Sprouts Farmers Market (SFM) 10-Q 1 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-36029
Entity Registrant Name	Sprouts Farmers Market, Inc.
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
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	SFM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		100,477,263
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001575515
Current Fiscal Year End Date	--12-29

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 312,276	$ 201,794
Accounts receivable, net	36,306	30,313
Inventories	316,202	323,198
Prepaid expenses and other current assets	32,710	48,467
Total current assets	697,494	603,772
Property and equipment, net of accumulated depreciation	809,481	798,707
Operating lease assets, net	1,363,341	1,322,854
Intangible assets	208,060	208,060
Goodwill	381,750	381,741
Other assets	12,289	12,294
Total assets	3,472,415	3,327,428
Current liabilities:
Accounts payable	201,434	179,927
Accrued liabilities	190,217	164,887
Accrued salaries and benefits	57,084	74,752
Accrued income tax	8,869	0
Current portion of operating lease liabilities	127,255	126,271
Current portion of finance lease liabilities	1,089	1,032
Total current liabilities	585,948	546,869
Long-term operating lease liabilities	1,441,068	1,399,676
Long-term debt and finance lease liabilities	133,375	133,685
Other long-term liabilities	37,557	36,270
Deferred income tax liability	63,440	62,381
Total liabilities	2,261,388	2,178,881
Commitments and contingencies
Stockholders’ equity:
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized, 100,802,152 shares issued and outstanding, March 31, 2024; 101,211,984 shares issued and outstanding, December 31, 2023	101	101
Additional paid-in capital	783,593	774,834
Retained earnings	427,333	373,612
Total stockholders’ equity	1,211,027	1,148,547
Total liabilities and stockholders’ equity	$ 3,472,415	$ 3,327,428

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Undesignated preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Undesignated preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Undesignated preferred stock, shares issued (in shares)	0	0
Undesignated preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	100,802,152	101,211,984
Common stock, shares outstanding (in shares)	100,802,152	101,211,984

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Income Statement [Abstract]
Net sales	$ 1,883,808	$ 1,733,310
Cost of sales	1,161,495	1,083,248
Gross profit	722,313	650,062
Selling, general and administrative expenses	539,771	486,195
Depreciation and amortization (exclusive of depreciation included in cost of sales)	32,232	34,068
Store closure and other costs, net	2,044	28,277
Income from operations	148,266	101,522
Interest expense, net	818	2,220
Income before income taxes	147,448	99,302
Income tax provision	33,348	23,142
Net income	$ 114,100	$ 76,160
Net income per share:
Basic (in dollars per share)	$ 1.13	$ 0.73
Diluted (in dollars per share)	$ 1.12	$ 0.73
Weighted average shares outstanding:
Basic (in shares)	101,071	103,827
Diluted (in shares)	102,024	104,876

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid In Capital	Retained Earnings
Beginning Balance (in shares) at Jan. 01, 2023		105,072,756
Beginning Balance at Jan. 01, 2023	$ 1,046,462	$ 105	$ 726,345	$ 320,012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	76,160			76,160
Issuance of shares under stock plans (in shares)		882,014
Issuance of shares under stock plans	$ 5,488	$ 1	5,487
Repurchase and retirement of common stock, including excise tax (in shares)	(3,038,411)	(3,038,411)
Repurchase and retirement of common stock, including excise tax	$ (99,171)	$ (3)		(99,168)
Share-based compensation	3,852		3,852
Issuance of shares for acquisition (in shares)		554,358
Issuance of shares for acquisition	18,139	$ 1	18,138
Ending Balance at Apr. 02, 2023	1,050,930	$ 104	753,822	297,004
Ending Balance (in shares) at Apr. 02, 2023		103,470,717
Beginning Balance (in shares) at Dec. 31, 2023		101,211,984
Beginning Balance at Dec. 31, 2023	1,148,547	$ 101	774,834	373,612
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	114,100			114,100
Issuance of shares under stock plans (in shares)		547,948
Issuance of shares under stock plans	$ 2,283	$ 1	2,282
Repurchase and retirement of common stock, including excise tax (in shares)	(957,780)	(957,780)
Repurchase and retirement of common stock, including excise tax	$ (60,380)	$ (1)		(60,379)
Share-based compensation	6,477		6,477
Issuance of shares for acquisition	0
Ending Balance at Mar. 31, 2024	$ 1,211,027	$ 101	$ 783,593	$ 427,333
Ending Balance (in shares) at Mar. 31, 2024		100,802,152

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Operating activities
Net income	$ 114,100	$ 76,160
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	34,522	34,912
Operating lease asset amortization	32,303	30,696
Impairment of assets	0	27,845
Share-based compensation	6,477	3,852
Deferred income taxes	1,072	(386)
Other non-cash items	496	14
Changes in operating assets and liabilities, net of effects from acquisition:
Accounts receivable	8,601	6,241
Inventories	6,996	5,400
Prepaid expenses and other current assets	14,691	9,528
Other assets	924	2,609
Accounts payable	28,899	27,006
Accrued liabilities	17,642	(2,024)
Accrued salaries and benefits	(17,667)	(13,712)
Accrued income tax	8,869	5,456
Operating lease liabilities	(36,580)	(33,956)
Other long-term liabilities	(1,650)	179
Cash flows from operating activities	219,695	179,820
Investing activities
Purchases of property and equipment	(51,241)	(47,044)
Payments for acquisition, net of cash acquired	0	(13,042)
Cash flows used in investing activities	(51,241)	(60,086)
Financing activities
Payments on revolving credit facilities	0	(25,000)
Payments on finance lease liabilities	(253)	(219)
Repurchase of common stock	(60,000)	(98,349)
Proceeds from exercise of stock options	2,283	5,488
Cash flows used in financing activities	(57,970)	(118,080)
Increase in cash, cash equivalents, and restricted cash	110,484	1,654
Cash, cash equivalents, and restricted cash at beginning of the period	203,870	295,192
Cash, cash equivalents, and restricted cash at the end of the period	314,354	296,846
Supplemental disclosure of cash flow information
Cash paid for interest	2,411	3,641
Cash refunded for income taxes	151	54
Supplemental disclosure of non-cash activities
Property and equipment in accounts payable and accrued liabilities	23,599	20,924
Issuance of shares for acquisition	0	18,139
Excise tax accrued on repurchase of common stock	2,146	822
Leased assets obtained in exchange for new operating lease liabilities	$ 72,791	$ 138,662

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, offers a unique specialty 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 March 31, 2024, the Company operated 414 stores in 23 states. For convenience, the “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and unless the context otherwise requires, its subsidiaries. The Company’s store operations are conducted by its subsidiaries. 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 December 31, 2023 (“fiscal year 2023”) included in the Company’s Annual Report on Form 10-K, filed on February 22, 2024. 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 December 29, 2024 (“fiscal year 2024”) and fiscal year 2023 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years (in which the fourth quarter has 14 weeks). All dollar amounts are in thousands, unless otherwise noted.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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. A summary of the activity and balances in the gift card liability, net is as follows: Thirteen weeks ended March 31, 2024 April 2, 2023 Beginning Balance $ 10,566 $ 10,906 Gift cards issued during the period but not redeemed (1) 1,166 1,222 Revenue recognized from beginning liability (2,532) (2,582) Ending Balance $ 9,200 $ 9,546 (1) net of estimated breakage The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. 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, any contract performance obligations, or any material costs to obtain or fulfill a contract as of March 31, 2024. Restricted Cash Restricted cash relates to the Company's defined benefit plan forfeitures and the Company's healthcare, general liability and workers’ compensation plan benefits of $2.1 million as of March 31, 2024 and December 31, 2023. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets. Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU no. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." The amendments in this update increase required disclosures about a public entity's reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM. The guidance will be effective for the Company for its fiscal year 2024 and for interim periods starting in the first quarter of its fiscal year 2025. Early adoption is permitted, and the guidance is required to be applied retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU no. 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures." The amendments in this update enhance a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance will be effective for the Company for its fiscal year 2025. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. No other new accounting pronouncements issued or effective during the thirteen weeks ended March 31, 2024 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
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	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 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 March 31, 2024 and December 31, 2023: March 31, 2024 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 125,000 $ — $ 125,000 Total financial liabilities $ — $ 125,000 $ — $ 125,000 December 31, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 125,000 $ — $ 125,000 Total financial liabilities $ — $ 125,000 $ — $ 125,000 The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill or long-lived asset impairment evaluation is based upon Level 3 inputs. When necessary, the Company uses third party market data and market participant assumptions to derive the fair value of its asset groupings, which primarily include right-of-use lease assets and property and equipment. 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 March 31, 2024 and December 31, 2023.

Long-Term Debt and Finance Leas

Long-Term Debt and Finance Lease Liabilities	3 Months Ended
	Mar. 31, 2024
Long Term Debt And Finance Lease Liabilities [Abstract]
Long-Term Debt and Finance Lease Liabilities	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 March 31, 2024 December 31, 2023 Senior secured debt $700.0 million Credit Agreement March 25, 2027 Variable $ 125,000 $ 125,000 Finance lease liabilities Various n/a 8,375 8,685 Long-term debt and finance lease liabilities $ 133,375 $ 133,685 Credit Agreement The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under a credit agreement entered into on March 25, 2022 (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the "Revolving Credit Facility") with an initial aggregate commitment of $700.0 million. Amounts outstanding under the Credit Agreement may be increased from time to time in accordance with an expansion feature set forth in the Credit Agreement. The Company capitalized debt issuance costs of $3.4 million related to the Credit Agreement, which, combined with the remaining $0.5 million debt issuance costs in respect of that certain amended and restated credit agreement entered into on March 27, 2018, by and among the Company, Intermediate Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (the “Former Credit Facility”), which remained outstanding as of the time of Intermediate Holdings’ entry into the Credit Agreement, were recorded to prepaid expenses and other current assets and other assets in the consolidated balance sheets and are being amortized on a straight-line basis to interest expense over the five-year term of the Credit Agreement. The Credit Agreement provides for a $70.0 million letter of credit sub-facility (the "Letter of Credit Sub-Facility") and a $50.0 million swingline facility. Letters of credit issued under the Credit Agreement reduce the capacity of Intermediate Holdings to borrow under the Revolving Credit Facility. Letters of credit totaling $21.3 million have been issued as of March 31, 2024 under the Letter of Credit Sub-Facility, primarily to support the Company’s insurance programs. Guarantees Obligations under the Credit Agreement are guaranteed by the Company and substantially all of its existing and future wholly-owned material domestic subsidiaries, and are secured by first-priority security interests in substantially all of the assets of the Company, Intermediate Holdings, and the subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings. Interest and Fees Loans under the Credit Agreement will initially bear interest, at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus a 0.10% SOFR adjustment and 1.00% per annum or base rate (with a floor of 0.00%) plus 0.00% per annum. The interest rate margins are subject to upward adjustments pursuant to a pricing grid based on the Company’s total net leverage ratio as set forth in the Credit Agreement and to upward or downward adjustments of up to 0.05% based upon the achievement of certain diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement. Under the terms of the Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the commitments, which commitment fee ranges between 0.10% to 0.225% per annum, pursuant to a pricing grid based on the Company’s total net leverage ratio. The commitment fees are subject to upward or downward adjustments of up to 0.01% based upon the achievement of certain diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement. As of March 31, 2024, loans outstanding under the Credit Agreement bore interest at Term SOFR (as defined in the Credit Agreement) plus a 0.10% SOFR adjustment and 0.95% per annum. As of March 31, 2024, outstanding letters of credit issued under the Credit Agreement were subject to a participation fee of 0.95% per annum and an issuance fee of 0.125% per annum. Payments and Borrowings The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on March 25, 2027, subject to extensions as set forth therein. The Company may prepay loans and permanently reduce commitments under the Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except SOFR breakage costs, if applicable). In connection with the execution of the Credit Agreement, the Company's obligations under the Former Credit Facility were prepaid and terminated. During the thirteen weeks ended March 31, 2024, the Company made no additional borrowings or principal payments, resulting in total outstanding debt under the Credit Agreement of $125.0 million as of March 31, 2024. During 2023, the Company made no additional borrowings and made principal payments of $125.0 million, resulting in total outstanding debt under the Credit Agreement of $125.0 million as of December 31, 2023. Covenants The 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 certain 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 Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.75 to 1.00, which ratio may be increased from time to time in connection with certain permitted acquisitions pursuant to conditions as set forth in the Credit Agreement, and a minimum interest coverage ratio not to be less than 3.00 to 1.00. Each of these covenants is tested as of the last day of each fiscal quarter. The Company was in compliance with all applicable covenants under the Credit Agreement as of March 31, 2024.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate decreased to 22.6% for the thirteen weeks ended March 31, 2024, compared to 23.3% for the thirteen weeks ended April 2, 2023. The decrease in the effective tax rate was primarily due to an increase in excess tax benefits associated with share-based payment awards. The income tax effect resulting from excess tax benefits of share-based payment awards was $4.5 million and $2.6 million for the thirteen weeks ended March 31, 2024 and April 2, 2023, 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.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions During the thirteen weeks ended March 31, 2024, the Company did not have any material related party transactions. On May 24, 2022, the Company appointed a new member to its board of directors who served as an executive officer of a company that is a supplier of nutrition bars and related products to the Company for resale. The director departed employment from this supplier on February 28, 2023. The cost of sales recognized from this supplier during the thirteen weeks ended April 2, 2023 was immaterial.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Share Repurchases On March 2, 2022, the Company's board of directors authorized a new $600 million share repurchase program for its common stock. This authorization replaced the Company's then-existing share repurchase authorization of $300 million that was due to expire on March 3, 2024, of which $99.8 million remained available upon its replacement. No further shares may be repurchased under the $300 million authorization. The following table outlines the common stock share repurchase program authorized by the Company’s board of directors and the related repurchase activity and available authorization as of March 31, 2024: Effective date Expiration date Amount Cost of Authorization March 2, 2022 December 31, 2024 $ 600,000 $ 451,619 $ 148,381 The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time through the applicable expiration date, 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. The board’s authorization of the share repurchase programs does not obligate the Company to acquire any particular amount of common stock, and the repurchase programs may be commenced, suspended, or discontinued at any time. Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended March 31, 2024 April 2, 2023 Number of common shares acquired 957,780 3,038,411 Average price per common share acquired $ 63.04 $ 32.64 Total cost of common shares acquired $ 60,380 $ 99,171 Shares purchased under the Company’s repurchase programs were subsequently retired and the excess of the repurchase price over par value was charged to retained earnings. The cost of common shares repurchased included the 1% excise tax imposed as part of the Inflation Reduction Act of 2022.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The computation of basic 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 and unvested restricted stock units ("RSUs"). Performance share awards ("PSAs") are included in the computation of diluted net income per share only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be satisfied if the end of the reporting period were the end of the related performance period, and if the effect would be dilutive. 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 March 31, 2024 April 2, 2023 Basic net income per share: Net income $ 114,100 $ 76,160 Weighted average shares outstanding - basic 101,071 103,827 Basic net income per share $ 1.13 $ 0.73 Diluted net income per share: Net income $ 114,100 $ 76,160 Weighted average shares outstanding - basic 101,071 103,827 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 404 395 RSUs 549 481 PSAs — 173 Weighted average shares and equivalent shares outstanding - diluted 102,024 104,876 Diluted net income per share $ 1.12 $ 0.73 For the thirteen weeks ended March 31, 2024, the Company had 0.1 million options, 0.3 million RSUs 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. For the thirteen weeks ended April 2, 2023, the Company had 0.4 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.

Segments

Segments	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Segments	Segments The Company has one operating segment and, therefore, one reportable segment: healthy grocery stores. The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, 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. In accordance with ASC 606, the following table represents a disaggregation of revenue for the thirteen weeks ended March 31, 2024 and April 2, 2023: Thirteen weeks ended March 31, 2024 April 2, 2023 Perishables $ 1,069,730 56.8 % $ 999,575 57.7 % Non-Perishables 814,078 43.2 % 733,735 42.3 % Net Sales $ 1,883,808 100.0 % $ 1,733,310 100.0 %

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation 2022 Incentive Plan In March 2022, the Company’s board of directors adopted the Sprouts Farmers Market, Inc. 2022 Omnibus Incentive Compensation Plan (the “2022 Incentive Plan”), which became effective May 25, 2022, upon approval by the Company’s stockholders. The 2022 Incentive Plan provides team members of the Company, certain consultants and advisors who perform services for the Company, and non-employee members of the Company's board of directors with the opportunity to receive grants of equity awards, including stock options, RSUs, PSAs, and other stock-based awards. The 2022 Incentive Plan replaced the 2013 Incentive Plan (as described below). Awards Granted under the 2022 Incentive Plan During the thirteen weeks ended March 31, 2024, the Company granted the following share-based compensation awards under the 2022 Incentive Plan: Grant Date RSUs PSAs Options March 19, 2024 272,855 103,584 135,783 Total 272,855 103,584 135,783 Weighted-average grant date fair value $ 61.15 $ 61.15 $ 23.50 Weighted-average exercise price $ — $ — $ 61.15 The aggregate number of shares of common stock that may be issued to team members and directors under the 2022 Incentive Plan may not exceed 6,600,000, subject to the following adjustments. If any awards granted under the 2022 Incentive Plan, terminate, expire, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested or paid in shares, the shares will again be available for purposes of the 2022 Incentive Plan. The number of shares subject to outstanding awards under the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”) that terminate, expire, are paid in cash, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested, or paid in shares under the 2013 Incentive Plan after the effective date of the 2022 Incentive Plan will be available for issuance under the 2022 Incentive Plan. As of March 31, 2024, there were 1,134,570 stock awards outstanding and 5,517,416 shares remaining available for issuance under the 2022 Incentive Plan. 2013 Incentive Plan Prior to the adoption of the 2022 Incentive Plan, the 2013 Incentive Plan served as the umbrella plan for the Company’s share-based and cash-based incentive compensation programs for its directors, officers and other team members. Upon stockholder approval of the 2022 Incentive Plan on May 25, 2022, no further awards will be granted under the 2013 Incentive Plan, but awards outstanding under the 2013 Incentive Plan will remain outstanding in accordance with their terms and the terms of the 2013 Incentive Plan. 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 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 PSAs PSAs granted in 2020 were subject to the Company achieving certain earnings before taxes (“EBT”) performance targets for the 2022 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 2022 EBT 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 2023). There were no outstanding 2020 PSAs as of March 31, 2024. PSAs granted in 2021 were subject to the Company achieving certain earnings before interest and taxes ("EBIT") performance targets for the 2023 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 2023 EBIT were deemed not to have been met. Accordingly, no PSAs vested on the third anniversary of the grant date (March 2024). There were no outstanding 2021 PSAs as of March 31, 2024. PSAs granted in 2022 are subject to the Company achieving certain EBIT performance targets for the 2024 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 2025). PSAs granted in 2023 are subject to the Company achieving certain EBIT performance targets for the 2025 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 2026). PSAs granted in 2024 are subject to the Company achieving certain EBIT performance targets for the 2026 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 2027). 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 March 31, 2024 April 2, 2023 Share-based compensation expense $ 6,477 $ 3,852 The following share-based awards were outstanding under the 2022 and 2013 Incentive Plans as of March 31, 2024 and April 2, 2023: As of March 31, 2024 April 2, 2023 (in thousands) Options Vested 567 740 Unvested 338 481 RSUs 669 1,156 PSAs 395 471 As of March 31, 2024, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized Remaining Options $ 5,458 2.2 RSUs 28,551 2.0 PSAs 13,600 1.9 Total unrecognized compensation expense at March 31, 2024 $ 47,609

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The Company’s goodwill balance was $381.8 million and $381.7 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company had no accumulated goodwill impairment losses. The goodwill was related to the acquisitions of Henry’s Farmers Market and Sunflower Farmers Market in 2011 and 2012, respectively, and the acquisition of Ronald Cohn, Inc. in 2023. For further details, see Note 14, "Business Combination".

Store Closures

Store Closures	3 Months Ended
	Mar. 31, 2024
Store Closures [Abstract]
Store Closures	Store ClosuresIn February 2023, the Company's board of directors approved the closing of 11 stores, all of which were closed during 2023. These stores, on average, were approximately 30% larger than the Company's current prototype format and were underperforming financially. The closure of these stores resulted in a charge of $27.8 million during the thirteen weeks ended April 2, 2023 related to the impairment of leasehold improvements and right-of-use assets and was reflected in Store closure and other costs, net on the consolidated statements of income. The impairment charge represented the excess of the carrying value over the estimated fair value of each store's asset group. Accelerated depreciation on the closed stores' assets during 2023 was $5.9 million, of which $4.0 million was incurred during the thirteen weeks ended April 2, 2023 and was reflected in Depreciation and amortization on the consolidated statements of income. Severance expense during 2023 was immaterial.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Business Combination	Business Combination On March 20, 2023, the Company completed its acquisition of Ronald Cohn, Inc., a corporation that owned two stores located in California operating under the ‘Sprouts Farmers Market’ name pursuant to a legacy trademark license arrangement. The aggregate consideration paid in the transaction consisted of 0.6 million of the Company’s common shares valued at $18.1 million using the closing price of the Company's common stock on March 20, 2023 and cash consideration of $13.0 million. The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires that the purchase price be allocated to the assets and liabilities acquired based on their estimated fair values as of the acquisition date. Acquisition-related costs were immaterial and were expensed as incurred. The financial results of the acquired stores have been included in the Company’s consolidated financial statements from the date of acquisition. The acquired stores' results of operations were not material to the Company's consolidated results. The net purchase price was allocated to the net tangible assets of ($4.9) million and a reacquired right intangible asset of $23.1 million based on their fair values on the acquisition date. The remaining unallocated net purchase price of $12.9 million was recorded as goodwill. Goodwill represents the future economic benefits to the Company from the acquisition, which include the Company's ability to fully control the Sprouts Farmers Market brand by termination of the legacy trademark license agreement and allowing further expansion opportunities in Southern California. The goodwill is not expected to be deductible for tax purposes. The final allocation of the purchase price consideration to the assets acquired and liabilities assumed has been completed and included an immaterial amount of measurement period adjustments.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Pay vs Performance Disclosure
Net income	$ 114,100	$ 76,160

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Stacy Hilgendorf [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 11, 2024, Stacy Hilgendorf, our Vice President - Controller and Principal Accounting Officer, adopted a written plan for the sale of our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Trading Plan”). The Rule 10b5-1 Trading Plan provides for the sale of up to 4,951 shares of the Company's common stock beginning June 10, 2024 through March 11, 2025.
Name	Stacy Hilgendorf
Title	Vice President - Controller and Principal Accounting Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 11, 2024
Arrangement Duration	274 days
Aggregate Available	4,951
Jack Sinclair [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 19, 2024, Jack Sinclair, our Chief Executive Officer and member of our board of directors, adopted a Rule 10b5-1 Trading Plan that provides for the sale of up to 80,000 shares of the Company's common stock beginning June 20, 2024 through December 18, 2024.
Name	Jack Sinclair
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 19, 2024
Arrangement Duration	181 days
Aggregate Available	80,000

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	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.
Consolidation	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 December 31, 2023 (“fiscal year 2023”) included in the Company’s Annual Report on Form 10-K, filed on February 22, 2024.
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 December 29, 2024 (“fiscal year 2024”) and fiscal year 2023 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years (in which the fourth quarter has 14 weeks).
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. A summary of the activity and balances in the gift card liability, net is as follows: Thirteen weeks ended March 31, 2024 April 2, 2023 Beginning Balance $ 10,566 $ 10,906 Gift cards issued during the period but not redeemed (1) 1,166 1,222 Revenue recognized from beginning liability (2,532) (2,582) Ending Balance $ 9,200 $ 9,546 (1) net of estimated breakage The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale.
Restricted Cash	Restricted Cash Restricted cash relates to the Company's defined benefit plan forfeitures and the Company's healthcare, general liability and workers’ compensation plan benefits of $2.1 million as of March 31, 2024 and December 31, 2023. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU no. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." The amendments in this update increase required disclosures about a public entity's reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM. The guidance will be effective for the Company for its fiscal year 2024 and for interim periods starting in the first quarter of its fiscal year 2025. Early adoption is permitted, and the guidance is required to be applied retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU no. 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures." The amendments in this update enhance a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance will be effective for the Company for its fiscal year 2025. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. No other new accounting pronouncements issued or effective during the thirteen weeks ended March 31, 2024 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
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Estimated Breakage Revenue Recognized	A summary of the activity and balances in the gift card liability, net is as follows: Thirteen weeks ended March 31, 2024 April 2, 2023 Beginning Balance $ 10,566 $ 10,906 Gift cards issued during the period but not redeemed (1) 1,166 1,222 Revenue recognized from beginning liability (2,532) (2,582) Ending Balance $ 9,200 $ 9,546 (1) net of estimated breakage

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and December 31, 2023: March 31, 2024 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 125,000 $ — $ 125,000 Total financial liabilities $ — $ 125,000 $ — $ 125,000 December 31, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 125,000 $ — $ 125,000 Total financial liabilities $ — $ 125,000 $ — $ 125,000

Long-Term Debt and Finance Le_2

Long-Term Debt and Finance Lease Liabilities (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 December 31, 2023 Senior secured debt $700.0 million Credit Agreement March 25, 2027 Variable $ 125,000 $ 125,000 Finance lease liabilities Various n/a 8,375 8,685 Long-term debt and finance lease liabilities $ 133,375 $ 133,685

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Schedule of Share Repurchase Activity	The following table outlines the common stock share repurchase program authorized by the Company’s board of directors and the related repurchase activity and available authorization as of March 31, 2024: Effective date Expiration date Amount Cost of Authorization March 2, 2022 December 31, 2024 $ 600,000 $ 451,619 $ 148,381
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 March 31, 2024 April 2, 2023 Number of common shares acquired 957,780 3,038,411 Average price per common share acquired $ 63.04 $ 32.64 Total cost of common shares acquired $ 60,380 $ 99,171

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 April 2, 2023 Basic net income per share: Net income $ 114,100 $ 76,160 Weighted average shares outstanding - basic 101,071 103,827 Basic net income per share $ 1.13 $ 0.73 Diluted net income per share: Net income $ 114,100 $ 76,160 Weighted average shares outstanding - basic 101,071 103,827 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 404 395 RSUs 549 481 PSAs — 173 Weighted average shares and equivalent shares outstanding - diluted 102,024 104,876 Diluted net income per share $ 1.12 $ 0.73

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and April 2, 2023: Thirteen weeks ended March 31, 2024 April 2, 2023 Perishables $ 1,069,730 56.8 % $ 999,575 57.7 % Non-Perishables 814,078 43.2 % 733,735 42.3 % Net Sales $ 1,883,808 100.0 % $ 1,733,310 100.0 %

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Share-Based Compensation Awards Granted	During the thirteen weeks ended March 31, 2024, the Company granted the following share-based compensation awards under the 2022 Incentive Plan: Grant Date RSUs PSAs Options March 19, 2024 272,855 103,584 135,783 Total 272,855 103,584 135,783 Weighted-average grant date fair value $ 61.15 $ 61.15 $ 23.50 Weighted-average exercise price $ — $ — $ 61.15
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 March 31, 2024 April 2, 2023 Share-based compensation expense $ 6,477 $ 3,852
Summary of Outstanding Share-Based Awards	The following share-based awards were outstanding under the 2022 and 2013 Incentive Plans as of March 31, 2024 and April 2, 2023: As of March 31, 2024 April 2, 2023 (in thousands) Options Vested 567 740 Unvested 338 481 RSUs 669 1,156 PSAs 395 471
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards	As of March 31, 2024, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized Remaining Options $ 5,458 2.2 RSUs 28,551 2.0 PSAs 13,600 1.9 Total unrecognized compensation expense at March 31, 2024 $ 47,609

Basis of Presentation (Detail)

Basis of Presentation (Detail)	Mar. 31, 2024 State Store
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating stores | Store	414
Number of states entity operates | State	23

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Schedule of Estimated Breakage Revenue Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Contract With Customer, Liability [Roll Forward]
Beginning Balance	$ 10,566	$ 10,906
Gift cards issued during the period but not redeemed	1,166	1,222
Revenue recognized from beginning liability	(2,532)	(2,582)
Ending Balance	$ 9,200	$ 9,546

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Prepaid Expenses and Other Current Assets
Summary Of Significant Accounting Policy [Line Items]
Restricted cash related to defined benefit plan forfeitures and healthcare, general liability and workers’ compensation plan benefits	$ 2.1	$ 2.1

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	$ 125,000	$ 125,000
Total financial liabilities	125,000	125,000
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	0	0
Total financial liabilities	0	0
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	125,000	125,000
Total financial liabilities	125,000	125,000
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	0	0
Total financial liabilities	$ 0	$ 0

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	Mar. 31, 2024	Dec. 31, 2023
Long Term Debt And Finance Lease Liabilities [Line Items]
Finance lease liabilities	$ 8,375	$ 8,685
Long-term debt and finance lease liabilities	133,375	133,685
Senior secured debt | Senior secured debt | $700.0 million Credit Agreement
Long Term Debt And Finance Lease Liabilities [Line Items]
Senior secured debt	$ 125,000	$ 125,000

Long-Term Debt and Finance Le_4

Long-Term Debt and Finance Lease Liabilities - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Mar. 25, 2022	Mar. 31, 2024	Dec. 31, 2023	Mar. 27, 2018
Credit Agreement
Long Term Debt And Finance Lease Liabilities [Line Items]
Participation fee		0.95%
Issuance fee		0.125%
Borrowings during the period		$ 0	$ 0
Principal payments on the credit facility		0	125,000
Outstanding debt		$ 125,000	125,000
Credit Agreement | Minimum
Long Term Debt And Finance Lease Liabilities [Line Items]
Net leverage ratio		1%
Interest coverage ratio		1%
Credit Agreement | Maximum
Long Term Debt And Finance Lease Liabilities [Line Items]
Net leverage ratio		3.75%
Interest coverage ratio		3%
Senior secured debt | Credit Agreement | SOFR
Long Term Debt And Finance Lease Liabilities [Line Items]
Interest rate spread on base rate		0.10%
Senior secured debt | Current Credit Facility Agreement | SOFR
Long Term Debt And Finance Lease Liabilities [Line Items]
Interest rate spread on base rate	1%
Senior secured debt | Senior secured debt | Credit Agreement
Long Term Debt And Finance Lease Liabilities [Line Items]
Debt instrument face amount	$ 70,000
Letters of credit issued		$ 21,300
Interest rate spread on base rate	0.05%
Credit facility commitment fee percentage subject to upward or downward adjustments	0.01%
Senior secured debt | Senior secured debt | Credit Agreement | Prime Plus
Long Term Debt And Finance Lease Liabilities [Line Items]
Interest rate spread on base rate, floor	0%
Interest rate spread on base rate	0%
Senior secured debt | Senior secured debt | Credit Agreement | Minimum
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility unused commitment fee percentage	0.10%
Senior secured debt | Senior secured debt | Credit Agreement | Maximum
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility unused commitment fee percentage	0.225%
Senior secured debt | Senior secured debt | Credit Agreement | Swingline Loan Sub-facility
Long Term Debt And Finance Lease Liabilities [Line Items]
Debt instrument face amount	$ 50,000
Senior secured debt | Senior secured debt | Current Credit Facility Agreement | SOFR
Long Term Debt And Finance Lease Liabilities [Line Items]
Interest rate spread on base rate	0.10%	0.95%
Senior secured debt | Senior secured debt | $700.0 million Credit Facility
Long Term Debt And Finance Lease Liabilities [Line Items]
Debt instrument face amount		$ 700,000
Outstanding debt		$ 125,000	$ 125,000
Senior secured debt | Senior secured debt | $700.0 million Credit Facility | Credit Agreement
Long Term Debt And Finance Lease Liabilities [Line Items]
Credit facility maximum borrowing capacity	$ 700,000
Capitalized debt issuance costs	$ 3,400
Debt instrument, term	5 years
Senior secured debt | Senior secured debt | Former Credit Facility
Long Term Debt And Finance Lease Liabilities [Line Items]
Capitalized debt issuance costs				$ 500

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	22.60%	23.30%
Excess tax benefits of equity-based compensation	$ 4.5	$ 2.6

Related Party Transactions (Det

Related Party Transactions (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Related Party Transactions [Abstract]
Related party transactions	$ 0

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended
	May 01, 2024	Mar. 31, 2024	Mar. 02, 2022
Subsequent Event
Equity Class Of Treasury Stock [Line Items]
Common stock repurchased during the period, shares	300,000
Common stock repurchased during the period, value	$ 21,500
March 2, 2022 Share Repurchase Program
Equity Class Of Treasury Stock [Line Items]
Shares authorized to be repurchased		$ 600,000	$ 600,000
Authorization available		$ 148,381
March 3, 2021 Share Repurchase Program
Equity Class Of Treasury Stock [Line Items]
Shares authorized to be repurchased			300,000
Authorization available			$ 99,800

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Share Repurchase Activity (Details) - March 2, 2022 Share Repurchase Program - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 02, 2022
Equity Class Of Treasury Stock [Line Items]
Amount authorized	$ 600,000	$ 600,000
Cost of repurchases	451,619
Authorization available	$ 148,381

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Equity [Abstract]
Number of common shares acquired (in shares)	957,780	3,038,411
Average price per common share acquired (in dollars per share)	$ 63.04	$ 32.64
Total cost of common shares acquired	$ 60,380	$ 99,171

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
	Mar. 31, 2024	Apr. 02, 2023
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Net income	$ 114,100	$ 76,160
Weighted average shares outstanding - basic (in shares)	101,071	103,827
Basic net income per share (in dollars per share)	$ 1.13	$ 0.73
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares (in shares)	404	395
Diluted (in shares)	102,024	104,876
Diluted net income per share (in dollars per share)	$ 1.12	$ 0.73
RSUs
Dilutive effect of share-based awards:
Dilutive effect (in shares)	549	481
PSAs
Dilutive effect of share-based awards:
Dilutive effect (in shares)	0	173

Net Income Per Share - Addition

Net Income Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0.1	0.4
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0.3	0.4
PSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0.4	0.5

Segments - Additional Informati

Segments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2024 Segment
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
	Mar. 31, 2024	Apr. 02, 2023
Disaggregation Of Revenue [Line Items]
Net Sales, amount	$ 1,883,808	$ 1,733,310
Sales Revenue, Goods, Net | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Net Sales, percentage	100%	100%
Perishables
Disaggregation Of Revenue [Line Items]
Net Sales, amount	$ 1,069,730	$ 999,575
Perishables | Sales Revenue, Goods, Net | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Net Sales, percentage	56.80%	57.70%
Non-Perishables
Disaggregation Of Revenue [Line Items]
Net Sales, amount	$ 814,078	$ 733,735
Non-Perishables | Sales Revenue, Goods, Net | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Net Sales, percentage	43.20%	42.30%

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Detail) - Awards Granted under the 2022 Incentive Plan	3 Months Ended
	Mar. 31, 2024 $ / shares shares
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total | shares	272,855
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 61.15
Weighted-average exercise price (in dollars per share) | $ / shares	$ 0
PSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total | shares	103,584
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 61.15
Weighted-average exercise price (in dollars per share) | $ / shares	$ 0
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total | shares	135,783
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 23.50
Weighted-average exercise price (in dollars per share) | $ / shares	$ 61.15
March 19, 2024 | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total | shares	272,855
March 19, 2024 | PSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total | shares	103,584
March 19, 2024 | Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total | shares	135,783

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options	$ 2,283	$ 5,488
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options	$ 2,300	$ 5,500
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	669,000	1,156,000
RSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
RSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
PSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	395,000	471,000
PSAs | 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	0
PSAs | 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	0
Awards vested	0
PSAs | Minimum | 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	0%
PSAs | Minimum | 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	0%
PSAs | Minimum | 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	0%
PSAs | Minimum | 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	0%
PSAs | Minimum | 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	0%
PSAs | Maximum | 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	200%
PSAs | Maximum | 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	200%
PSAs | Maximum | 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	200%
PSAs | Maximum | 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	200%
PSAs | Maximum | 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock awards payout percentage of shares granted	200%
Third Anniversary | Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Awards Granted under the 2022 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under plan	6,600,000
Number of shares outstanding	1,134,570
Remaining shares available for issuance	5,517,416

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
	Mar. 31, 2024	Apr. 02, 2023
Share-Based Payment Arrangement [Abstract]
Share-based compensation expense	$ 6,477	$ 3,852

Share-Based Compensation - Su_3

Share-Based Compensation - Summary of Outstanding Share-Based Awards (Detail) - shares shares in Thousands	Mar. 31, 2024	Apr. 02, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested	567	740
Unvested	338	481
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based awards other than options, outstanding	669	1,156
PSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based awards other than options, outstanding	395	471

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
	Mar. 31, 2024 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense at March 31, 2024	$ 47,609
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options	$ 5,458
Remaining weighted average recognition period	2 years 2 months 12 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to outstanding equity-based awards other than options	$ 28,551
Remaining weighted average recognition period	2 years
PSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to outstanding equity-based awards other than options	$ 13,600
Remaining weighted average recognition period	1 year 10 months 24 days

Goodwill (Details)

Goodwill (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 381,750,000	$ 381,741,000
Accumulated goodwill impairment losses	$ 0	$ 0

Store Closures (Details)

Store Closures (Details) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 28, 2023	Apr. 02, 2023 USD ($)	Dec. 31, 2023 USD ($) Store
Store Closures [Abstract]
Number of closing stores | Store			11
Store performance capacity rate	30%
Store closing charges		$ 27.8
Accelerated depreciation			$ 5.9
Accelerated depreciation, incurred during period		$ 4

Business Combination (Details)

Business Combination (Details) $ in Thousands, shares in Millions	Mar. 20, 2023 USD ($) Store shares	Mar. 31, 2024 USD ($) Store	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Operating stores | Store		414
Goodwill		$ 381,750	$ 381,741
Ronald Cohn, Inc.
Business Acquisition [Line Items]
Operating stores | Store	2
Ronald Cohn, Inc.
Business Acquisition [Line Items]
Business combination, common shares, value	$ 18,100
Cash consideration	13,000
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent assets	4,900
Reacquired right of intangible asset	23,100
Goodwill	$ 12,900
Ronald Cohn, Inc. | Common Stock
Business Acquisition [Line Items]
Business acquisition, common shares, aggregate consideration paid | shares	0.6