126,097 84,884
Net income $ 523,670 $ 380,601 $ 258,856
Net income per share:      
Basic (in dollars per share) $ 5.36 $ 3.79 $ 2.53
Diluted (in dollars per share) $ 5.31 $ 3.75 $ 2.50
Weighted average shares outstanding:      
Basic (in shares) 97,687 100,363 102,479
Diluted (in shares) 98,704 101,379 103,390
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Beginning Balance (in shares) at Jan. 01, 2023   105,072,756    
Beginning Balance at Jan. 01, 2023 $ 1,046,462 $ 105 $ 726,345 $ 320,012
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income $ 258,856     258,856
Issuance of shares under stock plans (in shares) 637,387 1,449,116    
Issuance of shares under stock plans $ 11,454 $ 1 11,453  
Repurchase and retirement of common stock, including excise tax (in shares) (5,864,246) (5,864,246)    
Repurchase and retirement of common stock $ (205,262) $ (6)   (205,256)
Share-based compensation 18,898   18,898  
Issuance of shares for acquisition (in shares)   554,358    
Issuance of shares for acquisition 18,139 $ 1 18,138  
Ending Balance (in shares) at Dec. 31, 2023   101,211,984    
Ending Balance at Dec. 31, 2023 1,148,547 $ 101 774,834 373,612
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income $ 380,601     380,601
Issuance of shares under stock plans (in shares) 210,312 699,110    
Issuance of shares under stock plans $ 4,890 $ 1 4,889  
Repurchase and retirement of common stock, including excise tax (in shares) (2,656,058) (2,656,058)    
Repurchase and retirement of common stock $ (240,562) $ (3)   (240,559)
Share-based compensation 28,417   28,417  
Issuance of shares for acquisition 0      
Ending Balance (in shares) at Dec. 29, 2024   99,255,036    
Ending Balance at Dec. 29, 2024 1,321,893 $ 99 808,140 513,654
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income $ 523,670     523,670
Issuance of shares under stock plans (in shares) 96,939 626,312    
Issuance of shares under stock plans $ 2,606 $ 1 2,605  
Repurchase and retirement of common stock, including excise tax (in shares) (3,955,324) (3,955,324)    
Repurchase and retirement of common stock $ (476,198) $ (4)   (476,194)
Share-based compensation 31,103   31,103  
Issuance of shares for acquisition 0      
Ending Balance (in shares) at Dec. 28, 2025   95,926,024    
Ending Balance at Dec. 28, 2025 $ 1,403,074 $ 96 $ 841,848 $ 561,130
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Operating activities      
Net income $ 523,670 $ 380,601 $ 258,856
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 157,722 140,164 137,811
Operating lease asset amortization 146,599 133,923 127,208
Impairment of assets 0 406 30,549
Share-based compensation 31,103 28,417 18,898
Deferred income taxes 7,420 10,691 (4,915)
Other non-cash items 4,722 5,610 1,086
Changes in operating assets and liabilities, net of effects from acquisition:      
Accounts receivable 27,216 30,007 3,173
Inventories (83,766) (20,131) (10,857)
Prepaid expenses and other current assets 36,672 11,903 2,210
Other assets (5,433) (45) 3,482
Accounts payable 11,198 27,986 12,215
Accrued liabilities 25,246 39,305 11,746
Accrued salaries and benefits (1,975) 23,240 12,880
Operating lease liabilities (166,206) (168,538) (138,795)
Other long-term liabilities 1,810 1,675 (479)
Cash flows from operating activities 715,998 645,214 465,068
Investing activities      
Purchases of property and equipment (248,267) (230,375) (225,310)
Payments for acquisition, net of cash acquired 0 0 (13,032)
Cash flows used in investing activities (248,267) (230,375) (238,342)
Financing activities      
Payments on revolving credit facilities 0 (125,000) (125,000)
Payments on finance lease liabilities (1,017) (1,148) (1,006)
Payments of deferred financing costs (1,622) 0 0
Repurchase of common stock (471,926) (228,472) (203,496)
Payments of excise tax on repurchases of common stock (2,091) (1,766) 0
Proceeds from exercise of stock options 2,606 4,890 11,454
Cash flows used in financing activities (474,050) (351,496) (318,048)
(Decrease)/Increase in cash, cash equivalents, and restricted cash (6,319) 63,343 (91,322)
Cash, cash equivalents, and restricted cash at beginning of the period 267,213 203,870 295,192
Cash, cash equivalents, and restricted cash at the end of the period 260,894 267,213 203,870
Supplemental disclosure of cash flow information      
Cash paid for interest 1,809 5,008 12,561
Cash paid for income taxes 120,076 102,226 96,633
Supplemental disclosure of non-cash activities      
Property and equipment in accounts payable and accrued liabilities 63,625 36,682 29,592
Issuance of shares for acquisition 0 0 18,139
Excise tax accrued on repurchase of common stock 4,172 2,091 1,766
Leased assets obtained in exchange for new operating lease liabilities, net of lease terminations 332,427 278,230 364,997
Leased assets obtained in exchange for new finance lease liabilities 6,266 0 809
Property acquired through financing obligations $ 69,839 $ 0 $ 0
v3.25.4
Organization and Description of Business
 12 Months Ended
Dec. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of Business Organization and Description of Business Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, offers a unique specialty grocery experience featuring an open layout with fresh produce at the heart of the store. The Company continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. As of December 28, 2025, the Company operated 477 stores in 24 states. For convenience, the “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and, unless the context requires otherwise, its subsidiaries. The Company’s store operations are conducted by its subsidiaries.
v3.25.4
Basis of Presentation
 12 Months Ended
Dec. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation.
The Company has one operating segment, and therefore, one reportable segment: healthy grocery stores.
The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.
The following is a breakdown of the Company’s perishable and non-perishable sales mix:
202520242023
Perishables57.0%57.3%57.3%
Non-Perishables43.0%42.7%42.7%
All dollar amounts are in thousands, unless otherwise indicated.
v3.25.4
Significant Accounting Policies
 12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Fiscal Years
The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal year 2025 ended on December 28, 2025 and included 52 weeks. Fiscal year 2024 ended on December 29, 2024 and included 52 weeks. Fiscal year 2023 ended on December 31, 2023 and included 52 weeks. Fiscal years 2025, 2024 and 2023 are referred to as 2025, 2024 and 2023, respectively.
Significant Accounting Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include inventories, lease assumptions, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, and income taxes. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit include sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows:
 As Of
 December 28, 2025December 29, 2024
Due from banks for debit and credit card transactions$107,630 $80,409 
Restricted Cash
Restricted cash primarily relates to the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $3.6 million and $2.1 million as of December 28, 2025 and December 29, 2024, respectively. These balances are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets.
Accounts Receivable
Accounts receivable primarily represents billings to vendors for scan, advertising and other rebates, receivables from ecommerce sales, billings to landlords for tenant allowances, manufacturer coupons and other miscellaneous receivables. Accounts receivable also includes receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. The Company provides an allowance for doubtful accounts when a specific account is determined to be uncollectible.
Inventories
Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for distribution center and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts).
The Company’s non-perishable inventory is valued at the lower of cost or net realizable value using weighted averaging, the use of which approximates the FIFO method.
Inventories are reduced for estimated losses related to shrinkage. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of December 28, 2025 and December 29, 2024.
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities as well as significant component replacements are capitalized. All other maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income. Depreciation expense, which includes the amortization of assets recorded as finance leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably certain.
The following table includes the estimated useful lives of certain of the Company’s asset classes:
Computer hardware and software
3 to 5 years
Furniture, fixtures and equipment
3 to 20 years
Leasehold improvements
up to 15 years
Buildings40 years
Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated.
Self-Insurance Reserves
The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated based on independent actuarial estimates, which are based on historical information and assumptions about future events. The Company utilizes various techniques, including analysis of historical trends and actuarial valuation methods, to estimate the cost to settle reported claims and claims incurred but not yet reported as of the balance sheet date. The actuarial valuation methods consider loss development factors, which include the development time frame and expected claim reporting and settlement patterns, and expected loss costs, which include the expected frequency and severity of claim activity. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable.
Goodwill and Intangible Assets
Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market,” liquor licenses and reacquired rights recognized in connection with the acquisition of Ronald Cohn, Inc. in 2023. See Note 24, “Business Combination” for more information on this acquisition.
Goodwill and indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company’s qualitative assessment considered factors including changes in the competitive market, budget-to-actual performance, trends in market capitalization for the Company and its peers, turnover in key management personnel and overall changes in the macroeconomic environment. If this qualitative assessment indicates it is more likely than not that the estimated fair value of the reporting unit exceeds its carrying value, no further analysis is required, and goodwill is not impaired. Otherwise, the Company compares the estimated fair value of the reporting unit to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value.
The impairment evaluation for the Company’s indefinite-lived intangible assets consists of a qualitative assessment, similar to that for goodwill. If the qualitative assessment indicates it is more likely than not that the estimated fair value exceeds its carrying value, no further analysis is required, and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value.
The Company has determined its business consists of a single reporting unit. The Company has had no goodwill or indefinite-lived intangible asset impairment charges for the past three fiscal years. See Note 8, “Intangible Assets” and Note 9, “Goodwill” for further discussion.
Impairment of Long-Lived Assets
The Company assesses its long-lived assets, including property and equipment and right-of-use assets, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an
asset group may not be recoverable. These events primarily include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a decision to close or relocate a store. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future undiscounted cash flows expected to be generated by that asset group. The Company’s impairment analysis contains management assumptions about key variables including sales growth rate, gross margin, payroll and other controllable expenses.
If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on the discounted future cash flows using a discount rate commensurate with the related risk or comparable market values, if available. No impairment was recorded during fiscal 2025. The Company recorded an impairment loss of $0.4 million in 2024, as part of the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. The Company recorded an impairment loss of $30.5 million in 2023 of which $27.8 million was in connection with the decision to close certain underperforming stores (see Note 23, "Store Closures") and $2.7 million was in the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. These charges are recorded as a component of Store closure and other costs, net in the accompanying consolidated statements of income.
Deferred Financing Costs
The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Credit Agreement and Former Credit Facility (as defined in Note 12, “Long-Term Debt and Other Finance Obligations”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets.
Leases
The Company leases its stores, distribution centers, and administrative offices. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current portion of operating lease liabilities and noncurrent portion of operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property, plant, equipment, net, current portion of finance lease liabilities, and long-term debt and other finance obligations in the accompanying consolidated balance sheets. Operating lease payments are charged on a straight-line basis to rent expense, a component of selling, general and administrative expenses, over the lease term and finance lease payments are charged to interest expense and depreciation and amortization expense using a debt model over the lease term.
The Company’s lease assets represent a right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities and the related rent expense are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances expected to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases.
Most of the Company’s lease agreements include variable payments related to pass-through costs for common area maintenance ("CAM"), property taxes, and insurance. Additionally, some of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred.
As most of the Company’s lease agreements do not provide an implicit rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease
commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease.
Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to twenty years or more. The exercise of lease renewal options is at the Company’s sole discretion. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less (“short-term leases”) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. Additionally, the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants.
The Company subleases certain real estate to third parties, which have all been classified as operating leases. The Company recognizes sublease income on a straight-line basis.

Financing Lease Obligations

The Company has recorded a financing lease obligation for an office building lease. Based on certain criteria and the existence of a purchase option, the Company has been determined to be the owner during the construction period under ASC 842. Further, there is no evidence of an accounting sale to the landlord upon construction completion, which precludes sale-leaseback accounting. As a result, the building assets and corresponding financial obligation will remain on the Company’s balance sheet and will be amortized over the life of the underlying building asset.

Monthly lease payments are allocated between the land component of the lease (which is accounted for as an finance lease) and the financing obligation. The financing obligation is amortized using the effective interest method and the interest rate is determined in accordance with the requirements of sale-leaseback accounting. Lease payments less the portion allocated to the land element of the lease and that portion considered to be interest expense decrease the financing liability. Additionally, this lease includes a residual value guarantee and purchase option. The final amount of the guarantee is to be determined based upon final construction costs. At the end of the initial lease term, should the Company decide not to renew the lease or exercise the purchase option, the net book value of the asset and the corresponding financing obligation would be reversed.

The outflows associated with the financing obligation principal payments will be classified as financing activities in the consolidated statements of cash flows upon rent commencement.
Fair Value Measurements
The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with ASC 820. This framework establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value:
Level 1: Quoted prices for identical instruments in active markets.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets, and long-lived assets. Impairment losses related to store-level assets are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted market based weighted-average cost of capital, comparable store sales growth assumptions, and third party property appraisal data. Therefore, these inputs are classified as a level 3 measurement in the fair value hierarchy.
Derivative Financial Instruments
The Company records derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the Company reflects the change in fair value of the derivative instrument in its financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows, and the Company fulfills the hedge documentation standards at the time it enters into the derivative contract. The Company designates its hedge based on the exposure it is hedging. For qualifying cash flow hedges, the Company records changes in fair value in other comprehensive income (“OCI”). The Company releases the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings.
The Company reviews the effectiveness of its hedging instruments quarterly. The Company recognizes changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective.
The Company does not enter into derivative financial instruments for trading or speculative purposes, and it monitors the financial stability and credit standing of its counterparties in these transactions. The Company had no active derivative financial instruments as of December 28, 2025 or December 29, 2024.
Share-Based Compensation
The Company measures share-based compensation cost at the grant date based on the fair value of the award and recognizes share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of income is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. See Note 22, “Share-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of share-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of income. The grant date fair value of restricted stock units (“RSUs”) and performance share awards (“PSAs”) is based on the closing price per share of the Company’s common stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards.
Revenue Recognition
The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. The outstanding gift card liability balance is included within accrued liabilities in the accompanying consolidated balance sheets.
Beginning in July 2025, the Company implemented a customer loyalty program under which customers earn points on qualifying purchases. Points may be redeemed in future periods for rewards to be used for discounts on the Company's products. The loyalty points represent a material right to the customer and are accounted for as a separate performance obligation. At the time of purchase, the Company allocates a portion of the transaction price to a deferred loyalty liability based on their estimated standalone selling price, net of estimated breakage. Revenue allocated to the points is deferred and recognized when the points are redeemed or expire. Points expire approximately 6 months after issuance, and points that have been converted to rewards expire 60 days following conversion. The outstanding liability balance at period end, which the Company classifies as a current liability due to the short expiration period, is included within accrued liabilities in the accompanying consolidated balance sheets.
A summary of the activity and balances in the gift card and loyalty program liabilities is as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Beginning Balance$11,071 $10,566 $10,906 
Gift cards issued during the period but not redeemed(1)
5,296 4,727 4,271 
Loyalty value deferred during the period, net of amount redeemed or expired(1)
9,093 — — 
Revenue recognized from beginning liability(4,361)(4,222)(4,611)
Ending Balance$21,099 $11,071 $10,566 
(1)net of estimated breakage
The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale.
The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, any contract performance obligations, or any material costs to obtain or fulfill a contract as of December 28, 2025.
Cost of Sales
Cost of sales includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, and depreciation and amortization for distribution centers and supply chain related assets. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales as the inventory is sold.
The Company’s largest supplier accounted for approximately 52%, 50% and 47% of total purchases during 2025, 2024 and 2023, respectively.
Selling, General and Administrative Expenses
Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, occupancy costs (including rent, property taxes, utilities, CAM and insurance), advertising costs, buying costs, pre-opening and other administrative costs.
The Company charges certain vendors to place advertisements in the Company’s in-store guide and circulars under a cooperative advertising program. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $52.5 million, $46.8 million and $45.8 million for 2025, 2024 and 2023, respectively.
Depreciation and amortization
Depreciation and amortization expense (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability
assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs.
The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate.
The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense.
Share Repurchases
The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record the purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. The cost of common shares repurchased includes a 1% excise tax imposed as part of the Inflation Reduction Act of 2022.
Net Income per Share
Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period.
Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs and RSUs.
Comprehensive Income
Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges. The Company had no other comprehensive income for the past three fiscal years.
Recently Adopted Accounting Pronouncements
Income Taxes – Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU no. 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures." The amendments in this update enhanced a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company has prospectively adopted this standard effective December 28, 2025 and accordingly updated its income tax disclosures but there was no impact on the Company's results of operations, cash flows or financial condition.
Recently Issued Accounting Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU no. 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses". The standard requires public entities to disclose additional disaggregation of expense in the notes to the financial statements for interim and annual reporting periods. The guidance is effective for the Company for its fiscal year 2027. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures.
Intangibles—Goodwill and Other—Internal-Use Software
In September 2025, the FASB issued ASU no. 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)". The standard clarifies and modernizes the accounting for costs related to the internal-use software in Accounting Standards Codification (ASC) 350-40. The guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. The guidance is effective for the Company for its fiscal year 2028. Early adoption is permitted, as of the beginning of an annual reporting period. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures.
Interim Reporting (Topic 270) - Narrow Scope Improvements
In December 2025, the FASB issued ASU no. 2025-11, "Interim Reporting (Topic 270) - Narrow Scope Improvements". The standard clarifies the interim reporting requirements by improving navigability of Topic 270 and more clearly specifying what disclosures are required in an interim reporting period. It is not intended to significantly change interim reporting or expand or reduce interim disclosure requirements. The guidance is effective for the Company for its interim reporting period beginning in fiscal year 2028. Early adoption is permitted, and the guidance can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures.
No other new accounting pronouncements issued or effective during 2025 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
v3.25.4
Accounts Receivable
 12 Months Ended
Dec. 28, 2025
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
A summary of accounts receivable is as follows:
As Of
December 28, 2025December 29, 2024
Landlords$3,332 $5,577 
Vendors36,708 3,814 
Insurance3,651 2,913 
Ecommerce11,027 9,993 
Other10,503 8,604 
Total$65,221 $30,901 
The Company recorded allowances for certain vendor receivables of $7.5 million and $1.3 million at December 28, 2025 and December 29, 2024, respectively.
v3.25.4
Prepaid Expenses and Other Current Assets
 12 Months Ended
Dec. 28, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets Prepaid Expenses and Other Current Assets
A summary of prepaid expenses and other current assets is as follows:
As Of
December 28, 2025December 29, 2024
Prepaid expenses$24,938 $24,469 
Restricted cash3,612 2,054 
Income tax receivable31,221 8,839 
Other current assets535 769 
Total$60,306 $36,131 
v3.25.4
Property and Equipment
 12 Months Ended
Dec. 28, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
A summary of property and equipment, net is as follows:
As Of
December 28, 2025December 29, 2024
Land and finance lease assets$23,146 $16,859 
Furniture, fixtures and equipment1,303,376 1,129,303 
Leasehold improvements889,893 831,020 
Construction in progress174,467 79,994 
Total property and equipment2,390,882 2,057,176 
Accumulated depreciation and amortization(1,305,526)(1,161,987)
Property and equipment, net$1,085,356 $895,189 
Depreciation expense was $156.7 million, $139.2 million and $136.6 million for 2025, 2024 and 2023, respectively. Depreciation expense is primarily reflected in Depreciation and amortization on the consolidated statements of income.
No impairment was recorded in 2025. Impairment expense was $0.4 million and $30.5 million for 2024 and 2023, respectively. Impairment expense is reflected in Store closure and other costs, net on the consolidated statements of income.
v3.25.4
Leases
 12 Months Ended
Dec. 28, 2025
Leases [Abstract]  
Leases Leases
Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows:
Year Ended
ClassificationDecember 28, 2025December 29, 2024December 31, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$270,171 $247,312 $232,745 
Closed locationsStore closure and other costs, net1,111 7,122 4,029 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,499 1,128 1,062 
Interest on lease liabilitiesInterest expense943 747 816 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
81,898 75,646 70,197 
Closed locationsStore closure and other costs, net775 2,138 2,302 
Sublease income:
Open locationsSelling, general and administrative expenses(586)(831)(832)
Closed locationsStore closure and other costs, net(241)(71)— 
Total net lease cost$355,570 $333,191 $310,319 
(1)Supply chain-related amounts of $20.8 million, $20.3 million and $18.2 million were included in cost of sales for 2025, 2024 and 2023, respectively.
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 28, 2025December 29, 2024
Assets
OperatingOperating lease assets$1,652,732 $1,466,903 
FinanceProperty and equipment, net10,680 6,161 
Total lease assets$1,663,412 $1,473,064 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$177,263 $150,400 
FinanceCurrent portion of finance lease liabilities1,653 1,321 
Noncurrent:
OperatingLong-term operating lease liabilities1,682,425 1,520,272 
FinanceLong-term debt and other finance obligations12,165 7,248 
Total lease liabilities$1,873,506 $1,679,241 
202520242023
Weighted average remaining lease term (years):
Operating leases10.310.110.0
Finance leases7.65.86.7
Weighted average discount rate:
Operating leases7.0 %7.0 %7.2 %
Finance leases7.6 %8.4 %8.3 %
Supplemental cash flow and other information related to leases is as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$259,976 $249,862 $228,411 
Operating cash flows for finance leases943 747 816 
Lease assets obtained in exchange for lease liabilities:
Finance leases$6,266 $— $809 
Operating leases332,427 278,230 364,997 
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2026$286,062 $2,253 $288,315 
2027285,295 2,875 288,170 
2028251,238 2,634 253,872 
2029261,792 2,175 263,967 
2030263,586 1,832 265,418 
Thereafter1,302,788 6,817 1,309,605 
Total lease payments2,650,761 18,586 2,669,347 
Less: Imputed interest(791,073)(4,768)(795,841)
Total lease liabilities1,859,688 13,818 1,873,506 
Less: Current portion(177,263)(1,653)(178,916)
Long-term lease liabilities$1,682,425 $12,165 $1,694,590 
(1)Operating lease payments include $94.6 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $1,175.9 million of legally binding minimum lease payments for leases executed but not yet commenced.
(2)These amounts include rental income related to subtenant agreements under which we will receive $1.1 million in 2026, $1.2 million in 2027, $0.9 million in 2028, $0.8 million in 2029, $0.6 million in 2030 and $0.2 million thereafter.
Leases Leases
Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows:
Year Ended
ClassificationDecember 28, 2025December 29, 2024December 31, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$270,171 $247,312 $232,745 
Closed locationsStore closure and other costs, net1,111 7,122 4,029 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,499 1,128 1,062 
Interest on lease liabilitiesInterest expense943 747 816 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
81,898 75,646 70,197 
Closed locationsStore closure and other costs, net775 2,138 2,302 
Sublease income:
Open locationsSelling, general and administrative expenses(586)(831)(832)
Closed locationsStore closure and other costs, net(241)(71)— 
Total net lease cost$355,570 $333,191 $310,319 
(1)Supply chain-related amounts of $20.8 million, $20.3 million and $18.2 million were included in cost of sales for 2025, 2024 and 2023, respectively.
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 28, 2025December 29, 2024
Assets
OperatingOperating lease assets$1,652,732 $1,466,903 
FinanceProperty and equipment, net10,680 6,161 
Total lease assets$1,663,412 $1,473,064 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$177,263 $150,400 
FinanceCurrent portion of finance lease liabilities1,653 1,321 
Noncurrent:
OperatingLong-term operating lease liabilities1,682,425 1,520,272 
FinanceLong-term debt and other finance obligations12,165 7,248 
Total lease liabilities$1,873,506 $1,679,241 
202520242023
Weighted average remaining lease term (years):
Operating leases10.310.110.0
Finance leases7.65.86.7
Weighted average discount rate:
Operating leases7.0 %7.0 %7.2 %
Finance leases7.6 %8.4 %8.3 %
Supplemental cash flow and other information related to leases is as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$259,976 $249,862 $228,411 
Operating cash flows for finance leases943 747 816 
Lease assets obtained in exchange for lease liabilities:
Finance leases$6,266 $— $809 
Operating leases332,427 278,230 364,997 
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2026$286,062 $2,253 $288,315 
2027285,295 2,875 288,170 
2028251,238 2,634 253,872 
2029261,792 2,175 263,967 
2030263,586 1,832 265,418 
Thereafter1,302,788 6,817 1,309,605 
Total lease payments2,650,761 18,586 2,669,347 
Less: Imputed interest(791,073)(4,768)(795,841)
Total lease liabilities1,859,688 13,818 1,873,506 
Less: Current portion(177,263)(1,653)(178,916)
Long-term lease liabilities$1,682,425 $12,165 $1,694,590 
(1)Operating lease payments include $94.6 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $1,175.9 million of legally binding minimum lease payments for leases executed but not yet commenced.
(2)These amounts include rental income related to subtenant agreements under which we will receive $1.1 million in 2026, $1.2 million in 2027, $0.9 million in 2028, $0.8 million in 2029, $0.6 million in 2030 and $0.2 million thereafter.
v3.25.4
Intangible Assets
 12 Months Ended
Dec. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
A summary of the activity and balances in intangible assets is as follows:
Balance at December 31, 2023Additions/AdjustmentsBalance at December 29, 2024
Indefinite-lived trade names$182,937 $— $182,937 
Indefinite-lived reacquired rights23,100 — 23,100 
Indefinite-lived liquor licenses2,023 34 2,057 
Total intangible assets$208,060 $34 $208,094 
 Balance at December 29, 2024Additions/AdjustmentsBalance at December 28, 2025
Indefinite-lived trade names$182,937 $— $182,937 
Indefinite-lived reacquired rights23,100 — 23,100 
Indefinite-lived liquor licenses2,057 121 2,178 
Total intangible assets$208,094 $121 $208,215 
There was no amortization expense in 2025, 2024 and 2023.
v3.25.4
Goodwill
 12 Months Ended
Dec. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The Company’s goodwill balance was $381.8 million as of December 28, 2025 and December 29, 2024. As of December 28, 2025 and December 29, 2024, the Company had no accumulated goodwill impairment losses. The goodwill was related to the acquisitions of Henry’s Farmers Market and Sunflower Farmers Market in 2011 and 2012, respectively, and the acquisition of Ronald Cohn, Inc. in 2023. For further details, see Note 24, "Business Combination."
v3.25.4
Accrued Liabilities
 12 Months Ended
Dec. 28, 2025
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
A summary of accrued liabilities is as follows:
As Of
December 28, 2025December 29, 2024
Accrued transferable federal tax credit$60,244 $— 
Self-insurance reserves31,55528,927
Accrued occupancy related (CAM, property taxes, etc.)26,556 25,971 
Gift card and loyalty program liabilities, net of breakage21,099 11,071 
Accrued sales, use and excise tax19,508 16,550 
Other accrued liabilities145,457 134,323 
Total$304,419 $216,842 
v3.25.4
Accrued Salaries and Benefits
 12 Months Ended
Dec. 28, 2025
Payables and Accruals [Abstract]  
Accrued Salaries and Benefits Accrued Salaries and Benefits
A summary of accrued salaries and benefits is as follows:
As Of
December 28, 2025December 29, 2024
Bonuses$46,467 $52,454 
Payroll25,686 23,205 
Vacation22,082 20,061 
Severance and other1,782 2,271 
Total$96,017 $97,991 
v3.25.4
Long-Term Debt and Other Finance Obligations
 12 Months Ended
Dec. 28, 2025
Long Term Debt And Finance Lease Liabilities [Abstract]  
Long-Term Debt and Other Finance Obligations Long-Term Debt and Other Finance Obligations
A summary of long-term debt and other finance obligations is as follows:
As Of
FacilityMaturityInterest RateDecember 28, 2025December 29, 2024
Senior secured debt
$700.0 million Former Credit Facility(1)
March 25, 2027Variable$— $— 
$600.0 million Credit Agreement
July 25, 2030Variable— — 
Finance ObligationsSeptember 30, 2036n/a69,420 — 
Finance lease liabilitiesVariousn/a12,165 7,248 
Long-term debt and finance lease liabilities$81,585 $7,248 
(1)The Former Credit Facility was replaced by the $600.0 million Credit Agreement as discussed below.
New Credit Agreement
The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under a credit agreement entered into on July 25, 2025 (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the "Revolving Credit Facility") with an initial aggregate commitment of $600.0 million. Amounts outstanding under the Credit Agreement may be increased from time to time in accordance with an expansion feature set forth in the Credit Agreement.
The Company capitalized debt issuance costs of $1.6 million related to the Credit Agreement, which, combined with the remaining $1.1 million debt issuance costs in respect of that certain amended and restated credit agreement entered into on March 25, 2022 (the “Former Credit Facility”), by and among the Company, Intermediate Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, which remained outstanding as of the time of Intermediate Holdings’ entry into the Credit Agreement, are being amortized on a straight-line basis to interest expense over the five-year term of the Credit Agreement.
The Credit Agreement provides for a $100.0 million letter of credit sub-facility (the "Letter of Credit Sub-Facility") and a $50.0 million swingline facility. Letters of credit issued under the Credit Agreement reduce the capacity of Intermediate Holdings to borrow under the Revolving Credit Facility. Letters of credit totaling $23.1 million have been issued as of December 28, 2025 under the Letter of Credit Sub-Facility, primarily to support the Company’s insurance programs.
Guarantees
Obligations under the Credit Agreement are guaranteed by the Company and substantially all of its existing and future wholly-owned material domestic subsidiaries, and are secured by first-priority security interests in substantially all of the assets of the Company, Intermediate Holdings, and the subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings.
Interest and Fees
Loans under the Credit Agreement will initially bear interest, at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus a 1.00% per annum or alternate base rate (with a floor of 0.00%) plus 0.00% per annum. The interest rate margins are subject to upward adjustments pursuant to a pricing grid based on the Company’s total net leverage ratio as set forth in the Credit Agreement and to upward or downward adjustments of up to 0.05% based upon the achievement of certain sustainability-linked metric thresholds, as set forth in the Credit Agreement.
Under the terms of the Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the commitments, which commitment fee ranges between 0.09% to 0.225% per annum, pursuant to a pricing grid based on the Company’s total net leverage ratio. The commitment fees are subject to upward or downward adjustments of up to 0.01% based upon the achievement of certain sustainability-linked metric thresholds, as set forth in the Credit Agreement.
As of December 28, 2025, loans outstanding under the Credit Agreement bore interest at Term SOFR (as defined in the Credit Agreement) plus 1.00% per annum. The Company had no loans outstanding under the Credit Agreement as of December 28, 2025.
As of December 28, 2025, outstanding letters of credit issued under the Credit Agreement were subject to a participation fee of 1.00% per annum and a fronting fee of 0.125% per annum.
Payments and Borrowings
The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on July 25, 2030, subject to extensions as set forth therein.
The Company may prepay loans and permanently reduce commitments under the Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except SOFR breakage costs, if applicable).
During 2025, the Company made no borrowings and had no outstanding debt under the Credit Agreement or the Former Credit Facility as of December 28, 2025. During 2024, the Company made no additional borrowings and principal payments of $125.0 million, resulting in no outstanding debt under the Former Credit Facility as of December 29, 2024.
Covenants
The Credit Agreement contains financial, affirmative and negative covenants. The negative covenants include, among other things, limitations on the Company’s ability to:
•incur additional indebtedness;
•grant additional liens;
•enter into sale-leaseback transactions;
•make loans or investments;
•merge, consolidate or enter into acquisitions;
•pay dividends or distributions;
•enter into transactions with affiliates;
•enter into new lines of business;
•modify the terms of debt or other material agreements; and
•change its fiscal year.
Each of these covenants is subject to customary and other agreed-upon exceptions.
In addition, the Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.75 to 1.00, which ratio may be increased from time to time in connection with certain permitted acquisitions pursuant to conditions as set forth in the Credit Agreement, and a minimum interest coverage ratio not to be less than 3.00 to 1.00. Each of these covenants is tested on the last day of each fiscal quarter.
The Company was in compliance with all applicable covenants under the Credit Agreement as of December 28, 2025.
Finance Obligations
On April 24, 2025, the Company executed a real estate lease for a new corporate headquarters campus and store location that has since commenced. The initial term of the lease is 10 years and the total non-cancellable lease payments are $110.0 million. These payments have been allocated to the building and land components based on the relative standalone fair value. In addition, the lease includes a renewal option for a period of 10 years. Monthly payments commence on completion of construction, increase annually by a nominal amount, and continue through end of the initial term. Based on certain criteria and the existence of a purchase option, the Company has been determined to be the owner during the construction period under ASC 842. Further, there is no evidence of an accounting sale to the landlord upon construction completion, which precludes sale-leaseback accounting. As a result, the building assets and corresponding financial obligation will remain on the Company’s balance sheet and will be amortized over the life of the underlying building asset. As of December 28, 2025, the Company has recorded $69.4 million in both construction in progress assets and finance obligations. There will be no material impact to the statements of income until construction completion, which is expected in the latter half of 2026. Additionally, this lease includes a residual value guarantee. The final
amount of the guarantee is to be determined based upon final construction costs. As of December 28, 2025, no amounts related to this residual value guarantee have been deemed probable.
A summary of maturities of financing obligations is as follows:
Financing Obligations
2026$2,930 
20278,878 
20289,144 
20299,419 
20309,701 
Thereafter60,697 
Total$100,769 
The maturities shown in the table above include additional obligations expected to be incurred as construction is completed during 2026.
v3.25.4
Other Long-Term Liabilities
 12 Months Ended
Dec. 28, 2025
Other Liabilities Disclosure [Abstract]  
Other Long-Term Liabilities Other Long-Term Liabilities
A summary of other long-term liabilities is as follows:
As Of
December 28, 2025December 29, 2024
Long-term portion of self-insurance reserves$25,457 $24,301 
Other14,826 13,958 
Total$40,283 $38,259 
v3.25.4
Self-Insurance Programs
 12 Months Ended
Dec. 28, 2025
Insurance [Abstract]  
Self-Insurance Programs Self-Insurance Programs
The Company is self-insured for costs related to workers’ compensation, general liability and employee health benefits up to certain self-insured retentions and stop-loss limits. The Company establishes reserves for the ultimate obligation of reported and incurred but not reported (“IBNR”) claims. IBNR claims are estimated using various techniques, including analysis of historical trends and actuarial valuation methods.
The Company purchases coverage from third-party insurers for exposures in excess of certain stop-loss limits and recorded receivables of $3.1 million and $2.1 million from its insurance carriers for payments expected to be made in excess of self-insured retentions at December 28, 2025 and December 29, 2024, respectively. The Company recorded amounts for general liability, workers' compensation and team member health benefit liabilities of $57.0 million and $53.2 million at December 28, 2025 and December 29, 2024, respectively.
The following table summarizes the changes in the Company's self-insurance reserves through December 28, 2025:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Beginning Balance$53,228 $47,838 $47,612 
Expenses, net of actuarial adjustments127,771 106,093 85,148 
Claim Payments(123,987)(100,703)(84,922)
Ending Balance57,012 53,228 47,838 
Less: Current portion(31,555)(28,927)(25,012)
Long-term portion$25,457 $24,301 $22,826 
The current portion of the self-insurance reserves is included in "Accrued Liabilities" and the long-term portion is included in "Other Long-Term Liabilities" in the accompanying consolidated balance sheets.
v3.25.4
Defined Contribution Plan
 12 Months Ended
Dec. 28, 2025
Retirement Benefits [Abstract]  
Defined Contribution Plan Defined Contribution Plan
The Company maintains the Sprouts Farmers Market, Inc. Employee 401(k) Savings Plan (the “Plan”), which is a defined contribution plan covering all eligible team members. Under the provisions of the Plan, participants may direct the Company to defer a portion of their compensation to the Plan, subject to the Internal Revenue Code limitations. The Company provides for an employer matching contribution equal to 50% of each dollar contributed by the participants up to 6% of their eligible compensation.
The following table outlines the total expense recorded for the matching under the Plan, which is reflected in Selling, general and administrative expenses on the consolidated statements of income:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
$10,742 $9,570 $8,496 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 28, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income Tax Provision
The income tax provision consists of the following:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
U.S. Federal—current$118,558 $87,601 $67,898 
U.S. Federal—deferred6,062 8,501 (5,927)
U.S. Federal—total124,620 96,102 61,971 
State—current39,136 27,805 21,902 
State—deferred1,358 2,190 1,011 
State—total40,494 29,995 22,913 
Total provision$165,114 $126,097 $84,884 
Tax Rate Reconciliation
Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following:
The table below provides the updated requirements of ASU no. 2023-09 for 2025. See Note 3. Significant Accounting Policies—Recently adopted accounting pronouncements for additional details on the adoption of ASU no. 2023-09.
Year Ended
December 28, 2025
Federal statutory rate$144,645 21.0 %
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit (1)
$32,336 4.7 %
Nontaxable or nondeductible items:
Enhanced charitable contribution impact$(6,133)(0.9)%
Non-deductible Executive Compensation$11,657 1.7 %
Excess tax benefits from share based payments$(13,123)(1.9)%
Other$207 — %
Tax Credits:
Benefit of federal tax credit$(1,649)(0.2)%
Transferable Tax Credit Benefit$(3,506)(0.5)%
Other, net(2)
$680 0.1 %
Effective income tax rate$165,114 24.0 %

(1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category.
(2) Includes valuation allowance, uncertain tax position, and other items that are all immaterial individually.
Year Ended
December 29, 2024December 31, 2023
Federal statutory rate21.0 %21.0 %
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit4.85.4
Enhanced charitable contribution impact(0.9)(1.0)
Non-deductible Executive Compensation1.41.4
Benefit of federal tax credit(0.3)(0.7)
Excess tax benefits from share based payments(1.1)(1.2)
Other, net—(0.2)
Effective income tax rate24.9 %24.7 %


The effective income tax rate decreased to 24.0% in 2025 from 24.9% in 2024 primarily due to an increased benefit for stock-based compensation in the current year and benefit for purchase discount on tax credits partially offset by an increase in nondeductible officer compensation and the rate benefit in prior year due to receipt of interest related to the 2017 amended federal return refund. The effective income tax rate increased to 24.9% in 2024 from 24.7% in 2023 primarily due to a reduction in federal credits and reduced impact of other permanent items due to higher pre-tax income, offset by a reduction in state taxes due to a state valuation allowance recorded in the prior year.
Excess tax benefits or detriments associated with share-based payment awards are recognized as income tax benefits or expense in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The total income tax benefit resulting from
share-based awards was $16.1 million, $7.0 million and $5.0 million for 2025, 2024 and 2023, respectively, and is reflected as a reduction to the 2025, 2024 and 2023 income tax provision.
Deferred Taxes
Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:
As Of
December 28, 2025December 29, 2024
Deferred tax assets
Employee benefits$23,233 $22,163 
Operating leases477,940 429,362 
Other lease related25,486 5,946 
Other accrued liabilities7,943 5,411 
Charitable contribution carryforward4,463 4,522 
Inventories and other4,961 2,881 
Total gross deferred tax assets544,026 470,285 
Less: Valuation Allowance(4,463)(4,522)
Total deferred tax assets, net of valuation allowance539,563 465,763 
Deferred tax liabilities
Depreciation and amortization(116,992)(89,974)
Intangible assets(77,491)(70,978)
Operating leases(424,752)(376,994)
Asset retirement obligations(807)(876)
Total gross deferred tax liabilities(620,042)(538,822)
Net deferred tax liability$(80,479)$(73,059)
A valuation allowance is established for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that the realization of future deductions is uncertain.
Management performs an assessment over future taxable income to analyze whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.
The valuation allowance was $4.5 million as of December 28, 2025 and December 29, 2024, related to contribution carryforwards that management does not believe will ultimately be realized.
The Company has evaluated all available positive and negative evidence and believes it is probable that all other the deferred tax assets will be realized and has not recorded any other valuation allowance against the Company’s deferred tax assets as of December 28, 2025 and December 29, 2024.
The Company applies the authoritative accounting guidance under ASC 740 for the recognition, measurement, classification and disclosure of uncertain tax positions taken or expected to be taken in a tax return.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
As Of
December 28, 2025December 29, 2024December 31, 2023
Beginning balance$232 $477 $1,119 
Additions based on tax positions related to the current year— — 58 
Reduction due to lapse of applicable statute of limitations(232)(245)(700)
Ending balance$— $232 $477 
The Company had no unrecognized tax benefits as of December 28, 2025. The Company had unrecognized tax benefits (tax effected) of $0.2 million as of December 29, 2024.
The Company’s policy is to recognize accrued interest and penalties as a component of income tax expense.
The Company files income tax returns with federal and state tax authorities within the United States. The general statute of limitations for income tax examinations remains open for federal tax returns for tax years 2022 through 2024 and state tax returns for the tax years 2021 through 2024 with few exceptions.
Total Income taxes paid (net of refunds):
Year Ended
December 28, 2025
Federal$82,000 
State38,076 
Total$120,076 

Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdiction:
Year Ended
December 28, 2025
State
California$23,150 
On July 4, 2025, the legislation commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes significant provisions that could have income tax implications. The Company has evaluated the potential impact on its consolidated financial statements and disclosures and has determined that no material impact is expected pending further guidance that may be issued by the Internal Revenue Service.
Pursuant to provisions under the Inflation Reduction Act (“IRA”), the Company executed agreements to purchase transferable federal tax credits of $63.8 million. Such federal tax credits are purchased at negotiated discounts, allowing the Company to reduce its 2025 federal income taxes payable by the amount of credits it expects to claim on its 2025 tax return. The Company has included a tax benefit of $3.5 million in its effective tax rate for the year ended December 28, 2025 for the difference between the tax credit and negotiated price for expected current year tax credits.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 28, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
Real estate obligations, which include legally binding minimum lease payments for leases executed but not yet commenced, were $1,175.9 million as of December 28, 2025.
In addition to its lease obligations, the Company maintains certain purchase commitments with various vendors to ensure its operational needs are fulfilled. As of December 28, 2025, total future purchase commitments under noncancelable service and supply contracts were $41.0 million.
Commitments related to the Company’s business operations cover varying periods of time and are not individually significant. These commitments are expected to be fulfilled with no adverse consequences to the Company’s operations or financial conditions.
Contingencies
The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary contingencies are associated with self-insurance obligations and litigation matters. Self-insurance liabilities require significant judgments, and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. See Note 14, “Self-Insurance Programs” for more information. The Company records an accrual for legal contingencies when it determines that it is probable that the Company has incurred a liability and can reasonably estimate the amount of the loss. However, predicting the outcomes of legal matters involves substantial uncertainties. While management currently believes that estimated liabilities recorded are reasonable and not material to the Company, differences in actual outcomes or changes in management's evaluation of estimated liabilities could arise that could be material to the Company's results of operations.
Litigation
Harvest Sherwood
In February 2025, the Company terminated its agreement with Harvest Sherwood Food Distributors, Inc. (“Harvest Sherwood”) for the distribution of certain meat and seafood products to the Company due to, among other things, Harvest Sherwood’s failure to pay the Company’s vendors for these products. Subsequently, on February 24, 2025, Harvest Sherwood filed a complaint against the Company in the Superior Court for the State of Delaware alleging breach of contract among other claims and seeking monetary damages of approximately $42.0 million. On March 6, 2025, the Company filed an answer and counterclaims against Harvest Sherwood, asserting its defenses to the complaint and its claims against Harvest Sherwood for breach of contract, negligent misrepresentation and unjust enrichment, among others, and seeking monetary damages of approximately $65.0 million. On May 5, 2025, Harvest Sherwood filed a petition for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Texas (the "Bankruptcy Court") and filed a substantially similar adversary proceeding against the Company in the Bankruptcy Court. As a result, the Company's litigation against Harvest Sherwood has been stayed in the Superior Court for the State of Delaware, and the adversary matter is proceeding. Discovery has substantially concluded, and a trial date has been set for June 2026.
Stockholder Actions
On November 24, 2025, a complaint was filed in the United States District Court for the District of Arizona against the Company and certain of its officers by Singh Family Revocable Trust u/a dtd 02/18/2019 on behalf of a purported class of the Company's stockholders. The complaint purports to state claims under Sections 10 and 20 of the Securities Exchange Act of 1934, as amended, based on allegedly false and misleading statements made by certain of the Company's officers regarding the resilience of its customers against macroeconomic pressures. The complaint seeks damages on behalf of the purported class in an unspecified amount and an award of reasonable costs and attorneys’ fees.
On December 16, 2025, stockholder Fraser MacDonald filed a separate complaint in the United States District Court for the District of Arizona, purporting to assert derivatively on behalf of the Company claims under federal and state law against nine of the Company’s directors and officers. This complaint echoes many of the
substantive allegations in the securities class action and, in addition to unspecified damages and attorneys’ fees, seeks corporate governance reforms by the Company.
The Company and its executives intend to defend these cases vigorously, but at this stage of the proceedings, the Company is unable to predict or reasonably estimate any potential loss or effect on the Company. Accordingly, no loss contingency was recorded for these actions.
v3.25.4
Capital Stock
 12 Months Ended
Dec. 28, 2025
Equity [Abstract]  
Capital Stock Capital Stock
Common stock
As of December 28, 2025, 95,926,024 shares of the Company’s common stock were issued and outstanding after the repurchase and retirement of 3,955,324 shares during 2025, as described below. As of December 28, 2025, 5,300,371 shares of common stock are reserved for issuance under the 2022 Incentive Plan (see Note 22, “Share-Based Compensation”).
The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Options exercised96,939210,312637,387
Other share issuances under stock plans529,373488,798811,729
Share Repurchases
On August 13, 2025, the Company's board of directors authorized a new $1 billion share repurchase program for its common stock. The new authorization replaced the Company's then-existing share repurchase authorization of $600 million that was due to expire on May 22, 2027, of which $142.6 million remained available upon its replacement, and under which no further shares may be repurchased. The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of December 28, 2025:
Effective dateExpiration dateAmount
authorized		Cost of
repurchases		Authorization
available
March 2, 2022December 31, 2024$600,000 $480,715 $— 
May 22, 2024May 22, 2027$600,000 $457,408 $— 
August 13, 2025N/A$1,000,000 $163,995 $836,005 
The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time through the applicable expiration date, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The board’s authorization of the share repurchase programs does not obligate the Company to acquire any particular amount of common stock, and the repurchase programs may be commenced, suspended, or discontinued at any time.
Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Number of common shares acquired3,955,3242,656,0585,864,246
Average price per common share acquired$120.39 $90.57 $35.00 
Total cost of common shares acquired$476,198 $240,562 $205,262 
Shares purchased under the Company’s repurchase programs were subsequently retired and the excess of the repurchase price over par value was charged to retained earnings. The cost of common shares repurchased included the 1% excise tax imposed as part of the Inflation Reduction Act of 2022.
Subsequent to December 28, 2025 and through February 17, 2026, the Company repurchased an additional 1.3 million shares of common stock for $100.0 million, excluding excise tax.

Preferred Stock
The Company’s board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 10,000,000 shares of the Company’s preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further action by the Company’s stockholders. The Company’s board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding. The Company’s board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of the Company and might adversely affect the market price of the Company’s common stock and the voting and other rights of the holders of the Company’s common stock. The Company has no current plan to issue any shares of preferred stock.
v3.25.4
Net Income Per Share
 12 Months Ended
Dec. 28, 2025
Earnings Per Share [Abstract]  
Net Income Per Share Net Income per Share
The computation of basic net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options and unvested RSUs. PSAs are included in the computation of diluted net income per share only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be satisfied if the end of the reporting period were the end of the related performance period, and if the effect would be dilutive.
A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Basic net income per share:   
Net income$523,670 $380,601 $258,856 
Weighted average shares outstanding - basic97,687100,363102,479
Basic net income per share$5.36 $3.79 $2.53 
Diluted net income per share:
Net income$523,670 $380,601 $258,856 
Weighted average shares outstanding - basic97,687100,363102,479
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares534497343
RSUs285474524
PSAs1984544
Weighted average shares and equivalent shares outstanding - diluted98,704101,379103,390
Diluted net income per share$5.31 $3.75 $2.50 
For the year ended December 28, 2025, the Company had 0.1 million options and 0.2 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the year ended December 29, 2024 the Company had 0.2 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the year ended December 31, 2023, the Company had 0.2 million options and 0.4 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value:
Level 1: Quoted prices for identical instruments in active markets.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets, and long-lived assets.
The Company did not have any financial liabilities measured at fair value on a recurring basis as of December 28, 2025 and December 29, 2024.
The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill or long-lived asset impairment evaluation as described above is based upon Level 3 inputs. When necessary, the Company uses third party market data and market participant assumptions to derive the fair value of its asset groupings, which primarily include right-of-use lease assets and property and equipment. For further details, see Note 3, “Significant Accounting Policies – Impairment of Long-lived Assets”.
Cash, cash equivalents, and restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and accrued salaries and benefits approximate fair value because of the short maturity of those instruments.
v3.25.4
Segments
 12 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
Segments Segments
The Company has one operating segment, and therefore, one reportable segment: healthy grocery stores. The Company derives all its revenues from the sale of products at its various store locations across the United States. The accounting policies of the segment are the same as described in the summary of significant accounting policies. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses performance and allocates resources based on consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.

In accordance with ASC 280, the following table represents the significant expense and key metrics reviewed by the CODM:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Net Sales$8,806,159 $7,719,290 $6,837,384 
Less:
Cost of sales5,389,770 4,777,799 4,315,543 
Direct store expenses2,210,092 1,958,392 1,723,726 
Other segment items (1)
520,139 478,602 447,884 
Interest (income) expense, net(2,626)(2,201)6,491 
Income tax provision165,114 126,097 84,884 
Net income$523,670 $380,601 $258,856 

(1) Other segment items include non-store selling, general, and administrative expenses, depreciation and amortization, store closure costs, and other overhead expenses.

The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.
In accordance with ASC 606, the following table represents a disaggregation of revenue for 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Perishables$5,020,140 57.0 %$4,424,762 57.3 %$3,915,971 57.3 %
Non-Perishables3,786,019 43.0 %3,294,528 42.7 %2,921,413 42.7 %
Net sales$8,806,159 100.0 %$7,719,290 100.0 %$6,837,384 100.0 %
v3.25.4
Share-Based Compensation
 12 Months Ended
Dec. 28, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
2022 Incentive Plan
In March 2022, the Company’s board of directors adopted the Sprouts Farmers Market, Inc. 2022 Omnibus Incentive Compensation Plan (the “2022 Incentive Plan”), which became effective May 25, 2022, upon approval by the Company’s stockholders. The 2022 Incentive Plan provides team members of the Company, certain consultants and advisors who perform services for the Company, and non-employee members of the Company's board of directors with the opportunity to receive grants of equity awards, including stock options, RSUs, PSAs, and other stock-based awards. The 2022 Incentive Plan replaced the 2013 Incentive Plan (as described below).
Awards Granted under the 2022 Incentive Plan
The Company granted the following awards during 2025 and 2024 under the 2022 Incentive Plan:
Grant DateRSUsPSAsOptions
March 18, 2025185,22858,80561,079
June 3, 2025333——
November 10, 20258,087——
Total193,64858,80561,079
Weighted-average grant date fair value$135.42 $137.81 $51.46 
Weighted-average exercise price— — $137.81 
Grant DateRSUsPSAsOptions
March 19, 2024272,855103,584135,783
June 4, 20241,538——
September 4, 202415,024——
Total289,417103,584135,783
Weighted-average grant date fair value$63.14 $61.15 $23.50 
Weighted-average exercise price— — $61.15 
The aggregate number of shares of common stock that may be issued to team members and directors under the 2022 Incentive Plan may not exceed 6,600,000, subject to the following adjustments. If any awards granted under the 2022 Incentive Plan, terminate, expire, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested or paid in shares, the shares will again be available for purposes of the 2022 Incentive Plan. In addition, the number of shares subject to outstanding awards under the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”) that terminate, expire, are paid in cash, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested, or paid in shares under the 2013 Incentive Plan after the effective date of the 2022 Incentive Plan will be available for issuance under the 2022 Incentive Plan. As of December 28, 2025, there were 1,094,114 stock awards outstanding and 5,300,371 shares remaining available for issuance under the 2022 Incentive Plan.
2013 Incentive Plan
Prior to the adoption of the 2022 Incentive Plan, the 2013 Incentive Plan served as the umbrella plan for the Company’s share-based and cash-based incentive compensation programs for its directors, officers and other team members. Upon stockholder approval of the 2022 Incentive Plan on May 25, 2022, no further awards were granted under the 2013 Incentive Plan, but awards outstanding under the 2013 Incentive Plan will remain outstanding in accordance with their terms and the terms of the 2013 Incentive Plan.
The RSUs generally vest either one-third each year for three years or one-half each year for two years for team members. RSUs granted to independent members of the Company’s board of directors cliff vest in one year. The options expire seven years from grant date. The PSAs are described below.
Stock Options
Outstanding options only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the grants are not continued or assumed by the acquirer on a substantially equivalent basis. If the options and awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such options or awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable award agreement.
Shares issued for option exercises are newly issued shares.
The estimated weighted average fair values of options granted during 2025, 2024 and 2023 were $51.46, $23.50 and $12.63, respectively, and were calculated using the following assumptions in the table below:
202520242023
Dividend yield0.00 %0.00 %0.00 %
Expected volatility37.60 %38.41 %39.48 %
Risk free interest rate4.07 %4.31 %3.78 %
Expected term, in years4.504.504.50
The grant date weighted average fair value of the 0.2 million options issued but not vested as of December 28, 2025 was $28.38. The grant date weighted average fair value of the 0.3 million options issued
but not vested as of December 29, 2024 was $16.90. The grant date weighted average fair value of the 0.4 million options issued but not vested as of December 31, 2023 was $10.84.
The following table summarizes grant date weighted average fair value of options granted and options forfeited:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Grant date weighted average fair value of options granted$51.46 $23.50 $12.63 
Grant date weighted average fair value of options forfeited$— $11.87 $10.98 
Expected volatility for option grants and modifications are calculated based upon the Company’s historical volatility data over a time frame consistent with the expected life of the awards. The expected term is estimated based on the expected period that the options are anticipated to be outstanding after initial grant until exercise or expiration based upon various factors including the contractual terms of the awards and vesting schedules. The expected risk-free rate is based on the U.S. Treasury yield curve rates in effect at the time of the grant using the term most consistent with the expected life of the award. Dividend yield was estimated at zero as the Company does not anticipate making regular future distributions to stockholders. The total intrinsic value of options exercised was $10.9 million for fiscal 2025 and $12.2 million for each of fiscal 2024 and 2023.
The following table summarizes option activity during 2025:
Number of
Options 		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life (In Years)		Aggregate
Intrinsic
Value
Outstanding at December 29, 2024763,786$32.54 
Granted61,079137.81 
Forfeited—— 
Exercised(96,939)26.88 $10,869 
Outstanding at December 28, 2025727,92642.12 3.51$30,835 
Exercisable—December 28, 2025514,94128.52 2.81$26,301 
Vested/Expected to vest—December 28, 2025727,926$42.12 3.51$30,835 
RSUs
Outstanding RSUs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable award agreement.
Shares issued for RSU vesting are newly issued shares.
The fair value for restricted stock units is calculated based on the closing stock price on the date of grant. The total grant date fair value of RSUs vested during 2025, 2024 and 2023 was $14.6 million, $15.2 million and $13.3 million, respectively.
The following table summarizes the weighted average grant date fair value of RSUs awarded during 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
RSUs awarded$135.42 $63.14 $33.21 
The following table summarizes RSU activity during 2025:
Number of
RSUs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 29, 2024610,415$46.33 
Awarded193,648135.42 
Vested(346,813)42.06 
Forfeited(24,125)72.74 
Outstanding at December 28, 2025433,125$88.11 
PSAs
PSAs granted in 2021 are subject to the Company achieving certain EBIT performance targets for the 2023 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. The performance conditions with respect to fiscal year 2023 EBIT were deemed not to have been met. Accordingly, no performance shares vested on the third anniversary of the grant date (March 2024). There were no outstanding 2021 PSAs as of December 28, 2025.
PSAs granted in 2022 are subject to the Company achieving certain EBIT performance targets for the 2024 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. The performance conditions with respect to fiscal year 2024 EBIT were deemed to have been met, and PSAs vested at 148% payout level on the third anniversary of the grant date (March 2025). During the year ended December 28, 2025, 182,560 of the 2022 PSAs vested. There were no outstanding 2022 PSAs as of December 28, 2025.
PSAs granted in 2023 are subject to the Company achieving certain EBIT performance targets for the 2025 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. Subsequent to December 28, 2025, the performance conditions with respect to fiscal year 2025 EBIT were deemed to have been met, and PSAs will vest at 200% payout level on the third anniversary of the grant date (March 2026).
PSAs granted in 2024 are subject to the Company achieving certain EBIT performance targets for the 2026 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2027).
PSAs granted in 2025 are subject to the Company achieving certain EBIT performance targets for the 2027 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2028).
The PSAs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following
the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement.
Shares issued for PSA vesting are newly issued shares.
The fair value for PSAs is calculated based on the closing stock price on the date of grant.
The total grant date fair value of PSAs granted during 2025 was $8.1 million. The total grant date fair value of PSAs vested during 2025 was $5.8 million. No PSAs were forfeited during 2025. The total grant date fair value of the 0.3 million PSAs issued but not released as of December 28, 2025 was $19.2 million.
The total grant date fair value of PSAs granted during 2024 was $6.3 million. No PSAs vested during 2024. The total grant date fair value of performance shares forfeited and not earned during 2024 was $4.2 million. The total grant date fair value of the 0.4 million PSAs issued but not released as of December 29, 2024 was $14.9 million.
The total grant date fair value of PSAs granted during 2023 was $5.7 million. The total grant date fair value of PSAs vested during 2023 was $4.5 million. The total grant date fair value of performance shares forfeited or not earned during 2023 was $1.1 million. The total grant date fair value of the 0.4 million PSAs issued but not released as of December 31, 2023 was $12.9 million.
The following table summarizes PSA activity during 2025:
Number of
PSAs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 29, 2024370,278$40.37 
Awarded58,805137.81 
Vested(182,560)31.54 
Forfeited—— 
PSAs earned59,20631.49 
Outstanding at December 28, 2025305,729$62.67 
Share-Based Compensation Expense
The Company presents share-based compensation expense in Selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Share-based compensation expense$31,103 $28,417 $18,898 
Income tax benefit(3,581)(3,647)(3,007)
Net share-based compensation expense$27,522 $24,770 $15,891 
As of December 28, 2025, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows:
Unrecognized
compensation
expense		Remaining
weighted
average
recognition
period
Options$3,786 1.8
RSUs24,761 2.0
PSAs16,289 1.9
Total unrecognized compensation expense at December 28, 2025$44,836 
During 2025, 2024 and 2023, the Company received $2.6 million, $4.9 million and $11.5 million in cash proceeds from the exercise of options, respectively.
The Company recorded tax benefits of $16.1 million, $7.0 million and $5.0 million during 2025, 2024 and 2023, respectively, resulting from share-based awards.
v3.25.4
Store Closures
 12 Months Ended
Dec. 28, 2025
Store Closures [Abstract]  
Store Closures Store Closures
In February 2023, the Company's board of directors approved the closing of 11 stores, all of which were closed during 2023. These stores, on average, were approximately 30% larger than the Company's current prototype format and were underperforming financially. The closure of these stores resulted in a charge of $27.8 million in 2023 related to the impairment of leasehold improvements and right-of-use assets and was reflected in Store closure and other costs, net on the consolidated statements of income. The impairment charge represented the excess of the carrying value over the estimated fair value of each store's asset group. Accelerated depreciation on the closed stores' assets during 2023 was $5.9 million, and was reflected in Depreciation and amortization on the consolidated statements of income. Severance expense during 2023 was immaterial.
No stores were closed during 2025 or 2024 and all lease costs associated with our closed locations, for which a lease remains in effect, are included within Store closure and other costs, net. See Note 7, "Leases", for amounts incurred during 2025 and 2024.
v3.25.4
Business Combination
 12 Months Ended
Dec. 28, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combination Business Combination
On March 20, 2023, the Company completed its acquisition of Ronald Cohn, Inc., a corporation that owned two stores located in California operating under the ‘Sprouts Farmers Market’ name pursuant to a legacy trademark license arrangement. The aggregate consideration paid in the transaction consisted of 0.6 million of the Company’s common shares valued at $18.1 million using the closing price of the Company's common stock on March 20, 2023 and cash consideration of $13.0 million.
The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires that the purchase price be allocated to the assets and liabilities acquired based on their estimated fair values as of the acquisition date. Acquisition-related costs were immaterial and were expensed as incurred. The financial results of the acquired stores have been included in the Company’s consolidated financial statements from the date of acquisition. The acquired stores' results of operations were not material to the Company's consolidated results.
The net purchase price was allocated to the net tangible assets of ($4.9) million and a reacquired right intangible asset of $23.1 million based on their fair values on the acquisition date. The remaining unallocated net purchase price of $12.9 million was recorded as goodwill. Goodwill represents the future economic benefits to the Company from the acquisition, which include the Company's ability to fully control the Sprouts Farmers Market brand by termination of the legacy trademark license agreement and allowing further expansion opportunities in Southern California. The goodwill is not expected to be deductible for tax purposes.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 28, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 28, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 28, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity is important to our operations. We are susceptible to significant and persistent cybersecurity threats, including data breaches, ransomware, and phishing attacks. These threats, which are constantly evolving, include attempts by malicious actors to breach our security and compromise our information technology systems, as well as those of our vendors and suppliers. A cybersecurity incident impacting us or any third party could disrupt operations, damage our reputation, and result in costly litigation and/or government enforcement action. We seek to maintain robust cybersecurity and data protection practices and continuously evaluate cybersecurity threats, considering their immediate and long-term effects on our business strategy, operations, and financial condition.
Under the oversight of our Board of Directors, and the Board’s risk committee, our management has established comprehensive processes for identifying, assessing, and managing material risks from cybersecurity threats. These processes are integrated into our enterprise risk management program and may include measures such as threat monitoring and detection, periodic testing, access controls, and team member training. Our cybersecurity risk management processes are informed by recognized standards such as the NIST Cybersecurity Framework. Our detailed incident response plan outlines steps for detection, assessment, notification, and recovery, including escalation to management, the Risk Committee, and the Board when appropriate.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Under the oversight of our Board of Directors, and the Board’s risk committee, our management has established comprehensive processes for identifying, assessing, and managing material risks from cybersecurity threats. These processes are integrated into our enterprise risk management program and may include measures such as threat monitoring and detection, periodic testing, access controls, and team member training. Our cybersecurity risk management processes are informed by recognized standards such as the NIST Cybersecurity Framework. Our detailed incident response plan outlines steps for detection, assessment, notification, and recovery, including escalation to management, the Risk Committee, and the Board when appropriate.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
The risk committee of our Board, chaired by a director with extensive cybersecurity expertise, receives quarterly updates from management on cybersecurity risks and incidents, including those with moderate or higher impacts. Management updates the full board regularly to support alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, oversees our cybersecurity efforts and is supported by our internal information security team and external consultants.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The risk committee of our Board, chaired by a director with extensive cybersecurity expertise, receives quarterly updates from management on cybersecurity risks and incidents, including those with moderate or higher impacts.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The risk committee of our Board, chaired by a director with extensive cybersecurity expertise, receives quarterly updates from management on cybersecurity risks and incidents, including those with moderate or higher impacts. Management updates the full board regularly to support alignment on mitigation strategies.
Cybersecurity Risk Role of Management [Text Block]
The risk committee of our Board, chaired by a director with extensive cybersecurity expertise, receives quarterly updates from management on cybersecurity risks and incidents, including those with moderate or higher impacts. Management updates the full board regularly to support alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, oversees our cybersecurity efforts and is supported by our internal information security team and external consultants.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Management updates the full board regularly to support alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, oversees our cybersecurity efforts and is supported by our internal information security team and external consultants.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Chief Technology Officer, with more than 35 years of IT experience, oversees our cybersecurity efforts and is supported by our internal information security team and external consultants.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The risk committee of our Board, chaired by a director with extensive cybersecurity expertise, receives quarterly updates from management on cybersecurity risks and incidents, including those with moderate or higher impacts. Management updates the full board regularly to support alignment on mitigation strategies.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation.
Fiscal Years
Fiscal Years
The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal year 2025 ended on December 28, 2025 and included 52 weeks. Fiscal year 2024 ended on December 29, 2024 and included 52 weeks. Fiscal year 2023 ended on December 31, 2023 and included 52 weeks. Fiscal years 2025, 2024 and 2023 are referred to as 2025, 2024 and 2023, respectively.
Significant Accounting Estimates
Significant Accounting Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include inventories, lease assumptions, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, and income taxes. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit include sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions.
Restricted Cash
Restricted Cash
Restricted cash primarily relates to the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $3.6 million and $2.1 million as of December 28, 2025 and December 29, 2024, respectively. These balances are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets.
Accounts Receivable
Accounts Receivable
Accounts receivable primarily represents billings to vendors for scan, advertising and other rebates, receivables from ecommerce sales, billings to landlords for tenant allowances, manufacturer coupons and other miscellaneous receivables. Accounts receivable also includes receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. The Company provides an allowance for doubtful accounts when a specific account is determined to be uncollectible.
Inventories
Inventories
Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for distribution center and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts).
The Company’s non-perishable inventory is valued at the lower of cost or net realizable value using weighted averaging, the use of which approximates the FIFO method.
Inventories are reduced for estimated losses related to shrinkage. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of December 28, 2025 and December 29, 2024.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities as well as significant component replacements are capitalized. All other maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income. Depreciation expense, which includes the amortization of assets recorded as finance leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably certain.
The following table includes the estimated useful lives of certain of the Company’s asset classes:
Computer hardware and software
3 to 5 years
Furniture, fixtures and equipment
3 to 20 years
Leasehold improvements
up to 15 years
Buildings40 years
Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated.
Self-Insurance Reserves
Self-Insurance Reserves
The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated based on independent actuarial estimates, which are based on historical information and assumptions about future events. The Company utilizes various techniques, including analysis of historical trends and actuarial valuation methods, to estimate the cost to settle reported claims and claims incurred but not yet reported as of the balance sheet date. The actuarial valuation methods consider loss development factors, which include the development time frame and expected claim reporting and settlement patterns, and expected loss costs, which include the expected frequency and severity of claim activity. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market,” liquor licenses and reacquired rights recognized in connection with the acquisition of Ronald Cohn, Inc. in 2023. See Note 24, “Business Combination” for more information on this acquisition.
Goodwill and indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company’s qualitative assessment considered factors including changes in the competitive market, budget-to-actual performance, trends in market capitalization for the Company and its peers, turnover in key management personnel and overall changes in the macroeconomic environment. If this qualitative assessment indicates it is more likely than not that the estimated fair value of the reporting unit exceeds its carrying value, no further analysis is required, and goodwill is not impaired. Otherwise, the Company compares the estimated fair value of the reporting unit to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value.
The impairment evaluation for the Company’s indefinite-lived intangible assets consists of a qualitative assessment, similar to that for goodwill. If the qualitative assessment indicates it is more likely than not that the estimated fair value exceeds its carrying value, no further analysis is required, and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value.
The Company has determined its business consists of a single reporting unit. The Company has had no goodwill or indefinite-lived intangible asset impairment charges for the past three fiscal years.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company assesses its long-lived assets, including property and equipment and right-of-use assets, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an
asset group may not be recoverable. These events primarily include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a decision to close or relocate a store. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future undiscounted cash flows expected to be generated by that asset group. The Company’s impairment analysis contains management assumptions about key variables including sales growth rate, gross margin, payroll and other controllable expenses.
If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on the discounted future cash flows using a discount rate commensurate with the related risk or comparable market values, if available. No impairment was recorded during fiscal 2025. The Company recorded an impairment loss of $0.4 million in 2024, as part of the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. The Company recorded an impairment loss of $30.5 million in 2023 of which $27.8 million was in connection with the decision to close certain underperforming stores (see Note 23, "Store Closures") and $2.7 million was in the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. These charges are recorded as a component of Store closure and other costs, net in the accompanying consolidated statements of income.
Deferred Financing Costs
Deferred Financing Costs
The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Credit Agreement and Former Credit Facility (as defined in Note 12, “Long-Term Debt and Other Finance Obligations”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets.
Leases
Leases
The Company leases its stores, distribution centers, and administrative offices. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current portion of operating lease liabilities and noncurrent portion of operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property, plant, equipment, net, current portion of finance lease liabilities, and long-term debt and other finance obligations in the accompanying consolidated balance sheets. Operating lease payments are charged on a straight-line basis to rent expense, a component of selling, general and administrative expenses, over the lease term and finance lease payments are charged to interest expense and depreciation and amortization expense using a debt model over the lease term.
The Company’s lease assets represent a right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities and the related rent expense are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances expected to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases.
Most of the Company’s lease agreements include variable payments related to pass-through costs for common area maintenance ("CAM"), property taxes, and insurance. Additionally, some of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred.
As most of the Company’s lease agreements do not provide an implicit rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease
commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease.
Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to twenty years or more. The exercise of lease renewal options is at the Company’s sole discretion. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less (“short-term leases”) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. Additionally, the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants.
The Company subleases certain real estate to third parties, which have all been classified as operating leases. The Company recognizes sublease income on a straight-line basis.
Financing Lease Obligations
Financing Lease Obligations

The Company has recorded a financing lease obligation for an office building lease. Based on certain criteria and the existence of a purchase option, the Company has been determined to be the owner during the construction period under ASC 842. Further, there is no evidence of an accounting sale to the landlord upon construction completion, which precludes sale-leaseback accounting. As a result, the building assets and corresponding financial obligation will remain on the Company’s balance sheet and will be amortized over the life of the underlying building asset.

Monthly lease payments are allocated between the land component of the lease (which is accounted for as an finance lease) and the financing obligation. The financing obligation is amortized using the effective interest method and the interest rate is determined in accordance with the requirements of sale-leaseback accounting. Lease payments less the portion allocated to the land element of the lease and that portion considered to be interest expense decrease the financing liability. Additionally, this lease includes a residual value guarantee and purchase option. The final amount of the guarantee is to be determined based upon final construction costs. At the end of the initial lease term, should the Company decide not to renew the lease or exercise the purchase option, the net book value of the asset and the corresponding financing obligation would be reversed.

The outflows associated with the financing obligation principal payments will be classified as financing activities in the consolidated statements of cash flows upon rent commencement.
Fair Value Measurements
Fair Value Measurements
The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with ASC 820. This framework establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value:
Level 1: Quoted prices for identical instruments in active markets.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets, and long-lived assets. Impairment losses related to store-level assets are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted market based weighted-average cost of capital, comparable store sales growth assumptions, and third party property appraisal data. Therefore, these inputs are classified as a level 3 measurement in the fair value hierarchy.
Derivative Financial Instruments
Derivative Financial Instruments
The Company records derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the Company reflects the change in fair value of the derivative instrument in its financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows, and the Company fulfills the hedge documentation standards at the time it enters into the derivative contract. The Company designates its hedge based on the exposure it is hedging. For qualifying cash flow hedges, the Company records changes in fair value in other comprehensive income (“OCI”). The Company releases the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings.
The Company reviews the effectiveness of its hedging instruments quarterly. The Company recognizes changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective.
The Company does not enter into derivative financial instruments for trading or speculative purposes, and it monitors the financial stability and credit standing of its counterparties in these transactions.
Share-Based Compensation
Share-Based Compensation
The Company measures share-based compensation cost at the grant date based on the fair value of the award and recognizes share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of income is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. See Note 22, “Share-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of share-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of income. The grant date fair value of restricted stock units (“RSUs”) and performance share awards (“PSAs”) is based on the closing price per share of the Company’s common stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards.
Revenue Recognition
Revenue Recognition
The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. The outstanding gift card liability balance is included within accrued liabilities in the accompanying consolidated balance sheets.
Beginning in July 2025, the Company implemented a customer loyalty program under which customers earn points on qualifying purchases. Points may be redeemed in future periods for rewards to be used for discounts on the Company's products. The loyalty points represent a material right to the customer and are accounted for as a separate performance obligation. At the time of purchase, the Company allocates a portion of the transaction price to a deferred loyalty liability based on their estimated standalone selling price, net of estimated breakage. Revenue allocated to the points is deferred and recognized when the points are redeemed or expire. Points expire approximately 6 months after issuance, and points that have been converted to rewards expire 60 days following conversion. The outstanding liability balance at period end, which the Company classifies as a current liability due to the short expiration period, is included within accrued liabilities in the accompanying consolidated balance sheets.
The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale.
Cost of Sales
Cost of Sales
Cost of sales includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, and depreciation and amortization for distribution centers and supply chain related assets. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales as the inventory is sold.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses
Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, occupancy costs (including rent, property taxes, utilities, CAM and insurance), advertising costs, buying costs, pre-opening and other administrative costs.
The Company charges certain vendors to place advertisements in the Company’s in-store guide and circulars under a cooperative advertising program. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred.
Depreciation and amortization
Depreciation and amortization
Depreciation and amortization expense (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment.
Income Taxes
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability
assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs.
The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate.
The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense.
Share Repurchases
Share Repurchases
The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record the purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. The cost of common shares repurchased includes a 1% excise tax imposed as part of the Inflation Reduction Act of 2022.
Net Income per Share
Net Income per Share
Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period.
Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs and RSUs.
Comprehensive Income
Comprehensive Income
Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges. The Company had no other comprehensive income for the past three fiscal years.
Recently Adopted Accounting Pronouncements / Recently Issued Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
Income Taxes – Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU no. 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures." The amendments in this update enhanced a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company has prospectively adopted this standard effective December 28, 2025 and accordingly updated its income tax disclosures but there was no impact on the Company's results of operations, cash flows or financial condition.
Recently Issued Accounting Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU no. 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses". The standard requires public entities to disclose additional disaggregation of expense in the notes to the financial statements for interim and annual reporting periods. The guidance is effective for the Company for its fiscal year 2027. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures.
Intangibles—Goodwill and Other—Internal-Use Software
In September 2025, the FASB issued ASU no. 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)". The standard clarifies and modernizes the accounting for costs related to the internal-use software in Accounting Standards Codification (ASC) 350-40. The guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. The guidance is effective for the Company for its fiscal year 2028. Early adoption is permitted, as of the beginning of an annual reporting period. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures.
Interim Reporting (Topic 270) - Narrow Scope Improvements
In December 2025, the FASB issued ASU no. 2025-11, "Interim Reporting (Topic 270) - Narrow Scope Improvements". The standard clarifies the interim reporting requirements by improving navigability of Topic 270 and more clearly specifying what disclosures are required in an interim reporting period. It is not intended to significantly change interim reporting or expand or reduce interim disclosure requirements. The guidance is effective for the Company for its interim reporting period beginning in fiscal year 2028. Early adoption is permitted, and the guidance can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures.
No other new accounting pronouncements issued or effective during 2025 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
v3.25.4
Basis of Presentation (Tables)
 12 Months Ended
Dec. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Sales by Perishable and Non-Perishable
The following is a breakdown of the Company’s perishable and non-perishable sales mix:
202520242023
Perishables57.0%57.3%57.3%
Non-Perishables43.0%42.7%42.7%
v3.25.4
Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
Schedule of Amounts Due from Banks The amounts due from banks for these transactions at each reporting date were as follows:
 As Of
 December 28, 2025December 29, 2024
Due from banks for debit and credit card transactions$107,630 $80,409 
Schedule of Estimated Useful Lives of Asset Classes
The following table includes the estimated useful lives of certain of the Company’s asset classes:
Computer hardware and software
3 to 5 years
Furniture, fixtures and equipment
3 to 20 years
Leasehold improvements
up to 15 years
Buildings40 years
Schedule of Activity and Balance in the Gift Card and Loyalty Program Liabilities
A summary of the activity and balances in the gift card and loyalty program liabilities is as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Beginning Balance$11,071 $10,566 $10,906 
Gift cards issued during the period but not redeemed(1)
5,296 4,727 4,271 
Loyalty value deferred during the period, net of amount redeemed or expired(1)
9,093 — — 
Revenue recognized from beginning liability(4,361)(4,222)(4,611)
Ending Balance$21,099 $11,071 $10,566 
(1)net of estimated breakage
v3.25.4
Accounts Receivable (Tables)
 12 Months Ended
Dec. 28, 2025
Receivables [Abstract]  
Schedule of Accounts Receivable
A summary of accounts receivable is as follows:
As Of
December 28, 2025December 29, 2024
Landlords$3,332 $5,577 
Vendors36,708 3,814 
Insurance3,651 2,913 
Ecommerce11,027 9,993 
Other10,503 8,604 
Total$65,221 $30,901 
v3.25.4
Prepaid Expenses and Other Current Assets (Tables)
 12 Months Ended
Dec. 28, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
A summary of prepaid expenses and other current assets is as follows:
As Of
December 28, 2025December 29, 2024
Prepaid expenses$24,938 $24,469 
Restricted cash3,612 2,054 
Income tax receivable31,221 8,839 
Other current assets535 769 
Total$60,306 $36,131 
v3.25.4
Property and Equipment (Tables)
 12 Months Ended
Dec. 28, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
A summary of property and equipment, net is as follows:
As Of
December 28, 2025December 29, 2024
Land and finance lease assets$23,146 $16,859 
Furniture, fixtures and equipment1,303,376 1,129,303 
Leasehold improvements889,893 831,020 
Construction in progress174,467 79,994 
Total property and equipment2,390,882 2,057,176 
Accumulated depreciation and amortization(1,305,526)(1,161,987)
Property and equipment, net$1,085,356 $895,189 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 28, 2025
Leases [Abstract]  
Schedule of Components of Lease Cost
Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows:
Year Ended
ClassificationDecember 28, 2025December 29, 2024December 31, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$270,171 $247,312 $232,745 
Closed locationsStore closure and other costs, net1,111 7,122 4,029 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,499 1,128 1,062 
Interest on lease liabilitiesInterest expense943 747 816 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
81,898 75,646 70,197 
Closed locationsStore closure and other costs, net775 2,138 2,302 
Sublease income:
Open locationsSelling, general and administrative expenses(586)(831)(832)
Closed locationsStore closure and other costs, net(241)(71)— 
Total net lease cost$355,570 $333,191 $310,319 
(1)Supply chain-related amounts of $20.8 million, $20.3 million and $18.2 million were included in cost of sales for 2025, 2024 and 2023, respectively.
Schedule of Supplemental Balance Sheet Information Related to Leases
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 28, 2025December 29, 2024
Assets
OperatingOperating lease assets$1,652,732 $1,466,903 
FinanceProperty and equipment, net10,680 6,161 
Total lease assets$1,663,412 $1,473,064 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$177,263 $150,400 
FinanceCurrent portion of finance lease liabilities1,653 1,321 
Noncurrent:
OperatingLong-term operating lease liabilities1,682,425 1,520,272 
FinanceLong-term debt and other finance obligations12,165 7,248 
Total lease liabilities$1,873,506 $1,679,241 
202520242023
Weighted average remaining lease term (years):
Operating leases10.310.110.0
Finance leases7.65.86.7
Weighted average discount rate:
Operating leases7.0 %7.0 %7.2 %
Finance leases7.6 %8.4 %8.3 %
Schedule of Supplemental Cash Flow and Other Information Related to Leases
Supplemental cash flow and other information related to leases is as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$259,976 $249,862 $228,411 
Operating cash flows for finance leases943 747 816 
Lease assets obtained in exchange for lease liabilities:
Finance leases$6,266 $— $809 
Operating leases332,427 278,230 364,997 
Schedule of Maturities of Operating Lease Liabilities
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2026$286,062 $2,253 $288,315 
2027285,295 2,875 288,170 
2028251,238 2,634 253,872 
2029261,792 2,175 263,967 
2030263,586 1,832 265,418 
Thereafter1,302,788 6,817 1,309,605 
Total lease payments2,650,761 18,586 2,669,347 
Less: Imputed interest(791,073)(4,768)(795,841)
Total lease liabilities1,859,688 13,818 1,873,506 
Less: Current portion(177,263)(1,653)(178,916)
Long-term lease liabilities$1,682,425 $12,165 $1,694,590 
(1)Operating lease payments include $94.6 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $1,175.9 million of legally binding minimum lease payments for leases executed but not yet commenced.
(2)These amounts include rental income related to subtenant agreements under which we will receive $1.1 million in 2026, $1.2 million in 2027, $0.9 million in 2028, $0.8 million in 2029, $0.6 million in 2030 and $0.2 million thereafter.
Schedule of Maturities of Finance Lease Liabilities
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2026$286,062 $2,253 $288,315 
2027285,295 2,875 288,170 
2028251,238 2,634 253,872 
2029261,792 2,175 263,967 
2030263,586 1,832 265,418 
Thereafter1,302,788 6,817 1,309,605 
Total lease payments2,650,761 18,586 2,669,347 
Less: Imputed interest(791,073)(4,768)(795,841)
Total lease liabilities1,859,688 13,818 1,873,506 
Less: Current portion(177,263)(1,653)(178,916)
Long-term lease liabilities$1,682,425 $12,165 $1,694,590 
(1)Operating lease payments include $94.6 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $1,175.9 million of legally binding minimum lease payments for leases executed but not yet commenced.
(2)These amounts include rental income related to subtenant agreements under which we will receive $1.1 million in 2026, $1.2 million in 2027, $0.9 million in 2028, $0.8 million in 2029, $0.6 million in 2030 and $0.2 million thereafter.
v3.25.4
Intangible Assets (Tables)
 12 Months Ended
Dec. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Activity and Balances in Intangible Assets
A summary of the activity and balances in intangible assets is as follows:
Balance at December 31, 2023Additions/AdjustmentsBalance at December 29, 2024
Indefinite-lived trade names$182,937 $— $182,937 
Indefinite-lived reacquired rights23,100 — 23,100 
Indefinite-lived liquor licenses2,023 34 2,057 
Total intangible assets$208,060 $34 $208,094 
 Balance at December 29, 2024Additions/AdjustmentsBalance at December 28, 2025
Indefinite-lived trade names$182,937 $— $182,937 
Indefinite-lived reacquired rights23,100 — 23,100 
Indefinite-lived liquor licenses2,057 121 2,178 
Total intangible assets$208,094 $121 $208,215 
v3.25.4
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 28, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
A summary of accrued liabilities is as follows:
As Of
December 28, 2025December 29, 2024
Accrued transferable federal tax credit$60,244 $— 
Self-insurance reserves31,55528,927
Accrued occupancy related (CAM, property taxes, etc.)26,556 25,971 
Gift card and loyalty program liabilities, net of breakage21,099 11,071 
Accrued sales, use and excise tax19,508 16,550 
Other accrued liabilities145,457 134,323 
Total$304,419 $216,842 
v3.25.4
Accrued Salaries and Benefits (Tables)
 12 Months Ended
Dec. 28, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued Salaries and Benefits
A summary of accrued salaries and benefits is as follows:
As Of
December 28, 2025December 29, 2024
Bonuses$46,467 $52,454 
Payroll25,686 23,205 
Vacation22,082 20,061 
Severance and other1,782 2,271 
Total$96,017 $97,991 
v3.25.4
Long-Term Debt and Other Finance Obligations (Tables)
 12 Months Ended
Dec. 28, 2025
Long Term Debt And Finance Lease Liabilities [Abstract]  
Schedule of Long-Term Debt and Other Finance Obligations
A summary of long-term debt and other finance obligations is as follows:
As Of
FacilityMaturityInterest RateDecember 28, 2025December 29, 2024
Senior secured debt
$700.0 million Former Credit Facility(1)
March 25, 2027Variable$— $— 
$600.0 million Credit Agreement
July 25, 2030Variable— — 
Finance ObligationsSeptember 30, 2036n/a69,420 — 
Finance lease liabilitiesVariousn/a12,165 7,248 
Long-term debt and finance lease liabilities$81,585 $7,248 
(1)The Former Credit Facility was replaced by the $600.0 million Credit Agreement as discussed below.
Schedule of Maturities of Financing Obligations
A summary of maturities of financing obligations is as follows:
Financing Obligations
2026$2,930 
20278,878 
20289,144 
20299,419 
20309,701 
Thereafter60,697 
Total$100,769 
v3.25.4
Other Long-Term Liabilities (Tables)
 12 Months Ended
Dec. 28, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Other Long-Term Liabilities
A summary of other long-term liabilities is as follows:
As Of
December 28, 2025December 29, 2024
Long-term portion of self-insurance reserves$25,457 $24,301 
Other14,826 13,958 
Total$40,283 $38,259 
v3.25.4
Self-Insurance Programs (Tables)
 12 Months Ended
Dec. 28, 2025
Insurance [Abstract]  
Schedule of Changes in Self-insurance Reserves
The following table summarizes the changes in the Company's self-insurance reserves through December 28, 2025:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Beginning Balance$53,228 $47,838 $47,612 
Expenses, net of actuarial adjustments127,771 106,093 85,148 
Claim Payments(123,987)(100,703)(84,922)
Ending Balance57,012 53,228 47,838 
Less: Current portion(31,555)(28,927)(25,012)
Long-term portion$25,457 $24,301 $22,826 
v3.25.4
Defined Contribution Plan (Tables)
 12 Months Ended
Dec. 28, 2025
Retirement Benefits [Abstract]  
Schedule of Total Expense Recorded for Matching under Defined Contribution Plan
The following table outlines the total expense recorded for the matching under the Plan, which is reflected in Selling, general and administrative expenses on the consolidated statements of income:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
$10,742 $9,570 $8,496 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Provision
The income tax provision consists of the following:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
U.S. Federal—current$118,558 $87,601 $67,898 
U.S. Federal—deferred6,062 8,501 (5,927)
U.S. Federal—total124,620 96,102 61,971 
State—current39,136 27,805 21,902 
State—deferred1,358 2,190 1,011 
State—total40,494 29,995 22,913 
Total provision$165,114 $126,097 $84,884 
Schedule of Tax Rate Reconciliation
The table below provides the updated requirements of ASU no. 2023-09 for 2025. See Note 3. Significant Accounting Policies—Recently adopted accounting pronouncements for additional details on the adoption of ASU no. 2023-09.
Year Ended
December 28, 2025
Federal statutory rate$144,645 21.0 %
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit (1)
$32,336 4.7 %
Nontaxable or nondeductible items:
Enhanced charitable contribution impact$(6,133)(0.9)%
Non-deductible Executive Compensation$11,657 1.7 %
Excess tax benefits from share based payments$(13,123)(1.9)%
Other$207 — %
Tax Credits:
Benefit of federal tax credit$(1,649)(0.2)%
Transferable Tax Credit Benefit$(3,506)(0.5)%
Other, net(2)
$680 0.1 %
Effective income tax rate$165,114 24.0 %

(1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category.
(2) Includes valuation allowance, uncertain tax position, and other items that are all immaterial individually.
Year Ended
December 29, 2024December 31, 2023
Federal statutory rate21.0 %21.0 %
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit4.85.4
Enhanced charitable contribution impact(0.9)(1.0)
Non-deductible Executive Compensation1.41.4
Benefit of federal tax credit(0.3)(0.7)
Excess tax benefits from share based payments(1.1)(1.2)
Other, net—(0.2)
Effective income tax rate24.9 %24.7 %
Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities
Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:
As Of
December 28, 2025December 29, 2024
Deferred tax assets
Employee benefits$23,233 $22,163 
Operating leases477,940 429,362 
Other lease related25,486 5,946 
Other accrued liabilities7,943 5,411 
Charitable contribution carryforward4,463 4,522 
Inventories and other4,961 2,881 
Total gross deferred tax assets544,026 470,285 
Less: Valuation Allowance(4,463)(4,522)
Total deferred tax assets, net of valuation allowance539,563 465,763 
Deferred tax liabilities
Depreciation and amortization(116,992)(89,974)
Intangible assets(77,491)(70,978)
Operating leases(424,752)(376,994)
Asset retirement obligations(807)(876)
Total gross deferred tax liabilities(620,042)(538,822)
Net deferred tax liability$(80,479)$(73,059)
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
As Of
December 28, 2025December 29, 2024December 31, 2023
Beginning balance$232 $477 $1,119 
Additions based on tax positions related to the current year— — 58 
Reduction due to lapse of applicable statute of limitations(232)(245)(700)
Ending balance$— $232 $477 
Schedule of Income Taxes Paid (Net of Refunds)
Total Income taxes paid (net of refunds):
Year Ended
December 28, 2025
Federal$82,000 
State38,076 
Total$120,076 

Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdiction:
Year Ended
December 28, 2025
State
California$23,150 
v3.25.4
Capital Stock (Tables)
 12 Months Ended
Dec. 28, 2025
Equity [Abstract]  
Schedule of Options Exercised and Other Shares in Exchange for Issuance of Shares of Common Stock
The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Options exercised96,939210,312637,387
Other share issuances under stock plans529,373488,798811,729
Schedule of Share Repurchase Activity The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of December 28, 2025:
Effective dateExpiration dateAmount
authorized		Cost of
repurchases		Authorization
available
March 2, 2022December 31, 2024$600,000 $480,715 $— 
May 22, 2024May 22, 2027$600,000 $457,408 $— 
August 13, 2025N/A$1,000,000 $163,995 $836,005 
Schedule of Share Repurchase Activity under Share Repurchase Programs
Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Number of common shares acquired3,955,3242,656,0585,864,246
Average price per common share acquired$120.39 $90.57 $35.00 
Total cost of common shares acquired$476,198 $240,562 $205,262 
v3.25.4
Net Income Per Share (Tables)
 12 Months Ended
Dec. 28, 2025
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share
A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Basic net income per share:   
Net income$523,670 $380,601 $258,856 
Weighted average shares outstanding - basic97,687100,363102,479
Basic net income per share$5.36 $3.79 $2.53 
Diluted net income per share:
Net income$523,670 $380,601 $258,856 
Weighted average shares outstanding - basic97,687100,363102,479
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares534497343
RSUs285474524
PSAs1984544
Weighted average shares and equivalent shares outstanding - diluted98,704101,379103,390
Diluted net income per share$5.31 $3.75 $2.50 
v3.25.4
Segments (Tables)
 12 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
Schedule of Significant Expense and Key Metrics
In accordance with ASC 280, the following table represents the significant expense and key metrics reviewed by the CODM:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Net Sales$8,806,159 $7,719,290 $6,837,384 
Less:
Cost of sales5,389,770 4,777,799 4,315,543 
Direct store expenses2,210,092 1,958,392 1,723,726 
Other segment items (1)
520,139 478,602 447,884 
Interest (income) expense, net(2,626)(2,201)6,491 
Income tax provision165,114 126,097 84,884 
Net income$523,670 $380,601 $258,856 

(1) Other segment items include non-store selling, general, and administrative expenses, depreciation and amortization, store closure costs, and other overhead expenses.
Schedule of Disaggregation of Revenue
In accordance with ASC 606, the following table represents a disaggregation of revenue for 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Perishables$5,020,140 57.0 %$4,424,762 57.3 %$3,915,971 57.3 %
Non-Perishables3,786,019 43.0 %3,294,528 42.7 %2,921,413 42.7 %
Net sales$8,806,159 100.0 %$7,719,290 100.0 %$6,837,384 100.0 %
v3.25.4
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 28, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation Awards Granted
The Company granted the following awards during 2025 and 2024 under the 2022 Incentive Plan:
Grant DateRSUsPSAsOptions
March 18, 2025185,22858,80561,079
June 3, 2025333——
November 10, 20258,087——
Total193,64858,80561,079
Weighted-average grant date fair value$135.42 $137.81 $51.46 
Weighted-average exercise price— — $137.81 
Grant DateRSUsPSAsOptions
March 19, 2024272,855103,584135,783
June 4, 20241,538——
September 4, 202415,024——
Total289,417103,584135,783
Weighted-average grant date fair value$63.14 $61.15 $23.50 
Weighted-average exercise price— — $61.15 
Schedule of Assumptions Used to Estimate Fair Values of Options Granted
The estimated weighted average fair values of options granted during 2025, 2024 and 2023 were $51.46, $23.50 and $12.63, respectively, and were calculated using the following assumptions in the table below:
202520242023
Dividend yield0.00 %0.00 %0.00 %
Expected volatility37.60 %38.41 %39.48 %
Risk free interest rate4.07 %4.31 %3.78 %
Expected term, in years4.504.504.50
Schedule of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited
The following table summarizes grant date weighted average fair value of options granted and options forfeited:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Grant date weighted average fair value of options granted$51.46 $23.50 $12.63 
Grant date weighted average fair value of options forfeited$— $11.87 $10.98 
Schedule of Option Activity
The following table summarizes option activity during 2025:
Number of
Options 		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life (In Years)		Aggregate
Intrinsic
Value
Outstanding at December 29, 2024763,786$32.54 
Granted61,079137.81 
Forfeited—— 
Exercised(96,939)26.88 $10,869 
Outstanding at December 28, 2025727,92642.12 3.51$30,835 
Exercisable—December 28, 2025514,94128.52 2.81$26,301 
Vested/Expected to vest—December 28, 2025727,926$42.12 3.51$30,835 
Schedule of Weighted Average Grant Date Fair Value of RSUs Awarded
The following table summarizes the weighted average grant date fair value of RSUs awarded during 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
RSUs awarded$135.42 $63.14 $33.21 
Schedule of RSU Activity
The following table summarizes RSU activity during 2025:
Number of
RSUs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 29, 2024610,415$46.33 
Awarded193,648135.42 
Vested(346,813)42.06 
Forfeited(24,125)72.74 
Outstanding at December 28, 2025433,125$88.11 
Schedule of PSA Activity
The following table summarizes PSA activity during 2025:
Number of
PSAs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 29, 2024370,278$40.37 
Awarded58,805137.81 
Vested(182,560)31.54 
Forfeited—— 
PSAs earned59,20631.49 
Outstanding at December 28, 2025305,729$62.67 
Schedule of Share-Based Compensation Expense
The Company presents share-based compensation expense in Selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Share-based compensation expense$31,103 $28,417 $18,898 
Income tax benefit(3,581)(3,647)(3,007)
Net share-based compensation expense$27,522 $24,770 $15,891 
Schedule of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period
As of December 28, 2025, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows:
Unrecognized
compensation
expense		Remaining
weighted
average
recognition
period
Options$3,786 1.8
RSUs24,761 2.0
PSAs16,289 1.9
Total unrecognized compensation expense at December 28, 2025$44,836 
v3.25.4
Organization and Description of Business (Details)
Dec. 28, 2025
state
store
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of stores operated | store 477
Number of states in which the entity operates | state 24
v3.25.4
Basis of Presentation - Additional Information (Details)
 12 Months Ended
Dec. 28, 2025
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.4
Basis of Presentation - Summary of Sales by as Perishable and Non-Perishable (Details) - Net sales - Product concentration risk
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Revenue from External Customer [Line Items]      
Concentration risk percentage 100.00% 100.00% 100.00%
Perishables      
Revenue from External Customer [Line Items]      
Concentration risk percentage 57.00% 57.30% 57.30%
Non-Perishables      
Revenue from External Customer [Line Items]      
Concentration risk percentage 43.00% 42.70% 42.70%
v3.25.4
Significant Accounting Policies - Amounts Due from Banks (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Accounting Policies [Abstract]    
Due from banks for debit and credit card transactions $ 107,630 $ 80,409
v3.25.4
Significant Accounting Policies - Additional Information (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 28, 2025
USD ($)
Dec. 28, 2025
USD ($)
reportingUnit
Dec. 29, 2024
USD ($)
Dec. 31, 2023
USD ($)
Accounting Policies [Line Items]        
Restricted cash $ 3,612 $ 3,612 $ 2,054  
Number of reporting units | reportingUnit   1    
Goodwill impairment charges   $ 0 0 $ 0
Indefinite-lived intangible asset impairment charges   0 0 0
Impairment loss on long lived assets   $ 0 $ 400 $ 30,500
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]   Store closure and other costs, net Store closure and other costs, net Store closure and other costs, net
Advertising expense, net of rebates   $ 52,500 $ 46,800 $ 45,800
Other comprehensive income   $ 0 $ 0 $ 0
Cost of sales | Supplier concentration risk | Largest Supplier        
Accounting Policies [Line Items]        
Net Sales, percentage   52.00% 50.00% 47.00%
Loyalty Points        
Accounting Policies [Line Items]        
Product expiration period before conversion 6 months      
Product expiration period after conversion 60 days      
Minimum        
Accounting Policies [Line Items]        
Renewal term of lease 1 year 1 year    
Maximum        
Accounting Policies [Line Items]        
Renewal term of lease 20 years 20 years    
Operating segments        
Accounting Policies [Line Items]        
Impairment loss on long lived assets       $ 2,700
Underperforming stores        
Accounting Policies [Line Items]        
Impairment loss on long lived assets       $ 27,800
Inventory valuation reserve        
Accounting Policies [Line Items]        
Allowances or reserves for inventories $ 0 $ 0 $ 0  
v3.25.4
Significant Accounting Policies - Estimated Useful Lives of Asset Classes (Details)
Dec. 28, 2025
Computer hardware and software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Computer hardware and software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Furniture, fixtures and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Furniture, fixtures and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 20 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 15 years
Buildings  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 40 years
v3.25.4
Significant Accounting Policies - Activity and Balance in the Gift Card and Loyalty Program Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Contract With Customer, Liability [Roll Forward]      
Beginning Balance $ 11,071 $ 10,566 $ 10,906
Revenue recognized from beginning liability (4,361) (4,222) (4,611)
Ending Balance 21,099 11,071 10,566
Gift Cards      
Contract With Customer, Liability [Roll Forward]      
Issued during the period but not redeemed / Deferred during the period, net of amount redeemed or expired 5,296 4,727 4,271
Loyalty Points      
Contract With Customer, Liability [Roll Forward]      
Issued during the period but not redeemed / Deferred during the period, net of amount redeemed or expired $ 9,093 $ 0 $ 0
v3.25.4
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Receivables [Abstract]    
Landlords $ 3,332 $ 5,577
Vendors 36,708 3,814
Insurance 3,651 2,913
Ecommerce 11,027 9,993
Other 10,503 8,604
Total $ 65,221 $ 30,901
v3.25.4
Accounts Receivable - Additional Information (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Receivables [Abstract]    
Allowance for vendor receivables $ 7.5 $ 1.3
v3.25.4
Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 24,938 $ 24,469
Restricted cash 3,612 2,054
Income tax receivable 31,221 8,839
Other current assets 535 769
Total $ 60,306 $ 36,131
v3.25.4
Property and Equipment - Summary of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Property, Plant and Equipment, Net [Abstract]    
Land and finance lease assets $ 23,146 $ 16,859
Furniture, fixtures and equipment 1,303,376 1,129,303
Leasehold improvements 889,893 831,020
Construction in progress 174,467 79,994
Total property and equipment 2,390,882 2,057,176
Accumulated depreciation and amortization (1,305,526) (1,161,987)
Property and equipment, net $ 1,085,356 $ 895,189
v3.25.4
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Property, Plant and Equipment, Net [Abstract]      
Depreciation expense $ 156.7 $ 139.2 $ 136.6
Impairment expense $ 0.0 $ 0.4 $ 30.5
v3.25.4
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Finance lease cost:      
Amortization of Property and Equipment $ 1,499 $ 1,128 $ 1,062
Interest on lease liabilities 943 747 816
Total net lease cost 355,570 333,191 310,319
Supply chain-related amounts 20,800 20,300 18,200
Selling, general and administrative expenses      
Lessee Lease Description [Line Items]      
Operating lease cost: 270,171 247,312 232,745
Finance lease cost:      
Variable lease cost: 81,898 75,646 70,197
Sublease income: (586) (831) (832)
Store closure and other costs, net      
Lessee Lease Description [Line Items]      
Operating lease cost: 1,111 7,122 4,029
Finance lease cost:      
Variable lease cost: 775 2,138 2,302
Sublease income: $ (241) $ (71) $ 0
v3.25.4
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Assets      
Operating lease assets $ 1,652,732 $ 1,466,903  
Finance lease assets 10,680 6,161  
Total lease assets $ 1,663,412 $ 1,473,064  
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net of accumulated depreciation Property and equipment, net of accumulated depreciation  
Current:      
Current portion of operating lease liabilities $ 177,263 $ 150,400  
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Finance Lease, Liability and Finance Obligations, Current Finance Lease, Liability and Finance Obligations, Current  
Current portion of finance lease liabilities $ 1,653 $ 1,321  
Noncurrent:      
Long-term operating lease liabilities 1,682,425 1,520,272  
Long-term debt and other finance obligations $ 12,165 $ 7,248  
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term debt and other finance obligations Long-term debt and other finance obligations  
Total lease liabilities $ 1,873,506 $ 1,679,241  
Weighted average remaining lease term (years):      
Operating leases 10 years 3 months 18 days 10 years 1 month 6 days 10 years
Finance leases 7 years 7 months 6 days 5 years 9 months 18 days 6 years 8 months 12 days
Weighted average discount rate:      
Operating leases 7.00% 7.00% 7.20%
Finance leases 7.60% 8.40% 8.30%
v3.25.4
Leases - Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Cash paid for amounts included in measurement of lease liabilities:      
Operating cash flows for operating leases $ 259,976 $ 249,862 $ 228,411
Operating cash flows for finance leases 943 747 816
Lease assets obtained in exchange for lease liabilities:      
Finance leases 6,266 0 809
Operating leases $ 332,427 $ 278,230 $ 364,997
v3.25.4
Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Operating Leases    
2026 $ 286,062  
2027 285,295  
2028 251,238  
2029 261,792  
2030 263,586  
Thereafter 1,302,788  
Total lease payments 2,650,761  
Less: Imputed interest (791,073)  
Total lease liabilities 1,859,688  
Less: Current portion (177,263) $ (150,400)
Long-term lease liabilities 1,682,425 1,520,272
Finance Leases    
2026 2,253  
2027 2,875  
2028 2,634  
2029 2,175  
2030 1,832  
Thereafter 6,817  
Total lease payments 18,586  
Less: Imputed interest (4,768)  
Total lease liabilities 13,818  
Less: Current portion (1,653) (1,321)
Long-term lease liabilities 12,165 $ 7,248
Total    
2026 288,315  
2027 288,170  
2028 253,872  
2029 263,967  
2030 265,418  
Thereafter 1,309,605  
Total lease payments 2,669,347  
Less: Imputed interest (795,841)  
Total lease liabilities 1,873,506  
Less: Current portion (178,916)  
Long-term lease liabilities 1,694,590  
Operating lease option to extend reasonably certain of being exercised 94,600  
Operating lease legally binding minimum payments for leases that have not yet commenced 1,175,900  
Rental income related to subtenant agreements, 2026 1,100  
Rental income related to subtenant agreements, 2027 1,200  
Rental income related to subtenant agreements, 2028 900  
Rental income related to subtenant agreements, 2029 800  
Rental income related to subtenant agreements, 2030 600  
Rental income related to subtenant agreements, thereafter $ 200  
v3.25.4
Intangible Assets - Summary of Activity and Balances in Intangible Assets (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Indefinite-Lived Intangible Assets [Roll Forward]    
Indefinite-lived gross intangible assets, beginning balance $ 208,094 $ 208,060
Additions/Adjustments 121 34
Indefinite-lived gross intangible assets, ending balance 208,215 208,094
Indefinite-lived trade names    
Indefinite-Lived Intangible Assets [Roll Forward]    
Indefinite-lived gross intangible assets, beginning balance 182,937 182,937
Additions/Adjustments 0 0
Indefinite-lived gross intangible assets, ending balance 182,937 182,937
Indefinite-lived reacquired rights    
Indefinite-Lived Intangible Assets [Roll Forward]    
Indefinite-lived gross intangible assets, beginning balance 23,100 23,100
Additions/Adjustments 0 0
Indefinite-lived gross intangible assets, ending balance 23,100 23,100
Indefinite-lived liquor licenses    
Indefinite-Lived Intangible Assets [Roll Forward]    
Indefinite-lived gross intangible assets, beginning balance 2,057 2,023
Additions/Adjustments 121 34
Indefinite-lived gross intangible assets, ending balance $ 2,178 $ 2,057
v3.25.4
Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 0.0 $ 0.0 $ 0.0
v3.25.4
Goodwill (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 381,750 $ 381,750
Accumulated goodwill impairment losses $ 0 $ 0
v3.25.4
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Payables and Accruals [Abstract]        
Accrued transferable federal tax credit $ 60,244 $ 0    
Self-insurance reserves 31,555 28,927 $ 25,012  
Accrued occupancy related (CAM, property taxes, etc.) 26,556 25,971    
Gift card and loyalty program liabilities, net of breakage 21,099 11,071 $ 10,566 $ 10,906
Accrued sales, use and excise tax 19,508 16,550    
Other accrued liabilities 145,457 134,323    
Total $ 304,419 $ 216,842    
v3.25.4
Accrued Salaries and Benefits (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Payables and Accruals [Abstract]    
Bonuses $ 46,467 $ 52,454
Payroll 25,686 23,205
Vacation 22,082 20,061
Severance and other 1,782 2,271
Total $ 96,017 $ 97,991
v3.25.4
Long-Term Debt and Other Finance Obligations - Summary of Long-Term Debt and Other Finance Obligations (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Jul. 25, 2025
Dec. 29, 2024
Long Term Debt And Finance Lease Liabilities [Line Items]      
Finance Obligations $ 69,420   $ 0
Finance lease liabilities 12,165   7,248
Long-term debt and finance lease liabilities 81,585   7,248
Revolving Credit Facility | Senior secured debt      
Long Term Debt And Finance Lease Liabilities [Line Items]      
Credit facility maximum borrowing capacity   $ 600,000  
Senior secured debt 0    
Revolving Credit Facility | Credit Agreement Maturing, March 25, 2027 | Senior secured debt      
Long Term Debt And Finance Lease Liabilities [Line Items]      
Credit facility maximum borrowing capacity 700,000    
Senior secured debt 0   0
Revolving Credit Facility | Credit Agreement Maturing, July 25, 2030 | Senior secured debt      
Long Term Debt And Finance Lease Liabilities [Line Items]      
Credit facility maximum borrowing capacity 600,000    
Senior secured debt $ 0   $ 0
v3.25.4
Long-Term Debt and Other Finance Obligations - Additional Information (Details)
$ in Thousands
 12 Months Ended
Jul. 25, 2025
USD ($)
Dec. 28, 2025
USD ($)
Dec. 29, 2024
USD ($)
Mar. 25, 2022
USD ($)
Long Term Debt And Finance Lease Liabilities [Line Items]        
Participation fee   1.00%    
Issuance fee   0.125%    
Additional borrowings during the period   $ 0 $ 0  
Borrowings outstanding under credit facilities   $ 0 0  
Principal payments made     125,000  
Net leverage ratio 3.75      
Interest coverage ratio 3.00      
Lease term of finance obligation   10 years    
Total non-cancellable lease payments of finance obligation   $ 110,000    
Renewal term of finance obligation   10 years    
Construction in progress   $ 174,467 79,994  
Finance obligation   69,420 $ 0  
Real Estate Lease, 10 Years        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Construction in progress   69,400    
Senior secured debt | Revolving Credit Facility        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Credit facility maximum borrowing capacity $ 600,000      
Capitalized debt issuance costs $ 1,600     $ 1,100
Debt instrument term 5 years      
Maximum interest rate margin adjustment related to metric-linked thresholds 0.05%      
Credit facility commitment fee percentage subject to upward or downward adjustments 0.01%      
Outstanding debt   $ 0    
Senior secured debt | Revolving Credit Facility | Minimum        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Credit facility unused commitment fee percentage 0.09%      
Senior secured debt | Revolving Credit Facility | Maximum        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Credit facility unused commitment fee percentage 0.225%      
Senior secured debt | Revolving Credit Facility | Term SOFR        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Interest rate spread, floor 0.00%      
Interest rate spread 1.00% 1.00%    
Senior secured debt | Revolving Credit Facility | Base Rate        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Interest rate spread, floor 0.00%      
Interest rate spread 0.00%      
Senior secured debt | Letter of Credit        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Credit facility maximum borrowing capacity $ 100,000      
Letters of credit issued   $ 23,100    
Senior secured debt | Bridge Loan        
Long Term Debt And Finance Lease Liabilities [Line Items]        
Credit facility maximum borrowing capacity $ 50,000      
v3.25.4
Long-Term Debt and Other Finance Obligations - Maturities of Financing Obligations (Details)
$ in Thousands
Dec. 28, 2025
USD ($)
Long Term Debt And Finance Lease Liabilities [Abstract]  
2026 $ 2,930
2027 8,878
2028 9,144
2029 9,419
2030 9,701
Thereafter 60,697
Total $ 100,769
v3.25.4
Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]      
Long-term portion of self-insurance reserves $ 25,457 $ 24,301 $ 22,826
Other 14,826 13,958  
Total $ 40,283 $ 38,259  
v3.25.4
Self-Insurance Programs - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Insurance [Line Items]        
Accounts receivables $ 65,221 $ 30,901    
General liability, worker’s compensation and team member health benefit liabilities 57,012 53,228 $ 47,838 $ 47,612
Insurance Receivable        
Insurance [Line Items]        
Accounts receivables 3,100 2,100    
General liability, worker’s compensation and team member health benefit liabilities $ 57,000 $ 53,200    
v3.25.4
Self-Insurance Programs - Changes in Self-insurance Reserves (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Self Insurance Reserve [Roll Forward]      
Beginning Balance $ 53,228 $ 47,838 $ 47,612
Expenses, net of actuarial adjustments 127,771 106,093 85,148
Claim Payments (123,987) (100,703) (84,922)
Ending Balance 57,012 53,228 47,838
Less: Current portion (31,555) (28,927) (25,012)
Long-term portion $ 25,457 $ 24,301 $ 22,826
v3.25.4
Defined Contribution Plan - Additional Information (Details)
 12 Months Ended
Dec. 28, 2025
Retirement Benefits [Abstract]  
Matching contribution by employer 50.00%
Percentage of eligible compensation for which employer makes matching contribution 6.00%
v3.25.4
Defined Contribution Plan - Total Expense Recorded for Matching under Defined Contribution Plans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Total expenses for matching under defined contribution plan $ 10,742 $ 9,570 $ 8,496
v3.25.4
Income Taxes - Components of Income Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. Federal—current $ 118,558 $ 87,601 $ 67,898
U.S. Federal—deferred 6,062 8,501 (5,927)
U.S. Federal—total 124,620 96,102 61,971
State—current 39,136 27,805 21,902
State—deferred 1,358 2,190 1,011
State—total 40,494 29,995 22,913
Total provision $ 165,114 $ 126,097 $ 84,884
v3.25.4
Income Taxes - Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Amount      
Federal statutory rate $ 144,645    
State income taxes, net of federal benefit 32,336    
Enhanced charitable contribution impact (6,133)    
Non-deductible Executive Compensation 11,657    
Excess tax benefits from share based payments (13,123)    
Other nondeductible items 207    
Benefit of federal tax credit (1,649)    
Transferable Tax Credit Benefit (3,506)    
Other, net 680    
Total provision $ 165,114 $ 126,097 $ 84,884
Percent      
Federal statutory rate 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 4.70% 4.80% 5.40%
Enhanced charitable contribution impact (0.90%) (0.90%) (1.00%)
Non-deductible Executive Compensation 1.70% 1.40% 1.40%
Excess tax benefits from share based payments (1.90%) (1.10%) (1.20%)
Other nondeductible items 0.00%    
Benefit of federal tax credit (0.20%) (0.30%) (0.70%)
Transferable Tax Credit Benefit (0.50%)    
Other, net 0.10% 0.00% (0.20%)
Effective income tax rate 24.00% 24.90% 24.70%
v3.25.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Effective income tax rate 24.00% 24.90% 24.70%
Tax benefit resulting from shares-based awards $ 16,100 $ 7,000 $ 5,000
Valuation allowance 4,463 4,522  
Unrecognized tax benefits (tax effected) that would impact the effective tax rate if recognized 0 $ 200  
Transferrable tax credits negotiated for purchase 63,800    
Transferable Tax Credit Benefit $ 3,506    
v3.25.4
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Deferred tax assets    
Employee benefits $ 23,233 $ 22,163
Operating leases 477,940 429,362
Other lease related 25,486 5,946
Other accrued liabilities 7,943 5,411
Charitable contribution carryforward 4,463 4,522
Inventories and other 4,961 2,881
Total gross deferred tax assets 544,026 470,285
Less: Valuation Allowance (4,463) (4,522)
Total deferred tax assets, net of valuation allowance 539,563 465,763
Deferred tax liabilities    
Depreciation and amortization (116,992) (89,974)
Intangible assets (77,491) (70,978)
Operating leases (424,752) (376,994)
Asset retirement obligations (807) (876)
Total gross deferred tax liabilities (620,042) (538,822)
Net deferred tax liability $ (80,479) $ (73,059)
v3.25.4
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 232 $ 477 $ 1,119
Additions based on tax positions related to the current year 0 0 58
Reduction due to lapse of applicable statute of limitations (232) (245) (700)
Ending balance $ 0 $ 232 $ 477
v3.25.4
Income Taxes - Income Taxes Paid (Net of Refunds) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal $ 82,000    
State 38,076    
Total 120,076 $ 102,226 $ 96,633
California      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
State $ 23,150    
v3.25.4
Commitments and Contingencies (Details)
$ in Millions
Mar. 06, 2025
USD ($)
Feb. 24, 2025
USD ($)
Dec. 28, 2025
USD ($)
Dec. 16, 2025
individual
Loss Contingencies [Line Items]        
Operating lease legally binding minimum payments for leases that have not yet commenced     $ 1,175.9  
Total future purchase commitments     $ 41.0  
Directors and Officers        
Loss Contingencies [Line Items]        
Number of individuals included in claim | individual       9
Harvest Sherwood Litigation        
Loss Contingencies [Line Items]        
Monetary damages sought   $ 42.0    
Harvest Sherwood Litigation, Counterclaim        
Loss Contingencies [Line Items]        
Monetary damages sought $ 65.0      
v3.25.4
Capital Stock - Additional Information (Details) - USD ($)
$ in Thousands
 2 Months Ended 12 Months Ended
Feb. 17, 2026
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Aug. 13, 2025
May 22, 2024
Class of Stock [Line Items]            
Common stock, shares issued (in shares)   95,926,024 99,255,036      
Common stock, shares outstanding (in shares)   95,926,024 99,255,036      
Common stock repurchased and retired (in shares)   3,955,324 2,656,058 5,864,246    
Undesignated preferred stock, shares authorized (in shares)   10,000,000 10,000,000      
Subsequent Event            
Class of Stock [Line Items]            
Common stock repurchased during the period (in shares) 1,300,000          
Common stock repurchased during the period $ 100,000          
August 13 2025 Share Repurchase Program            
Class of Stock [Line Items]            
Amount authorized to be repurchased   $ 1,000,000     $ 1,000,000  
Amount available for repurchase   836,005        
May 22, 2024 Share Repurchase Program            
Class of Stock [Line Items]            
Amount authorized to be repurchased   600,000       $ 600,000
Amount available for repurchase   $ 0     $ 142,600  
2022 Incentive Plan            
Class of Stock [Line Items]            
Remaining shares available for issuance (in shares)   5,300,371        
v3.25.4
Capital Stock - Options Exercised in Exchange for Issuance of Shares of Common Stock (Details) - shares
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Equity [Abstract]      
Options exercised (in shares) 96,939 210,312 637,387
Other share issuances under stock plans (in shares) 529,373 488,798 811,729
v3.25.4
Capital Stock - Share Repurchase Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Aug. 13, 2025
May 22, 2024
March 2, 2022 Share Repurchase Program      
Share Repurchase Program [Line Items]      
Amount authorized $ 600,000    
Cost of repurchases 480,715    
Authorization available 0    
May 22, 2024 Share Repurchase Program      
Share Repurchase Program [Line Items]      
Amount authorized 600,000   $ 600,000
Cost of repurchases 457,408    
Authorization available 0 $ 142,600  
August 13 2025 Share Repurchase Program      
Share Repurchase Program [Line Items]      
Amount authorized 1,000,000 $ 1,000,000  
Cost of repurchases 163,995    
Authorization available $ 836,005    
v3.25.4
Capital Stock - Share Repurchase Activity under Share Repurchase Programs (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Equity [Abstract]      
Number of common shares acquired (in shares) 3,955,324 2,656,058 5,864,246
Average price per common share acquired (in dollars per share) $ 120.39 $ 90.57 $ 35.00
Total cost of common shares acquired $ 476,198 $ 240,562 $ 205,262
v3.25.4
Net Income Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Basic net income per share:      
Net income $ 523,670 $ 380,601 $ 258,856
Weighted average shares outstanding - basic (in shares) 97,687 100,363 102,479
Basic net income per share (in dollars per share) $ 5.36 $ 3.79 $ 2.53
Diluted net income per share:      
Net income $ 523,670 $ 380,601 $ 258,856
Weighted average shares outstanding - basic (in shares) 97,687 100,363 102,479
Dilutive effect of share-based awards:      
Assumed exercise of options to purchase shares (in shares) 534 497 343
Weighted average shares and equivalent shares outstanding - diluted (in shares) 98,704 101,379 103,390
Diluted net income per share (in dollars per share) $ 5.31 $ 3.75 $ 2.50
RSUs      
Dilutive effect of share-based awards:      
Dilutive awards (in shares) 285 474 524
PSAs      
Dilutive effect of share-based awards:      
Dilutive awards (in shares) 198 45 44
v3.25.4
Net Income Per Share - Additional Information (Details) - shares
shares in Millions
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.1   0.2
PSAs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.2 0.2 0.4
v3.25.4
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 28, 2025
Dec. 29, 2024
Fair Value Disclosures [Abstract]    
Financial liabilities measured at fair value $ 0 $ 0
v3.25.4
Segments - Additional Information (Details)
 12 Months Ended
Dec. 28, 2025
segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.4
Segments - Summary of Segment Expense and Key Metrics (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Net sales $ 8,806,159 $ 7,719,290 $ 6,837,384
Less:      
Cost of sales 5,389,770 4,777,799 4,315,543
Interest (income) expense, net (2,626) (2,201) 6,491
Income tax provision 165,114 126,097 84,884
Net income 523,670 380,601 258,856
Healthy grocery stores      
Segment Reporting Information [Line Items]      
Net sales 8,806,159 7,719,290 6,837,384
Less:      
Cost of sales 5,389,770 4,777,799 4,315,543
Direct store expenses 2,210,092 1,958,392 1,723,726
Other segment items 520,139 478,602 447,884
Interest (income) expense, net (2,626) (2,201) 6,491
Income tax provision 165,114 126,097 84,884
Net income $ 523,670 $ 380,601 $ 258,856
v3.25.4
Segments - Summary of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Disaggregation Of Revenue [Line Items]      
Net sales $ 8,806,159 $ 7,719,290 $ 6,837,384
Net sales | Product concentration risk      
Disaggregation Of Revenue [Line Items]      
Concentration risk percentage 100.00% 100.00% 100.00%
Perishables      
Disaggregation Of Revenue [Line Items]      
Net sales $ 5,020,140 $ 4,424,762 $ 3,915,971
Perishables | Net sales | Product concentration risk      
Disaggregation Of Revenue [Line Items]      
Concentration risk percentage 57.00% 57.30% 57.30%
Non-Perishables      
Disaggregation Of Revenue [Line Items]      
Net sales $ 3,786,019 $ 3,294,528 $ 2,921,413
Non-Perishables | Net sales | Product concentration risk      
Disaggregation Of Revenue [Line Items]      
Concentration risk percentage 43.00% 42.70% 42.70%
v3.25.4
Share-Based Compensation - Stock-Based Compensation Awards Granted (Details) - $ / shares
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value (in dollars per share) $ 51.46 $ 23.50 $ 12.63
Weighted-average exercise price (in dollars per share) 137.81    
Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value (in dollars per share) $ 51.46 $ 23.50 $ 12.63
2022 Incentive Plan | RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 193,648 289,417  
Weighted-average grant date fair value (in dollars per share) $ 135.42 $ 63.14  
Weighted-average exercise price (in dollars per share) $ 0 $ 0  
2022 Incentive Plan | RSUs | March 18, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 185,228    
2022 Incentive Plan | RSUs | June 3, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 333    
2022 Incentive Plan | RSUs | November 10, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 8,087    
2022 Incentive Plan | RSUs | March 19, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   272,855  
2022 Incentive Plan | RSUs | June 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   1,538  
2022 Incentive Plan | RSUs | September 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   15,024  
2022 Incentive Plan | PSAs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 58,805 103,584  
Weighted-average grant date fair value (in dollars per share) $ 137.81 $ 61.15  
Weighted-average exercise price (in dollars per share) $ 0 $ 0  
2022 Incentive Plan | PSAs | March 18, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 58,805    
2022 Incentive Plan | PSAs | June 3, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
2022 Incentive Plan | PSAs | November 10, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
2022 Incentive Plan | PSAs | March 19, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   103,584  
2022 Incentive Plan | PSAs | June 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
2022 Incentive Plan | PSAs | September 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
2022 Incentive Plan | Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 61,079 135,783  
Weighted-average grant date fair value (in dollars per share) $ 51.46 $ 23.50  
Weighted-average exercise price (in dollars per share) $ 137.81 $ 61.15  
2022 Incentive Plan | Options | March 18, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 61,079    
2022 Incentive Plan | Options | June 3, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
2022 Incentive Plan | Options | November 10, 2025      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
2022 Incentive Plan | Options | March 19, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   135,783  
2022 Incentive Plan | Options | June 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
2022 Incentive Plan | Options | September 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
v3.25.4
Share-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Mar. 31, 2024
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Jan. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Dividend yield       0.00% 0.00% 0.00%    
Total intrinsic value of options exercised       $ 10,869        
Proceeds from exercise of stock options       2,606 $ 4,890 $ 11,454    
Tax benefit resulting from shares-based awards       $ 16,100 7,000 5,000    
RSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Accelerated vesting, change of control event, employment termination period       24 months        
Total grant date fair value of awards vested       $ 14,600 $ 15,200 $ 13,300    
Awards vested (in shares)       346,813        
Number of shares outstanding (in shares)       433,125 610,415      
Awards forfeited (in shares)       24,125        
Options                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Accelerated vesting, change of control event, employment termination period       24 months        
Options issued but not vested (in shares)       200,000 300,000 400,000    
Grant date weighted average fair value of options issued but not vested (in dollars per share)       $ 28.38 $ 16.90 $ 10.84    
Total intrinsic value of options exercised       $ 10,900 $ 12,200 $ 12,200    
PSAs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Accelerated vesting, change of control event, employment termination period       24 months        
Total grant date fair value of awards vested       $ 5,800   4,500    
Awards vested (in shares)       182,560 0      
Number of shares outstanding (in shares)       305,729 370,278      
Total grant date fair value granted       $ 8,100 $ 6,300 $ 5,700    
Awards forfeited (in shares)       0        
Awards issued but not released (in shares)       300,000 400,000 400,000    
Total grant date fair value issued but not released       $ 19,200 $ 14,900 $ 12,900    
Total grant date fair value forfeited or not earned         $ 4,200 $ 1,100    
PSAs | 2021                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Awards vested (in shares)     0          
Number of shares outstanding (in shares)       0        
PSAs | 2022                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Awards vested (in shares)       182,560        
Number of shares outstanding (in shares)       0        
Award actual payout percentage   148.00%            
PSAs | 2023 | Forecast                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award actual payout percentage 200.00%              
PSAs | Minimum | 2021                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage               0.00%
PSAs | Minimum | 2022                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage             0.00%  
PSAs | Minimum | 2023                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage           0.00%    
PSAs | Minimum | 2024                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage         0.00%      
PSAs | Minimum | 2025                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage       0.00%        
PSAs | Maximum | 2021                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage               200.00%
PSAs | Maximum | 2022                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage             200.00%  
PSAs | Maximum | 2023                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage           200.00%    
PSAs | Maximum | 2024                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage         200.00%      
PSAs | Maximum | 2025                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award target payout percentage       200.00%        
2022 Incentive Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized for issuance under plan (in shares)       6,600,000        
Number of shares outstanding (in shares)       1,094,114        
Remaining shares available for issuance (in shares)       5,300,371        
Expiration period       7 years        
2022 Incentive Plan | RSUs | Independent Directors                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period       1 year        
2022 Incentive Plan | RSUs | Share-based Payment Arrangement, Tranche One                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period       3 years        
2022 Incentive Plan | RSUs | Share-based Payment Arrangement, Tranche Two                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period       2 years        
v3.25.4
Share-Based Compensation - Assumptions Used to Estimate Fair Values of Options Granted (Details)
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 37.60% 38.41% 39.48%
Risk free interest rate 4.07% 4.31% 3.78%
Expected term, in years 4 years 6 months 4 years 6 months 4 years 6 months
v3.25.4
Share-Based Compensation - Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited (Detail) - $ / shares
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]      
Grant date weighted average fair value of options granted (in dollars per share) $ 51.46 $ 23.50 $ 12.63
Grant date weighted average fair value of options forfeited (in dollars per share) $ 0 $ 11.87 $ 10.98
v3.25.4
Share-Based Compensation - Summary of Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Number of Options      
Beginning balance (in shares) 763,786    
Granted (in shares) 61,079    
Forfeited (in shares) 0    
Exercised (in shares) (96,939) (210,312) (637,387)
Ending balance (in shares) 727,926 763,786  
Exercisable (in shares) 514,941    
Vested/Expected to vest (in shares) 727,926    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 32.54    
Granted (in dollars per share) 137.81    
Forfeited (in dollars per share) 0    
Exercised (in dollars per share) 26.88    
Ending balance (in dollars per share) 42.12 $ 32.54  
Exercisable (in dollars per share) 28.52    
Vested/Expected to vest (in dollars per share) $ 42.12    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures      
Weighted Average Remaining Contractual Life (In Years), Outstanding 3 years 6 months 3 days    
Weighted Average Remaining Contractual Life (In Years), Exercisable 2 years 9 months 21 days    
Weighted Average Remaining Contractual Life (In Years), Vested/Expected to vest 3 years 6 months 3 days    
Aggregate Intrinsic Value, Exercised $ 10,869    
Aggregate Intrinsic Value, Outstanding 30,835    
Aggregate Intrinsic Value, Exercisable 26,301    
Aggregate Intrinsic Value, Vested/Expected to vest $ 30,835    
v3.25.4
Share-Based Compensation - Summary of Weighted Average Grant Date Fair Value of RSUs Awarded (Details) - $ / shares
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average grant date fair value, RSUs awarded (in dollars per share) $ 135.42 $ 63.14 $ 33.21
v3.25.4
Share-Based Compensation - Summary of RSUs Activity (Details) - RSUs - $ / shares
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Number of RSUs      
Beginning balance (in shares) 610,415    
Awarded (in shares) 193,648    
Vested (in shares) (346,813)    
Forfeited (in shares) (24,125)    
Ending balance (in shares) 433,125 610,415  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 46.33    
Awarded (in dollars per share) 135.42 $ 63.14 $ 33.21
Vested (in dollars per share) 42.06    
Forfeited (in dollars per share) 72.74    
Ending balance (in dollars per share) $ 88.11 $ 46.33  
v3.25.4
Share-Based Compensation - Summary of PSAs Activity (Details) - PSAs - $ / shares
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Number of PSAs    
Beginning balance (in shares) 370,278  
Awarded (in shares) 58,805  
Vested (in shares) (182,560) 0
Forfeited (in shares) 0  
PSAs Earned (in shares) 59,206  
Ending balance (in shares) 305,729 370,278
Weighted Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 40.37  
Awarded (in dollars per share) 137.81  
Vested (in dollars per share) 31.54  
Forfeited (in dollars per share) 0  
PSAs Earned (in dollars per share) 31.49  
Ending balance (in dollars per share) $ 62.67 $ 40.37
v3.25.4
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]      
Share-based compensation expense $ 31,103 $ 28,417 $ 18,898
Income tax benefit (3,581) (3,647) (3,007)
Net share-based compensation expense $ 27,522 $ 24,770 $ 15,891
v3.25.4
Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Details)
$ in Thousands
 12 Months Ended
Dec. 28, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized compensation expense at December 28, 2025 $ 44,836
Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Options $ 3,786
Remaining weighted average recognition period 1 year 9 months 18 days
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Awards other than options $ 24,761
Remaining weighted average recognition period 2 years
PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Awards other than options $ 16,289
Remaining weighted average recognition period 1 year 10 months 24 days
v3.25.4
Store Closures (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Feb. 28, 2023
Dec. 28, 2025
USD ($)
store
Dec. 29, 2024
USD ($)
store
Dec. 31, 2023
USD ($)
store
Store Closures [Line Items]        
Number of store closures | store   0 0 11
Store performance capacity rate 30.00%      
Impairment charge   $ 0.0 $ 0.4 $ 30.5
Accelerated depreciation       5.9
Underperforming stores        
Store Closures [Line Items]        
Impairment charge       $ 27.8
v3.25.4
Business Combination (Details)
$ in Thousands, shares in Millions
Mar. 20, 2023
USD ($)
store
shares
Dec. 28, 2025
USD ($)
store
Dec. 29, 2024
USD ($)
Business Combination [Line Items]      
Number of stores operated | store   477  
Goodwill   $ 381,750 $ 381,750
Ronald Cohn, Inc      
Business Combination [Line Items]      
Business combination, common shares value $ 18,100    
Cash consideration 13,000    
Net tangible assets acquired (4,900)    
Reacquired right of intangible asset 23,100    
Goodwill $ 12,900    
Ronald Cohn, Inc | Common Stock      
Business Combination [Line Items]      
Business acquisition, common shares, aggregate consideration paid (in shares) | shares 0.6    
Ronald Cohn, Inc      
Business Combination [Line Items]      
Number of stores operated | store 2