Latest news with #SproutsFarmersMarket
Globe and Mail
3 days ago
- Business
- Globe and Mail
Sprouts Farmers' New Stores Power Impressive Comparable Sales Growth
Sprouts Farmers Market, Inc. SFM is demonstrating robust performance from its new store openings. In the first quarter of 2025, the company reported impressive 19% net sales growth and 11.7% comparable store sales growth. Management attributed this solid performance directly to the success of new stores, which are entering the comparable store base with strong momentum. SFM focuses on accelerating the performance of new locations, targeting an average of $13 million in annual sales in the first year, with expectations for 20% to 25% growth over the following four years. This expansion strategy is supported by a more efficient, smaller box format that reduces risk while enhancing profitability. With plans to open at least 35 new stores in 2025 and ample "white space" identified for future growth, the strong initial comparable sales from these new openings point to a promising trajectory for Sprouts Farmers. The company's revamped site selection model focuses on optimizing convenience for health-conscious shoppers, while its differentiated offering of fresh, attribute-driven products continues to resonate. New stores are opening with healthy sales volumes and ramping up quickly, making meaningful contributions to overall comparable sales growth. The consistent strength in comps from new stores highlights that these openings are more than just incremental additions. They are positioning SFM to capture a greater share of the fast-growing $290 billion health-focused grocery market. Beyond driving sales, these newer locations are expected to support long-term EBIT margin stability through fixed cost leverage and ongoing supply-chain optimization. How Do DG and TGT Stack Up Against SFM's Sales Surge? Dollar General Corporation DG reported a 2.4% increase in first-quarter fiscal 2025 same-store sales, driven by a 2.7% rise in the average transaction amount, though partially offset by a 0.3% decline in customer traffic. Dollar General saw growth across all key product categories, including consumables, seasonal, home products and apparel. Dollar General now expects same-store sales to rise between 1.5% and 2.5% compared to its prior forecast of 1.2% to 2.2%. Target Corporation TGT experienced a 3.8% decline in comparable sales, following a 1.5% increase in the preceding quarter. This drop was attributed to a 5.7% fall in Target's comparable store sales, which was somewhat offset by a 4.7% increase in comparable digital sales. Target highlighted that traffic, or the number of transactions, dropped 2.4%, and the average transaction amount decreased 1.4%. SFM's Price Performance, Valuation and Estimates Sprouts Farmers stock has been a standout performer, with shares rallying 30.4% year to date, outpacing the industry 's growth of 22.5%. From a valuation standpoint, SFM's forward 12-month price-to-sales ratio stands at 1.75, higher than the industry's ratio of 0.27. SFM carries a Value Score of C. The Zacks Consensus Estimate for Sprouts Farmers' current financial-year sales and earnings per share implies year-over-year growth of 13.6% and 35.5%, respectively. Sprouts Farmers Market currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
08-07-2025
- Business
- Yahoo
UBS Affirms ‘Neutral' Rating on Sprouts Farmers (SFM) on Retail Sector Opportunity
Sprouts Farmers Market, Inc. (NASDAQ:) is . On June 9, UBS reiterated a 'Neutral' rating on the stock and a $196 price target. The research firm remains optimistic about the company's prospects in the niche US food retail sector valued at $290 billion. Since 2020, Sprouts Farmers has switched its focus from price-sensitive customers. According to UBS, realignment towards a customer base focused on health and dietary attributes is already paying dividends. Consequently, the research firm's 'Neutral' rating underscores the recognition of Sprouts Farmer's solid position in a specialized market segment. The pivot has already resulted in revenue growing by 15.5% over the last 12 months. In return, the company is experiencing benefits from its comp waterfall strategy, which is fueling same-store sales growth. Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a grocery chain that specializes in fresh, natural, and organic foods. It provides a wide variety of healthy and affordable products, including produce, bulk foods, vitamins and supplements, and natural household items. While we acknowledge the potential of SFM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Best Blue Chip Stocks to Buy According to Analysts and 10 Most Undervalued Gold Stocks to Buy According To Analysts. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Can Sprouts Farmers Market Hit Its Goal of 1000 Stores Nationwide?
Sprouts Farmers Market, Inc. SFM has set an ambitious long-term goal of expanding its footprint to more than 1,000 stores nationwide. This target signifies substantial growth from its current 443 stores across 24 states as of March 30, 2025. The company opened three new stores in the first quarter of 2025 and plans to add at least 35 more throughout the full year, indicating a consistent unit growth strategy. A key driver of this expansion is Sprouts Farmers' focus on a more efficient, smaller-box store format, aimed at reducing growth risks and boosting new store performance. This strategy, along with the pursuit of new locations and efforts to improve supply-chain capacity, including potential sites in the Northeast and Midwest, is essential for supporting such a large network of stores. New stores open with an average of $13 million in first-year sales and ramp up another 20-25% over the following four years. With strong cash-on-cash returns and break-even expected in year one, each store is a profit center. The company's real estate pipeline already includes nearly 120 approved sites and more than 85 signed leases, signaling a clear path toward its long-term goal of 1,000 stores. Nearly 80% of stores are within 250 miles of a distribution center, and Sprouts Farmers is deepening its supply chain with self-distribution of fresh categories like meat and seafood. The company's long-term strategic target includes approximately 10%-unit growth, reinforcing its commitment to achieving the 1,000-store milestone. Store Count Showdown: Costco & Dollar General vs. Spouts Within the retail sector, Sprouts Farmers operates alongside giants like Costco Wholesale Corporation COST and Dollar General Corporation DG, each with distinct models. Costco plans to add 24 net new locations in fiscal 2025, taking the total global warehouse count to 914, including 629 locations in the United States. Costco's consistent traffic growth and a 92.7% U.S. renewal rate underscore brand loyalty and operational strength. Dollar General, by contrast, operates more than 20,000 stores nationwide. In fiscal 2025, Dollar General is set to carry out an ambitious real estate agenda encompassing roughly 4,885 projects. This includes the planned launch of approximately 575 new U.S. stores and up to 15 additional locations in Mexico. Alongside expansion, Dollar General is focusing on improving its existing footprint through the remodeling of about 2,000 stores under its "Project Renovate" initiative and another 2,250 stores through the "Project Elevate" program. SFM's Price Performance, Valuation and Estimates Sprouts Farmers stock has been a standout performer, with shares rallying 27.7% year to date, outpacing the industry' s growth of 15.8%. From a valuation standpoint, SFM's forward 12-month price-to-sales ratio stands at 1.72, higher than the industry's ratio of 0.26. SFM carries a Value Score of C. The Zacks Consensus Estimate for Sprouts Farmers' current financial-year sales and earnings per share implies year-over-year growth of 13.6% and 35.5%, respectively. Sprouts Farmers Market currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar General Corporation (DG): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
Yahoo
07-07-2025
- Business
- Yahoo
Sprouts Farmers Market (SFM): Penn Davis McFarland's Outstanding Performer in Q1
Penn Davis McFarland, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Decades of unchecked government spending have strained the U.S. balance sheet, limiting economic growth and security, prompting President Trump to prioritize deficit reduction. The government's noble commitment to cut spending faces challenges as it must abruptly detox a market reliant on federal support, with initiatives like DOGE and tariffs forming a two-part strategy against the deficit. The firm believes that the portfolio is well-positioned for a higher-volatility environment. The high-quality companies in the portfolio, with fortress balance sheets, are well-positioned to weather economic challenges. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first quarter 2025 investor letter, Penn Davis McFarland highlighted stocks such as Sprouts Farmers Market, Inc. (NASDAQ:SFM). Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a retailer of fresh, natural, and organic food products under the Sprouts brand. The one-month return of Sprouts Farmers Market, Inc. (NASDAQ:SFM) was -4.07%, and its shares gained 96.69% of their value over the last 52 weeks. On July 3, 2025, Sprouts Farmers Market, Inc. (NASDAQ:SFM) stock closed at $162.29 per share, with a market capitalization of $15.881 billion. Penn Davis McFarland stated the following regarding Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its first quarter 2025 investor letter: "Sprouts Farmers Market, Inc. (NASDAQ:SFM), the specialty grocery store chain focused on fresh produce and low cost better-for-you products, has been as outstanding performer. Our first purchase of SFM was made in the summer of 2019 at $17 and change. Several worries were weighing on the shares at the time, including the recent departure of the CEO, sluggish produce pricing and the competitive threat from Amazon's acquisition of Whole Foods, causing the multiple to contract to a reasonable 15x forward earnings. A bright, colorful display of fresh produce in a grocery store. Sprouts Farmers Market, Inc. (NASDAQ:SFM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Sprouts Farmers Market, Inc. (NASDAQ:SFM) at the end of the first quarter, compared to 47 in the fourth quarter. Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) sales rose 19% to $2.2 billion in Q1 2025. While we acknowledge the potential of Sprouts Farmers Market, Inc. (NASDAQ:SFM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Sprouts Farmers Market, Inc. (NASDAQ:SFM) and shared the list of stocks Jim Cramer's successful stocks predictions. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of SFM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
04-07-2025
- Business
- Yahoo
BetterAlt Partners with Sprouts Farmers Market to Expand Retail Presence Nationwide
BetterAlt's latest retail expansion is placing its Ayurvedic-inspired wellness products in 425 Sprouts Farmers Market locations across the U.S., reinforcing consumer demand for natural supplements that combine traditional remedies with modern science-backed Courtesy of: BetterAlt DOVER, Del., July 03, 2025 (GLOBE NEWSWIRE) -- BetterAlt, a rising leader in Ayurvedic and science-backed wellness, has officially partnered with Sprouts Farmers Market to make its best-selling products available in 425 locations across the United States. The collaboration significantly expands BetterAlt's reach in physical retail, offering Sprouts customers convenient access to a curated line of natural supplements formulated for energy, performance, and holistic wellness. The initial rollout includes BetterAlt's most in-demand products: Himalayan Shilajit Resin Himalayan Shilajit Honey Sticks (Classic and Caramel) Himalayan Shilajit Gummies (Mango) Himalayan Shilajit Capsules Tongkat Ali Cordyceps Capsules Shilajit Sea Moss Capsules 'Partnering with Sprouts is an exciting milestone for us,' said Akash Dhoot, cofounder at BetterAlt. 'They're known for putting quality and transparency first - values we care deeply about. Together, we're making it easier for people to bring time-tested, nature-based wellness into their daily lives.' Founded on the principles of Ayurveda and enhanced by modern science, BetterAlt's products are third-party lab tested at ISO-certified laboratories and formulated to support energy, stamina, cognitive performance, and daily vitality. The company has quickly gained momentum on digital platforms, including Amazon and TikTok, selling over 15 million servings of Himalayan Shilajit and 1.5 million customers within its first year of operations. The launch into Sprouts stores is part of BetterAlt's broader growth strategy to increase accessibility in high-traffic wellness retail channels while continuing to innovate in functional nutrition. With a focus on consumer trust and quality assurance, the brand is helping reshape how ancient remedies are adopted in modern lifestyles. About BetterAlt BetterAlt is a global health and wellness company blending traditional Ayurvedic wisdom with modern science to develop natural supplements for today's fast-paced world. Best known for its Himalayan Shilajit-based products, BetterAlt offers functional wellness in various consumer-friendly formats—from resins and capsules to gummies and honey sticks. The company has experienced rapid growth, achieving $100 million in annual revenue and 5x the growth rate. Recognized among the top 3 health brands on TikTok Shop, BetterAlt's products consistently rank #1 on Amazon in their categories and are also available through major retailers like GNC. Headquartered in the United States, the company currently serves markets across North America, Asia, and Europe. Contact Information: Contact Person's Name: Akash DhootOrganization / Company: BetterAltCompany website: Email Address: press@ State / Province, Country, Zip Code: Dover, Delaware, 19904 A photo accompanying this announcement is available at 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
