SPROUTS FARMERS MARKET, INC., 10-Q filed on 7/30/2025
Quarterly Report
v3.25.2
Cover - shares
 6 Months Ended
Jun. 29, 2025
Jul. 28, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 29, 2025  
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, $0.001 par value  
Trading Symbol SFM  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   97,726,169
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001575515  
Current Fiscal Year End Date --12-28  
v3.25.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 29, 2025
Dec. 29, 2024
Current assets:    
Cash and cash equivalents $ 261,404 $ 265,159
Accounts receivable, net 61,550 30,901
Inventories 351,111 343,329
Prepaid expenses and other current assets 35,263 36,131
Total current assets 709,328 675,520
Property and equipment, net of accumulated depreciation 922,966 895,189
Operating lease assets, net 1,543,865 1,466,903
Intangible assets 208,180 208,094
Goodwill 381,750 381,750
Other assets 17,139 13,243
Total assets 3,783,228 3,640,699
Current liabilities:    
Accounts payable 248,980 213,414
Accrued liabilities 223,677 216,842
Accrued salaries and benefits 85,115 97,991
Current portion of operating lease liabilities 161,818 150,400
Current portion of finance lease liabilities 1,397 1,321
Total current liabilities 720,987 679,968
Long-term operating lease liabilities 1,586,088 1,520,272
Long-term debt and finance lease liabilities 6,528 7,248
Other long-term liabilities 37,125 38,259
Deferred income tax liability 76,000 73,059
Total liabilities 2,426,728 2,318,806
Commitments and contingencies (Note 6)
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, 97,768,860 shares issued and outstanding, June 29, 2025; 99,255,036 shares issued and outstanding, December 29, 2024 98 99
Additional paid-in capital 823,766 808,140
Retained earnings 532,636 513,654
Total stockholders’ equity 1,356,500 1,321,893
Total liabilities and stockholders’ equity $ 3,783,228 $ 3,640,699
v3.25.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 29, 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) 97,768,860 99,255,036
Common stock, shares outstanding (in shares) 97,768,860 99,255,036
v3.25.2
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Income Statement [Abstract]        
Net sales $ 2,220,602 $ 1,893,519 $ 4,457,038 $ 3,777,327
Cost of sales 1,358,002 1,175,154 2,708,075 2,336,649
Gross profit 862,600 718,365 1,748,963 1,440,678
Selling, general and administrative expenses 645,127 556,367 1,268,353 1,096,138
Depreciation and amortization (exclusive of depreciation included in cost of sales) 36,606 31,489 71,705 63,721
Store closure and other costs, net 1,511 3,192 3,217 5,236
Income from operations 179,356 127,317 405,688 275,583
Interest (income) expense, net (431) (139) (1,355) 679
Income before income taxes 179,787 127,456 407,043 274,904
Income tax provision 46,084 32,167 93,314 65,515
Net income $ 133,703 $ 95,289 $ 313,729 $ 209,389
Net income per share:        
Basic (in dollars per share) $ 1.37 $ 0.95 $ 3.19 $ 2.08
Diluted (in dollars per share) $ 1.35 $ 0.94 $ 3.16 $ 2.06
Weighted average shares outstanding:        
Basic (in shares) 97,858 100,460 98,198 100,765
Diluted (in shares) 98,774 101,196 99,259 101,647
v3.25.2
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid In Capital
Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2023   101,211,984    
Beginning Balance at Dec. 31, 2023 $ 1,148,547 $ 101 $ 774,834 $ 373,612
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 209,389     209,389
Other comprehensive income 0      
Issuance of shares under stock plans (in shares)   599,679    
Issuance of shares under stock plans $ 3,265 $ 1 3,264  
Repurchase and retirement of common stock, including excise tax (in shares) (1,597,318) (1,597,318)    
Repurchase and retirement of common stock, including excise tax $ (105,192) $ (2)   (105,190)
Share-based compensation 13,266   13,266  
Ending Balance (in shares) at Jun. 30, 2024   100,214,345    
Ending Balance at Jun. 30, 2024 1,269,275 $ 100 791,364 477,811
Beginning Balance (in shares) at Mar. 31, 2024   100,802,152    
Beginning Balance at Mar. 31, 2024 1,211,027 $ 101 783,593 427,333
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 95,289     95,289
Issuance of shares under stock plans (in shares)   51,731    
Issuance of shares under stock plans $ 982   982  
Repurchase and retirement of common stock, including excise tax (in shares) (639,538) (639,538)    
Repurchase and retirement of common stock, including excise tax $ (44,812) $ (1)   (44,811)
Share-based compensation 6,789   6,789  
Ending Balance (in shares) at Jun. 30, 2024   100,214,345    
Ending Balance at Jun. 30, 2024 1,269,275 $ 100 791,364 477,811
Beginning Balance (in shares) at Dec. 29, 2024   99,255,036    
Beginning Balance at Dec. 29, 2024 1,321,893 $ 99 808,140 513,654
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 313,729     313,729
Issuance of shares under stock plans (in shares)   548,261    
Issuance of shares under stock plans $ 1,224 $ 1 1,223  
Repurchase and retirement of common stock, including excise tax (in shares) (2,034,437) (2,034,437)    
Repurchase and retirement of common stock, including excise tax $ (294,749) $ (2)   (294,747)
Share-based compensation 14,403   14,403  
Ending Balance (in shares) at Jun. 29, 2025   97,768,860    
Ending Balance at Jun. 29, 2025 1,356,500 $ 98 823,766 532,636
Beginning Balance (in shares) at Mar. 30, 2025   98,187,882    
Beginning Balance at Mar. 30, 2025 1,287,982 $ 98 814,796 473,088
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 133,703     133,703
Issuance of shares under stock plans (in shares)   47,398    
Issuance of shares under stock plans $ 1,223   1,223  
Repurchase and retirement of common stock, including excise tax (in shares) (466,420) (466,420)    
Repurchase and retirement of common stock, including excise tax $ (74,155)     (74,155)
Share-based compensation 7,747   7,747  
Ending Balance (in shares) at Jun. 29, 2025   97,768,860    
Ending Balance at Jun. 29, 2025 $ 1,356,500 $ 98 $ 823,766 $ 532,636
v3.25.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Operating activities    
Net income $ 313,729 $ 209,389
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 75,264 67,756
Operating lease asset amortization 70,568 65,489
Share-based compensation 14,403 13,266
Deferred income taxes 2,941 (396)
Other non-cash items 2,712 2,189
Changes in operating assets and liabilities, net of effects from acquisition:    
Accounts receivable 21,227 18,746
Inventories (7,782) (2,380)
Prepaid expenses and other current assets (719) 13,947
Other assets (2,529) (125)
Accounts payable 5,664 (12,914)
Accrued liabilities 10,108 24,081
Accrued salaries and benefits (12,877) (5,095)
Operating lease liabilities (83,113) (83,952)
Other long-term liabilities 741 1,294
Cash flows from operating activities 410,337 311,295
Investing activities    
Purchases of property and equipment (120,319) (108,925)
Cash flows used in investing activities (120,319) (108,925)
Financing activities    
Payments on revolving credit facilities 0 (125,000)
Payments on finance lease liabilities (644) (542)
Repurchase of common stock (292,223) (104,488)
Payments of excise tax on repurchases of common stock (2,091) 0
Proceeds from exercise of stock options 1,224 3,265
Cash flows used in financing activities (293,734) (226,765)
Decrease in cash, cash equivalents, and restricted cash (3,716) (24,395)
Cash, cash equivalents, and restricted cash at beginning of the period 267,213 203,870
Cash, cash equivalents, and restricted cash at the end of the period 263,497 179,475
Supplemental disclosure of cash flow information    
Cash paid for interest 796 4,193
Cash paid for income taxes 82,586 43,590
Supplemental disclosure of non-cash activities    
Property and equipment in accounts payable and accrued liabilities 21,651 25,989
Excise tax accrued on repurchase of common stock 2,426 2,470
Leased assets obtained in exchange for new operating lease liabilities, net of lease terminations $ 147,535 $ 144,796
v3.25.2
Basis of Presentation
 6 Months Ended
Jun. 29, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
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 June 29, 2025, the Company operated 455 stores in 24 states. For convenience, the “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and unless the context otherwise requires, its subsidiaries. The Company’s store operations are conducted by its subsidiaries.
The accompanying unaudited consolidated financial statements include the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. All material intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The information included in these consolidated financial statements and notes thereto should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2024 (“fiscal year 2024”) included in the Company’s Annual Report on Form 10-K, filed on February 20, 2025.
The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP.
The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending December 28, 2025 (“fiscal year 2025”) and fiscal year 2024 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years (in which the fourth quarter has 14 weeks).
All dollar amounts are in thousands, unless otherwise noted.
v3.25.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 29, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
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. A summary of the activity and balances in the gift card liability, net is as follows:
Twenty-six weeks ended
June 29, 2025June 30, 2024
Beginning Balance$11,071 $10,566 
Gift cards issued during the period but not redeemed(1)
1,772 1,590 
Revenue recognized from beginning liability(3,492)(3,330)
Ending Balance$9,351 $8,826 
(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 June 29, 2025.
Restricted Cash
Restricted cash primarily relates to the Company's healthcare, general liability and workers’ compensation plan benefits of $2.1 million as of June 29, 2025 and December 29, 2024. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets.
Recently Issued Accounting Pronouncements Not Yet Adopted
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 enhance a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance will be effective beginning with the Company's Annual Report on Form 10-K for its fiscal year 2025. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company expects this update to impact its income tax disclosures but does not anticipate that this update will impact its results of operations, cash flows or financial condition.
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.
No other new accounting pronouncements issued or effective during the thirteen weeks ended June 29, 2025 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 29, 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 June 29, 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 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.
Cash, cash equivalents, 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.
v3.25.2
Long-Term Debt and Finance Lease Liabilities
 6 Months Ended
Jun. 29, 2025
Long Term Debt And Finance Lease Liabilities [Abstract]  
Long-Term Debt and Finance Lease Liabilities Long-Term Debt and Finance Lease Liabilities
A summary of long-term debt and finance lease liabilities is as follows:
As of
FacilityMaturityInterest RateJune 29, 2025December 29, 2024
Senior secured debt
$700.0 million Credit Agreement
March 25, 2027Variable$— $— 
Finance lease liabilitiesVariousn/a6,528 7,248 
Long-term debt and finance lease liabilities$6,528 $7,248 
Credit Agreement
The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under a credit agreement entered into on March 25, 2022 (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the "Revolving Credit Facility") with an initial aggregate commitment of $700.0 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 $3.4 million related to the Credit Agreement, which, combined with the remaining $0.5 million debt issuance costs in respect of that certain amended and restated credit agreement entered into on March 27, 2018, by and among the Company, Intermediate Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (the “Former Credit Facility”), which remained outstanding as of the time of Intermediate Holdings’ entry into the Credit Agreement, were recorded to prepaid expenses and other current assets and other assets in the consolidated balance sheets and 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 $70.0 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 June 29, 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 0.10% SOFR adjustment and 1.00% per annum or 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 diversity and 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 0.10% 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 diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement.
As of June 29, 2025, loans outstanding under the Credit Agreement bore interest at Term SOFR (as defined in the Credit Agreement) plus a 0.10% SOFR adjustment and 0.95% per annum. The Company had no loans outstanding under the Credit Agreement as of June 29, 2025.
As of June 29, 2025, outstanding letters of credit issued under the Credit Agreement were subject to a participation fee of 0.95% per annum and an issuance fee of 0.125% per annum.
Payments and Borrowings
The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on March 25, 2027, 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).
In connection with the execution of the Credit Agreement, the Company's obligations under the Former Credit Facility were prepaid and terminated.
During the thirteen and twenty-six weeks ended June 29, 2025, the Company made no additional borrowings and had no outstanding debt under the Credit Agreement as of June 29, 2025. During 2024, the Company made no additional borrowings and made principal payments of $125.0 million, resulting in no outstanding debt under the Credit Agreement 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 certain 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 as of the last day of each fiscal quarter.
The Company was in compliance with all applicable covenants under the Credit Agreement as of June 29, 2025.
On July 25, 2025, the Company entered into a new credit agreement which provides for a revolving credit facility with an initial aggregate commitment of $600.0 million, maturing on July 25, 2030 (the “New Revolving Credit Facility”). Loans under the New Revolving Credit Facility will initially bear interest, at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus 1.00% per annum or an alternate base rate (with a floor of 0.00%) plus 0.00% per annum. The New Revolving Credit Facility refinances and replaces the Company’s previous $700.0 million Revolving Credit Facility.
v3.25.2
Income Taxes
 6 Months Ended
Jun. 29, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate increased to 25.6% for the thirteen weeks ended June 29, 2025, compared to 25.2% for the thirteen weeks ended June 30, 2024. The increase in the effective tax rate was primarily due to an increase in non-deductible executive compensation partially offset by an increase in the benefit for stock-based compensation in the current year. The income tax effect resulting from excess tax
benefits of share-based payment awards was $1.5 million and $0.6 million for the thirteen weeks ended June 29, 2025 and June 30, 2024, respectively.
The Company’s effective tax rate decreased to 22.9% for the twenty-six weeks ended June 29, 2025, compared to 23.8% for the twenty-six weeks ended June 30, 2024. The decrease in the effective tax rate was primarily due to an increase in the benefit in the current year for stock-based compensation partially offset by an increase in the rate detriment in the current year for nondeductible executive compensation and a reduction in the rate benefit for federal employment credits in the current year. The income tax effect resulting from excess tax benefits of share-based payment awards was $14.3 million and $5.1 million for the twenty-six weeks ended June 29, 2025 and June 30, 2024, respectively.
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.
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 is currently evaluating the potential impact on its consolidated financial statements and disclosures.
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 29, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and 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 judgment and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss.
Litigation
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. 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. 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 proceeding is pending. A trial date has not been set. 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 this matter.
Commitments
On April 24, 2025, the Company executed a real estate lease for a new corporate headquarters campus and store location that is expected to commence in the third quarter of fiscal year 2026. The initial term of the lease is 10 years and the total non-cancellable lease payments are $110.0 million. In addition, the lease includes a renewal option for a period of 10 years and a purchase option that will result in the Company’s recognition of the land and building assets during and after the construction period. The lease agreement also includes a residual value guarantee provision, the amount of which is to be determined upon completion of construction. The amounts included within the balance sheet and income statement for the periods presented are not material.
v3.25.2
Stockholders' Equity
 6 Months Ended
Jun. 29, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share Repurchases
On May 22, 2024, the Company's board of directors authorized a $600 million 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 December 31, 2024, of which $119.3 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 June 29, 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 $441,699 $158,301 
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):
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Number of common shares acquired466,420639,5382,034,4371,597,318
Average price per common share acquired$158.99 $70.07 $144.88 $65.86 
Total cost of common shares acquired$74,155 $44,812 $294,749 $105,192 
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 June 29, 2025 and through July 28, 2025, the Company repurchased an additional 0.1 million shares of common stock for $9.1 million, excluding excise tax.
v3.25.2
Net Income Per Share
 6 Months Ended
Jun. 29, 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 restricted stock units ("RSUs"). Performance share awards ("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):
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Basic net income per share:
Net income$133,703 $95,289 $313,729 $209,389 
Weighted average shares outstanding - basic97,858100,46098,198100,765
Basic net income per share$1.37 $0.95 $3.19 $2.08 
Diluted net income per share:
Net income$133,703 $95,289 $313,729 $209,389 
Weighted average shares outstanding - basic97,858100,46098,198100,765
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares582447579436
RSUs242289364446
PSAs92—118—
Weighted average shares and equivalent shares outstanding - diluted98,774101,19699,259101,647
Diluted net income per share$1.35 $0.94 $3.16 $2.06 
For the thirteen weeks ended June 29, 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 thirteen weeks ended June 30, 2024, the Company had 0.1 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.
For the twenty-six weeks ended June 29, 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 twenty-six weeks ended June 30, 2024, the Company had 0.1 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.
v3.25.2
Segments
 6 Months Ended
Jun. 29, 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.
The following table represents the significant expense and key metrics reviewed by the CODM:
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Net Sales$2,220,602 $1,893,519 $4,457,038 $3,777,327 
Less:
Cost of sales1,358,002 1,175,154 2,708,075 2,336,649 
Direct store expenses552,027 476,990 1,086,824 943,370 
Other segment items (1)
131,217 114,058 256,451 221,725 
Interest (income) expense, net(431)(139)(1,355)679 
Income tax provision46,084 32,167 93,314 65,515 
Net income$133,703 $95,289 $313,729 $209,389 
(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 the thirteen and twenty-six weeks ended June 29, 2025 and June 30, 2024:
Thirteen weeks ended
June 29, 2025June 30, 2024
Perishables$1,271,145 57.2 %$1,090,974 57.6 %
Non-Perishables949,457 42.8 %802,545 42.4 %
Net Sales$2,220,602 100.0 %$1,893,519 100.0 %
Twenty-six weeks ended
June 29, 2025June 30, 2024
Perishables$2,540,877 57.0 %$2,160,704 57.2 %
Non-Perishables1,916,161 43.0 %1,616,623 42.8 %
Net Sales$4,457,038 100.0 %$3,777,327 100.0 %
v3.25.2
Share-Based Compensation
 6 Months Ended
Jun. 29, 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
During the twenty-six weeks ended June 29, 2025, the Company granted the following share-based compensation awards under the 2022 Incentive Plan:
Grant DateRSUsPSAsOptions
March 18, 2025185,22858,80561,079
June 3, 2025333——
Total185,56158,80561,079
Weighted-average grant date fair value$137.88 $137.81 $51.46 
Weighted-average exercise price$— $— $137.81 
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. 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 June 29, 2025, there were 1,123,804 stock awards outstanding and 5,299,822 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 will be 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.
Stock Options
The Company uses the Black-Scholes option pricing model to estimate the fair value of options at grant date. Options vest in accordance with the terms set forth in the grant letter.
Time-based options vest annually over a period of three years.
RSUs
The fair value of RSUs is based on the closing price of the Company’s common stock on the grant date. RSUs generally vest annually over a period of two or three years from the grant date.
PSAs
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% pay out level on the third anniversary of the grant date (March 2025). There were no outstanding 2022 PSAs as of June 29, 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. If performance conditions are met, the applicable number of performance shares will vest 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).
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:
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Share-based compensation expense$7,747 $6,789 $14,403 $13,266 
The following share-based awards were outstanding under the 2022 and 2013 Incentive Plans as of June 29, 2025 and June 30, 2024:
As of
June 29, 2025June 30, 2024
(in thousands)
Options
Vested570527
Unvested213319
RSUs457633
PSAs306370
As of June 29, 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$5,224 1.7
RSUs33,613 1.8
PSAs16,827 1.4
Total unrecognized compensation expense at June 29, 2025$55,664 
During the twenty-six weeks ended June 29, 2025 and June 30, 2024, the Company received $1.2 million and $3.3 million, respectively, in cash proceeds from the exercise of options.
v3.25.2
Goodwill
 6 Months Ended
Jun. 29, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill GoodwillThe Company’s goodwill balance was $381.8 million as of June 29, 2025 and December 29, 2024. As of June 29, 2025 and December 29, 2024, the Company had no accumulated goodwill impairment losses. The goodwill is related to the acquisitions of Henry’s Farmers Market and Sunflower Farmers Market in 2011 and 2012, respectively, and the acquisition of Ronald Cohn, Inc. in 2023.
v3.25.2
Store Closures
 6 Months Ended
Jun. 29, 2025
Store Closures [Abstract]  
Store Closures Store ClosuresNo stores were closed during the twenty-six weeks ended June 29, 2025 and all lease costs associated with our closed store locations, for which a lease remains in effect are included within Store closure and other cost, net.
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Pay vs Performance Disclosure        
Net income $ 133,703 $ 95,289 $ 313,729 $ 209,389
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 29, 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
v3.25.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 29, 2025
Accounting Policies [Abstract]  
Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Consolidation In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. All material intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The information included in these consolidated financial statements and notes thereto should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2024 (“fiscal year 2024”) included in the Company’s Annual Report on Form 10-K, filed on February 20, 2025.
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. The fiscal year ending December 28, 2025 (“fiscal year 2025”) and fiscal year 2024 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years (in which the fourth quarter has 14 weeks).
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. A summary of the activity and balances in the gift card liability, net is as follows:
Twenty-six weeks ended
June 29, 2025June 30, 2024
Beginning Balance$11,071 $10,566 
Gift cards issued during the period but not redeemed(1)
1,772 1,590 
Revenue recognized from beginning liability(3,492)(3,330)
Ending Balance$9,351 $8,826 
(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 June 29, 2025.
Restricted Cash
Restricted Cash
Restricted cash primarily relates to the Company's healthcare, general liability and workers’ compensation plan benefits of $2.1 million as of June 29, 2025 and December 29, 2024. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets.
Recently Issued Accounting Pronouncements Not Yet Adopted
Recently Issued Accounting Pronouncements Not Yet Adopted
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 enhance a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance will be effective beginning with the Company's Annual Report on Form 10-K for its fiscal year 2025. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company expects this update to impact its income tax disclosures but does not anticipate that this update will impact its results of operations, cash flows or financial condition.
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.
No other new accounting pronouncements issued or effective during the thirteen weeks ended June 29, 2025 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
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.
v3.25.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 29, 2025
Accounting Policies [Abstract]  
Schedule of Activity in Gift Card Liability A summary of the activity and balances in the gift card liability, net is as follows:
Twenty-six weeks ended
June 29, 2025June 30, 2024
Beginning Balance$11,071 $10,566 
Gift cards issued during the period but not redeemed(1)
1,772 1,590 
Revenue recognized from beginning liability(3,492)(3,330)
Ending Balance$9,351 $8,826 
(1)Net of estimated breakage
v3.25.2
Long-Term Debt and Finance Lease Liabilities (Tables)
 6 Months Ended
Jun. 29, 2025
Long Term Debt And Finance Lease Liabilities [Abstract]  
Schedule of Long-Term Debt and Finance Lease Liabilities
A summary of long-term debt and finance lease liabilities is as follows:
As of
FacilityMaturityInterest RateJune 29, 2025December 29, 2024
Senior secured debt
$700.0 million Credit Agreement
March 25, 2027Variable$— $— 
Finance lease liabilitiesVariousn/a6,528 7,248 
Long-term debt and finance lease liabilities$6,528 $7,248 
v3.25.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 29, 2025
Equity [Abstract]  
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 June 29, 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 $441,699 $158,301 
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):
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Number of common shares acquired466,420639,5382,034,4371,597,318
Average price per common share acquired$158.99 $70.07 $144.88 $65.86 
Total cost of common shares acquired$74,155 $44,812 $294,749 $105,192 
v3.25.2
Net Income Per Share (Tables)
 6 Months Ended
Jun. 29, 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):
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Basic net income per share:
Net income$133,703 $95,289 $313,729 $209,389 
Weighted average shares outstanding - basic97,858100,46098,198100,765
Basic net income per share$1.37 $0.95 $3.19 $2.08 
Diluted net income per share:
Net income$133,703 $95,289 $313,729 $209,389 
Weighted average shares outstanding - basic97,858100,46098,198100,765
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares582447579436
RSUs242289364446
PSAs92—118—
Weighted average shares and equivalent shares outstanding - diluted98,774101,19699,259101,647
Diluted net income per share$1.35 $0.94 $3.16 $2.06 
v3.25.2
Segments (Tables)
 6 Months Ended
Jun. 29, 2025
Segment Reporting [Abstract]  
Schedule of Significant Expense and Key Metrics
The following table represents the significant expense and key metrics reviewed by the CODM:
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Net Sales$2,220,602 $1,893,519 $4,457,038 $3,777,327 
Less:
Cost of sales1,358,002 1,175,154 2,708,075 2,336,649 
Direct store expenses552,027 476,990 1,086,824 943,370 
Other segment items (1)
131,217 114,058 256,451 221,725 
Interest (income) expense, net(431)(139)(1,355)679 
Income tax provision46,084 32,167 93,314 65,515 
Net income$133,703 $95,289 $313,729 $209,389 
(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 the thirteen and twenty-six weeks ended June 29, 2025 and June 30, 2024:
Thirteen weeks ended
June 29, 2025June 30, 2024
Perishables$1,271,145 57.2 %$1,090,974 57.6 %
Non-Perishables949,457 42.8 %802,545 42.4 %
Net Sales$2,220,602 100.0 %$1,893,519 100.0 %
Twenty-six weeks ended
June 29, 2025June 30, 2024
Perishables$2,540,877 57.0 %$2,160,704 57.2 %
Non-Perishables1,916,161 43.0 %1,616,623 42.8 %
Net Sales$4,457,038 100.0 %$3,777,327 100.0 %
v3.25.2
Share-Based Compensation (Tables)
 6 Months Ended
Jun. 29, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation Awards Granted
During the twenty-six weeks ended June 29, 2025, the Company granted the following share-based compensation awards under the 2022 Incentive Plan:
Grant DateRSUsPSAsOptions
March 18, 2025185,22858,80561,079
June 3, 2025333——
Total185,56158,80561,079
Weighted-average grant date fair value$137.88 $137.81 $51.46 
Weighted-average exercise price$— $— $137.81 
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:
Thirteen weeks endedTwenty-six weeks ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Share-based compensation expense$7,747 $6,789 $14,403 $13,266 
Schedule of Outstanding Share-Based Awards
The following share-based awards were outstanding under the 2022 and 2013 Incentive Plans as of June 29, 2025 and June 30, 2024:
As of
June 29, 2025June 30, 2024
(in thousands)
Options
Vested570527
Unvested213319
RSUs457633
PSAs306370
Schedule of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards
As of June 29, 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$5,224 1.7
RSUs33,613 1.8
PSAs16,827 1.4
Total unrecognized compensation expense at June 29, 2025$55,664 
v3.25.2
Basis of Presentation (Details)
Jun. 29, 2025
state
store
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of stores operated | store 455
Number of states in which the entity operates | state 24
v3.25.2
Summary of Significant Accounting Policies - Activity and Balance in Gift Card Liability, Net (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Contract With Customer, Liability [Roll Forward]    
Beginning Balance $ 11,071 $ 10,566
Gift cards issued during the period but not redeemed 1,772 1,590
Revenue recognized from beginning liability (3,492) (3,330)
Ending Balance $ 9,351 $ 8,826
v3.25.2
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Millions
Jun. 29, 2025
Dec. 29, 2024
Accounting Policies [Abstract]    
Restricted cash $ 2.1 $ 2.1
v3.25.2
Fair Value Measurements (Details) - USD ($)
Jun. 29, 2025
Dec. 29, 2024
Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial liabilities measured at fair value $ 0 $ 0
v3.25.2
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Details) - USD ($)
$ in Thousands
Jun. 29, 2025
Dec. 29, 2024
Long Term Debt And Finance Lease Liabilities [Line Items]    
Finance lease liabilities $ 6,528 $ 7,248
Long-term debt and finance lease liabilities 6,528 7,248
Senior | Secured | Line of Credit    
Long Term Debt And Finance Lease Liabilities [Line Items]    
Debt instrument face amount 700,000  
Senior secured debt $ 0 $ 0
v3.25.2
Long-Term Debt and Finance Lease Liabilities - Additional Information (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Jul. 25, 2025
USD ($)
Mar. 25, 2022
USD ($)
Jun. 29, 2025
USD ($)
Dec. 29, 2024
USD ($)
Mar. 27, 2018
USD ($)
Long Term Debt And Finance Lease Liabilities [Line Items]          
Participation fee     0.95%    
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      
Line of Credit | Revolving Credit Facility | Subsequent Event          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility maximum borrowing capacity $ 600,000        
Line of Credit | Revolving Credit Facility | SOFR | Subsequent Event          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate, floor 0.00%        
Interest rate spread on base rate 1.00%        
Line of Credit | Revolving Credit Facility | Base Rate | Subsequent Event          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate, floor 0.00%        
Interest rate spread on base rate 0.00%        
Senior | Secured          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate   0.05%      
Credit facility commitment fee percentage subject to upward or downward adjustments   0.01%      
Senior | Secured | Minimum          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility unused commitment fee percentage   0.10%      
Senior | Secured | Maximum          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility unused commitment fee percentage   0.225%      
Senior | Secured | SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate     0.10%    
Senior | Secured | Term SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate     0.95%    
Senior | Secured | Variable Rate Component One          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate, floor   0.00%      
Senior | Secured | Variable Rate Component One | SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate   0.10%      
Senior | Secured | Variable Rate Component One | Term SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate   1.00%      
Senior | Secured | Variable Rate Component Two          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate, floor   0.00%      
Senior | Secured | Variable Rate Component Two | Base Rate          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate   0.00%      
Senior | Secured | Line of Credit          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility maximum borrowing capacity   $ 700,000      
Capitalized debt issuance costs   $ 3,400      
Debt instrument, term   5 years      
Outstanding debt     $ 0 $ 0  
Senior | Secured | Former Credit Facility          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Capitalized debt issuance costs         $ 500
Senior | Secured | Letter of Credit          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility maximum borrowing capacity   $ 70,000      
Letters of credit issued     $ 23,100    
Senior | Secured | Swingline          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility maximum borrowing capacity   $ 50,000      
v3.25.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Income Tax Disclosure [Abstract]        
Effective tax rate 25.60% 25.20% 22.90% 23.80%
Excess tax benefits of share-based payment awards $ 1.5 $ 0.6 $ 14.3 $ 5.1
v3.25.2
Commitments and Contingencies (Details)
$ in Millions
Apr. 24, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Initial lease term for lease not yet commenced 10 years
Total non-cancellable lease payments for lease not yet commenced $ 110.0
Renewal lease term for lease not yet commenced 10 years
v3.25.2
Stockholders' Equity - Additional Information (Details) - USD ($)
$ in Thousands, shares in Millions
 1 Months Ended
Jul. 28, 2025
Jun. 29, 2025
May 22, 2024
Mar. 02, 2022
Subsequent Event        
Share Repurchase Program [Line Items]        
Common stock repurchased during the period (in shares) 0.1      
Common stock repurchased during the period $ 9,100      
March 2 2022 Share Repurchase Program        
Share Repurchase Program [Line Items]        
Amount authorized to be repurchased   $ 600,000   $ 600,000
Amount available for repurchase   0 $ 119,300  
May 22 2024 Share Repurchase Program        
Share Repurchase Program [Line Items]        
Amount authorized to be repurchased   600,000 $ 600,000  
Amount available for repurchase   $ 158,301    
v3.25.2
Stockholders' Equity - Schedule of Share Repurchase Activity (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 29, 2025
May 22, 2024
Mar. 02, 2022
March 2 2022 Share Repurchase Program      
Share Repurchase Program [Line Items]      
Amount authorized $ 600,000   $ 600,000
Cost of repurchases 480,715    
Authorization available 0 $ 119,300  
May 22 2024 Share Repurchase Program      
Share Repurchase Program [Line Items]      
Amount authorized 600,000 $ 600,000  
Cost of repurchases 441,699    
Authorization available $ 158,301    
v3.25.2
Stockholders' Equity - Schedule of Share Repurchase Activity under Share Repurchase Programs (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Equity [Abstract]        
Number of common shares acquired (in shares) 466,420 639,538 2,034,437 1,597,318
Average price per common share acquired (in dollars per share) $ 158.99 $ 70.07 $ 144.88 $ 65.86
Total cost of common shares acquired $ 74,155 $ 44,812 $ 294,749 $ 105,192
v3.25.2
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
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Basic net income per share:        
Net income $ 133,703 $ 95,289 $ 313,729 $ 209,389
Weighted average shares outstanding - basic (in shares) 97,858 100,460 98,198 100,765
Basic net income per share (in dollars per share) $ 1.37 $ 0.95 $ 3.19 $ 2.08
Diluted net income per share:        
Net income $ 133,703 $ 95,289 $ 313,729 $ 209,389
Weighted average shares outstanding - basic (in shares) 97,858 100,460 98,198 100,765
Dilutive effect of share-based awards:        
Assumed exercise of options to purchase shares (in shares) 582 447 579 436
Weighted average shares and equivalent shares outstanding - diluted (in shares) 98,774 101,196 99,259 101,647
Diluted net income per share (in dollars per share) $ 1.35 $ 0.94 $ 3.16 $ 2.06
RSUs        
Dilutive effect of share-based awards:        
Dilutive awards (in shares) 242 289 364 446
PSAs        
Dilutive effect of share-based awards:        
Dilutive awards (in shares) 92 0 118 0
v3.25.2
Net Income Per Share - Additional Information (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (in shares) 0.1 0.1 0.1 0.1
PSAs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (in shares) 0.2 0.4 0.2 0.4
v3.25.2
Segments - Additional Information (Details)
 6 Months Ended
Jun. 29, 2025
segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.2
Segments - Summary of Segment Expense and Key Metrics (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Segment Reporting Information [Line Items]        
Net sales $ 2,220,602 $ 1,893,519 $ 4,457,038 $ 3,777,327
Less:        
Cost of sales 1,358,002 1,175,154 2,708,075 2,336,649
Interest (income) expense, net (431) (139) (1,355) 679
Income tax provision 46,084 32,167 93,314 65,515
Net income 133,703 95,289 313,729 209,389
Healthy grocery stores        
Segment Reporting Information [Line Items]        
Net sales 2,220,602 1,893,519 4,457,038 3,777,327
Less:        
Cost of sales 1,358,002 1,175,154 2,708,075 2,336,649
Direct store expenses 552,027 476,990 1,086,824 943,370
Other segment items 131,217 114,058 256,451 221,725
Interest (income) expense, net (431) (139) (1,355) 679
Income tax provision 46,084 32,167 93,314 65,515
Net income $ 133,703 $ 95,289 $ 313,729 $ 209,389
v3.25.2
Segments - Summary of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Disaggregation Of Revenue [Line Items]        
Net Sales $ 2,220,602 $ 1,893,519 $ 4,457,038 $ 3,777,327
Net sales | Product Concentration Risk        
Disaggregation Of Revenue [Line Items]        
Concentration risk percentage 100.00% 100.00% 100.00% 100.00%
Perishables        
Disaggregation Of Revenue [Line Items]        
Net Sales $ 1,271,145 $ 1,090,974 $ 2,540,877 $ 2,160,704
Perishables | Net sales | Product Concentration Risk        
Disaggregation Of Revenue [Line Items]        
Concentration risk percentage 57.20% 57.60% 57.00% 57.20%
Non-Perishables        
Disaggregation Of Revenue [Line Items]        
Net Sales $ 949,457 $ 802,545 $ 1,916,161 $ 1,616,623
Non-Perishables | Net sales | Product Concentration Risk        
Disaggregation Of Revenue [Line Items]        
Concentration risk percentage 42.80% 42.40% 43.00% 42.80%
v3.25.2
Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Details) - Awards Granted under the 2022 Incentive Plan
 6 Months Ended
Jun. 29, 2025
$ / shares
shares
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 185,561
Weighted-average grant date fair value (in dollars per share) | $ / shares $ 137.88
Weighted-average exercise price (in dollars per share) | $ / shares $ 0
PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 58,805
Weighted-average grant date fair value (in dollars per share) | $ / shares $ 137.81
Weighted-average exercise price (in dollars per share) | $ / shares $ 0
Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 61,079
Weighted-average grant date fair value (in dollars per share) | $ / shares $ 51.46
Weighted-average exercise price (in dollars per share) | $ / shares $ 137.81
March 18, 2025 | RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 185,228
March 18, 2025 | PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 58,805
March 18, 2025 | Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 61,079
June 3, 2025 | RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 333
June 3, 2025 | PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 0
June 3, 2025 | Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) 0
v3.25.2
Share-Based Compensation - Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 6 Months Ended 12 Months Ended
Mar. 30, 2025
Jun. 29, 2025
Jun. 30, 2024
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Proceeds from exercise of stock options   $ 1,224 $ 3,265      
Options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period   3 years        
Proceeds from exercise of stock options     $ 3,300      
RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of awards outstanding (in shares)   457,000 633,000      
RSUs | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period   2 years        
RSUs | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period   3 years        
PSAs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of awards outstanding (in shares)   306,000 370,000      
PSAs | 2022            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award actual payout percentage 148.00%          
Number of awards outstanding (in shares)   0        
PSAs | Minimum | 2022            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted           0.00%
PSAs | Minimum | 2023            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted         0.00%  
PSAs | Minimum | 2024            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted       0.00%    
PSAs | Minimum | 2025            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted   0.00%        
PSAs | Maximum | 2022            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted           200.00%
PSAs | Maximum | 2023            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted         200.00%  
PSAs | Maximum | 2024            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted       200.00%    
PSAs | Maximum | 2025            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Performance stock awards payout percentage of shares granted   200.00%        
Awards Granted under the 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)   1,123,804        
Remaining shares available for issuance (in shares)   5,299,822        
v3.25.2
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 29, 2025
Jun. 30, 2024
Jun. 29, 2025
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]        
Share-based compensation expense $ 7,747 $ 6,789 $ 14,403 $ 13,266
v3.25.2
Share-Based Compensation - Summary of Outstanding Share-Based Awards (Details) - shares
shares in Thousands
Jun. 29, 2025
Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vested (in shares) 570 527
Unvested (in shares) 213 319
RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Equity-based awards other than options, outstanding (in shares) 457 633
PSAs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Equity-based awards other than options, outstanding (in shares) 306 370
v3.25.2
Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Details)
$ in Thousands
 6 Months Ended
Jun. 29, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized compensation expense at June 29, 2025 $ 55,664
Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Options $ 5,224
Remaining weighted average recognition period 1 year 8 months 12 days
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Awards other than options $ 33,613
Remaining weighted average recognition period 1 year 9 months 18 days
PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Awards other than options $ 16,827
Remaining weighted average recognition period 1 year 4 months 24 days
v3.25.2
Goodwill (Details) - USD ($)
$ in Thousands
Jun. 29, 2025
Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 381,750 $ 381,750
Accumulated goodwill impairment losses $ 0 $ 0