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Published on February 26, 2024
Phoenix-Based Sprouts Farmers Market Stock Hits Record After Surpassing Wall Street ForecastsSource: Facebook/Sprouts Farmers Market

Shares of Sprouts Farmers Market Inc. soared to a record climax, following the company’s announcement of its fourth quarter and full-year 2023 earnings, which remarkably outdid Wall Street predictions. The Phoenix-based health-focused grocery chain revealed a revenue increase to $1.7 billion for the final quarter of last year, marking an 8% leap from 2022’s statistics, as per reports from ABC15.

On the back of these robust financials, shares of Sprouts closed trading at an unprecedented high of $59.63, a substantial boost of 11% on Friday. Attributing the success to the firm’s dedication to a specific array of healthful and organic products, CEO Jack Sinclair expressed in a Feb. 22 earnings call, covered by Bizjournals.

By the end of 2023, Sprouts’ annual revenue hit $6.8 billion, seeing a 7% jump from the prior year, with a 3.4% growth in comparable store sales. The organic grocer, not resting on their laurels, plans to scale up in 2024, with the guidance set for total sales growth between 5.5% and 7.5% and comparable store sales growth snugly between 1.5% and 3.5%, according to the information shared in the earnings call.

Gearing up for an aggressive expansion, Sprouts is eyeing the opening of roughly 35 new stores throughout the current year, armed with a strategic pipeline of over 100 approved locations and around 70 leases already executed. To illustrate the existing grocery market in the Phoenix metro area where Sprouts already has a significant share, ABC15 includes an informative slideshow in its coverage.

The past year also saw Sprouts open 30 new stores, shut down 11, and take over two previously licensed locations, boosting their national footprint to 407 stores across 23 states. The market seems to be responding favorably to the strategic shift that Sprouts has embraced, with investors rallying around the organic grocer’s aim to become a leading specialty food retailer.

Phoenix-Real Estate & Development