Sprouts Farmers Market, Inc. · NASDAQ:SFM
Sprouts Farmers Market — Investor Presentation (October 2025)
31 slides from Sprouts Farmers Market's investor presentation, October 2025
Slide 1: Sprouts Farmers Market Investor Deck
SPROUTS FARMERS MARKET Investor Deck October 2025
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts
Slide 3: Our Purpose
OUR PURPOSE We help People Live and Eat Better 3
Slide 4: Sprouts' Long-Term Strategy
SPROUTS’ LONG-TERM STRATEGY OUR PURPOSE WE HELP PEOPLE LIVE AND EAT BETTER DELIVER ON KEY FINANCIAL METRICS SALES EARNINGS STORE EXPANDING GROWTH GROWTH EXPANSION ROIC CUSTOMER CREATE AN WIN WITH TARGET MARKET ENGAGEMENT & ADVANTAGED SUPPLY CUSTOMERS EXPANSION PERSONALIZATION CHAIN • Win health attr
Slide 5: Why Invest in Sprouts Farmers Market?
WHY INVEST IN SPROUTS FARMERS MARKET? DIFFERENTIATED TARGET CUSTOMER UNIQUE STORE INCREDIBLE TEAMS & CULTURE HEALTHY ASSORTMENT FOCUS EXPERIENCE GROWTH FINANCIALS Strong executive OPPORTUNITY Foraging for Attribute-driven Produce at heart of team Strong box Innovation store Plenty of white space eco
Slide 6: Differentiated Assortment: Foraging for Innovation
DIFFERENTIATED ASSORTMENT Foraging for Innovation • Innovation Center showcases new items monthly • More than 7,100 new items introduced in 2024 6
Slide 7: Differentiated Assortment: High Quality Sprouts Brand
DIFFERENTIATED ASSORTMENT High Quality Sprouts Brand Sprouts Brand Sales Penetration(1) • $1.7B in sales of Sprouts Brand Products in 2024 • 300 Sprouts Brand products launched in 2024 (1) Sprouts Brand Sales Penetration represents sales of Sprouts Brand 7 products, as a percentage of total company
Slide 8: More than 70% of Products Sold are Attribute-Driven
DIFFERENTIATED ASSORTMENT More than 70% of Products Sold are Attribute-Driven ~20% gluten-free ~20% organic >10% non-GMO >15% non-GMO >50% of Beef sales are grass-fed 100% responsibly-sourced >20% Vegan seafood >30% non-GMO >45% organic ~25% organic >20% Kosher >55% gluten-free >35% organic ~30% veg
Slide 9: Target Customer Focus: Huge Opportunity
TARGET CUSTOMER FOCUS Huge Opportunity CONSUMERS SPEND $1.6T ON FOOD • Focus on natural and organic products AT HOME (1) (vs. CPG), a fast-growing channel of food at home Sprouts’ Target • Emphasis on Target Customer segment Customers (1) • Huge opportunity to grow target $290 customer share of wall
Slide 10: Demographics: Consumer Who Craves Health & Wellness
TARGET CUSTOMER FOCUS Demographics: Consumer Who Craves Health & Wellness • Continue to attract younger customers • Slightly higher educated • Skews higher income- less susceptible to economic downturn • Over half are married/relationship – typically dual income • Majority of ecommerce customers are
Slide 11: Opportunity for Further Engagement: Loyalty Program
TARGET CUSTOMER FOCUS Opportunity for Further Engagement First Loyalty Program To Launch in 2025: Q1 - Pilot More Stores Q3 - Start Rollout 2024 2025 Started Loyalty Q2 – Technology Q4 - Scale to Chain Testing Enhancement for Scale • Customers love shopping at Sprouts - they have unique needs and wa
Slide 12: Farmers Market Feel & Produce at the Heart of the Store
UNIQUE STORE EXPERIENCE Farmers Market Feel & Produce at the Heart of the Store Hybrid produce Meaningful farmer buying model: Increasingly partnerships: Organic focused centralized and locally sourced Produce priced delivers new varietals program - 46% of regional teams allow fresher produce, below
Slide 13: Friendly & Knowledgeable Team Members
UNIQUE STORE EXPERIENCE Friendly & Knowledgeable Team Members • Small size reinforces farmers’ market appeal • Low profile layout enables customer interaction • CSAT Scores are best in company history • NPS scores at +61, with only 5% detractors(1) • Improved in-stocks • Ecomm penetration > 14% of s
Slide 14: Incredible Growth Opportunity: Plenty of White Space
INCREDIBLE GROWTH OPPORTUNITY Plenty of White Space Potential for 1000+ stores from coast to coast 14
Slide 15: Advantaged Fresh Supply Chain
INCREDIBLE GROWTH OPPORTUNITY Advantaged fresh supply chain: Distribution Centers (DCs) within 250 miles of the majority of stores Improved Freshness for the Customer: • Took a day out of the inventory cycle Local: • Partnering with 170 local farmers representing more than 19% of total produce sales
Slide 16: Executive Management Team
TEAMS AND CULTURE Executive Management Team with Leading Grocery & Retail Experience Jack Curtis Valentine Nick Alisa Sinclair Chief Financial Konat Gmelich Chief Officer President & Chief Chief Marketing Executive since 2024 (joined Operating Officer Officer Officer SFM in 2015) since 2022 since 20
Slide 17: Three Simple Values at the Heart of Our Culture
TEAMS AND CULTURE Three Simples Values at the Heart of our Strong Culture WE CARE WE LOVE BEING WE OWN IT DIFFERENT • $30M in bonuses paid to field team members • $23M in savings for team members with store discount 17
Slide 18: Creating a Talent Engine to Support Our Growth
TEAMS AND CULTURE Creating a Talent Engine to Support our Growth In 2024: • 3,300 New jobs created • 33,200 Leadership training hours delivered • $20.59/hr Average pay rate for store team members • 54% Store Manager positions filled with internal candidates 18
Slide 19: Commitment to Community & Planet
TEAMS AND CULTURE • 71% landfill diversion rate Commitment to Community & Planet at Sprouts in 2024 • 70M pounds of food recovered through donation, animal feed, and composting programs • 60% of sales of products with a social or environmental attribute • 30% of total sales from Organic products • 2
Slide 20: Long-term Strategic Financial Targets
HEALTHY FINANCIALS Long-term Strategic Financial Targets(1) ~10%-unit Attractive Low single Stable EBIT growth(2) New Store digit comps Margins off a Economics Higher Base Low Double-Digit Earnings Growth and Expansion of ROIC (1) These are targets and not projections; they are subject to significan
Slide 21: New Stores' Strong Performance: Four Wall Box Target Economics
HEALTHY FINANCIALS New stores’ Strong Performance: Four Wall Box Target Economics(1) SALES • Box opens on average at $13M in year 1 annual sales • Grows 20% to 25% over next the next 4 years EBITDA MARGINS • Break even year 1 • Grows to a blended ~8% EBITDA Margins over the next 4 years CASH INVESTM
Slide 22: Low Single-digit Comps Targets & Stable EBIT Margins
HEALTHY FINANCIALS Low Single-digit Comps Targets & Stable EBIT Margins(1) KEY COMP DRIVERS • Tailored marketing: to target customer and regions • Enhanced in-store events • Innovative, differentiated products • Omnichannel offering • Customer engagement – loyalty • New store comp tailwind – partial
Slide 23: Stronger Foundation: Strategic Initiatives Taking Hold
HEALTHY FINANCIALS Stronger Foundation: Strategic Initiatives Taking Hold(1) NET SALES ADJUSTED EBIT MARGIN ADJUSTED DILUTED EARNINGS ($ in mm) PER SHARE (1) See the Appendix to this presentation for a reconciliation of Adjusted Diluted Earnings Per Share to diluted Earnings Per Share and Adjusted E
Slide 24: Strong Balance Sheet, Robust Cash Flows
HEALTHY FINANCIALS Strong Balance Sheet, Robust Cash Flows Self Fund our Growth and Deliver Shareholder Value through Ongoing Share Repurchase Program ($ in mm) (1) (2) 1. Capital expenditures are net of landlord reimbursement 2. Excluding excise tax 24
Slide 25: Improving ROIC
HEALTHY FINANCIALS Improving ROIC(1): Smart Investments Driving Strong Returns (1) ROIC is a non-GAAP measure defined as net operating profit after taxes divided by average invested capital. See the Appendix to this presentation for a reconciliation of ROIC to net income. 25
Slide 26: We Help People Live and Eat Better
We Help People Live and Eat Better Sprouts delivers a unique farmers market experience: bringing together passionate, knowledgeable team members, and the best assortment of high-quality food 26
Slide 27: Appendix
APPENDIX 27
Slide 28: Sprouts' Strategy Milestones
SPROUTS’ STRATEGY MILESTONES 2020/2021 2022 2023 2024 • E-commerce Boom • Positive Traffic • Ecommerce – added • Ecommerce reaches • Sprouts Brand reaches Doordash >$1B in sales; added Customer • Change in Promotional Strategy > $1B sales • Innovation Center UberEats • Foraging Team • Loyalty progra
Slide 29: Appendix: Non-GAAP Measure Reconciliation
APPENDIX The following table shows a reconciliation of adjusted gross margin to gross margin, EBIT and adjusted EBIT to net income, adjusted EBIT margin to EBIT margin, as well as a reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per s
Slide 30: Appendix: ROIC Reconciliation
APPENDIX The following table shows a reconciliation of ROIC to net income for the Company’s 2021, 2022, 2023 and 2024 fiscal years SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN MILLIONS) (1) Net income amounts represent total net income for the past fo
Slide 31: Thank You!
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