Sprouts Launches $1 B Buyback as Online Sales Jump 20% in Q3 2025
Sprouts Farmers Market posted Q3 2025 online revenue growth of 20% with same-store sales up 7%, delivering 7.7% operating margins versus 4% at Walmart. Under CEO Jack Sinclair, grocer authorized a $1 billion share repurchase program as it trades at 13.5x P/E and projects 12% EPS growth to $9.16 in 2031.
1. Bull Case Drivers
Sprouts operates 464 stores across 23 states with an average 23,000 sq ft footprint, central produce displays and local supplier partnerships. The chain posted Q3 online revenue up 20% and same-store sales growth of 7% over two years, achieving 7.7% operating margins versus 4% at Walmart.
2. Share Repurchase and Valuation
Under CEO Jack Sinclair, the board authorized a $1 billion share repurchase program to deploy excess capital. Shares trade at 13.5x trailing P/E and 12.6x EV/EBIT, with base-case forecasts expecting 12% annual EPS growth to $9.16 by 2031 and a bull scenario targeting $20.30 EPS.
3. Growth Initiatives and Risks
Management has rolled out a nationwide loyalty program to boost customer retention and maintain cost discipline. Future performance hinges on sustaining 7% annual store growth and 3% same-store sales gains, while slower expansion or soft consumer demand poses downside risk.