Sprouts Farmers Market, Inc.: Meeting takeaways: Affordability & loyalty program could unlock comp reacceleration

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Sprouts Farmers Market, Inc.: Meeting takeaways: Affordability & loyalty program could unlock comp reacceleration

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Sprouts Farmers Market, Inc.

Meeting takeaways: Affordability & loyalty

program could unlock comp reacceleration

Reiterate Rating: BUY | PO: 100.00 USD | Price: 86.89 USD

Reiterate Buy on strong sales and margin outlook 12 May 2026

We hosted investor meetings in Boston with SFM’s CEO Jack Sinclair, CFO Curtis Equity

Valentine, President & COO Nick Konat, and VP of IR & Treasury Susannah Livingston.

We reiterate our Buy rating on SFM and raise our PO from $92 to $100, now based on

Key Changes

17x (was 16x) our 2027E EPS given our increasing confidence in SFM’s “specialty shop”

model, which should continue to benefit from 1) a high degree of assortment (US$) Previous Current

differentiation and significantly higher margins vs. most food retail peers; 2) a sustained Price Obj. 92.00 100.00

8%+ annual unit growth outlook (with 2027E expected to be back in line with SFM’s

~10% historical target); and 3) stronger comp sales/traffic and ROIC vs. traditional RobertResearchF.AnalystOhmes, CFA

grocers. Key takeaways from our investor meetings included: BofAS

+1 646 855 0078

robert.ohmes@bofa.com

Loyalty program generates deeper customer insights Vicky Liu, CFA

SFM has seen positive customer response to its loyalty multipliers (sponsored by Research Analyst

BofAS

vendors). Increasing loyalty program participation and help from the new marketing +1 646 855 5115

team allow SFM to increase wallet share through loyalty data and personalization yanjun.liu@bofa.com

capabilities. SFM also saw strength in deli such as wellness bowls under $10, $5 sushi

Wednesday and $5 sandwiches, and these meal solutions are driving both basket and