Sprouts Farmers Market (SFM.US): A Fresh Look From Hartsdale

UBS report on Sprouts Farmers Market Inc (SFM.US) dated 23 September 2026. We attended Sprouts' investor event in Westchester County, New York, including a tour of its new Hartsdale store (393 N. Central Ave) and dinner with senior management. Our key takeaway was that Sprouts continues to tweak its offering to appeal to growing customer demand while being cautious of building pressures on consumers' wallets. The Hartsdale store is a v6 format (~21k sq ft, slightly smaller than average) and, while early, is performing above the company's initial expectations after just over two weeks. Vitamins remain a key focus driving differentiation and loyalty; private label penetration reached 26% of sales; self-distribution remains a longer-term strategic initiative; prepared foods capture more meal occasions; eCommerce penetration stands at ~16% and could serve as a way to reach Manhattan. We rate SFM Neutral with a US$86 price target based on ~14x our CY'27 estimate.