Sprouts Posts $40 Profit per Square Foot, Plans 8.4% Store Growth After Q1 Comps Drop
SFM•Sprouts generated $40 of profit per square foot in 2025, more than double Kroger's $18, despite $678 sales per square foot versus Kroger's $820. It plans to open over 40 stores (8.4% growth) in 2026 after Q1 comps fell 1.7%, and guided 4.5%–6.5% revenue growth for the year.
1. Efficiency Metrics
Sprouts recorded sales of $678 per square foot in 2025, below Kroger's $820 and Natural Grocers' $2,060. The chain posted net profit of $524 million, equating to $40 profit per square foot—more than twice Kroger's $18 and Natural Grocers' $17.
2. Cash Flow and Employee Productivity
In 2025 Sprouts generated $716 million of operating cash flow across 477 stores, averaging $1.50 million per store versus Kroger's $2.71 million and Natural Grocers' $0.33 million. The retailer employed 36,000 staff, delivering $14,555 profit per employee, outpacing Natural Grocers' $10,918 and Kroger's $7,938.
3. Expansion Plans and Guidance
Sprouts opened six locations in Q1 and aims to add more than 40 stores this year, lifting its count from 477 to roughly 517 (8.4% growth). The company reported same-store sales down 1.7% in Q1 and is forecasting flat comps with revenue growth of 4.5% to 6.5% for 2026.
4. Profitability and Margins
The grocer’s gross margin stood at 39.4% in Q1 2026, slightly below last year’s 39.6% yet robust relative to peers. Management is rolling out smaller-format outlets designed for high-margin products, emphasizing profit over top-line expansion and suggesting sustained cost efficiency despite weaker comps.
