Sprouts Farmers Market, Inc.

On October 29, 2025, Sprouts announced third-quarter 2025 results, including softer-than-expected comparable-store sales growth of 5.9%, falling below the Company’s own prior guidance. The Company also slashed guidance for comparable store growth for the full year, now expecting only flat to 2% growth. The Company attributed its results to previously undisclosed “challenging year-on-year comparisons” and “signs of a softening consumer.”

On this news, Sprouts’ stock price fell $27.30 per share, or 26.1%, to close at $77.25 per share on October 30, 2025, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Sprouts’ customer base was not "more resilient" to the macroeconomic environment and the Company was not positioned to "cope and deal with the changes" caused by economic uncertainty; (2) the "trade-down" dynamics—shifting consumer spending from food away from home to food at home—were either insufficient to offset a slowdown in sales or would fail to materialize as a meaningful "tailwind" for the Company;  (3) the Company’s increased comparable sales guidance and reported two-year stack figures did not accurately reflect a sustainable growth trajectory, as Sprouts was actually facing a significant slowdown in sales growth due to a more cautious consumer; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.