Why Sprouts Farmers Market Is Rocketing Higher Today
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By Josh Kohn-Lindquist – Apr 30, 2026 at 2:18PM ESTKey PointsSprouts grew sales by 4% as it lapped tough year-over-year comparables.The company opened its first location in New York and plans to grow its store count from 483 to over 520 this year.After its stock got cut in half over the last year, Sprouts bought back 2% of its total shares outstanding in Q1.Shares of attribute-focused, specialty grocery chain Sprouts Farmers Market (SFM +17.94%) are up 17% as of noon ET on Thursday following the company's excellent first-quarter earnings. While sales only inched 4% higher -- and earnings per share actually dipped 6% -- these figures outpaced Wall Street's low expectations. More importantly, management guided for full-year revenue growth of 5.5% and EPS of roughly $5.40, leaving the stock trading at just 15 times forward earnings, even after today's rise. With Sprouts' stock price already cut in half over the last year, the bar had been lowered a bit for the better-for-you grocer, and its resilience amid a challenging consumer-spending environment helped spark today's pop. ExpandNASDAQ: SFMSprouts Farmers MarketToday's Change(17.94%) $12.76Current Price$83.89Key Data PointsMarket Cap$6.7BDay's Range$75.09 - $84.2052wk Range$64.75 - $182.00Volume156KAvg Vol2.6MGross Margin37.09% After growing sales by double-digits for six straight quarters over the last two years -- before slowing to 7% and 4% in its last two earnings reports -- Sprouts is doing reasonably well lapping these tough comparables. While Sprouts only opened six new stores in Q1, raising its total count to 483 in 25 states, it plans to open at least 34 more over the next three quarters -- all easily funded from cash on hand and cash from operations. One of these six new locations was Sprouts' first in New York, which could offer huge potential if the company can "stick its landing" as it expands into the Northeast. Image source: Getty Images. In addition to this store count growth potential, Sprouts: grew e-commerce sales by 10% to equal 16% of revenue saw private-label products also outpace overall sales growth, now equalling 26% of revenue repurchased 2% of its shares outstanding in Q1 alone, after its share price sank launched 1,500 new products so far in 2026, after creating 7,000 in 2025 This last highlight is Sprouts' "secret sauce," in my opinion, as these new product innovations are what keep customers coming back for a unique shopping experience. After identifying which new products are most popular, Sprouts often introduces higher-margin private-label versions of these innovations, offering customers unique variations of common goods at reasonable prices. Sprouts remains one of my favorite stocks to buy right now.Read NextApr 29, 2026 •By Motley Fool TranscribingSprouts (SFM) Q1 2026 Earnings Call TranscriptApr 22, 2026 •By Motley Fool TranscribingSprouts (SFM) Q3 2024 Earnings Call TranscriptApr 30, 2026 •By Leo SunOil Shocks Are Pushing Up Food and Fertilizer Costs.
These Consumer Stocks Are Feeling the Squeeze.Apr 30, 2026 •By Thomas NielThese Are the Best High-Yield Dividend Stocks of 2026Apr 30, 2026 •By Rich SmithWhy Royal Caribbean Stock Just PoppedApr 30, 2026 •By Geoffrey SeilerBull vs. Bear: D-Wave QuantumAbout the AuthorJosh Kohn-Lindquist is a contributing Motley Fool stock market analyst covering consumer goods, industrials, and technology stocks. Previously, Josh was a senior mutual fund accountant at Gemini Fund Services. He holds a bachelor’s degree in business management from the University of South Dakota.TMFJorykoX@JorykoliStocks MentionedSprouts Farmers MarketNASDAQ: SFM$83.89(+17.94%)+$12.76*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.