Latest news with #Sprouts'
Yahoo
01-05-2025
- Business
- Yahoo
Sprouts Farmers Market (NasdaqGS:SFM) Reports Strong Q1 Growth With Positive 2025 Guidance
Sprouts Farmers Market recently reported strong growth in sales and net income for Q1 2025, showing a net income increase to $180 million and basic EPS of $1.83. Coupled with optimistic guidance for the rest of the year, these events likely supported the company's 12% share price increase last month. This ascent aligns with broader market trends as the S&P 500 and Dow have extended winning streaks, supported by robust earnings from major tech companies. Sprouts' solid quarterly performance and future outlook likely added to the positive momentum seen in wider market movements. You should learn about the 1 risk we've spotted with Sprouts Farmers Market. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. The recent news about Sprouts Farmers Market's Q1 2025 performance and future store openings holds significant implications for its forecasted revenue and earnings growth. The planned expansion of 35 new stores into the Midwest and Northeast regions is likely to increase market reach, potentially boosting future revenues. The new loyalty program could enhance customer retention and elevate average spending, thereby positively affecting long-term earnings. Over the past five years, the company's total return, incorporating both share price appreciation and dividends, was very large. This substantial increase in shareholder value indicates robust performance compared to the current one-year metrics, where Sprouts Farmers Market's performance exceeded both its industry and the broader US market returns. In the recent year, its shares outperformed the US Consumer Retailing industry with a 47.1% earnings growth, compared to an industry average of 3.6%. The recent share price climb of 12% is closer to the analyst consensus price target of US$174.31, representing a discount of just 1.2% from the current price of US$172.3. This suggests that the market has a relatively optimistic outlook on Sprouts, aligning closely with analyst expectations. However, it's essential for investors to consider the potential risks such as supply chain uncertainties and operational costs that could impact future gross margins and overall earnings growth assumptions. Upon reviewing our latest valuation report, Sprouts Farmers Market's share price might be too optimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SFM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Sprouts (NASDAQ:SFM) Posts Better-Than-Expected Sales In Q1
Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 18.7% year on year to $2.24 billion. Its non-GAAP profit of $1.81 per share was 16.8% above analysts' consensus estimates. Is now the time to buy Sprouts? Find out in our full research report. Revenue: $2.24 billion vs analyst estimates of $2.21 billion (18.7% year-on-year growth, 1.4% beat) Adjusted EPS: $1.81 vs analyst estimates of $1.55 (16.8% beat) Adjusted EBITDA: $263.2 million vs analyst estimates of $242.5 million (11.8% margin, 8.5% beat) Management raised its full-year Adjusted EPS guidance to $5.02 at the midpoint, a 9.1% increase Operating Margin: 10.1%, up from 7.9% in the same quarter last year Free Cash Flow Margin: 10.7%, up from 8.9% in the same quarter last year Same-Store Sales rose 11.7% year on year (4% in the same quarter last year) Market Capitalization: $16.92 billion 'We are delighted with Sprouts' strong start to 2025,' said Jack Sinclair, chief executive officer of Sprouts Farmers Market. Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $8.07 billion in revenue over the past 12 months, Sprouts is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Sprouts's 7.1% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was tepid, but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Sprouts reported year-on-year revenue growth of 18.7%, and its $2.24 billion of revenue exceeded Wall Street's estimates by 1.4%. Looking ahead, sell-side analysts expect revenue to grow 10.4% over the next 12 months, an acceleration versus the last six years. This projection is eye-popping and indicates its newer products will spur better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. A retailer's store count often determines how much revenue it can generate. Over the last two years, Sprouts opened new stores at a rapid clip by averaging 5.9% annual growth, among the fastest in the consumer retail sector. This gives it a chance to become a large, scaled business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that Sprouts reports its store count intermittently, so some data points are missing in the chart below. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. Sprouts has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 6.6%. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Sprouts multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Sprouts's same-store sales rose 11.7% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign. We were impressed by Sprouts's optimistic EPS guidance for next quarter, which beat analysts' expectations. We were also excited its EBITDA outperformed Wall Street's estimates. Zooming out, we think this was a solid quarter. Despite this, shares traded down 5% to $162.07 immediately after reporting. So do we think Sprouts is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-04-2025
- Entertainment
- Yahoo
This Store-Bought Potato Salad Is The Only One You Should Be Eating
Potato salads complete the plate, there's simply no debating that. In fact, the potato salad appreciation is felt around the world with varying takes from dinner tables in Ethiopia to Greece. This is all testament to the fact that a glorious potato salad that sits well on the taste buds is worth shouting about. While there are certainly ways to make a winning potato salad with the help of some flavorful ingredients, there is nothing like a pre-made potato salad that leaves you wanting a few spoonfuls more, every time. Sprouts' Deviled Egg Potato Salad is exactly that. Led entirely by a deep love for potato salad-adorned meals, Chowhound's own Noelle Giannina ran through the best to the worst of store-bought potato salads. The idea was to taste test the best of deli potato salads from some of the most popular grocery stores found in the country. The flavors ranged from rich and sweet to overly preservative-laden to a tub's worth of disappointingly mushy potatoes. The combination of creaminess and tanginess made Sprouts' Deviled Potato Salad stand out the most, making it a clear winner. Read more: Store-Bought Pickles, Ranked From Worst To Best Since potato salad is classically a side dish, it sometimes gets less of the seasoning, attention and enthusiasm from cooks looking to make an impression with the main meal. Fresh and natural ingredients were therefore considered in the ranking, which was favorable for the Sprouts' salad, which prioritized the key ingredients as whole foods (potatoes, hard-boiled eggs, and mayonnaise are listed as the first three ingredients), packing in lots of fresh, natural flavor. Despite the fact that the Sprouts' Deviled Eggs Potato Salad is far from the classic and traditional version, it makes use of some of the same pickled ingredients and fragrant ingredients -- like garlic, paprika, and onion -- that boost most potato salad recipes. The extra addition of egg may make this potato salad sound off-putting if you're not keen on potent eggy flavors, but the hard-boiled egg taste is not dominant at all, making it a mellow addition that mingles in with the range of flavors in a perfect balance. This Southern-inspired potato salad does justice to the culinary reputation of the region, so you can expect every mouthful to be pretty committed to full-bodied flavor. It also is a great dish to bring along to most occasions, including summer picnics or even as part of an Easter meal, as is tradition with deviled eggs. As one of the heartier potato salads, it can be enjoyed warm or served cold to complement your meal. Sprouts' Deviled Egg Potato Salad comes in at $5.99 for a 15 ounce serving. Read the original article on Chowhound.
