Sprouts Farmers Market (SFM): what its 10-K says it depends on

Suppliers

KeHE Distributors, LLC

depends on · approximately 52% and 50% of our total purchases in fiscal 2025 and 2024named as a risk

KeHE is our primary distributor of dry grocery and frozen food products, accounting for approximately 52% and 50% of our total purchases in fiscal 2025 and 2024, respectively.Risk factors (Item 1A)

United Natural Foods, Inc. (UNFI)

depends on · 12% and 3% of our total purchases in fiscal 2025 and 2024named as a risk

Another 12% and 3% of our total purchases in fiscal 2025 and 2024, respectively, were made through our secondary distributor of dry grocery and frozen food products, UNFI.Risk factors (Item 1A)

Partners and platforms

Third-party produce distributor in Pennsylvania

depends onnamed as a risk

We also have entered into a partnership with a third-party produce distributor in Pennsylvania to supply fresh produce to our Mid-Atlantic stores.Risk factors (Item 1A)

DoorDash

depends on

We offer home deliveries from our stores through delivery service providers, including Instacart, DoorDash and Uber Eats, in all of our markets nationwide.Business (Item 1)

Also named by BJ, CART, DKS, UBER

Instacart

depends on

We offer home deliveries from our stores through delivery service providers, including Instacart, DoorDash and Uber Eats, in all of our markets nationwide.Business (Item 1)

Also named by BJ, DKS, DLTR

Uber Eats

depends on

We offer home deliveries from our stores through delivery service providers, including Instacart, DoorDash and Uber Eats, in all of our markets nationwide.Business (Item 1)

Also named by DLTR

Other companies

Sprouts Brand

earns from · just over 25% of our revenue

In fiscal 2025, Sprouts Brand products represented just over 25% of our revenue.Business (Item 1)

Competitors

Amazon

competes with

Our competitors within the overall grocery industry primarily include other specialty food retailers such as Whole Foods, Trader Joe’s, and smaller local or regional operators, conventional supermarkets such as Kroger, Albertsons, Safeway, H-E-B and Publix, as well as mass or discount retailers such as Target and Walmart, warehouse membership clubs, online retailers such as Amazon, specialty stores, restaurants, home delivery and meal solution companies, and any other outlets offering food and similar products as those found in our stores.Business (Item 1)

Also named by AES, AFRM, ALK, AOS, APP, AXP, BBW, CART and 10 more

Walmart

competes with

Our competitors within the overall grocery industry primarily include other specialty food retailers such as Whole Foods, Trader Joe’s, and smaller local or regional operators, conventional supermarkets such as Kroger, Albertsons, Safeway, H-E-B and Publix, as well as mass or discount retailers such as Target and Walmart, warehouse membership clubs, online retailers such as Amazon, specialty stores, restaurants, home delivery and meal solution companies, and any other outlets offering food and similar products as those found in our stores.Business (Item 1)

Also named by AIOT, BRK/B, CART, COST, DG, DGX, EEFT, FDX and 6 more

Kroger

competes with

Our competitors within the overall grocery industry primarily include other specialty food retailers such as Whole Foods, Trader Joe’s, and smaller local or regional operators, conventional supermarkets such as Kroger, Albertsons, Safeway, H-E-B and Publix, as well as mass or discount retailers such as Target and Walmart, warehouse membership clubs, online retailers such as Amazon, specialty stores, restaurants, home delivery and meal solution companies, and any other outlets offering food and similar products as those found in our stores.Business (Item 1)

Also named by COST, POST

Whole Foods

competes with

Our competitors within the overall grocery industry primarily include other specialty food retailers such as Whole Foods, Trader Joe’s, and smaller local or regional operators, conventional supermarkets such as Kroger, Albertsons, Safeway, H-E-B and Publix, as well as mass or discount retailers such as Target and Walmart, warehouse membership clubs, online retailers such as Amazon, specialty stores, restaurants, home delivery and meal solution companies, and any other outlets offering food and similar products as those found in our stores.Business (Item 1)

Trader Joe's

competes with

Our competitors within the overall grocery industry primarily include other specialty food retailers such as Whole Foods, Trader Joe’s, and smaller local or regional operators, conventional supermarkets such as Kroger, Albertsons, Safeway, H-E-B and Publix, as well as mass or discount retailers such as Target and Walmart, warehouse membership clubs, online retailers such as Amazon, specialty stores, restaurants, home delivery and meal solution companies, and any other outlets offering food and similar products as those found in our stores.Business (Item 1)

Places

California

concentrated in · 156 stores; 33% of our total storesnamed as a risk

As of December 28, 2025, we operated 156 stores in California, making California our largest market representing 33% of our total stores in fiscal 2025.Risk factors (Item 1A)

Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more

California

depends on · approximately 40% to approximately 70% depending on the time of yearnamed as a risk

In addition, we source a large portion of our produce from California, ranging from approximately 40% to approximately 70% depending on the time of year.Risk factors (Item 1A)

Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more

Texas

concentrated in · 60 stores; 13% of our total storesnamed as a risk

We also have store concentration in Texas, Florida, Arizona, and Colorado, operating 60, 58, 48 and 34 stores in those states, respectively, and representing 13%, 12%, 10% and 7% of our total stores in fiscal 2025, respectively.Risk factors (Item 1A)

Also named by ABR, AFRM, ALLY, AN, ASO, ASTS, ATO, AXP and 70 more

Florida

concentrated in · 58 stores; 12% of our total storesnamed as a risk

We also have store concentration in Texas, Florida, Arizona, and Colorado, operating 60, 58, 48 and 34 stores in those states, respectively, and representing 13%, 12%, 10% and 7% of our total stores in fiscal 2025, respectively.Risk factors (Item 1A)

Also named by ABR, ALLY, AN, AXP, AZO, BBY, BJ, BRO and 54 more

Arizona

concentrated in · 48 stores; 10% of our total storesnamed as a risk

We also have store concentration in Texas, Florida, Arizona, and Colorado, operating 60, 58, 48 and 34 stores in those states, respectively, and representing 13%, 12%, 10% and 7% of our total stores in fiscal 2025, respectively.Risk factors (Item 1A)

Also named by ABR, AMKR, AXON, BBSI, BRK/B, DJCO, ELS, ENSG and 5 more

Colorado

concentrated in · 34 stores; 7% of our total storesnamed as a risk

We also have store concentration in Texas, Florida, Arizona, and Colorado, operating 60, 58, 48 and 34 stores in those states, respectively, and representing 13%, 12%, 10% and 7% of our total stores in fiscal 2025, respectively.Risk factors (Item 1A)

Also named by AN, BBSI, BKH, CVX, DMLP, ENSG, FPI, MLM and 4 more

Hazards

Wildfires

concentrated innamed as a risk

Produce is also vulnerable to adverse weather conditions and natural disasters, such as floods, droughts, storms, frosts, wildfires, earthquakes, hurricanes, pestilences and other extreme or abnormal environmental conditions, including the potential effects of climate change, any of which can lower crop yields and reduce crop size and quality.Risk factors (Item 1A)

Also named by AAON, AMRC, AZO, BRK/B, CCI, CDNS, CINF, CNP and 17 more

Avian flu

exposed to its pricenamed as a risk

The availability of many products we sell, including produce and proteins, or products with ingredients such as wheat, corn, oils, milk, sugar, cocoa, nuts and other key commodities, may be impacted by weather events, animal disease outbreaks (such as avian flu) and other catastrophic occurrences.Risk factors (Item 1A)

Also named by KO, WMT, YUM

Commodities and inputs

Fresh produce

earns from · approximately 17% and 18% of our net sales in fiscal 2025 and 2024named as a risk

Sales of produce accounted for approximately 17% and 18% of our net sales in fiscal 2025 and 2024, respectively.Risk factors (Item 1A)

Also named by CHRW

Diesel fuel

exposed to its pricenamed as a risk

We may also be required to pay certain adjustments or other amounts pursuant to our supply and delivery contracts in connection with increases in fuel prices.Risk factors (Item 1A)

Also named by ADM, BLDR, BTU, CAH, CHD, CHRW, COST, CP and 43 more

Wheat, corn, oils, milk, sugar, cocoa, nuts

exposed to its pricenamed as a risk

These products and commodities are also subject to significant price fluctuations and may be impacted by economic factors such as tariffs and inflation.Risk factors (Item 1A)

Regulators

U.S. Food and Drug Administration (FDA)

subject tonamed as a risk

Our sales of these products are regulated by FDA.Risk factors (Item 1A)

Also named by A, ABBV, ABT, AMGN, ARE, ARWR, ATR, AXGN and 112 more

Federal Trade Commission (FTC)

subject tonamed as a risk

In connection with the marketing and advertisement of products we sell, we could be the target of claims relating to false or deceptive advertising, including under the oversight of the FTC and pursuant to the FTC Act and consumer protection statutes of some states.Risk factors (Item 1A)

Also named by AMZN, AN, AVGO, BJ, CART, CELH, CHD, CHE and 56 more

U.S. Department of Agriculture (USDA)

subject tonamed as a risk

Both FDA and USDA have broad authority to enforce their applicable statutes and regulations relating to the registration and listing of products, safety, labeling, manufacturing, distribution and promotion of foods, cosmetics, homeopathic and CBD products, and dietary supplements, including powers to issue a public warning letter to a company, publicize information about adulterated or misbranded products, institute an administrative detention of products, request or order a recall from the market, impose import restrictions and request the Department of Justice to initiate a seizure action, an injunction action or a criminal prosecution.Risk factors (Item 1A)

Also named by AGM, BJ, CAG, CALM, CASH, CB, DLTR, FLO and 11 more

Laws and programs

Federal hemp/CBD THC limit law (2025)

subject to · no more than 0.4 mg of total THC per packagenamed as a risk

The new standard will likely remove from the retail market most CBD-containing edibles, beverages, oils, and extracts because they will exceed the new standard.Business (Item 1)

National Organic Program

subject to · more than 30% of total company sales

USDA’s Agricultural Marketing Service (“AMS”) oversees compliance with the National Organic Standards Program and related labeling activity.Business (Item 1)

Tariffs

exposed to its pricenamed as a risk

Any increase in prices of such products or key ingredients as a result of tariffs, inflation or otherwise may cause our vendors to seek price increases from us.Risk factors (Item 1A)

Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more

California Privacy Rights Act (CPRA)

subject tonamed as a risk

Additionally, compliance with current and future applicable federal and state privacy, cybersecurity and related laws, including for example the California Privacy Act of 2018 (“CCPA”) and the California Privacy Rights Act (“CPRA”), can be costly and time-consuming, and we could be subject to enforcement actions or penalties for non-compliance.Risk factors (Item 1A)

Also named by AXON, CDW, CSCO, DHI, DPZ, NFLX

California PFAS food packaging law

subject tonamed as a risk

For example, a California law that became effective in 2023 bans intentionally added PFAS in fiber-based food packaging, mandates online chemical disclosures, and limits claims about PFAS-free and other hazard groups.Risk factors (Item 1A)

Perishable Agricultural Commodities Act (PACA)

subject to

Entities that buy and sell perishable commodities require a PACA license and disputes about sales of produce are subject to rules and regulations under PACA.Business (Item 1)

Also named by CHRW, UNFI

Technology

GLP-1 weight-loss therapies

named as a risk

Consumer preferences towards our offering of vitamins, supplements and fresh, natural and organic food products might shift as a result of, among other things, economic conditions, food safety perceptions, consumption patterns (including changes in behavior arising from the increased use of prescription weight-loss therapies such as GLP-1), scientific research or findings regarding the benefits or efficacy of such products, national media attention and the cost, attributes or sustainability of these products.Risk factors (Item 1A)