Sprouts Farmers Market (SFM) 10-Q 6 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 04, 2021	May 04, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 4, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	SFM
Entity Registrant Name	Sprouts Farmers Market, Inc.
Entity Central Index Key	0001575515
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		118,131,886
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.001 par value
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity File Number	001-36029
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0331600
Entity Address, Address Line One	5455 East High Street
Entity Address, Address Line Two	Suite 111
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85054
City Area Code	480
Local Phone Number	814-8016
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Current assets:
Cash and cash equivalents	$ 256,019	$ 169,697
Accounts receivable, net	14,488	14,815
Inventories	270,958	254,224
Prepaid expenses and other current assets	35,862	27,224
Total current assets	577,327	465,960
Property and equipment, net of accumulated depreciation	707,039	726,500
Operating lease assets, net	1,043,455	1,045,408
Intangible assets, net of accumulated amortization	184,960	184,960
Goodwill	368,878	368,878
Other assets	15,079	14,698
Total assets	2,896,738	2,806,404
Current liabilities:
Accounts payable	160,596	139,337
Accrued liabilities	133,026	143,402
Accrued salaries and benefits	43,735	76,695
Accrued income tax	16,251
Current portion of operating lease liabilities	135,797	135,739
Current portion of finance lease liabilities	968	959
Total current liabilities	490,373	496,132
Long-term operating lease liabilities	1,072,897	1,069,535
Long-term debt and finance lease liabilities	260,287	260,459
Other long-term liabilities	45,481	40,912
Deferred income tax liability	60,830	58,073
Total liabilities	1,929,868	1,925,111
Commitments and contingencies (Note 6)
Stockholders’ equity:
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.001 par value; 200,000,000 shares authorized, 118,194,576 shares issued and outstanding, April 4, 2021; 117,953,435 shares issued and outstanding, January 3, 2021	118	118
Additional paid-in capital	691,142	686,648
Accumulated other comprehensive income (loss)	(7,230)	(8,474)
Retained earnings	282,840	203,001
Total stockholders’ equity	966,870	881,293
Total liabilities and stockholders’ equity	$ 2,896,738	$ 2,806,404

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Apr. 04, 2021	Jan. 03, 2021
Statement Of Financial Position [Abstract]
Undesignated preferred stock, par value	$ 0.001	$ 0.001
Undesignated preferred stock, shares authorized	10,000,000	10,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	118,194,576	117,953,435
Common stock, shares outstanding	118,194,576	117,953,435

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Income Statement [Abstract]
Net sales	$ 1,575,447	$ 1,646,539
Cost of sales	989,273	1,052,707
Gross profit	586,174	593,832
Selling, general and administrative expenses	439,662	436,304
Depreciation and amortization (exclusive of depreciation included in cost of sales)	31,229	31,021
Store closure and other costs, net	2,048	(1,082)
Income from operations	113,235	127,589
Interest expense, net	2,991	4,827
Income before income taxes	110,244	122,762
Income tax provision	27,196	30,952
Net income	$ 83,048	$ 91,810
Net income per share:
Basic	$ 0.70	$ 0.78
Diluted	$ 0.70	$ 0.78
Weighted average shares outstanding:
Basic	118,044	117,545
Diluted	118,607	117,748

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 83,048	$ 91,810
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on cash flow hedging activities, net of income tax of $800 and ($1,781)	2,314	(5,148)
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax of ($370) and ($101)	(1,070)	(292)
Total other comprehensive income (loss)	1,244	(5,440)
Comprehensive income	$ 84,292	$ 86,370

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Statement Of Income And Comprehensive Income [Abstract]
Income tax expenses (Benefit) on cash flow hedging activities	$ 800	$ (1,781)
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges	$ (370)	$ (101)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid In Capital [Member]	(Accumulated Deficit) Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 29, 2019	$ 581,952	$ 117	$ 670,966	$ (84,449)	$ (4,682)
Beginning Balance, Shares at Dec. 29, 2019		117,452,918
Net income	91,810			91,810
Other comprehensive income (loss)	(5,440)				(5,440)
Issuance of shares under stock plans, Shares		333,690
Share-based compensation	2,400		2,400
Ending Balance at Mar. 29, 2020	670,722	$ 117	673,366	7,361	(10,122)
Ending Balance, Shares at Mar. 29, 2020		117,786,608
Beginning Balance at Jan. 03, 2021	881,293	$ 118	686,648	203,001	(8,474)
Beginning Balance, Shares at Jan. 03, 2021		117,953,435
Net income	83,048			83,048
Other comprehensive income (loss)	1,244				1,244
Issuance of shares under stock plans	881		881
Issuance of shares under stock plans, Shares		371,109
Repurchase and retirement of common stock	$ (3,209)			(3,209)
Repurchase and retirement of common stock, Shares	(129,968)	(129,968)
Share-based compensation	$ 3,613		3,613
Ending Balance at Apr. 04, 2021	$ 966,870	$ 118	$ 691,142	$ 282,840	$ (7,230)
Ending Balance, Shares at Apr. 04, 2021		118,194,576

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Cash flows from operating activities
Net income	$ 83,048	$ 91,810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	31,841	31,600
Operating lease asset amortization	25,816	23,137
Share-based compensation	3,613	2,400
Deferred income taxes	2,757	232
Other non-cash items	207	(768)
Changes in operating assets and liabilities:
Accounts receivable	8,795	12,652
Inventories	(16,733)	22,787
Prepaid expenses and other current assets	(7,747)	(8,652)
Other assets	(1,078)	656
Accounts payable	27,004	80,669
Accrued liabilities	(10,568)	16,492
Accrued salaries and benefits	(32,959)	2,984
Accrued income tax	16,251	28,906
Operating lease liabilities	(28,719)	(30,107)
Other long-term liabilities	3,910	2,274
Cash flows from operating activities	105,438	277,072
Cash flows from investing activities
Purchases of property and equipment	(16,605)	(28,036)
Cash flows used in investing activities	(16,605)	(28,036)
Cash flows from financing activities
Payments on revolving credit facilities		(87,000)
Payments on finance lease liabilities	(163)	(154)
Repurchase of common stock	(3,209)
Proceeds from exercise of stock options	881	0
Cash flows used in financing activities	(2,491)	(87,154)
Increase in cash, cash equivalents, and restricted cash	86,342	161,882
Cash, cash equivalents, and restricted cash at beginning of the period	171,441	86,785
Cash, cash equivalents, and restricted cash at the end of the period	257,783	248,667
Supplemental disclosure of cash flow information
Cash paid for interest	2,974	4,905
Cash refunded for income taxes	(226)	(58)
Leased assets obtained in exchange for new operating lease liabilities	23,863	26,287
Supplemental disclosure of non-cash investing and financing activities
Property and equipment in accounts payable	$ 6,532	$ 13,999

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 04, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, operates as a healthy grocery store that offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. The Company continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. As of April 4, 2021, the Company operated 362 stores in 23 states. The accompanying unaudited consolidated financial statements include the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. All material intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The information included in these consolidated financial statements and notes thereto should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto for the fiscal year ended January 3, 2021 (“fiscal year 2020”) included in the Company’s Annual Report on Form 10-K, filed on February 25, 2021. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending January 2, 2022 (“fiscal year 2021”) is a 52-week year and fiscal year 2020 was a 53-week year. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years. All dollar amounts are in thousands, unless otherwise noted.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 04, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. Balance at January 3, 2021 Gift Cards Issued During Current Period but Not Redeemed (a) Revenue Recognized from Beginning Liability Balance at April 4, 2021 Gift card liability, net $ 15,888 $ 8,120 $ (4,984 ) $ 19,024 (a) net of estimated breakage The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, or any remaining performance obligations as of April 4, 2021. Restricted Cash Restricted cash relates to defined benefit plan forfeitures as well as healthcare, general liability and workers’ compensation restricted funds of approximately $1.8 million and $1.7 million as of April 4, 2021 and January 3, 2021, respectively. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets. Recently Adopted Accounting Pronouncements Income Taxes – Accounting for Income Taxes In December 2019, the FASB issued ASU no. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” Among other things, the amendment removes certain exceptions for periods with operating losses, and reduces the complexity surrounding hybrid tax regimes, step up in tax basis of goodwill in conjunction with a business combination, and timing of enacting changes in tax laws during interim periods. The Company adopted this standard effective January 4, 2021 on a prospective basis. There was no impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020 and January 2021, the FASB issued ASU no. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU 2021-01, “Reference Rate Reform (Topic 848): Scope,” respectively. The amendments in these updates provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. Generally, the guidance allows contract modifications related to reference rate reform to be considered events that do not require remeasurements or reassessments of previous accounting determinations at the modification date. These updates only apply to modifications made prior to December 31, 2022. No such modifications occurred in the period ending April 4, 2021. The Company expects to utilize this optional guidance but does not expect it to have a material impact on its consolidated financial statements. No other new accounting pronouncements issued or effective during the thirteen weeks ended April 4, 2021 had, or are expected to have, a material impact on the Company’s consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 04, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the valuation of derivative instruments, impairment analysis of goodwill, intangible assets and long-lived assets. The following tables present the fair value hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of April 4, 2021 and January 3, 2021: April 4, 2021 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Interest rate swap liability — 9,809 — 9,809 Total financial liabilities $ — $ 259,809 $ — $ 259,809 January 3, 2021 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Interest rate swap liability — 11,451 — 11,451 Total financial liabilities $ — $ 261,451 $ — $ 261,451 The Company’s interest rate swaps are considered Level 2 in the hierarchy and are valued using an income approach. Expected future cash flows are converted to a present value amount based on market expectations of the yield curve on floating interest rates, which is readily available on public markets. The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill impairment evaluation as described above is based upon Level 3 inputs. The weighted average cost of capital is estimated using information from comparable companies and management’s judgment related to the risk associated with the operations of the stores. Cash, cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and accrued salaries and benefits approximate fair value because of the short maturity of those instruments. Based on comparable open market transactions, the fair value of the long-term debt approximated carrying value as of April 4, 2021 and January 3, 2021.

Long-Term Debt and Finance Leas

Long-Term Debt and Finance Lease Liabilities	3 Months Ended
	Apr. 04, 2021
Long Term Debt And Finance Lease Liabilities [Abstract]
Long-Term Debt and Finance Lease Liabilities	4. Long-Term Debt and Finance Lease Liabilities A summary of long-term debt and finance lease liabilities is as follows: As of Facility Maturity Interest Rate April 4, 2021 January 3, 2021 Senior secured debt $700.0 million Credit Agreement March 27, 2023 Variable $ 250,000 $ 250,000 Finance lease liabilities Various n/a 10,287 10,459 Long-term debt and finance lease liabilities $ 260,287 $ 260,459 Senior Secured Revolving Credit Facility The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under an amended and restated credit agreement entered into on March 27, 2018 (the “Amended and Restated Credit Agreement”) to amend and restate the Company’s former’s senior secured credit facility, dated April 17, 2015 (the “Former Credit Facility”). The Amended and Restated Credit Agreement provides for a revolving credit facility with an initial aggregate commitment of $700.0 million, an increase from $450.0 million from the Former Credit Facility, which may be increased from time to time pursuant to an expansion feature set forth in the Amended and Restated Credit Agreement. The Company capitalized debt issuance costs of $2.1 million related to the Amended and Restated Credit Agreement which combined with the remaining $0.7 million debt issuance costs for the Former Credit Facility, are being amortized on a straight-line basis to interest expense over the five-year The Amended and Restated Credit Agreement also provides for a letter of credit sub-facility and a $15.0 million swingline facility. Letters of credit issued under the Amended and Restated Credit Agreement reduce its borrowing capacity. Letters of credit totaling $38.8 million have been issued as of April 4, 2021, primarily to support the Company’s insurance programs. On March 6, 2019, Intermediate Holdings entered into an amendment to the Amended and Restated Credit Agreement intended to align the treatment of certain lease accounting terms with the Company’s adoption of ASC 842. This amendment had no impact on borrowing capacity, interest rate, or maturity. Guarantees Obligations under the Amended and Restated Credit Agreement are guaranteed by the Company and all of its current and future wholly-owned material domestic subsidiaries (other than the borrower), and are secured by first-priority security interests in substantially all of the assets of the Company and its subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings. Interest and Fees Loans under the Amended and Restated Credit Agreement initially bore interest at LIBOR plus 1.50% per annum or prime plus 0.50%. The interest rate margins are subject to adjustment pursuant to a pricing grid based on the Company’s total net leverage ratio, as set forth in the Amended and Restated Credit Agreement. Under the terms of the Amended and Restated Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the commitments between 0.15% to 0.30% per annum, also pursuant to a pricing grid based on the Company’s total net leverage ratio. As of April 4, 2021, loans under the Amended and Restated Credit Agreement bore interest at LIBOR plus 1.25% per annum or prime plus 0.25%. The interest rate on 100% of outstanding debt under the Amended and Restated Credit Agreement is fixed, reflecting the effects of floating to fixed interest rate swaps (see Note 9, “Derivative Financial Instruments”). As of April 4, 2021, Payments and Borrowings The Amended and Restated Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on March 27, 2023, subject to extensions as set forth therein. The Company may prepay loans and permanently reduce commitments under the Amended and Restated Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except LIBOR breakage costs, if applicable). During the thirteen weeks ended April 4, 2021, the Company made no additional borrowings or principal payments, resulting in total outstanding debt under the Amended and Restated Credit Agreement of $250.0 million as of April 4, 2021. During fiscal year 2020, the Company made no additional borrowings and made a total of $288.0 million of principal payments, resulting in total outstanding debt under the Amended and Restated Credit Agreement of $250.0 million at January 3, 2021. Covenants The Amended and Restated Credit Agreement contains financial, affirmative and negative covenants. The negative covenants include, among other things, limitations on the Company’s ability to: • incur additional indebtedness; • grant additional liens; • enter into sale-leaseback transactions; • make loans or investments; • merge, consolidate or enter into acquisitions; • pay dividends or distributions; • enter into transactions with affiliates; • enter into new lines of business; • modify the terms of debt or other material agreements; and • change its fiscal year. Each of these covenants is subject to customary and other agreed-upon exceptions. In addition, the Amended and Restated Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.25 to 1.00 and minimum interest coverage ratio not to be less than 1.75 to 1.00. Each of these covenants is tested on the last day of each fiscal quarter. The Company was in compliance with all applicable covenants under the Amended and Restated Credit Agreement as of April 4, 2021.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 04, 2021
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The Company’s effective tax rate decreased to 24.7% for the thirteen weeks ended April 4, 2021, compared to 25.2% for the thirteen weeks ended March 29, 2020. The decrease in the effective tax rate was primarily due to an increase in enhanced charitable contributions and a benefit for share-based payment awards in the current year period, partially offset by a decrease in federal tax credits. The income tax effect resulting from excess tax detriments/(benefits) of equity-based compensation were ($0.1) million and $0.5 million for the thirteen weeks ended April 4, 2021 and March 29, 2020, respectively. The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate. The Company’s U.S. federal income tax return for the fiscal year ended December 31, 2017 is currently under examination by the Internal Revenue Service.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 04, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary contingencies are associated with self-insurance obligations and litigation matters. Self-insurance liabilities require significant judgment and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. “Phishing” Scam Actions In April 2016, four complaints were filed, two in the federal courts of California, one in the Superior Court of California and one in the federal court in the District of Colorado, each on behalf of a purported class of the Company’s current and former team members whose personally identifiable information (“PII”) was inadvertently disclosed to an unauthorized third party that perpetrated an email “phishing” scam against one of the Company’s team members. The complaints alleged the Company failed to properly safeguard the PII in accordance with applicable law. The complaints sought damages on behalf of the purported class in unspecified amounts, attorneys’ fees and litigation expenses. On March 1, 2019, a number of individual plaintiffs filed arbitration demands. On May 15, 2019, certain other plaintiffs filed a second amended class action complaint in the District of Arizona, alleging that certain subclasses of team members are not subject to the Company’s arbitration agreement and attempted to pursue those team members’ claims in federal court. In late August 2019, the Company reached an agreement in principle to settle the majority of these claims, which were funded in the fourth quarter of 2019. Primary funding for the settlement came from the Company’s cyber insurance policy, and the settlement did not have a material impact on the consolidated financial statements. Following the group settlement, three (3) individual claimants planned to proceed with arbitration of their claims. The three individual arbitrations were settled in late June and early July 2020, with immaterial settlement amounts fully funded by the Company’s cyber insurance policy. Proposition 65 Coffee Action On April 13, 2010, an organization named Council for Education and Research on Toxics (“CERT”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against nearly 80 defendants who manufacture, package, distribute or sell brewed coffee, including the Company. CERT alleged that the defendants failed to provide warnings for their coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Proposition 65. CERT seeks equitable relief, i ncluding providing warnings to consumers of coffee products, as well as civil penalties. The Company, as part of a joint defense group, asserted multiple defenses against the lawsuit. On May 7, 2018, the trial court issued a ruling adverse to defendants on these defenses to liability. On October 1, 2019, before the court tried damages, remedies and attorneys' fees, California’s Office of Environmental Health Hazard Assessment adopted a regulation that exempted “Exposures to listed chemicals in coffee created by and inherent in the processes of roasting coffee beans or brewing coffee” from Proposition 65’s warning requirement. On August 25, 2020, the court granted the defense motion for summary judgment based on the regulation, and the case was dismissed. On November 20, 2020, CERT filed a notice of appeal to appeal the ruling on the defense motion for summary judgment. The case is currently being briefed, with a decision expected in 2022. At this stage of the proceedings, the Company is unable to predict or reasonably estimate any potential loss or effect on the Company or its operations. Accordingly, no loss contingency was recorded for this matter.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Apr. 04, 2021
Equity [Abstract]
Stockholders' Equity	7. Stockholders’ Equity Share Repurchases On March 3, 2021, the Company’s board of directors authorized a new $300 million share repurchase program for its common stock. Effective date Expiration date Amount authorized Cost of repurchases Authorization available February 20, 2018 December 31, 2019 $ 350,000 $ 308,017 $ — March 3, 2021 March 3, 2024 $ 300,000 $ 3,209 $ 296,791 The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time through March 3, 2024, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended April 4, 2021 March 29, 2020 Number of common shares acquired 129,968 — Average price per common share acquired $ 24.69 $ — Total cost of common shares acquired $ 3,209 $ — Shares purchased under the Company’s repurchase programs were subsequently retired. Subsequent to April 4, 2021 and through May 6, 2021, we repurchased an additional 75,000 shares of common stock for $1.9 million.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Apr. 04, 2021
Earnings Per Share [Abstract]
Net Income Per Share	8. Net Income Per Share The computation of net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options, assumed vesting of restricted stock units (“RSUs”), assumed vesting of performance stock awards (“PSAs”), and assumed vesting of restricted stock awards (“RSAs”). A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Thirteen weeks ended April 4, 2021 March 29, 2020 Basic net income per share: Net income $ 83,048 $ 91,810 Weighted average shares outstanding 118,044 117,545 Basic net income per share $ 0.70 $ 0.78 Diluted net income per share: Net income $ 83,048 $ 91,810 Weighted average shares outstanding - basic 118,044 117,545 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 139 — RSUs 404 144 RSAs — 35 PSAs 20 24 Weighted average shares and equivalent shares outstanding 118,607 117,748 Diluted net income per share $ 0.70 $ 0.78 For the thirteen weeks ended April 4, 2021, the Company had 0.6 million options, 0.4 million RSUs, and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the thirteen weeks ended March 29, 2020, the Company had 1.6 million options and 0.4 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Apr. 04, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	9. Derivative Financial Instruments The Company entered into an interest rate swap agreement in December 2017 to manage its cash flow associated with variable interest rates. This forward contract has been designated and qualifies as a cash flow hedge, and its change in fair value is recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurs. The forward contract initially consisted of five cash flow hedges, of which two were outstanding at April 4, 2021. To qualify as a hedge, the Company needs to formally document, designate and assess the effectiveness of the transactions that receive hedge accounting. The notional dollar amount of the two outstanding swaps was $250.0 The counterparties to these derivative financial instruments are major financial institutions. The Company evaluates the credit ratings of the financial institutions and believes that credit risk is at an acceptable level. The following table summarizes the fair value of the Company’s derivative instruments designated as hedging instruments: As of April 4, 2021 As of January 3, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Accrued liabilities $ 4,288 Accrued liabilities $ 5,695 Interest rate swaps Other long-term liabilities 5,521 Other long-term liabilities 5,756 The gain or loss on these derivative instruments is recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to interest expense, net on the consolidated statements of income. The following table summarizes these losses (gains) classified on the consolidated statements of income: Thirteen weeks ended April 4, 2021 March 29, 2020 Consolidated Statements of Income Classification Interest expense (income), net $ 1,440 $ 393

Comprehensive Income

Comprehensive Income	3 Months Ended
	Apr. 04, 2021
Equity [Abstract]
Comprehensive Income	10. Comprehensive Income The following table presents the changes in accumulated other comprehensive income (loss) for the thirteen weeks ended March 29, 2020 and April 4, 2021. Cash Flow Hedges Balance at December 29, 2019 $ (4,682 ) Other comprehensive income (loss), net of tax Unrealized losses on cash flow hedging activities, net of income tax of ($1,781) (5,148 ) Reclassification of net losses on cash flow hedges to net income, net of income tax of ($101) (292 ) Total other comprehensive income (loss) (5,440 ) Balance at March 29, 2020 $ (10,122 ) Balance at January 3, 2021 $ (8,474 ) Other comprehensive income (loss), net of tax Unrealized gains on cash flow hedging activities, net of income tax of $800 2,314 Reclassification of net losses on cash flow hedges to net income, net of income tax of ($370) (1,070 ) Total other comprehensive income (loss) 1,244 Balance at April 4, 2021 $ (7,230 ) Amounts reclassified from accumulated other comprehensive income (loss) are included within interest expense, net on the consolidated statements of income.

Segments

Segments	3 Months Ended
	Apr. 04, 2021
Segment Reporting [Abstract]
Segments	11. Segments The Company has one reportable and one operating segment, healthy grocery stores. In accordance with ASC 606, the following table represents a disaggregation of revenue for the thirteen weeks ended April 4, 2021 and March 29, 2020. Thirteen weeks ended April 4, 2021 March 29, 2020 Perishables $ 910,968 57.8 % $ 912,640 55.4 % Non-Perishables 664,479 42.2 % 733,899 44.6 % Net Sales $ 1,575,447 100.0 % $ 1,646,539 100.0 % The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Apr. 04, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Compensation	12. Share-Based Compensation 2013 Incentive Plan The Company’s board of directors adopted, and its equity holders approved, the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”). The 2013 Incentive Plan became effective July 31, 2013 in connection with the Company’s initial public offering. The 2013 Incentive Plan serves as the umbrella plan for the Company’s share-based and cash-based incentive compensation programs for its directors, officers and other team members. Awards granted under these plans include RSUs, PSAs, and RSAs. On May 1, 2015, the Company’s stockholders approved the material terms of the performance goals under the 2013 Incentive Plan for purposes of Section 162(m) of the Internal Revenue Code as then in effect. Awards Granted During the thirteen weeks ended April 4, 2021, the Company granted the following share-based compensation awards under the 2013 Incentive Plan: Grant Date RSUs PSAs Options March 16, 2021 356,503 178,780 404,016 Weighted-average grant date fair value $ 24.42 $ 24.42 $ 7.65 Weighted-average exercise price — — $ 24.42 The aggregate number of shares of common stock that may be issued to team members and directors under the 2013 Incentive Plan may not exceed 10,089,072. Shares subject to awards granted under the 2013 Incentive Plan which are subsequently forfeited, expire unexercised or are otherwise not issued will not be treated as having been issued for purposes of the share limitation. As of April 4, 2021, there were 3,040,142 Stock Options The Company uses the Black-Scholes option pricing model to estimate the fair value of options at grant date. Options vest in accordance with the terms set forth in the grant letter. Time-based options granted prior to fiscal year 2016 generally vested ratably over a period of 12 quarters (three years), and time-based options granted after 2016 vest annually over a period of three years. RSUs The fair value of RSUs is based on the closing price of the Company’s common stock on the grant date. RSUs generally vest annually over a period of two or three years from the grant date. PSAs PSAs granted in 2017 were subject to the Company achieving certain earnings per share performance targets during fiscal year 2017. The criteria was based on a range of performance targets in which grantees could earn between 10% and 150% of the base number of awards granted. The performance conditions with respect to fiscal year 2017 earnings per share were deemed to have been met, and the PSAs vested 50% on the second anniversary of the grant date (March 2019) and vested 50% on the third anniversary of the grant date (March 2020). There were no outstanding 2017 PSAs as of April 4, 2021. PSAs granted in 2018 were subject to the Company achieving certain earnings before interest and taxes (“EBIT”) performance targets for the 2020 fiscal year. The criteria was based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. The performance conditions with respect to fiscal year 2020 EBIT were deemed to have been met, and the PSAs vested at the maximum pay out level on the third anniversary of the grant date (March 2021). During the thirteen weeks ended April 4, 2021, 31,544 of the 2018 PSAs vested. There were no outstanding 2018 PSAs as of April 4, 2021. PSAs granted in 2019 are subject to the Company achieving certain EBIT performance targets for the 2021 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2022). PSAs granted in 2020 are subject to the Company achieving certain earnings before taxes (“EBT”) performance targets for the 2022 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2023). PSAs granted in 2021 are subject to the Company achieving certain EBIT performance targets for the 2023 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2024). RSAs The fair value of RSAs is based on the closing price of the Company’s common stock on the grant date. Outstanding RSA grants vest annually over three years. There were no outstanding RSAs as of April 4, 2021. Share-based Compensation Expense The Company presents share-based compensation expense in selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Thirteen weeks ended April 4, 2021 March 29, 2020 Share-based compensation expense before income taxes $ 3,613 $ 2,400 Income tax benefit (623 ) (558 ) Net share-based compensation expense $ 2,990 $ 1,842 The following share-based awards were outstanding as of April 4, 2021 and March 29, 2020: As of April 4, 2021 March 29, 2020 (in thousands) Options Vested 314 470 Unvested 1,304 1,093 RSUs 944 973 PSAs 478 353 As of April 4, 2021, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards was as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 6,508 2.2 RSUs 17,120 1.9 PSAs 10,014 2.1 Total unrecognized compensation expense at April 4, 2021 $ 33,642 During the thirteen weeks ended April 4, 2021 and March 29, 2020, the Company received $0.9 million and $0.0 million, respectively, in cash proceeds from the exercise of options.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 04, 2021
Accounting Policies [Abstract]
Fiscal Years	The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending January 2, 2022 (“fiscal year 2021”) is a 52-week year and fiscal year 2020 was a 53-week year. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years.
Revenue Recognition	Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. Balance at January 3, 2021 Gift Cards Issued During Current Period but Not Redeemed (a) Revenue Recognized from Beginning Liability Balance at April 4, 2021 Gift card liability, net $ 15,888 $ 8,120 $ (4,984 ) $ 19,024 (a) net of estimated breakage The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, or any remaining performance obligations as of April 4, 2021.
Restricted Cash	Restricted Cash Restricted cash relates to defined benefit plan forfeitures as well as healthcare, general liability and workers’ compensation restricted funds of approximately $1.8 million and $1.7 million as of April 4, 2021 and January 3, 2021, respectively. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Income Taxes – Accounting for Income Taxes In December 2019, the FASB issued ASU no. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” Among other things, the amendment removes certain exceptions for periods with operating losses, and reduces the complexity surrounding hybrid tax regimes, step up in tax basis of goodwill in conjunction with a business combination, and timing of enacting changes in tax laws during interim periods. The Company adopted this standard effective January 4, 2021 on a prospective basis. There was no impact on the Company’s consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020 and January 2021, the FASB issued ASU no. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU 2021-01, “Reference Rate Reform (Topic 848): Scope,” respectively. The amendments in these updates provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. Generally, the guidance allows contract modifications related to reference rate reform to be considered events that do not require remeasurements or reassessments of previous accounting determinations at the modification date. These updates only apply to modifications made prior to December 31, 2022. No such modifications occurred in the period ending April 4, 2021. The Company expects to utilize this optional guidance but does not expect it to have a material impact on its consolidated financial statements. No other new accounting pronouncements issued or effective during the thirteen weeks ended April 4, 2021 had, or are expected to have, a material impact on the Company’s consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 04, 2021
Gift Card Revenue [Member]
Schedule of Estimated Breakage Revenue Recognized	Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. Balance at January 3, 2021 Gift Cards Issued During Current Period but Not Redeemed (a) Revenue Recognized from Beginning Liability Balance at April 4, 2021 Gift card liability, net $ 15,888 $ 8,120 $ (4,984 ) $ 19,024 (a) net of estimated breakage

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 04, 2021
Fair Value Disclosures [Abstract]
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis	The following tables present the fair value hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of April 4, 2021 and January 3, 2021: April 4, 2021 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Interest rate swap liability — 9,809 — 9,809 Total financial liabilities $ — $ 259,809 $ — $ 259,809 January 3, 2021 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Interest rate swap liability — 11,451 — 11,451 Total financial liabilities $ — $ 261,451 $ — $ 261,451

Long-Term Debt and Finance Le_2

Long-Term Debt and Finance Lease Liabilities (Tables)	3 Months Ended
	Apr. 04, 2021
Long Term Debt And Finance Lease Liabilities [Abstract]
Summary of Long-Term Debt and Finance Lease Liabilities	A summary of long-term debt and finance lease liabilities is as follows: As of Facility Maturity Interest Rate April 4, 2021 January 3, 2021 Senior secured debt $700.0 million Credit Agreement March 27, 2023 Variable $ 250,000 $ 250,000 Finance lease liabilities Various n/a 10,287 10,459 Long-term debt and finance lease liabilities $ 260,287 $ 260,459

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Apr. 04, 2021
Equity [Abstract]
Schedule of Common Stock Share Repurchase Programs Authorized by Board of Directors from Time to Time and Related Repurchase Activity and Available Authorized	The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of April 4, 2021. Effective date Expiration date Amount authorized Cost of repurchases Authorization available February 20, 2018 December 31, 2019 $ 350,000 $ 308,017 $ — March 3, 2021 March 3, 2024 $ 300,000 $ 3,209 $ 296,791
Schedule of Share Repurchase Activity Under Share Repurchase Programs	Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended April 4, 2021 March 29, 2020 Number of common shares acquired 129,968 — Average price per common share acquired $ 24.69 $ — Total cost of common shares acquired $ 3,209 $ —

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Apr. 04, 2021
Earnings Per Share [Abstract]
Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share	A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Thirteen weeks ended April 4, 2021 March 29, 2020 Basic net income per share: Net income $ 83,048 $ 91,810 Weighted average shares outstanding 118,044 117,545 Basic net income per share $ 0.70 $ 0.78 Diluted net income per share: Net income $ 83,048 $ 91,810 Weighted average shares outstanding - basic 118,044 117,545 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 139 — RSUs 404 144 RSAs — 35 PSAs 20 24 Weighted average shares and equivalent shares outstanding 118,607 117,748 Diluted net income per share $ 0.70 $ 0.78

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Apr. 04, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Summary of Fair Value of Derivative Instruments	The following table summarizes the fair value of the Company’s derivative instruments designated as hedging instruments: As of April 4, 2021 As of January 3, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Accrued liabilities $ 4,288 Accrued liabilities $ 5,695 Interest rate swaps Other long-term liabilities 5,521 Other long-term liabilities 5,756
Summary of Losses (Gains) of Derivative Instruments	The gain or loss on these derivative instruments is recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to interest expense, net on the consolidated statements of income. The following table summarizes these losses (gains) classified on the consolidated statements of income: Thirteen weeks ended April 4, 2021 March 29, 2020 Consolidated Statements of Income Classification Interest expense (income), net $ 1,440 $ 393

Comprehensive Income (Tables)

Comprehensive Income (Tables)	3 Months Ended
	Apr. 04, 2021
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)	The following table presents the changes in accumulated other comprehensive income (loss) for the thirteen weeks ended March 29, 2020 and April 4, 2021. Cash Flow Hedges Balance at December 29, 2019 $ (4,682 ) Other comprehensive income (loss), net of tax Unrealized losses on cash flow hedging activities, net of income tax of ($1,781) (5,148 ) Reclassification of net losses on cash flow hedges to net income, net of income tax of ($101) (292 ) Total other comprehensive income (loss) (5,440 ) Balance at March 29, 2020 $ (10,122 ) Balance at January 3, 2021 $ (8,474 ) Other comprehensive income (loss), net of tax Unrealized gains on cash flow hedging activities, net of income tax of $800 2,314 Reclassification of net losses on cash flow hedges to net income, net of income tax of ($370) (1,070 ) Total other comprehensive income (loss) 1,244 Balance at April 4, 2021 $ (7,230 )

Segments (Tables)

Segments (Tables)	3 Months Ended
	Apr. 04, 2021
Segment Reporting [Abstract]
Summary of Disaggregation of Revenue	In accordance with ASC 606, the following table represents a disaggregation of revenue for the thirteen weeks ended April 4, 2021 and March 29, 2020. Thirteen weeks ended April 4, 2021 March 29, 2020 Perishables $ 910,968 57.8 % $ 912,640 55.4 % Non-Perishables 664,479 42.2 % 733,899 44.6 % Net Sales $ 1,575,447 100.0 % $ 1,646,539 100.0 %

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Apr. 04, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Share-Based Compensation Awards Granted	During the thirteen weeks ended April 4, 2021, the Company granted the following share-based compensation awards under the 2013 Incentive Plan: Grant Date RSUs PSAs Options March 16, 2021 356,503 178,780 404,016 Weighted-average grant date fair value $ 24.42 $ 24.42 $ 7.65 Weighted-average exercise price — — $ 24.42
Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses	The Company presents share-based compensation expense in selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Thirteen weeks ended April 4, 2021 March 29, 2020 Share-based compensation expense before income taxes $ 3,613 $ 2,400 Income tax benefit (623 ) (558 ) Net share-based compensation expense $ 2,990 $ 1,842
Summary of Outstanding Share-Based Awards	The following share-based awards were outstanding as of April 4, 2021 and March 29, 2020: As of April 4, 2021 March 29, 2020 (in thousands) Options Vested 314 470 Unvested 1,304 1,093 RSUs 944 973 PSAs 478 353
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards	As of April 4, 2021, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards was as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 6,508 2.2 RSUs 17,120 1.9 PSAs 10,014 2.1 Total unrecognized compensation expense at April 4, 2021 $ 33,642

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	Apr. 04, 2021StoreState
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Operating stores | Store	362
Number of states entity operates | State	23

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Schedule of Estimated Breakage Revenue Recognized (Detail) - Gift Card Revenue [Member] $ in Thousands	3 Months Ended
	Apr. 04, 2021USD ($)
Disaggregation Of Revenue [Line Items]
Net gift card liability beginning balance	$ 15,888
Gift cards issued during current period but not redeemed	8,120	[1]
Revenue recognized from beginning liability	(4,984)
Net gift card liability ending balance	$ 19,024
[1]	net of estimated breakage

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
ASU no. 2019-12 [Member]
Summary Of Significant Accounting Policy [Line Items]
Change in accounting principle, ASU, adopted	true
Change in accounting principle, ASU, Adoption Date	Jan. 4, 2021
Change in accounting principle, ASU, immaterial effect	true
Prepaid Expenses and Other Current Assets [Member]
Summary Of Significant Accounting Policy [Line Items]
Restricted cash related to defined benefit plan forfeitures as well as healthcare, general liability and workers' compensation restricted funds	$ 1.8	$ 1.7

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	$ 250,000	$ 250,000
Interest rate swap liability	9,809	11,451
Total financial liabilities	259,809	261,451
Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	250,000	250,000
Interest rate swap liability	9,809	11,451
Total financial liabilities	$ 259,809	$ 261,451

Long-Term Debt and Finance Le_3

Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Jan. 03, 2021
Long Term Debt And Finance Lease Liabilities [Line Items]
Long-term finance lease liabilities	$ 10,287	$ 10,459
Long-term debt and finance lease liabilities	260,287	260,459
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Long-term debt	$ 250,000	$ 250,000
Debt instrument maturity	Mar. 27, 2023
Debt instrument, Interest Rate	Variable

Long-Term Debt and Finance Le_4

Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Parenthetical) (Detail)	Apr. 04, 2021USD ($)
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Debt instrument face amount	$ 700,000,000

Long-Term Debt and Finance Le_5

Long-Term Debt and Finance Lease Liabilities - Additional Information (Detail) - USD ($)	Mar. 27, 2018	Apr. 04, 2021	Jan. 03, 2021	Apr. 17, 2015
Amended and Restated Credit Agreement [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Fixed portion of outstanding debt percentage		100.00%
Participation fee		1.25%
Issuance fee		0.125%
Credit facility termination date		Mar. 27, 2023
Borrowings during the period		$ 0	$ 0
Principal payments on the Credit Facility		0	288,000,000
Borrowings under credit facilities		$ 250,000,000	$ 250,000,000
Net leverage ratio		325.00%
Interest coverage ratio		175.00%
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Letters of credit issued		$ 38,800,000
Line of credit interest rate terms		LIBOR plus 1.50% per annum or prime plus 0.50%. The interest rate margins are subject to adjustment pursuant to a pricing grid based on the Company’s total net leverage ratio, as set forth in the Amended and Restated Credit Agreement.
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | LIBOR [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Interest rate spread on base rate	1.50%	1.25%
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Prime Plus [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Interest rate spread on base rate	0.50%	0.25%
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Minimum [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility unused commitment fee percentage		0.15%
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Maximum [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility unused commitment fee percentage		0.30%
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Swingline Loan Sub-facility [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Debt instrument face amount		$ 15,000,000
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility maximum borrowing capacity				$ 450,000,000
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | Amended and Restated Credit Agreement [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Capitalized debt issuance costs				$ 700,000
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Debt instrument face amount		$ 700,000,000
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | Amended and Restated Credit Agreement [Member]
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility maximum borrowing capacity	$ 700,000,000
Capitalized debt issuance costs	$ 2,100,000
Interest expense term	5 years

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	24.70%	25.20%
Excess tax detriments/(benefits) of equity-based compensation	$ (0.1)	$ 0.5

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Apr. 13, 2010Defendant	Apr. 30, 2016ComplaintClaimant	Jul. 31, 2020Claimant
Other Commitments [Line Items]
Number of complaints filed		4
Number of individual claimants | Claimant		3
Number of individual arbitrations settled | Claimant			3
Federal Courts of California [Member]
Other Commitments [Line Items]
Number of complaints filed		2
Superior Court of California [Member]
Other Commitments [Line Items]
Number of complaints filed		1
Federal Court in District of Colorado [Member]
Other Commitments [Line Items]
Number of complaints filed		1
Superior Court of State of California and County of Los Angeles [Member]
Other Commitments [Line Items]
Number of defendants | Defendant	80

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended
	May 06, 2021	Apr. 04, 2021	Mar. 03, 2021
Equity Class Of Treasury Stock [Line Items]
Common stock repurchased during the period, shares	75,000
Common stock repurchased during the period, value	$ 1,900,000
March 3, 2021 Share Repurchase Program [Member]
Equity Class Of Treasury Stock [Line Items]
Shares authorized to be repurchased		$ 300,000,000	$ 300,000,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Common Stock Share Repurchase Programs Authorized by Board of Directors from Time to Time and Related Repurchase Activity and Available Authorized (Detail) - USD ($)	3 Months Ended
	Apr. 04, 2021	Mar. 03, 2021
Equity Class Of Treasury Stock [Line Items]
Cost of repurchases	$ 3,209,000
February 20, 2018 [Member]
Equity Class Of Treasury Stock [Line Items]
Effective date	Feb. 20, 2018
Expiration date	Dec. 31, 2019
Amount authorized	$ 350,000,000
Cost of repurchases	$ 308,017,000
March 3, 2021 [Member]
Equity Class Of Treasury Stock [Line Items]
Effective date	Mar. 3, 2021
Expiration date	Mar. 3, 2024
Amount authorized	$ 300,000,000	$ 300,000,000
Cost of repurchases	3,209,000
Authorization available	$ 296,791,000

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 04, 2021USD ($)$ / sharesshares
Equity [Abstract]
Number of common shares acquired | shares	129,968
Average price per common share acquired | $ / shares	$ 24.69
Total cost of common shares acquired | $	$ 3,209

Net Income Per Share - Summary

Net Income Per Share - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Basic net income per share:
Net income	$ 83,048	$ 91,810
Weighted average shares outstanding - basic	118,044	117,545
Basic net income per share	$ 0.70	$ 0.78
Diluted net income per share:
Net income	$ 83,048	$ 91,810
Weighted average shares outstanding - basic	118,044	117,545
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares	139
Weighted average shares and equivalent shares outstanding	118,607	117,748
Diluted net income per share	$ 0.70	$ 0.78
RSUs [Member]
Dilutive effect of share-based awards:
Dilutive effect	404	144
RSAs [Member]
Dilutive effect of share-based awards:
Dilutive effect		35
PSAs [Member]
Dilutive effect of share-based awards:
Dilutive effect	20	24

Net Income Per Share - Addition

Net Income Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Stock option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0.6	1.6
RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0.4
PSAs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0.5	0.4

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Detail)	3 Months Ended
	Apr. 04, 2021USD ($)Swap	Jan. 03, 2021USD ($)Swap	Dec. 31, 2017Hedge
Derivative [Line Items]
Derivative, cash flow swaps length period	1 year
Cash flow swaps mature annually, starting year	2021
Cash flow swaps mature annually, ending year	2022
Cash Flow Hedges [Member]
Derivative [Line Items]
Interest rate swaps hedge ineffectiveness	0.00%
Swaps [Member]
Derivative [Line Items]
Derivative, notional amount of outstanding swaps | $	$ 250,000,000	$ 250,000,000
Forward Contract [Member]
Derivative [Line Items]
Derivative, number of cash flow hedges | Hedge			5
Number of outstanding swaps | Swap	2	2

Derivative Financial Instrume_4

Derivative Financial Instruments - Summary of Fair Value of Derivative Instruments (Detail) - Derivatives Designated as Hedging Instruments [Member] - Swaps [Member] - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Accrued Liabilities [Member]
Derivatives Fair Value [Line Items]
Liability Derivatives, Fair Value	$ 4,288	$ 5,695
Other Long-term Liabilities [Member]
Derivatives Fair Value [Line Items]
Liability Derivatives, Fair Value	$ 5,521	$ 5,756

Derivative Financial Instrume_5

Derivative Financial Instruments - Summary of Losses (Gains) of Derivative Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Interest Expense (Income), Net [Member]
Derivative Instruments Gain Loss [Line Items]
Loss / (Gain) on Derivative Instruments,net of tax	$ 1,440	$ 393

Comprehensive Income - Changes

Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 881,293	$ 581,952
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on cash flow hedging activities, net of income tax	2,314	(5,148)
Reclassification of net losses on cash flow hedges to net income, net of income tax	(1,070)	(292)
Total other comprehensive income (loss)	1,244	(5,440)
Ending Balance	966,870	670,722
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(8,474)	(4,682)
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on cash flow hedging activities, net of income tax	2,314	(5,148)
Reclassification of net losses on cash flow hedges to net income, net of income tax	(1,070)	(292)
Total other comprehensive income (loss)	1,244	(5,440)
Ending Balance	$ (7,230)	$ (10,122)

Comprehensive Income - Change_2

Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Accumulated Other Comprehensive Income Loss [Line Items]
Income tax expenses (Benefit) on cash flow hedging activities	$ 800	$ (1,781)
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges	(370)	(101)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Income tax expenses (Benefit) on cash flow hedging activities	800	(1,781)
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges	$ (370)	$ (101)

Segments - Additional Informati

Segments - Additional Information (Detail)	3 Months Ended
	Apr. 04, 2021Segment
Segment Reporting [Abstract]
Number of reportable segment	1
Number of operating segment	1

Segments - Summary of Disaggreg

Segments - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Disaggregation Of Revenue [Line Items]
Net Sales, amount	$ 1,575,447	$ 1,646,539
Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Net Sales, percentage	100.00%	100.00%
Perishables [Member]
Disaggregation Of Revenue [Line Items]
Net Sales, amount	$ 910,968	$ 912,640
Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Net Sales, percentage	57.80%	55.40%
Non-Perishables [Member]
Disaggregation Of Revenue [Line Items]
Net Sales, amount	$ 664,479	$ 733,899
Non-Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Net Sales, percentage	42.20%	44.60%

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Detail) - 2013 Incentive Plan [Member]	3 Months Ended
	Apr. 04, 2021$ / sharesshares
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value	$ 24.42
PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value	24.42
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value	7.65
Weighted-average exercise price	$ 24.42
March 16, 2021 [Member] | RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock | shares	356,503
March 16, 2021 [Member] | PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock | shares	178,780
March 16, 2021 [Member] | Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock | shares	404,016

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Apr. 04, 2021	Mar. 29, 2020	Jan. 03, 2021	Dec. 29, 2019	Jan. 01, 2017	Jan. 03, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options			$ 881	$ 0
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, outstanding			944,000	973,000
RSUs [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
RSUs [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, outstanding			478,000	353,000
PSAs [Member] | March 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards description			The criteria was based on a range of performance targets in which grantees could earn between 10% and 150% of the base number of awards granted.
Number of shares, outstanding			0
PSAs [Member] | March 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards description			The criteria was based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted.
Awards vested			31,544
Number of shares, outstanding			0
PSAs [Member] | 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards description			The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted.
PSAs [Member] | 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards description			The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted.
PSAs [Member] | 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards description			The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted.
PSAs [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	0.00%		0.00%		0.00%	0.00%
PSAs [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	200.00%		200.00%		200.00%	200.00%
RSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Number of shares, outstanding			0
Second Anniversary [Member] | Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period								3 years
Second Anniversary [Member] | PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%
Third Anniversary [Member] | Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							3 years
Third Anniversary [Member] | PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%
Option One | PSAs [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted		10.00%
Option One | PSAs [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted		150.00%
2013 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under plan			10,089,072
Stock awards outstanding			3,040,142
Remaining shares available for issuance			3,570,436

Share-Based Compensation - Su_2

Share-Based Compensation - Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation expense before income taxes	$ 3,613	$ 2,400
Income tax benefit	(623)	(558)
Net share-based compensation expense	$ 2,990	$ 1,842

Share-Based Compensation - Su_3

Share-Based Compensation - Summary of Outstanding Share-Based Awards (Detail) - shares shares in Thousands	Apr. 04, 2021	Mar. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested options, outstanding	314	470
Unvested options, outstanding	1,304	1,093
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based awards other than options, outstanding	944	973
PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based awards other than options, outstanding	478	353

Share-Based Compensation - Su_4

Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Detail) $ in Thousands	3 Months Ended
	Apr. 04, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense at April 4, 2021	$ 33,642
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to outstanding options	$ 6,508
Remaining weighted average recognition period	2 years 2 months 12 days
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to outstanding equity-based awards other than options	$ 17,120
Remaining weighted average recognition period	1 year 10 months 24 days
PSAs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to outstanding equity-based awards other than options	$ 10,014
Remaining weighted average recognition period	2 years 1 month 6 days