SPROUTS FARMERS MARKET, INC., 10-K filed on 2/20/2025
Annual Report
v3.25.0.1
Cover - USD ($)
 12 Months Ended
Dec. 29, 2024
Feb. 18, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 29, 2024    
Current Fiscal Year End Date --12-29    
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     $ 8,343,509,097
Entity Common Stock, Shares Outstanding   98,585,382  
Documents Incorporated by Reference
Portions of the registrant’s definitive Proxy Statement for its 2025 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 29, 2024.
    
Entity Central Index Key 0001575515    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
 12 Months Ended
Dec. 29, 2024
Auditor Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Phoenix, Arizona
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Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 265,159 $ 201,794
Accounts receivable, net 30,901 30,313
Inventories 343,329 323,198
Prepaid expenses and other current assets 36,131 48,467
Total current assets 675,520 603,772
Property and equipment, net of accumulated depreciation 895,189 798,707
Operating lease assets, net 1,466,903 1,322,854
Intangible assets 208,094 208,060
Goodwill 381,750 381,741
Other assets 13,243 12,294
Total assets 3,640,699 3,327,428
Current liabilities:    
Accounts payable 213,414 179,927
Accrued liabilities 216,842 164,887
Accrued salaries and benefits 97,991 74,752
Current portion of operating lease liabilities 150,400 126,271
Current portion of finance lease liabilities 1,321 1,032
Total current liabilities 679,968 546,869
Long-term operating lease liabilities 1,520,272 1,399,676
Long-term debt and finance lease liabilities 7,248 133,685
Other long-term liabilities 38,259 36,270
Deferred income tax liability 73,059 62,381
Total liabilities 2,318,806 2,178,881
Commitments and contingencies (Note 18)
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, 99,255,036 shares issued and outstanding, December 29, 2024; 101,211,984 shares issued and outstanding, December 31, 2023 99 101
Additional paid-in capital 808,140 774,834
Retained earnings 513,654 373,612
Total stockholders’ equity 1,321,893 1,148,547
Total liabilities and stockholders’ equity $ 3,640,699 $ 3,327,428
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 29, 2024
Dec. 31, 2023
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) 99,255,036 101,211,984
Common stock, shares outstanding (in shares) 99,255,036 101,211,984
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Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Income Statement [Abstract]      
Net sales $ 7,719,290 $ 6,837,384 $ 6,404,223
Cost of sales 4,777,799 4,315,543 4,055,659
Gross profit 2,941,491 2,521,841 2,348,564
Selling, general and administrative expenses 2,291,350 2,000,437 1,855,649
Depreciation and amortization (exclusive of depreciation included in cost of sales) 132,748 131,893 123,530
Store closure and other costs, net 12,896 39,280 11,025
Income from operations 504,497 350,231 358,360
Interest (income) expense, net (2,201) 6,491 9,047
Income before income taxes 506,698 343,740 349,313
Income tax provision 126,097 84,884 88,149
Net income $ 380,601 $ 258,856 $ 261,164
Net income per share:      
Basic (in dollars per share) $ 3.79 $ 2.53 $ 2.41
Diluted (in dollars per share) $ 3.75 $ 2.50 $ 2.39
Weighted average shares outstanding:      
Basic (in shares) 100,363 102,479 108,232
Diluted (in shares) 101,379 103,390 109,139
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 380,601 $ 258,856 $ 261,164
Other comprehensive income, net of tax      
Unrealized gains on cash flow hedging activities, net of income tax of $1,819 in fiscal 2022 0 0 5,259
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520) in fiscal 2022 0 0 (1,501)
Total other comprehensive income 0 0 3,758
Comprehensive income $ 380,601 $ 258,856 $ 264,922
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Consolidated Statements of Comprehensive Income (Parenthetical)
$ in Thousands
 12 Months Ended
Jan. 01, 2023
USD ($)
Statement of Comprehensive Income [Abstract]  
Unrealized gains on cash flow hedging activities, tax $ 1,819
Reclassification of net losses on cash flow hedges to net income, tax $ (520)
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Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Beginning Balance (in shares) at Jan. 02, 2022   111,114,374      
Beginning Balance at Jan. 02, 2022 $ 959,876 $ 111 $ 704,701 $ 258,822 $ (3,758)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 261,164     261,164  
Other comprehensive income $ 3,758       3,758
Issuance of shares under stock plans (in shares) 218,509 855,464      
Issuance of shares under stock plans $ 5,041   5,041    
Repurchase and retirement of common stock, including excise tax (in shares)   (6,897,082)      
Repurchase and retirement of common stock (199,980) $ (6)   (199,974)  
Share-based compensation 16,603   16,603    
Issuance of shares for acquisition 0        
Ending Balance (in shares) at Jan. 01, 2023   105,072,756      
Ending Balance at Jan. 01, 2023 1,046,462 $ 105 726,345 320,012 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 258,856     258,856 0
Other comprehensive income $ 0        
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 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 380,601     380,601  
Other comprehensive income $ 0        
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 $ 0
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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Operating activities      
Net income $ 380,601 $ 258,856 $ 261,164
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 140,164 137,811 127,067
Operating lease asset amortization 133,923 127,208 117,315
Impairment of assets 406 30,549 8,066
Share-based compensation 28,417 18,898 16,603
Deferred income taxes 10,691 (4,915) 3,228
Other non-cash items 5,610 1,086 672
Changes in operating assets and liabilities, net of effects from acquisition:      
Accounts receivable 30,007 3,173 13,381
Inventories (20,131) (10,857) (45,158)
Prepaid expenses and other current assets 11,903 2,210 (18,467)
Other assets (45) 3,482 2,039
Accounts payable 27,986 12,215 13,362
Accrued liabilities 39,305 11,746 5,416
Accrued salaries and benefits 23,240 12,880 2,831
Operating lease liabilities (168,538) (138,795) (132,889)
Other long-term liabilities 1,675 (479) (3,301)
Cash flows from operating activities 645,214 465,068 371,329
Investing activities      
Purchases of property and equipment (230,375) (225,310) (124,010)
Payments for acquisition, net of cash acquired 0 (13,032) 0
Cash flows used in investing activities (230,375) (238,342) (124,010)
Financing activities      
Proceeds from revolving credit facilities 0 0 62,500
Payments on revolving credit facilities (125,000) (125,000) (62,500)
Payments on finance lease liabilities (1,148) (1,006) (819)
Payments of deferred financing costs 0 0 (3,373)
Repurchase of common stock (228,472) (203,496) (199,980)
Payments of excise tax on repurchases of common stock (1,766) 0 0
Proceeds from exercise of stock options 4,890 11,454 5,041
Cash flows used in financing activities (351,496) (318,048) (199,131)
Increase/(Decrease) in cash, cash equivalents, and restricted cash 63,343 (91,322) 48,188
Cash, cash equivalents, and restricted cash at beginning of the period 203,870 295,192 247,004
Cash, cash equivalents, and restricted cash at the end of the period 267,213 203,870 295,192
Supplemental disclosure of cash flow information      
Cash paid for interest 5,008 12,561 11,132
Cash paid for income taxes 102,226 96,633 93,419
Supplemental disclosure of non-cash activities      
Property and equipment in accounts payable and accrued liabilities 36,682 29,592 36,177
Issuance of shares for acquisition 0 18,139 0
Excise tax accrued on repurchase of common stock 2,091 1,766 0
Leased assets obtained in exchange for new operating lease liabilities, net of lease terminations 278,230 364,997 157,269
Leased assets obtained in exchange for new finance lease liabilities $ 0 $ 809 $ 0
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Organization and Description of Business
 12 Months Ended
Dec. 29, 2024
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 29, 2024, the Company operated 440 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.
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Basis of Presentation
 12 Months Ended
Dec. 29, 2024
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 material 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:
202420232022
Perishables57.3 %57.3 %58.0 %
Non-Perishables42.7 %42.7 %42.0 %
All dollar amounts are in thousands, unless otherwise indicated.
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Significant Accounting Policies
 12 Months Ended
Dec. 29, 2024
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 2024 ended on December 29, 2024 and included 52 weeks. Fiscal year 2023 ended on December 31, 2023 and included 52 weeks. Fiscal year 2022 ended on January 1, 2023 and included 52 weeks. Fiscal years 2024, 2023 and 2022 are referred to as 2024, 2023 and 2022, 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 29, 2024December 31, 2023
Due from banks for debit and credit card transactions$80,409 $85,116 
Restricted Cash
Restricted cash relates to the Company’s defined benefit plan forfeitures and the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $2.1 million as of December 29, 2024 and December 31, 2023, and is 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 29, 2024 and December 31, 2023.
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 27, “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 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. The Company recorded an impairment loss of $0.4 million and $8.1 million in 2024 and 2022, respectively, 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 26, "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 13, “Long-Term Debt and Finance Lease Liabilities”), 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 finance lease liabilities 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.
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 29, 2024 or December 31, 2023.
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 25, “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. A summary of the activity and balances in the gift card liability, net is as follows:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Beginning Balance$10,566 $10,906 $12,586 
Gift cards issued during the period but not redeemed(1)
4,727 4,271 4,291 
Revenue recognized from beginning liability(4,222)(4,611)(5,971)
Ending Balance$11,071 $10,566 $10,906 
(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 29, 2024.
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 50%, 47% and 45% of total purchases during 2024, 2023 and 2022, 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 $46.8 million, $45.8 million and $49.2 million for 2024, 2023 and 2022, 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, for all periods presented.
Recently Adopted Accounting Pronouncements
Segment Reporting – Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU no. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." The amendments in this update increased required disclosures about a public entity's reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 requires the Company to disclose the title and position of its CODM. The Company adopted this standard effective December 29, 2024 and accordingly updated its segment disclosures (see Note 24, “Segments”) but there was no impact on the Company’s results of operations, cash flows and financial condition.
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 for the Company 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 issues 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 2024 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
v3.25.0.1
Accounts Receivable
 12 Months Ended
Dec. 29, 2024
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
A summary of accounts receivable is as follows:
As Of
December 29, 2024December 31, 2023
Landlords$5,577 $5,451 
Vendors3,814 3,168 
Insurance2,913 2,884 
Ecommerce9,993 7,682 
Other8,604 11,128 
Total$30,901 $30,313 
The Company recorded allowances for certain vendor receivables of $1.3 million at December 29, 2024 and December 31, 2023.
v3.25.0.1
Prepaid Expenses and Other Current Assets
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023
Prepaid expenses$24,469 $22,062 
Restricted cash2,054 2,076 
Income tax receivable8,839 23,559 
Other current assets769 770 
Total$36,131 $48,467 
v3.25.0.1
Property and Equipment
 12 Months Ended
Dec. 29, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
A summary of property and equipment, net is as follows:
As Of
December 29, 2024December 31, 2023
Land and finance lease assets$16,859 $16,562 
Furniture, fixtures and equipment1,129,303 1,002,824 
Leasehold improvements831,020 715,489 
Construction in progress79,994 92,066 
Total property and equipment2,057,176 1,826,941 
Accumulated depreciation and amortization(1,161,987)(1,028,234)
Property and equipment, net$895,189 $798,707 
Depreciation expense was $139.2 million, $136.6 million and $125.7 million for 2024, 2023 and 2022, respectively. Depreciation expense is primarily reflected in Depreciation and amortization on the consolidated statements of income.
Impairment expense was $0.4 million, $30.5 million and $8.1 million for 2024, 2023 and 2022, respectively. Impairment expense is reflected in Store closure and other costs, net on the consolidated statements of income.
v3.25.0.1
Leases
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023January 1, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$247,312 $232,745 $204,559 
Closed locationsStore closure and other costs, net$7,122 $4,029 $796 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,128 1,062 966 
Interest on lease liabilitiesInterest expense747 816 852 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
75,646 70,197 65,979 
Closed locationsStore closure and other costs, net2,138 2,302 504 
Sublease income:
Open locationsSelling, general and administrative expenses(831)(832)(833)
Closed locationsStore closure and other costs, net$(71)$— $— 
Total net lease cost$333,191 $310,319 $272,823 
(1)Supply chain-related amounts of $20.3 million, $18.2 million and $12.4 million were included in cost of sales for 2024, 2023 and 2022, respectively.
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 29, 2024December 31, 2023
Assets
OperatingOperating lease assets$1,466,903 $1,322,854 
FinanceProperty and equipment, net6,161 7,127 
Total lease assets$1,473,064 $1,329,981 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$150,400 $126,271 
FinanceCurrent portion of finance lease liabilities1,321 1,032 
Noncurrent:
OperatingLong-term operating lease liabilities1,520,272 1,399,676 
FinanceLong-term debt and finance lease liabilities7,248 8,685 
Total lease liabilities$1,679,241 $1,535,664 
202420232022
Weighted average remaining lease term (years):
Operating leases10.110.09.4
Finance leases5.86.77.8
Weighted average discount rate:
Operating leases7.0 %7.2 %7.1 %
Finance leases8.4 %8.3 %8.4 %
Supplemental cash flow and other information related to leases is as follows:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$249,862 $228,411 $207,516 
Operating cash flows for finance leases747 816 852 
Lease assets obtained in exchange for lease liabilities:
Finance leases$— $809 $— 
Operating leases278,230 364,997 157,269 
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2025$250,665 $1,991 $252,656 
2026261,921 1,945 263,866 
2027247,453 2,032 249,485 
2028216,527 1,766 218,293 
2029221,926 1,281 223,207 
Thereafter1,176,921 1,960 1,178,881 
Total lease payments2,375,413 10,975 2,386,388 
Less: Imputed interest(704,741)(2,406)(707,147)
Total lease liabilities1,670,672 8,569 1,679,241 
Less: Current portion(150,400)(1,321)(151,721)
Long-term lease liabilities$1,520,272 $7,248 $1,527,520 
(1)Operating lease payments include $77.2 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $756.9 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 $1.0 million in 2025, $1.0 million in 2026, $0.9 million in 2027, $0.4 million in 2028, $0.3 million in 2029 and $0.1 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 29, 2024December 31, 2023January 1, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$247,312 $232,745 $204,559 
Closed locationsStore closure and other costs, net$7,122 $4,029 $796 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,128 1,062 966 
Interest on lease liabilitiesInterest expense747 816 852 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
75,646 70,197 65,979 
Closed locationsStore closure and other costs, net2,138 2,302 504 
Sublease income:
Open locationsSelling, general and administrative expenses(831)(832)(833)
Closed locationsStore closure and other costs, net$(71)$— $— 
Total net lease cost$333,191 $310,319 $272,823 
(1)Supply chain-related amounts of $20.3 million, $18.2 million and $12.4 million were included in cost of sales for 2024, 2023 and 2022, respectively.
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 29, 2024December 31, 2023
Assets
OperatingOperating lease assets$1,466,903 $1,322,854 
FinanceProperty and equipment, net6,161 7,127 
Total lease assets$1,473,064 $1,329,981 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$150,400 $126,271 
FinanceCurrent portion of finance lease liabilities1,321 1,032 
Noncurrent:
OperatingLong-term operating lease liabilities1,520,272 1,399,676 
FinanceLong-term debt and finance lease liabilities7,248 8,685 
Total lease liabilities$1,679,241 $1,535,664 
202420232022
Weighted average remaining lease term (years):
Operating leases10.110.09.4
Finance leases5.86.77.8
Weighted average discount rate:
Operating leases7.0 %7.2 %7.1 %
Finance leases8.4 %8.3 %8.4 %
Supplemental cash flow and other information related to leases is as follows:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$249,862 $228,411 $207,516 
Operating cash flows for finance leases747 816 852 
Lease assets obtained in exchange for lease liabilities:
Finance leases$— $809 $— 
Operating leases278,230 364,997 157,269 
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2025$250,665 $1,991 $252,656 
2026261,921 1,945 263,866 
2027247,453 2,032 249,485 
2028216,527 1,766 218,293 
2029221,926 1,281 223,207 
Thereafter1,176,921 1,960 1,178,881 
Total lease payments2,375,413 10,975 2,386,388 
Less: Imputed interest(704,741)(2,406)(707,147)
Total lease liabilities1,670,672 8,569 1,679,241 
Less: Current portion(150,400)(1,321)(151,721)
Long-term lease liabilities$1,520,272 $7,248 $1,527,520 
(1)Operating lease payments include $77.2 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $756.9 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 $1.0 million in 2025, $1.0 million in 2026, $0.9 million in 2027, $0.4 million in 2028, $0.3 million in 2029 and $0.1 million thereafter.
v3.25.0.1
Intangible Assets
 12 Months Ended
Dec. 29, 2024
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 January 1, 2023Additions/AdjustmentsBalance at December 31, 2023
Indefinite-lived trade names$182,937 $— $182,937 
Indefinite-lived reacquired rights— 23,100 23,100 
Indefinite-lived liquor licenses2,023 — 2,023 
Total intangible assets$184,960 $23,100 $208,060 
 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 
There was no amortization expense in 2024, 2023 and 2022.
v3.25.0.1
Goodwill
 12 Months Ended
Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The Company’s goodwill balance was $381.8 million and $381.7 million as of December 29, 2024 and December 31, 2023, respectively. As of December 29, 2024 and December 31, 2023, 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 27, "Business Combination."
v3.25.0.1
Other Assets
 12 Months Ended
Dec. 29, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets Other Assets As of December 29, 2024 and December 31, 2023, other assets of $13.2 million and $12.3 million, respectively, primarily consisted of deferred software as a service, capitalized durable supplies, self insurance receivables associated with general liability and workers’ compensation, utilities deposits, deferred financing costs, and miscellaneous other assets.
v3.25.0.1
Accrued Liabilities
 12 Months Ended
Dec. 29, 2024
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
A summary of accrued liabilities is as follows:
As Of
December 29, 2024December 31, 2023
Self-insurance reserves$28,927 $25,012 
Accrued occupancy related (CAM, property taxes, etc.)25,971 23,935 
Gift cards, net of breakage11,071 10,566 
Accrued sales, use and excise tax16,550 14,296 
Other accrued liabilities134,323 91,078 
Total$216,842 $164,887 
v3.25.0.1
Accrued Salaries and Benefits
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023
Bonuses$52,454 $33,890 
Payroll23,205 20,652 
Vacation20,061 18,050 
Severance and other2,271 2,160 
Total$97,991 $74,752 
v3.25.0.1
Long-Term Debt and Finance Lease Liabilities
 12 Months Ended
Dec. 29, 2024
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 RateDecember 29, 2024December 31, 2023
Senior secured debt
$700.0 million Credit Agreement
March 25, 2027Variable$— $125,000 
Finance lease liabilitiesVariousn/a7,248 8,685 
Long-term debt and finance lease liabilities$7,248 $133,685 

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, 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 $19.6 million have been issued as of December 29, 2024 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 December 29, 2024, 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.
As of December 29, 2024, 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 2024, the Company made no additional borrowings and made principal payments of $125.0 million, resulting in no outstanding debt under the Credit Agreement of as of December 29, 2024. During 2023, the Company made no additional borrowings and principal payments of $125.0 million, resulting in total outstanding debt under the Credit Agreement of $125.0 million as of December 31, 2023.
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 29, 2024.
v3.25.0.1
Other Long-Term Liabilities
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023
Long-term portion of self-insurance reserves$24,301 $22,826 
Other13,958 13,444 
Total$38,259 $36,270 
v3.25.0.1
Self-Insurance Programs
 12 Months Ended
Dec. 29, 2024
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 $2.1 million and $1.3 million from its insurance carriers for payments expected to be made in excess of self-insured retentions at December 29, 2024 and December 31, 2023, respectively. The Company recorded amounts for general liability, workers' compensation and team member health benefit liabilities of $53.2 million and $47.8 million at December 29, 2024 and December 31, 2023, respectively.
The following table summarizes the changes in the Company's self-insurance reserves through December 29, 2024:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Beginning Balance$47,838 $47,612 $50,529 
Expenses, net of actuarial adjustments106,093 85,148 76,720 
Claim Payments(100,703)(84,922)(79,637)
Ending Balance53,228 47,838 47,612 
Less: Current portion(28,927)(25,012)(23,954)
Long-term portion$24,301 $22,826 $23,658 
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.
v3.25.0.1
Defined Contribution Plan
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023January 1, 2023
$9,570 $8,496 $7,820 
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 29, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income Tax Provision
The income tax provision consists of the following:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
U.S. Federal—current$87,601 $67,898 $66,398 
U.S. Federal—deferred8,501 (5,927)1,028 
U.S. Federal—total96,102 61,971 67,426 
State—current27,805 21,902 19,823 
State—deferred2,190 1,011 900 
State—total29,995 22,913 20,723 
Total provision$126,097 $84,884 $88,149 
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:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Federal statutory rate21.0 %21.0 %21.0 %
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit4.85.44.7
Enhanced charitable contribution impact(0.9)(1.0)(0.9)
Non-deductible Executive Compensation1.41.40.9
Benefit of federal tax credit(0.3)(0.7)(0.5)
Excess tax benefits from share based payments(1.1)(1.2)(0.4)
Other, net—(0.2)0.4
Effective income tax rate24.9 %24.7 %25.2 %
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. The effective income tax rate decreased to 24.7% in 2023 from 25.2% in 2022 primarily due to excess tax benefits related to the exercise or vesting of share-based awards partially offset by an increase in nondeductible executive compensation.
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 income tax benefit resulting from share-based awards was $7.0 million, $5.0 million and $1.7 million for 2024, 2023 and 2022, respectively, and is reflected as a reduction to the 2024, 2023 and 2022 income tax provision.
Deferred Taxes
Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:
As Of
December 29, 2024December 31, 2023
Deferred tax assets
Employee benefits$22,163 $18,329 
Tax credits— 105 
Operating leases429,362 392,168 
Other lease related5,946 6,137 
Other accrued liabilities5,411 4,320 
Charitable contribution carryforward4,522 3,343 
Inventories and other2,881 2,905 
Total gross deferred tax assets470,285 427,307 
Less: Valuation Allowance(4,522)(3,343)
Total deferred tax assets, net of valuation allowance465,763 423,964 
Deferred tax liabilities
Depreciation and amortization(89,974)(80,765)
Intangible assets(70,978)(64,668)
Operating leases(376,994)(339,973)
Asset retirement obligations(876)(939)
Total gross deferred tax liabilities(538,822)(486,345)
Net deferred tax liability$(73,059)$(62,381)
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 and $3.3 million as of December 29, 2024 and December 31, 2023, respectively, 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 29, 2024 and December 31, 2023.
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 29, 2024December 31, 2023January 1, 2023
Beginning balance$477 $1,119 $1,770 
Additions based on tax positions related to the current year— 58 43 
Additions based on tax positions related to prior years— — — 
Reductions for settlements with taxing authorities— — (694)
Reduction due to lapse of applicable statute of limitations(245)(700)— 
Ending balance$232 $477 $1,119 
The Company had unrecognized tax benefits (tax effected) of $0.2 million and $0.5 million as of December 29, 2024 and December 31, 2023, respectively. These would impact the effective tax rate if recognized.
The Company’s policy is to recognize accrued interest and penalties as a component of income tax expense.
The Company anticipates a decrease in the total amount of unrecognized tax benefits in the amount of $0.2 million during the next twelve months related to the passing of the applicable statute of limitations.
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 2018 through 2023 and state tax returns for the tax years 2019 through 2023 with few exceptions.
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 29, 2024
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 $756.9 million as of December 29, 2024.
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 29, 2024, total future purchase commitments under noncancelable service and supply contracts were $37.5 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 15, “Self-Insurance Programs” for more information.
v3.25.0.1
Capital Stock
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Capital Stock Capital Stock
Common stock
As of December 29, 2024, 99,255,036 shares of the Company’s common stock were issued and outstanding after the repurchase and retirement of 2,656,058 shares during 2024, as described below. As of December 29, 2024, 5,589,778 shares of common stock are reserved for issuance under the 2022 Incentive Plan (see Note 25, “Share-Based Compensation”).
The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2024, 2023 and 2022:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Options exercised210,312637,387218,509
Other share issuances under stock plans488,798811,729636,955
Share Repurchases
On May 22, 2024, the Company's board of directors authorized a new $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 December 29, 2024:
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 $149,377 $450,623 
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 29, 2024December 31, 2023
Number of common shares acquired2,656,0585,864,246
Average price per common share acquired$90.57 $35.00 
Total cost of common shares acquired$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 29, 2024 and through February 18, 2025, the Company repurchased an additional 0.7 million shares of common stock for $93.7 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.
v3.25.0.1
Net Income Per Share
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023January 1, 2023
Basic net income per share:   
Net income$380,601 $258,856 $261,164 
Weighted average shares outstanding - basic100,363102,479108,232
Basic net income per share$3.79 $2.53 $2.41 
Diluted net income per share:
Net income$380,601 $258,856 $261,164 
Weighted average shares outstanding - basic100,363102,479108,232
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares497343337
RSUs474524394
PSAs4544176
Weighted average shares and equivalent shares outstanding - diluted101,379103,390109,139
Diluted net income per share$3.75 $2.50 $2.39 
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. For the year ended January 1, 2023, the Company had 0.2 million options and 0.3 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.
v3.25.0.1
Derivative Financial Instruments
 12 Months Ended
Dec. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company did not have any outstanding interest rate swap agreements as of December 29, 2024 and December 31, 2023.
In December 2017, the Company entered into an interest rate swap agreement to manage its cash flow associated with variable interest rates. This forward contract was designated and qualified as a cash flow hedge, and its change in fair value was recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurred. The forward contract consisted of five cash flow hedges with a notional dollar amount of $250.0 million, and each had a length of one year and matured annually from 2018 to 2022.
The gain or loss on these derivative instruments was recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to Interest expense, net on the consolidated statements of income. The following table summarizes these losses classified on the consolidated statements of income:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Consolidated Statements of Income Classification
Interest expense, net$— $— $2,021 
v3.25.0.1
Comprehensive Income
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Comprehensive Income Comprehensive Income
The Company did not have any changes in accumulated other comprehensive income for the years ended December 29, 2024, or December 31, 2023. The following table presents the changes in accumulated other comprehensive income (loss) for the year ended January 1, 2023:
Cash Flow
Hedges
Balance at January 2, 2022$(3,758)
Other comprehensive income, net of tax
Unrealized gains on cash flow hedging activities, net of income tax of $1,819
5,259 
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520)
(1,501)
Total other comprehensive income3,758 
Balance at January 1, 2023$— 
Amounts reclassified from accumulated other comprehensive income (loss) to net income were included within Interest expense, net on the consolidated statements of income.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 29, 2024
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 29, 2024. The following table presents the Company’s fair value hierarchy for the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:
December 31, 2023Level 1Level 2Level 3Total
Long-term debt$— $125,000 $— $125,000 
Total financial liabilities$— $125,000 $— $125,000 
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. Based on comparable open market transactions, the fair value of the long-term debt approximated carrying value as of December 31, 2023.
v3.25.0.1
Segments
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023January 1, 2023
Net Sales$7,719,290 $6,837,384 $6,404,223 
Less:
Cost of sales4,777,799 4,315,543 4,055,659 
Direct store expenses1,958,392 1,723,726 1,608,611 
Other segment items (1)
478,602 447,884 381,593 
Interest expense, net(2,201)6,491 9,047 
Income tax provision126,097 84,884 88,149 
Net income$380,601 $258,856 $261,164 

(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 2024, 2023 and 2022:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Perishables$4,424,762 57.3 %$3,915,971 57.3 %$3,717,642 58.0 %
Non-Perishables3,294,528 42.7 %2,921,413 42.7 %2,686,581 42.0 %
Net sales$7,719,290 100.0 %$6,837,384 100.0 %$6,404,223 100.0 %
v3.25.0.1
Share-Based Compensation
 12 Months Ended
Dec. 29, 2024
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 2024 and 2023 under the 2022 Incentive Plan:
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 
Grant DateRSUsPSAsOptions
March 14, 2023491,729172,059221,085
May 1, 20232,931——
June 7, 20231,271——
September 5, 20236,408——
September 11, 202310,204——
October 30, 20231,512——
Total514,055172,059221,085
Weighted-average grant date fair value$33.21 $32.95 $12.63 
Weighted-average exercise price— — $32.95 
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 29, 2024, there were 1,064,137 stock awards outstanding and 5,589,778 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.
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 2024, 2023 and 2022 were $23.50, $12.63 and $10.58, respectively, and were calculated using the following assumptions in the table below:
202420232022
Dividend yield0.00 %0.00 %0.00 %
Expected volatility38.41 %39.48 %36.59 %
Risk free interest rate4.31 %3.78 %2.12 %
Expected term, in years4.504.504.50
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 grant date weighted average fair value of the 1.0 million options issued but not vested as of January 1, 2023 was $6.66.
The following table summarizes grant date weighted average fair value of options granted and options forfeited:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Grant date weighted average fair value of options granted$23.50 $12.63 $10.58 
Grant date weighted average fair value of options forfeited$11.87 $10.98 $8.66 
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 $12.2 million for each of fiscal 2024 and 2023 and $1.8 million for fiscal 2022.
The following table summarizes option activity during 2024:
Number of
Options 		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life (In Years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 2023854,375$25.70 
Granted135,78361.15 
Forfeited(16,060)32.41 
Exercised(210,312)23.25 $12,219 
Outstanding at December 29, 2024763,78632.54 4.17$72,378 
Exercisable—December 29, 2024446,47923.86 3.26$46,186 
Vested/Expected to vest—December 29, 2024763,786$32.54 4.17$72,378 
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 2024, 2023 and 2022 was $15.2 million, $13.3 million and $9.2 million, respectively.
The following table summarizes the weighted average grant date fair value of RSUs awarded during 2024, 2023 and 2022:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
RSUs awarded$63.14 $33.21 $31.01 
The following table summarizes RSU activity during 2024:
Number of
RSUs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023868,196$31.79 
Awarded289,41763.14 
Vested(488,798)31.11 
Forfeited(58,400)40.76 
Outstanding at December 29, 2024610,415$46.33 
PSAs
PSAs granted in 2020 were subject to the Company achieving certain earnings before taxes (“EBT”) performance targets for the 2022 fiscal year. The criteria was 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 2022 EBT were deemed to have been met, and the PSAs vested at the maximum pay out level on the third anniversary of the grant date (March 2023). During the year ended December 31, 2023, 268,699 of the 2020 PSAs vested. There were no outstanding 2020 PSAs as of December 29, 2024.
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 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 29, 2024.
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. Subsequent to December 29, 2024, the performance conditions with respect to 2024 EBIT were deemed to have been met, and PSAs will vest at 150% payout level on the third anniversary of the grant date (March 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).
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 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 total grant date fair value of PSAs granted during 2022 was $5.1 million. The total grant date fair value of PSAs vested during 2022 was $4.1 million. The total grant date fair value of performance shares forfeited or not earned during 2022 was $0.8 million. The total grant date fair value of the 0.5 million PSAs issued but not released as of January 1, 2023 was $11.1 million.
The following table summarizes PSA activity during 2024:
Number of
PSAs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023436,510$29.66 
Awarded103,58461.15 
Vested—— 
Forfeited(24,242)25.53 
PSAs earned—— 
PSAs not earned(145,574)24.42 
Outstanding at December 29, 2024370,278$40.37 
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 29, 2024December 31, 2023January 1, 2023
Share-based compensation expense$28,417 $18,898 $16,603 
Income tax benefit(3,647)(3,007)(2,495)
Net share-based compensation expense$24,770 $15,891 $14,108 
As of December 29, 2024, 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$3,424 1.5
RSUs17,302 1.4
PSAs13,568 1.2
Total unrecognized compensation expense at December 29, 2024$34,294 
During 2024, 2023 and 2022, the Company received $4.9 million, $11.5 million and $5.0 million in cash proceeds from the exercise of options, respectively.
The Company recorded tax benefits of $7.0 million, $5.0 million and $1.7 million during 2024, 2023 and 2022, respectively, resulting from share-based awards.
v3.25.0.1
Store Closures
 12 Months Ended
Dec. 29, 2024
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 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 2024.
v3.25.0.1
Business Combination
 12 Months Ended
Dec. 29, 2024
Business Combination, Asset Acquisition, 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 $12.9 million was recorded as goodwill. Goodwill represents the future economic benefits to the Company from the acquisition, which include the Company's ability to fully control the Sprouts Farmers Market brand by termination of the legacy trademark license agreement and allowing further expansion opportunities in Southern California. The goodwill is not expected to be deductible for tax purposes. The final allocation of the purchase price consideration to the assets acquired and liabilities assumed has been completed and included an immaterial amount of measurement period adjustments.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Pay vs Performance Disclosure      
Net income $ 380,601 $ 258,856 $ 261,164
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 29, 2024
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
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 29, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 29, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity is of critical importance to our success. 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 are committed to maintaining 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 identifying, assessing, and managing material risks from cybersecurity threats. These processes are integrated into our enterprise risk management program and include proactive measures such as advanced threat monitoring, penetration testing, multi-factor authentication, and team member training. We also align our practices with 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 identifying, assessing, and managing material risks from cybersecurity threats. These processes are integrated into our enterprise risk management program and include proactive measures such as advanced threat monitoring, penetration testing, multi-factor authentication, and team member training. We also align our practices with 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 ensure alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, leads our cybersecurity efforts, supported by a dedicated team of certified specialists 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 ensure alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, leads our cybersecurity efforts, supported by a dedicated team of certified specialists and external consultants.
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 ensure alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, leads our cybersecurity efforts, supported by a dedicated team of certified specialists 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 ensure alignment on mitigation strategies. Our Chief Technology Officer, with more than 35 years of IT experience, leads our cybersecurity efforts, supported by a dedicated team of certified specialists and external consultants.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Chief Technology Officer, with more than 35 years of IT experience, leads our cybersecurity efforts, supported by a dedicated team of certified specialists 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 ensure alignment on mitigation strategies.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 29, 2024
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 material 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 2024 ended on December 29, 2024 and included 52 weeks. Fiscal year 2023 ended on December 31, 2023 and included 52 weeks. Fiscal year 2022 ended on January 1, 2023 and included 52 weeks. Fiscal years 2024, 2023 and 2022 are referred to as 2024, 2023 and 2022, 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 relates to the Company’s defined benefit plan forfeitures and the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $2.1 million as of December 29, 2024 and December 31, 2023, and is 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 29, 2024 and December 31, 2023.
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 27, “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 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. The Company recorded an impairment loss of $0.4 million and $8.1 million in 2024 and 2022, respectively, 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 26, "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 13, “Long-Term Debt and Finance Lease Liabilities”), 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 finance lease liabilities 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.
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. The Company had no active derivative financial instruments as of December 29, 2024 or December 31, 2023.
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 25, “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. A summary of the activity and balances in the gift card liability, net is as follows:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Beginning Balance$10,566 $10,906 $12,586 
Gift cards issued during the period but not redeemed(1)
4,727 4,271 4,291 
Revenue recognized from beginning liability(4,222)(4,611)(5,971)
Ending Balance$11,071 $10,566 $10,906 
(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 29, 2024.
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, for all periods presented.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
Segment Reporting – Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU no. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." The amendments in this update increased required disclosures about a public entity's reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 requires the Company to disclose the title and position of its CODM. The Company adopted this standard effective December 29, 2024 and accordingly updated its segment disclosures (see Note 24, “Segments”) but there was no impact on the Company’s results of operations, cash flows and financial condition.
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 for the Company 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 issues 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 2024 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
v3.25.0.1
Basis of Presentation (Tables)
 12 Months Ended
Dec. 29, 2024
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:
202420232022
Perishables57.3 %57.3 %58.0 %
Non-Perishables42.7 %42.7 %42.0 %
v3.25.0.1
Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 29, 2024
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 29, 2024December 31, 2023
Due from banks for debit and credit card transactions$80,409 $85,116 
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
Summary of Activity and Balances in the Gift Card Liability, Net A summary of the activity and balances in the gift card liability, net is as follows:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Beginning Balance$10,566 $10,906 $12,586 
Gift cards issued during the period but not redeemed(1)
4,727 4,271 4,291 
Revenue recognized from beginning liability(4,222)(4,611)(5,971)
Ending Balance$11,071 $10,566 $10,906 
(1)net of estimated breakage
v3.25.0.1
Accounts Receivable (Tables)
 12 Months Ended
Dec. 29, 2024
Receivables [Abstract]  
Summary of Accounts Receivable
A summary of accounts receivable is as follows:
As Of
December 29, 2024December 31, 2023
Landlords$5,577 $5,451 
Vendors3,814 3,168 
Insurance2,913 2,884 
Ecommerce9,993 7,682 
Other8,604 11,128 
Total$30,901 $30,313 
v3.25.0.1
Prepaid Expenses and Other Current Assets (Tables)
 12 Months Ended
Dec. 29, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Summary of Prepaid Expenses and Other Current Assets
A summary of prepaid expenses and other current assets is as follows:
As Of
December 29, 2024December 31, 2023
Prepaid expenses$24,469 $22,062 
Restricted cash2,054 2,076 
Income tax receivable8,839 23,559 
Other current assets769 770 
Total$36,131 $48,467 
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 29, 2024
Property, Plant and Equipment [Abstract]  
Summary of Property and Equipment, Net
A summary of property and equipment, net is as follows:
As Of
December 29, 2024December 31, 2023
Land and finance lease assets$16,859 $16,562 
Furniture, fixtures and equipment1,129,303 1,002,824 
Leasehold improvements831,020 715,489 
Construction in progress79,994 92,066 
Total property and equipment2,057,176 1,826,941 
Accumulated depreciation and amortization(1,161,987)(1,028,234)
Property and equipment, net$895,189 $798,707 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 29, 2024
Leases [Abstract]  
Summary 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 29, 2024December 31, 2023January 1, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$247,312 $232,745 $204,559 
Closed locationsStore closure and other costs, net$7,122 $4,029 $796 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,128 1,062 966 
Interest on lease liabilitiesInterest expense747 816 852 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
75,646 70,197 65,979 
Closed locationsStore closure and other costs, net2,138 2,302 504 
Sublease income:
Open locationsSelling, general and administrative expenses(831)(832)(833)
Closed locationsStore closure and other costs, net$(71)$— $— 
Total net lease cost$333,191 $310,319 $272,823 
(1)Supply chain-related amounts of $20.3 million, $18.2 million and $12.4 million were included in cost of sales for 2024, 2023 and 2022, respectively.
Summary of Supplemental Balance Sheet Information Related to Leases
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 29, 2024December 31, 2023
Assets
OperatingOperating lease assets$1,466,903 $1,322,854 
FinanceProperty and equipment, net6,161 7,127 
Total lease assets$1,473,064 $1,329,981 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$150,400 $126,271 
FinanceCurrent portion of finance lease liabilities1,321 1,032 
Noncurrent:
OperatingLong-term operating lease liabilities1,520,272 1,399,676 
FinanceLong-term debt and finance lease liabilities7,248 8,685 
Total lease liabilities$1,679,241 $1,535,664 
202420232022
Weighted average remaining lease term (years):
Operating leases10.110.09.4
Finance leases5.86.77.8
Weighted average discount rate:
Operating leases7.0 %7.2 %7.1 %
Finance leases8.4 %8.3 %8.4 %
Summary 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 29, 2024December 31, 2023January 1, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$249,862 $228,411 $207,516 
Operating cash flows for finance leases747 816 852 
Lease assets obtained in exchange for lease liabilities:
Finance leases$— $809 $— 
Operating leases278,230 364,997 157,269 
Summary of Maturities of Operating Lease Liabilities
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2025$250,665 $1,991 $252,656 
2026261,921 1,945 263,866 
2027247,453 2,032 249,485 
2028216,527 1,766 218,293 
2029221,926 1,281 223,207 
Thereafter1,176,921 1,960 1,178,881 
Total lease payments2,375,413 10,975 2,386,388 
Less: Imputed interest(704,741)(2,406)(707,147)
Total lease liabilities1,670,672 8,569 1,679,241 
Less: Current portion(150,400)(1,321)(151,721)
Long-term lease liabilities$1,520,272 $7,248 $1,527,520 
(1)Operating lease payments include $77.2 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $756.9 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 $1.0 million in 2025, $1.0 million in 2026, $0.9 million in 2027, $0.4 million in 2028, $0.3 million in 2029 and $0.1 million thereafter.
Summary of Maturities of Finance Lease Liabilities
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2025$250,665 $1,991 $252,656 
2026261,921 1,945 263,866 
2027247,453 2,032 249,485 
2028216,527 1,766 218,293 
2029221,926 1,281 223,207 
Thereafter1,176,921 1,960 1,178,881 
Total lease payments2,375,413 10,975 2,386,388 
Less: Imputed interest(704,741)(2,406)(707,147)
Total lease liabilities1,670,672 8,569 1,679,241 
Less: Current portion(150,400)(1,321)(151,721)
Long-term lease liabilities$1,520,272 $7,248 $1,527,520 
(1)Operating lease payments include $77.2 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $756.9 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 $1.0 million in 2025, $1.0 million in 2026, $0.9 million in 2027, $0.4 million in 2028, $0.3 million in 2029 and $0.1 million thereafter.
v3.25.0.1
Intangible Assets (Tables)
 12 Months Ended
Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Activity and Balances in Intangible Assets
A summary of the activity and balances in intangible assets is as follows:
Balance at January 1, 2023Additions/AdjustmentsBalance at December 31, 2023
Indefinite-lived trade names$182,937 $— $182,937 
Indefinite-lived reacquired rights— 23,100 23,100 
Indefinite-lived liquor licenses2,023 — 2,023 
Total intangible assets$184,960 $23,100 $208,060 
 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 
v3.25.0.1
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 29, 2024
Payables and Accruals [Abstract]  
Summary of Accrued Liabilities
A summary of accrued liabilities is as follows:
As Of
December 29, 2024December 31, 2023
Self-insurance reserves$28,927 $25,012 
Accrued occupancy related (CAM, property taxes, etc.)25,971 23,935 
Gift cards, net of breakage11,071 10,566 
Accrued sales, use and excise tax16,550 14,296 
Other accrued liabilities134,323 91,078 
Total$216,842 $164,887 
v3.25.0.1
Accrued Salaries and Benefits (Tables)
 12 Months Ended
Dec. 29, 2024
Payables and Accruals [Abstract]  
Summary of Accrued Salaries and Benefits
A summary of accrued salaries and benefits is as follows:
As Of
December 29, 2024December 31, 2023
Bonuses$52,454 $33,890 
Payroll23,205 20,652 
Vacation20,061 18,050 
Severance and other2,271 2,160 
Total$97,991 $74,752 
v3.25.0.1
Long-Term Debt and Finance Lease Liabilities (Tables)
 12 Months Ended
Dec. 29, 2024
Long Term Debt And Finance Lease Liabilities [Abstract]  
Summary of Long-Term Debt and Finance Lease Liabilities
A summary of long-term debt and finance lease liabilities is as follows:
As Of
FacilityMaturityInterest RateDecember 29, 2024December 31, 2023
Senior secured debt
$700.0 million Credit Agreement
March 25, 2027Variable$— $125,000 
Finance lease liabilitiesVariousn/a7,248 8,685 
Long-term debt and finance lease liabilities$7,248 $133,685 
v3.25.0.1
Other Long-Term Liabilities (Tables)
 12 Months Ended
Dec. 29, 2024
Other Liabilities Disclosure [Abstract]  
Summary of Other Long-Term Liabilities
A summary of other long-term liabilities is as follows:
As Of
December 29, 2024December 31, 2023
Long-term portion of self-insurance reserves$24,301 $22,826 
Other13,958 13,444 
Total$38,259 $36,270 
v3.25.0.1
Self-Insurance Programs (Tables)
 12 Months Ended
Dec. 29, 2024
Insurance [Abstract]  
Summary of Changes in Self-insurance Reserves
The following table summarizes the changes in the Company's self-insurance reserves through December 29, 2024:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Beginning Balance$47,838 $47,612 $50,529 
Expenses, net of actuarial adjustments106,093 85,148 76,720 
Claim Payments(100,703)(84,922)(79,637)
Ending Balance53,228 47,838 47,612 
Less: Current portion(28,927)(25,012)(23,954)
Long-term portion$24,301 $22,826 $23,658 
v3.25.0.1
Defined Contribution Plan (Tables)
 12 Months Ended
Dec. 29, 2024
Retirement Benefits [Abstract]  
Summary 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 29, 2024December 31, 2023January 1, 2023
$9,570 $8,496 $7,820 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 29, 2024
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Provision
The income tax provision consists of the following:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
U.S. Federal—current$87,601 $67,898 $66,398 
U.S. Federal—deferred8,501 (5,927)1,028 
U.S. Federal—total96,102 61,971 67,426 
State—current27,805 21,902 19,823 
State—deferred2,190 1,011 900 
State—total29,995 22,913 20,723 
Total provision$126,097 $84,884 $88,149 
Summary of 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:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Federal statutory rate21.0 %21.0 %21.0 %
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit4.85.44.7
Enhanced charitable contribution impact(0.9)(1.0)(0.9)
Non-deductible Executive Compensation1.41.40.9
Benefit of federal tax credit(0.3)(0.7)(0.5)
Excess tax benefits from share based payments(1.1)(1.2)(0.4)
Other, net—(0.2)0.4
Effective income tax rate24.9 %24.7 %25.2 %
Summary 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 29, 2024December 31, 2023
Deferred tax assets
Employee benefits$22,163 $18,329 
Tax credits— 105 
Operating leases429,362 392,168 
Other lease related5,946 6,137 
Other accrued liabilities5,411 4,320 
Charitable contribution carryforward4,522 3,343 
Inventories and other2,881 2,905 
Total gross deferred tax assets470,285 427,307 
Less: Valuation Allowance(4,522)(3,343)
Total deferred tax assets, net of valuation allowance465,763 423,964 
Deferred tax liabilities
Depreciation and amortization(89,974)(80,765)
Intangible assets(70,978)(64,668)
Operating leases(376,994)(339,973)
Asset retirement obligations(876)(939)
Total gross deferred tax liabilities(538,822)(486,345)
Net deferred tax liability$(73,059)$(62,381)
Summary of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
As Of
December 29, 2024December 31, 2023January 1, 2023
Beginning balance$477 $1,119 $1,770 
Additions based on tax positions related to the current year— 58 43 
Additions based on tax positions related to prior years— — — 
Reductions for settlements with taxing authorities— — (694)
Reduction due to lapse of applicable statute of limitations(245)(700)— 
Ending balance$232 $477 $1,119 
v3.25.0.1
Capital Stock (Tables)
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Summary 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 2024, 2023 and 2022:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Options exercised210,312637,387218,509
Other share issuances under stock plans488,798811,729636,955
Summary 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 29, 2024:
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 $149,377 $450,623 
Summary 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 29, 2024December 31, 2023
Number of common shares acquired2,656,0585,864,246
Average price per common share acquired$90.57 $35.00 
Total cost of common shares acquired$240,562 $205,262 
v3.25.0.1
Net Income Per Share (Tables)
 12 Months Ended
Dec. 29, 2024
Earnings Per Share [Abstract]  
Summary 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 29, 2024December 31, 2023January 1, 2023
Basic net income per share:   
Net income$380,601 $258,856 $261,164 
Weighted average shares outstanding - basic100,363102,479108,232
Basic net income per share$3.79 $2.53 $2.41 
Diluted net income per share:
Net income$380,601 $258,856 $261,164 
Weighted average shares outstanding - basic100,363102,479108,232
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares497343337
RSUs474524394
PSAs4544176
Weighted average shares and equivalent shares outstanding - diluted101,379103,390109,139
Diluted net income per share$3.75 $2.50 $2.39 
v3.25.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Losses of Derivative Instruments The following table summarizes these losses classified on the consolidated statements of income:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Consolidated Statements of Income Classification
Interest expense, net$— $— $2,021 
v3.25.0.1
Comprehensive Income (Tables)
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) for the year ended January 1, 2023:
Cash Flow
Hedges
Balance at January 2, 2022$(3,758)
Other comprehensive income, net of tax
Unrealized gains on cash flow hedging activities, net of income tax of $1,819
5,259 
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520)
(1,501)
Total other comprehensive income3,758 
Balance at January 1, 2023$— 
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 29, 2024
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis The following table presents the Company’s fair value hierarchy for the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:
December 31, 2023Level 1Level 2Level 3Total
Long-term debt$— $125,000 $— $125,000 
Total financial liabilities$— $125,000 $— $125,000 
v3.25.0.1
Segments (Tables)
 12 Months Ended
Dec. 29, 2024
Segment Reporting [Abstract]  
Summary 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 29, 2024December 31, 2023January 1, 2023
Net Sales$7,719,290 $6,837,384 $6,404,223 
Less:
Cost of sales4,777,799 4,315,543 4,055,659 
Direct store expenses1,958,392 1,723,726 1,608,611 
Other segment items (1)
478,602 447,884 381,593 
Interest expense, net(2,201)6,491 9,047 
Income tax provision126,097 84,884 88,149 
Net income$380,601 $258,856 $261,164 

(1) Other segment items include non-store selling, general, and administrative expenses, depreciation and amortization, store closure costs, and other overhead expenses.
Summary of Disaggregation of Revenue
In accordance with ASC 606, the following table represents a disaggregation of revenue for 2024, 2023 and 2022:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
Perishables$4,424,762 57.3 %$3,915,971 57.3 %$3,717,642 58.0 %
Non-Perishables3,294,528 42.7 %2,921,413 42.7 %2,686,581 42.0 %
Net sales$7,719,290 100.0 %$6,837,384 100.0 %$6,404,223 100.0 %
v3.25.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 29, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Share-Based Compensation Awards Granted
The Company granted the following awards during 2024 and 2023 under the 2022 Incentive Plan:
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 
Grant DateRSUsPSAsOptions
March 14, 2023491,729172,059221,085
May 1, 20232,931——
June 7, 20231,271——
September 5, 20236,408——
September 11, 202310,204——
October 30, 20231,512——
Total514,055172,059221,085
Weighted-average grant date fair value$33.21 $32.95 $12.63 
Weighted-average exercise price— — $32.95 
Summary of Estimated Fair Values of Options Granted
The estimated weighted average fair values of options granted during 2024, 2023 and 2022 were $23.50, $12.63 and $10.58, respectively, and were calculated using the following assumptions in the table below:
202420232022
Dividend yield0.00 %0.00 %0.00 %
Expected volatility38.41 %39.48 %36.59 %
Risk free interest rate4.31 %3.78 %2.12 %
Expected term, in years4.504.504.50
Summary 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 29, 2024December 31, 2023January 1, 2023
Grant date weighted average fair value of options granted$23.50 $12.63 $10.58 
Grant date weighted average fair value of options forfeited$11.87 $10.98 $8.66 
Summary of Option Activity
The following table summarizes option activity during 2024:
Number of
Options 		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life (In Years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 2023854,375$25.70 
Granted135,78361.15 
Forfeited(16,060)32.41 
Exercised(210,312)23.25 $12,219 
Outstanding at December 29, 2024763,78632.54 4.17$72,378 
Exercisable—December 29, 2024446,47923.86 3.26$46,186 
Vested/Expected to vest—December 29, 2024763,786$32.54 4.17$72,378 
Summary 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 2024, 2023 and 2022:
Year Ended
December 29, 2024December 31, 2023January 1, 2023
RSUs awarded$63.14 $33.21 $31.01 
Summary of RSUs Activity
The following table summarizes RSU activity during 2024:
Number of
RSUs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023868,196$31.79 
Awarded289,41763.14 
Vested(488,798)31.11 
Forfeited(58,400)40.76 
Outstanding at December 29, 2024610,415$46.33 
Summary of PSA Activity
The following table summarizes PSA activity during 2024:
Number of
PSAs 		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023436,510$29.66 
Awarded103,58461.15 
Vested—— 
Forfeited(24,242)25.53 
PSAs earned—— 
PSAs not earned(145,574)24.42 
Outstanding at December 29, 2024370,278$40.37 
Summary 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 29, 2024December 31, 2023January 1, 2023
Share-based compensation expense$28,417 $18,898 $16,603 
Income tax benefit(3,647)(3,007)(2,495)
Net share-based compensation expense$24,770 $15,891 $14,108 
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards
As of December 29, 2024, 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$3,424 1.5
RSUs17,302 1.4
PSAs13,568 1.2
Total unrecognized compensation expense at December 29, 2024$34,294 
v3.25.0.1
Organization and Description of Business (Details)
Dec. 29, 2024
store
state
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of stores operated | store 440
Number of states in which the entity operates | state 24
v3.25.0.1
Basis of Presentation - Additional Information (Details)
 12 Months Ended
Dec. 29, 2024
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.0.1
Basis of Presentation - Summary of Sales by as Perishable and Non-Perishable (Details) - Net sales - Product concentration risk
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Revenue from External Customer [Line Items]      
Concentration risk percentage 100.00% 100.00% 100.00%
Perishables      
Revenue from External Customer [Line Items]      
Concentration risk percentage 57.30% 57.30% 58.00%
Non-Perishables      
Revenue from External Customer [Line Items]      
Concentration risk percentage 42.70% 42.70% 42.00%
v3.25.0.1
Significant Accounting Policies - Amounts Due from Banks (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Due from banks for debit and credit card transactions $ 80,409 $ 85,116
v3.25.0.1
Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Summary Of Significant Accounting Policy [Line Items]      
Impairment, goodwill $ 0.0 $ 0.0 $ 0.0
Impairment, long lived assets $ 0.4 $ 30.5 $ 8.1
Impairment, long lived assets, location Store closure and other costs, net Store closure and other costs, net Store closure and other costs, net
Advertising expense, net of rebates $ 46.8 $ 45.8 $ 49.2
Minimum      
Summary Of Significant Accounting Policy [Line Items]      
Renewal term of lease 1 year    
Maximum      
Summary Of Significant Accounting Policy [Line Items]      
Renewal term of lease 20 years    
Underperforming stores      
Summary Of Significant Accounting Policy [Line Items]      
Impairment, long lived assets   27.8  
Operating segments      
Summary Of Significant Accounting Policy [Line Items]      
Impairment, long lived assets   $ 2.7  
Operating segments | Cost of sales | Supplier concentration risk      
Summary Of Significant Accounting Policy [Line Items]      
Concentration risk percentage 50.00% 47.00% 45.00%
Inventory valuation reserve      
Summary Of Significant Accounting Policy [Line Items]      
Allowances or reserves for inventories $ 0.0 $ 0.0  
Prepaid expenses and other current assets      
Summary Of Significant Accounting Policy [Line Items]      
Restricted cash related to defined benefit plan forfeitures and healthcare, general liability and workers’ compensation plan benefits $ 2.1 $ 2.1  
v3.25.0.1
Significant Accounting Policies - Estimated Useful Lives of Asset Classes (Details)
Dec. 29, 2024
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  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 15 years
Buildings  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 40 years
v3.25.0.1
Significant Accounting Policies - Activity and Balances in the Gift Card Liability, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Contract With Customer, Liability [Roll Forward]      
Beginning Balance $ 10,566 $ 10,906 $ 12,586
Gift cards issued during the period but not redeemed 4,727 4,271 4,291
Revenue recognized from beginning liability (4,222) (4,611) (5,971)
Ending Balance $ 11,071 $ 10,566 $ 10,906
v3.25.0.1
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Receivables [Abstract]    
Landlords $ 5,577 $ 5,451
Vendors 3,814 3,168
Insurance 2,913 2,884
Ecommerce 9,993 7,682
Other 8,604 11,128
Total $ 30,901 $ 30,313
v3.25.0.1
Accounts Receivable - Additional Information (Details) - USD ($)
$ in Millions
Dec. 29, 2024
Dec. 31, 2023
Receivables [Abstract]    
Allowance for vendor receivables $ 1.3 $ 1.3
v3.25.0.1
Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 24,469 $ 22,062
Restricted cash 2,054 2,076
Income tax receivable 8,839 23,559
Other current assets 769 770
Total $ 36,131 $ 48,467
v3.25.0.1
Property and Equipment - Summary of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Property, Plant and Equipment, Net [Abstract]    
Land and finance lease assets $ 16,859 $ 16,562
Furniture, fixtures and equipment 1,129,303 1,002,824
Leasehold improvements 831,020 715,489
Construction in progress 79,994 92,066
Total property and equipment 2,057,176 1,826,941
Accumulated depreciation and amortization (1,161,987) (1,028,234)
Property and equipment, net $ 895,189 $ 798,707
v3.25.0.1
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Property, Plant and Equipment, Net [Abstract]      
Depreciation expense $ 139.2 $ 136.6 $ 125.7
Impairment, long lived assets $ 0.4 $ 30.5 $ 8.1
v3.25.0.1
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Finance lease cost:      
Amortization of Property and Equipment $ 1,128 $ 1,062 $ 966
Interest on lease liabilities 747 816 852
Total net lease cost 333,191 310,319 272,823
Supply chain-related amounts 20,300 18,200 12,400
Selling, general and administrative expenses      
Lessee Lease Description [Line Items]      
Operating lease cost: 247,312 232,745 204,559
Finance lease cost:      
Variable lease cost: 75,646 70,197 65,979
Sublease income: (831) (832) (833)
Store closure and other costs, net      
Lessee Lease Description [Line Items]      
Operating lease cost: 7,122 4,029 796
Finance lease cost:      
Variable lease cost: 2,138 2,302 504
Sublease income: $ (71) $ 0 $ 0
v3.25.0.1
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Leases [Abstract]      
Operating lease assets $ 1,466,903 $ 1,322,854  
Finance lease assets $ 6,161 $ 7,127  
Finance lease assets, location Property and equipment, net of accumulated depreciation Property and equipment, net of accumulated depreciation  
Total lease assets $ 1,473,064 $ 1,329,981  
Current portion of operating lease liabilities 150,400 126,271  
Current portion of finance lease liabilities 1,321 1,032  
Long-term operating lease liabilities 1,520,272 1,399,676  
Long-term debt and finance lease liabilities $ 7,248 $ 8,685  
Long-term finance lease liabilities, location Long-term debt and finance lease liabilities Long-term debt and finance lease liabilities  
Total lease liabilities $ 1,679,241 $ 1,535,664  
Weighted average remaining lease term (years):      
Operating leases 10 years 1 month 6 days 10 years 9 years 4 months 24 days
Finance leases 5 years 9 months 18 days 6 years 8 months 12 days 7 years 9 months 18 days
Weighted average discount rate:      
Operating leases 7.00% 7.20% 7.10%
Finance leases 8.40% 8.30% 8.40%
v3.25.0.1
Leases - Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Cash paid for amounts included in measurement of lease liabilities:      
Operating cash flows for operating leases $ 249,862 $ 228,411 $ 207,516
Operating cash flows for finance leases 747 816 852
Lease assets obtained in exchange for lease liabilities:      
Finance leases 0 809 0
Operating leases $ 278,230 $ 364,997 $ 157,269
v3.25.0.1
Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Operating Leases    
2025 $ 250,665  
2026 261,921  
2027 247,453  
2028 216,527  
2029 221,926  
Thereafter 1,176,921  
Total lease payments 2,375,413  
Less: Imputed interest (704,741)  
Total lease liabilities 1,670,672  
Less: Current portion (150,400) $ (126,271)
Long-term lease liabilities 1,520,272 1,399,676
Finance Leases    
2025 1,991  
2026 1,945  
2027 2,032  
2028 1,766  
2029 1,281  
Thereafter 1,960  
Total lease payments 10,975  
Less: Imputed interest (2,406)  
Total lease liabilities 8,569  
Less: Current portion (1,321) (1,032)
Long-term lease liabilities 7,248 $ 8,685
Total    
2025 252,656  
2026 263,866  
2027 249,485  
2028 218,293  
2029 223,207  
Thereafter 1,178,881  
Total lease payments 2,386,388  
Less: Imputed interest (707,147)  
Total lease liabilities 1,679,241  
Less: Current portion (151,721)  
Long-term lease liabilities 1,527,520  
Operating lease option to extend reasonably certain of being exercised 77,200  
Operating lease legally binding minimum payments for leases that have not yet commenced 756,900  
Rental income related to subtenant agreements, 2025 1,000  
Rental income related to subtenant agreements, 2026 1,000  
Rental income related to subtenant agreements, 2027 900  
Rental income related to subtenant agreements, 2028 400  
Rental income related to subtenant agreements, 2029 300  
Rental income related to subtenant agreements, thereafter $ 100  
v3.25.0.1
Intangible Assets - Summary of Activity and Balances in Intangible Assets (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Indefinite-Lived Intangible Assets [Roll Forward]    
Indefinite-lived gross intangible assets, beginning balance $ 208,060 $ 184,960
Additions/Adjustments 34 23,100
Indefinite-lived gross intangible assets, ending balance 208,094 208,060
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 0
Additions/Adjustments 0 23,100
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 2,023 2,023
Additions/Adjustments 34 0
Indefinite-lived gross intangible assets, ending balance $ 2,057 $ 2,023
v3.25.0.1
Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 0.0 $ 0.0 $ 0.0
v3.25.0.1
Goodwill (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 381,750 $ 381,741
Accumulated goodwill impairment losses $ 0 $ 0
v3.25.0.1
Other Assets (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Other assets $ 13,243 $ 12,294
v3.25.0.1
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Jan. 02, 2022
Payables and Accruals [Abstract]        
Self-insurance reserves $ 28,927 $ 25,012 $ 23,954  
Accrued occupancy related (CAM, property taxes, etc.) 25,971 23,935    
Gift cards, net of breakage 11,071 10,566 $ 10,906 $ 12,586
Accrued sales, use and excise tax 16,550 14,296    
Other accrued liabilities 134,323 91,078    
Total $ 216,842 $ 164,887    
v3.25.0.1
Accrued Salaries and Benefits (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Bonuses $ 52,454 $ 33,890
Payroll 23,205 20,652
Vacation 20,061 18,050
Severance and other 2,271 2,160
Total $ 97,991 $ 74,752
v3.25.0.1
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Long Term Debt And Finance Lease Liabilities [Line Items]    
Finance lease liabilities $ 7,248 $ 8,685
Long-term debt and finance lease liabilities 7,248 133,685
Senior | Secured | Credit Agreement    
Long Term Debt And Finance Lease Liabilities [Line Items]    
Debt instrument face amount 700,000  
Senior secured debt $ 0 $ 125,000
v3.25.0.1
Long-Term Debt and Finance Lease Liabilities - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 25, 2022
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Mar. 27, 2018
Long Term Debt And Finance Lease Liabilities [Line Items]          
Borrowings during the period   $ 0 $ 0 $ 62,500  
Senior | Secured | Credit Agreement          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Debt instrument term 5 years        
Debt instrument face amount   $ 700,000      
Senior | Secured | Former Credit Facility          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Capitalized debt issuance costs         $ 500
Credit Agreement          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Participation fee   0.95%      
Issuance fee   0.125%      
Borrowings during the period   $ 0 0    
Principal payments on the credit facility   125,000 125,000    
Borrowings under credit facilities   $ 0 $ 125,000    
Total net leverage ratio 3.75        
Interest coverage ratio 3.00        
Credit Agreement | Secured | SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate   0.10%      
Credit Agreement | Senior | Secured          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Debt instrument face amount $ 70,000        
Letters of credit issued   $ 19,600      
Interest rate spread on base rate 0.05%        
Credit facility commitment fee percentage subject to upward or downward adjustments 0.01%        
Credit Agreement | Senior | Secured | Minimum          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility unused commitment fee percentage 0.10%        
Credit Agreement | Senior | Secured | Maximum          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility unused commitment fee percentage 0.225%        
Credit Agreement | Senior | Secured | SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate 0.10%        
Credit Agreement | Senior | Secured | Term SOFR          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate   0.95%      
Credit Agreement | Senior | Secured | Variable Rate Component One          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate, floor 0.00%        
Credit Agreement | 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%        
Credit Agreement | Senior | Secured | Variable Rate Component Two          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Interest rate spread on base rate, floor 0.00%        
Credit Agreement | 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%        
Credit Agreement | Senior | Secured | Swingline Loan Subfacility          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Debt instrument face amount $ 50,000        
Credit Agreement | Senior | Secured | Credit Agreement          
Long Term Debt And Finance Lease Liabilities [Line Items]          
Credit facility maximum borrowing capacity 700,000        
Capitalized debt issuance costs $ 3,400        
v3.25.0.1
Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Other Liabilities Disclosure [Abstract]      
Long-term portion of self-insurance reserves $ 24,301 $ 22,826 $ 23,658
Other 13,958 13,444  
Total $ 38,259 $ 36,270  
v3.25.0.1
Self-Insurance Programs - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Jan. 02, 2022
Insurance [Line Items]        
Accounts receivables $ 30,901 $ 30,313    
General liability, worker’s compensation and team member health benefit liabilities 53,228 47,838 $ 47,612 $ 50,529
Insurance Receivable        
Insurance [Line Items]        
Accounts receivables 2,100 1,300    
General liability, worker’s compensation and team member health benefit liabilities $ 53,200 $ 47,800    
v3.25.0.1
Self-Insurance Programs - Changes in Self-insurance Reserves (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Self Insurance Reserve [Roll Forward]      
Beginning Balance $ 47,838 $ 47,612 $ 50,529
Expenses, net of actuarial adjustments 106,093 85,148 76,720
Claim Payments (100,703) (84,922) (79,637)
Ending Balance 53,228 47,838 47,612
Less: Current portion (28,927) (25,012) (23,954)
Long-term portion $ 24,301 $ 22,826 $ 23,658
v3.25.0.1
Defined Contribution Plan - Additional Information (Details)
 12 Months Ended
Dec. 29, 2024
Retirement Benefits [Abstract]  
Matching contribution by employer 50.00%
Percentage of eligible compensation for which employer makes matching contribution 6.00%
v3.25.0.1
Defined Contribution Plan - Total Expense Recorded for Matching under Defined Contribution Plans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Retirement Benefits [Abstract]      
Total expenses for matching under defined contribution plan $ 9,570 $ 8,496 $ 7,820
v3.25.0.1
Income Taxes - Components of Income Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Income Tax Disclosure [Abstract]      
U.S. Federal—current $ 87,601 $ 67,898 $ 66,398
U.S. Federal—deferred 8,501 (5,927) 1,028
U.S. Federal—total 96,102 61,971 67,426
State—current 27,805 21,902 19,823
State—deferred 2,190 1,011 900
State—total 29,995 22,913 20,723
Total provision $ 126,097 $ 84,884 $ 88,149
v3.25.0.1
Income Taxes - Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Income Tax Disclosure [Abstract]      
Federal statutory rate 21.00% 21.00% 21.00%
Increase (decrease) in income taxes resulting from:      
State income taxes, net of federal benefit 4.80% 5.40% 4.70%
Enhanced charitable contribution impact (0.90%) (1.00%) (0.90%)
Non-deductible Executive Compensation 1.40% 1.40% 0.90%
Benefit of federal tax credit (0.30%) (0.70%) (0.50%)
Excess tax benefits from share based payments (1.10%) (1.20%) (0.40%)
Other, net 0.00% (0.20%) 0.40%
Effective income tax rate 24.90% 24.70% 25.20%
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Income Tax Disclosure [Abstract]      
Effective income tax rate 24.90% 24.70% 25.20%
Tax benefit resulting from shares-based awards $ 7,000 $ 5,000 $ 1,700
Valuation allowance 4,522 3,343  
Unrecognized tax benefits (tax effected) that would impact the effective tax rate if recognized 200 $ 500  
Anticipated decrease in total unrecognized tax benefits during next twelve months $ 200    
v3.25.0.1
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Deferred tax assets    
Employee benefits $ 22,163 $ 18,329
Tax credits 0 105
Operating leases 429,362 392,168
Other lease related 5,946 6,137
Other accrued liabilities 5,411 4,320
Charitable contribution carryforward 4,522 3,343
Inventories and other 2,881 2,905
Total gross deferred tax assets 470,285 427,307
Less: Valuation Allowance (4,522) (3,343)
Total deferred tax assets, net of valuation allowance 465,763 423,964
Deferred tax liabilities    
Depreciation and amortization (89,974) (80,765)
Intangible assets (70,978) (64,668)
Operating leases (376,994) (339,973)
Asset retirement obligations (876) (939)
Total gross deferred tax liabilities (538,822) (486,345)
Net deferred tax liability $ (73,059) $ (62,381)
v3.25.0.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 477 $ 1,119 $ 1,770
Additions based on tax positions related to the current year 0 58 43
Additions based on tax positions related to prior years 0 0 0
Reductions for settlements with taxing authorities 0 0 (694)
Reduction due to lapse of applicable statute of limitations (245) (700) 0
Ending balance $ 232 $ 477 $ 1,119
v3.25.0.1
Commitments and Contingencies (Details)
$ in Millions
Dec. 29, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Operating lease legally binding minimum payments for leases that have not yet commenced $ 756.9
Total future purchase commitments $ 37.5
v3.25.0.1
Capital Stock - Additional Information (Details) - USD ($)
$ in Thousands
 2 Months Ended 12 Months Ended
Feb. 18, 2025
Dec. 29, 2024
Dec. 31, 2023
May 22, 2024
Mar. 02, 2022
Class of Stock [Line Items]          
Common stock, shares issued (in shares)   99,255,036 101,211,984    
Common stock, shares outstanding (in shares)   99,255,036 101,211,984    
Common stock repurchased and retired (in shares)   2,656,058 5,864,246    
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) 700,000        
Common stock repurchased during the period $ 93,700        
May 22, 2024 Share Repurchase Program          
Class of Stock [Line Items]          
Amount authorized to be repurchased   $ 600,000   $ 600,000  
Amount available for repurchase   450,623      
March 2, 2022 Share Repurchase Program          
Class of Stock [Line Items]          
Amount authorized to be repurchased   600,000     $ 600,000
Amount available for repurchase   $ 0   $ 119,300  
Awards Granted Under the 2022 Incentive Plan          
Class of Stock [Line Items]          
Remaining shares available for issuance (in shares)   5,589,778      
v3.25.0.1
Capital Stock - Schedule of Options Exercised in Exchange for Issuance of Shares of Common Stock (Details) - shares
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Equity [Abstract]      
Options exercised (in shares) 210,312 637,387 218,509
Other share issuances under stock plans (in shares) 488,798 811,729 636,955
v3.25.0.1
Capital Stock - Schedule of Share Repurchase Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
May 22, 2024
Mar. 02, 2022
March 2, 2022 Share Repurchase Program      
Class of Stock [Line Items]      
Amount authorized $ 600,000   $ 600,000
Cost of repurchases 480,715    
Authorization available 0 $ 119,300  
May 22, 2024 Share Repurchase Program      
Class of Stock [Line Items]      
Amount authorized 600,000 $ 600,000  
Cost of repurchases 149,377    
Authorization available $ 450,623    
v3.25.0.1
Capital Stock - Schedule of Share Repurchase Activity under Share Repurchase Programs (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Equity [Abstract]      
Number of common shares acquired (in shares) 2,656,058 5,864,246  
Average price per common share acquired (in dollars per share) $ 90.57 $ 35.00  
Total cost of common shares acquired $ 240,562 $ 205,262 $ 199,980
v3.25.0.1
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. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Basic net income per share:      
Net income $ 380,601 $ 258,856 $ 261,164
Weighted average shares outstanding - basic (in shares) 100,363 102,479 108,232
Basic net income per share (in dollars per share) $ 3.79 $ 2.53 $ 2.41
Diluted net income per share:      
Net income $ 380,601 $ 258,856 $ 261,164
Weighted average shares outstanding - basic (in shares) 100,363 102,479 108,232
Dilutive effect of share-based awards:      
Assumed exercise of options to purchase shares (in shares) 497 343 337
Weighted average shares and equivalent shares outstanding - diluted (in shares) 101,379 103,390 109,139
Diluted net income per share (in dollars per share) $ 3.75 $ 2.50 $ 2.39
RSUs      
Dilutive effect of share-based awards:      
Dilutive awards (in shares) 474 524 394
PSAs      
Dilutive effect of share-based awards:      
Dilutive awards (in shares) 45 44 176
v3.25.0.1
Net Income Per Share - Additional Information (Details) - shares
shares in Millions
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
PSAs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.2 0.4 0.3
Options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares)   0.2 0.2
v3.25.0.1
Derivative Financial Instruments - Additional Information (Details)
$ in Millions
 1 Months Ended
Dec. 31, 2017
USD ($)
derivative
Dec. 29, 2024
derivative
Dec. 31, 2023
derivative
Interest rate swap      
Derivative [Line Items]      
Number of derivative agreements   0 0
Forward contract      
Derivative [Line Items]      
Number of derivative agreements 5    
Forward contract | Cash Flow Hedges      
Derivative [Line Items]      
Derivative, notional amount of outstanding swaps | $ $ 250.0    
Derivative, cash flow swaps length period 1 year    
v3.25.0.1
Derivative Financial Instruments - Summary of Gains and Losses of Derivative Instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]      
Loss on derivative instruments $ 0 $ 0 $ 2,021
Loss on derivative instruments, location Interest Income (Expense), Nonoperating Interest Income (Expense), Nonoperating Interest Income (Expense), Nonoperating
v3.25.0.1
Comprehensive Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning Balance $ 1,148,547 $ 1,046,462 $ 959,876
Other comprehensive income, net of tax      
Total other comprehensive income 0 0 3,758
Ending Balance $ 1,321,893 1,148,547 1,046,462
Cash Flow Hedges      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning Balance   $ 0 (3,758)
Other comprehensive income, net of tax      
Unrealized gains on cash flow hedging activities, net of income tax of $1,819     5,259
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520)     (1,501)
Total other comprehensive income     3,758
Ending Balance     0
Unrealized gains on cash flow hedging activities, tax     1,819
Reclassification of net losses on cash flow hedges to net income, tax     $ (520)
v3.25.0.1
Fair Value Measurements (Details) - Recurring - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Long-term debt   $ 125,000
Total financial liabilities $ 0 125,000
Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Long-term debt   0
Total financial liabilities   0
Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Long-term debt   125,000
Total financial liabilities   125,000
Level 3    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Long-term debt   0
Total financial liabilities   $ 0
v3.25.0.1
Segments - Additional Information (Details)
 12 Months Ended
Dec. 29, 2024
segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.0.1
Segments - Summary of Segment Expense and Key Metrics (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Segment Reporting Information [Line Items]      
Net sales $ 7,719,290 $ 6,837,384 $ 6,404,223
Less:      
Cost of sales 4,777,799 4,315,543 4,055,659
Interest expense, net (2,201) 6,491 9,047
Income tax provision 126,097 84,884 88,149
Net income 380,601 258,856 261,164
Healthy grocery stores      
Segment Reporting Information [Line Items]      
Net sales 7,719,290 6,837,384 6,404,223
Less:      
Cost of sales 4,777,799 4,315,543 4,055,659
Direct store expenses 1,958,392 1,723,726 1,608,611
Other segment items 478,602 447,884 381,593
Interest expense, net (2,201) 6,491 9,047
Income tax provision 126,097 84,884 88,149
Net income $ 380,601 $ 258,856 $ 261,164
v3.25.0.1
Segments - Summary of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Disaggregation Of Revenue [Line Items]      
Net sales $ 7,719,290 $ 6,837,384 $ 6,404,223
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 $ 4,424,762 $ 3,915,971 $ 3,717,642
Perishables | Net sales | Product concentration risk      
Disaggregation Of Revenue [Line Items]      
Concentration risk percentage 57.30% 57.30% 58.00%
Non-Perishables      
Disaggregation Of Revenue [Line Items]      
Net sales $ 3,294,528 $ 2,921,413 $ 2,686,581
Non-Perishables | Net sales | Product concentration risk      
Disaggregation Of Revenue [Line Items]      
Concentration risk percentage 42.70% 42.70% 42.00%
v3.25.0.1
Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Details) - $ / shares
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value (in dollars per share) $ 23.50 $ 12.63 $ 10.58
Weighted-average exercise price (in dollars per share) 61.15    
Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value (in dollars per share) $ 23.50 $ 12.63 $ 10.58
Awards Granted Under the 2022 Incentive Plan | RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 289,417 514,055  
Weighted-average grant date fair value (in dollars per share) $ 63.14 $ 33.21  
Weighted-average exercise price (in dollars per share) $ 0 $ 0  
Awards Granted Under the 2022 Incentive Plan | RSUs | March 19, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 272,855    
Awards Granted Under the 2022 Incentive Plan | RSUs | June 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 1,538    
Awards Granted Under the 2022 Incentive Plan | RSUs | September 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 15,024    
Awards Granted Under the 2022 Incentive Plan | RSUs | March 14, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   491,729  
Awards Granted Under the 2022 Incentive Plan | RSUs | May 1, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   2,931  
Awards Granted Under the 2022 Incentive Plan | RSUs | June 7, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   1,271  
Awards Granted Under the 2022 Incentive Plan | RSUs | September 5, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   6,408  
Awards Granted Under the 2022 Incentive Plan | RSUs | September 11, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   10,204  
Awards Granted Under the 2022 Incentive Plan | RSUs | October 30, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   1,512  
Awards Granted Under the 2022 Incentive Plan | PSAs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 103,584 172,059  
Weighted-average grant date fair value (in dollars per share) $ 61.15 $ 32.95  
Weighted-average exercise price (in dollars per share) $ 0 $ 0  
Awards Granted Under the 2022 Incentive Plan | PSAs | March 19, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 103,584    
Awards Granted Under the 2022 Incentive Plan | PSAs | June 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
Awards Granted Under the 2022 Incentive Plan | PSAs | September 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
Awards Granted Under the 2022 Incentive Plan | PSAs | March 14, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   172,059  
Awards Granted Under the 2022 Incentive Plan | PSAs | May 1, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | PSAs | June 7, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | PSAs | September 5, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | PSAs | September 11, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | PSAs | October 30, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 135,783 221,085  
Weighted-average grant date fair value (in dollars per share) $ 23.50 $ 12.63  
Weighted-average exercise price (in dollars per share) $ 61.15 $ 32.95  
Awards Granted Under the 2022 Incentive Plan | Options | March 19, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 135,783    
Awards Granted Under the 2022 Incentive Plan | Options | June 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
Awards Granted Under the 2022 Incentive Plan | Options | September 4, 2024      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares) 0    
Awards Granted Under the 2022 Incentive Plan | Options | March 14, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   221,085  
Awards Granted Under the 2022 Incentive Plan | Options | May 1, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | Options | June 7, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | Options | September 5, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | Options | September 11, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
Awards Granted Under the 2022 Incentive Plan | Options | October 30, 2023      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   0  
v3.25.0.1
Share-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 2 Months Ended 12 Months Ended
Mar. 31, 2024
Feb. 20, 2025
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Jan. 02, 2022
Jan. 03, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Weighted-average grant date fair value (in dollars per share)     $ 23.50 $ 12.63 $ 10.58    
Dividend yield     0.00% 0.00% 0.00%    
Total intrinsic value of options exercised     $ 12,219        
Proceeds from exercise of stock options     4,890 $ 11,454 $ 5,041    
Tax benefit resulting from shares-based awards     $ 7,000 5,000 1,700    
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 vested     $ 15,200 $ 13,300 $ 9,200    
Awards vested (in shares)     488,798        
Number of shares outstanding (in shares)     610,415 868,196      
Options              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Accelerated vesting, change of control event, employment termination period     24 months        
Weighted-average grant date fair value (in dollars per share)     $ 23.50 $ 12.63 $ 10.58    
Options issued but not vested (in shares)     300,000 400,000 1,000,000    
Grant date weighted average fair value of options issued but not vested (in dollars per share)     $ 16.90 $ 10.84 $ 6.66    
Total intrinsic value of options exercised     $ 12,200 $ 12,200 $ 1,800    
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 vested       $ 4,500 4,100    
Awards vested (in shares)     0        
Number of shares outstanding (in shares)     370,278 436,510      
Total grant date fair value granted     $ 6,300 $ 5,700 5,100    
Total grant date fair value forfeited or not earned     $ 4,200 $ 1,100 $ 800    
Awards issued but not released (in shares)     400,000 400,000 500,000    
Total grant date fair value issued but not released     $ 14,900 $ 12,900 $ 11,100    
PSAs | 2020              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Awards vested (in shares)       268,699      
Number of shares outstanding (in shares)     0        
PSAs | 2020 | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage             0.00%
PSAs | 2020 | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage             200.00%
PSAs | 2021              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Awards vested (in shares) 0   0        
Number of shares outstanding (in shares)     0        
PSAs | 2021 | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage           0.00%  
PSAs | 2021 | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage           200.00%  
PSAs | 2022 | Subsequent Event              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award actual payout percentage   150.00%          
PSAs | 2022 | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage         0.00%    
PSAs | 2022 | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage         200.00%    
PSAs | 2023 | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage       0.00%      
PSAs | 2023 | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage       200.00%      
PSAs | 2024 | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage     0.00%        
PSAs | 2024 | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award target payout percentage     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)     1,064,137        
Remaining shares available for issuance (in shares)     5,589,778        
Expiration period     7 years        
Awards Granted Under the 2022 Incentive Plan | RSUs              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Weighted-average grant date fair value (in dollars per share)     $ 63.14 $ 33.21      
Awards Granted Under the 2022 Incentive Plan | Options              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Weighted-average grant date fair value (in dollars per share)     23.50 12.63      
Awards Granted Under the 2022 Incentive Plan | PSAs              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Weighted-average grant date fair value (in dollars per share)     $ 61.15 $ 32.95      
Awards Granted Under the 2022 Incentive Plan | Independent Directors | RSUs              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period     1 year        
Awards Granted Under the 2022 Incentive Plan | Share-based Payment Arrangement, Tranche One | RSUs              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period     3 years        
Awards Granted Under the 2022 Incentive Plan | Share-based Payment Arrangement, Tranche Two | RSUs              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period     2 years        
v3.25.0.1
Share-Based Compensation - Estimated Fair Values of Options Granted (Details)
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Share-Based Payment Arrangement [Abstract]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 38.41% 39.48% 36.59%
Risk free interest rate 4.31% 3.78% 2.12%
Expected term, in years 4 years 6 months 4 years 6 months 4 years 6 months
v3.25.0.1
Share-Based Compensation - Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited (Detail) - $ / shares
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Share-Based Payment Arrangement [Abstract]      
Grant date weighted average fair value of options granted (in dollars per share) $ 23.50 $ 12.63 $ 10.58
Grant date weighted average fair value of options forfeited (in dollars per share) $ 11.87 $ 10.98 $ 8.66
v3.25.0.1
Share-Based Compensation - Summary of Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Number of Options      
Beginning balance (in shares) 854,375    
Granted (in shares) 135,783    
Forfeited (in shares) (16,060)    
Exercised (in shares) (210,312) (637,387) (218,509)
Ending balance (in shares) 763,786 854,375  
Exercisable (in shares) 446,479    
Vested/Expected to vest (in shares) 763,786    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 25.70    
Granted (in dollars per share) 61.15    
Forfeited (in dollars per share) 32.41    
Exercised (in dollars per share) 23.25    
Ending balance (in dollars per share) 32.54 $ 25.70  
Exercisable (in dollars per share) 23.86    
Vested/Expected to vest (in dollars per share) $ 32.54    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract]      
Weighted Average Remaining Contractual Life (In Years), Outstanding 4 years 2 months 1 day    
Weighted Average Remaining Contractual Life (In Years), Exercisable 3 years 3 months 3 days    
Weighted Average Remaining Contractual Life (In Years), Vested/Expected to vest 4 years 2 months 1 day    
Aggregate Intrinsic Value, Exercised $ 12,219    
Aggregate Intrinsic Value, Outstanding 72,378    
Aggregate Intrinsic Value, Exercisable 46,186    
Aggregate Intrinsic Value, Vested/Expected to vest $ 72,378    
v3.25.0.1
Share-Based Compensation - Summary of Weighted Average Grant Date Fair Value of RSUs Awarded (Details) - $ / shares
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 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) $ 63.14 $ 33.21 $ 31.01
v3.25.0.1
Share-Based Compensation - Summary of RSUs Activity (Details) - RSUs - $ / shares
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Number of RSUs      
Beginning balance (in shares) 868,196    
Awarded (in shares) 289,417    
Vested (in shares) (488,798)    
Forfeited (in shares) (58,400)    
Ending balance (in shares) 610,415 868,196  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 31.79    
Awarded (in dollars per share) 63.14 $ 33.21 $ 31.01
Vested (in dollars per share) 31.11    
Forfeited (in dollars per share) 40.76    
Ending balance (in dollars per share) $ 46.33 $ 31.79  
v3.25.0.1
Share-Based Compensation - Summary of PSAs Activity (Details) - PSAs
 12 Months Ended
Dec. 29, 2024
$ / shares
shares
Number of PSAs  
Beginning balance (in shares) | shares 436,510
Awarded (in shares) | shares 103,584
Vested (in shares) | shares 0
Forfeited (in shares) | shares (24,242)
PSAs Earned (in shares) | shares 0
PSAs Not Earned (in shares) | shares (145,574)
Ending balance (in shares) | shares 370,278
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 29.66
Awarded (in dollars per share) | $ / shares 61.15
Vested (in dollars per share) | $ / shares 0
Forfeited (in dollars per share) | $ / shares 25.53
PSAs Earned (in dollars per share) | $ / shares 0
PSAs Not Earned (in dollars per share) | $ / shares 24.42
Ending balance (in dollars per share) | $ / shares $ 40.37
v3.25.0.1
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jan. 01, 2023
Share-Based Payment Arrangement [Abstract]      
Share-based compensation expense $ 28,417 $ 18,898 $ 16,603
Income tax benefit (3,647) (3,007) (2,495)
Net share-based compensation expense $ 24,770 $ 15,891 $ 14,108
v3.25.0.1
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. 29, 2024
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized compensation expense at December 29, 2024 $ 34,294
Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Options $ 3,424
Remaining weighted average recognition period 1 year 6 months
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Awards other than options $ 17,302
Remaining weighted average recognition period 1 year 4 months 24 days
PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense, Awards other than options $ 13,568
Remaining weighted average recognition period 1 year 2 months 12 days
v3.25.0.1
Store Closures (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Feb. 28, 2023
Dec. 29, 2024
USD ($)
Dec. 31, 2023
USD ($)
store
Jan. 01, 2023
USD ($)
Store Closures [Line Items]        
Number of store closures | store     11  
Store performance capacity rate 30.00%      
Impairment, long lived assets   $ 0.4 $ 30.5 $ 8.1
Accelerated depreciation     5.9  
Underperforming stores        
Store Closures [Line Items]        
Impairment, long lived assets     $ 27.8  
v3.25.0.1
Business Combination (Details)
$ in Thousands, shares in Millions
Mar. 20, 2023
USD ($)
store
shares
Dec. 29, 2024
USD ($)
store
Dec. 31, 2023
USD ($)
Business Acquisition [Line Items]      
Number of stores operated | store   440  
Goodwill   $ 381,750 $ 381,741
Ronald Cohn, Inc      
Business Acquisition [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 Acquisition [Line Items]      
Business acquisition, common shares, aggregate consideration paid (in shares) | shares 0.6    
Ronald Cohn, Inc      
Business Acquisition [Line Items]      
Number of stores operated | store 2