Organic product demand is on the rise, and Sprouts Farmers Market 🌱 is one of the biggest beneficiaries. In 2024, sales of organic products grew 5.2%, more than double the overall marketplace. With Sprouts rapidly expanding across the U.S., they’re well-positioned to capture this momentum.
Over the past five years, Sprouts has performed like a tech stock, delivering 500%+ returns for investors. Yet, despite this rally, the stock may still be a bargain.
The company operates 440 stores and plans to add 300 more, with 35 opening this year across Florida, Texas, North Carolina, and beyond. Expansion is important, but so is execution, and Sprouts is delivering. Same-store sales climbed 10.2% year-over-year, outpacing last year’s 6.7%, showing strong customer retention and growth in existing markets.
Financially, Sprouts is on track to hit nearly $9 billion in revenue this year, up from $7.7B last year, with projections pointing to $12B+ by 2028. While today’s P/E ratio sits at ~30x, higher than traditional grocery peers, earnings growth is expected to drive that down to the low-20s by 2026.
Even better, Sprouts is generating solid free cash flow ($500M+ last quarter), a critical metric for long-term valuation. Analysts suggest future cash flows point to the stock being 20–30% undervalued at today’s levels.
For investors, Sprouts is more than just a grocery chain...it’s a growth story of a healthy alternative and strong financial execution.