Sprouts Farmers Market shares sink over 20% to two-year low on weak outlook
Sprouts Farmers Market shares fell over 20% to a two-year low after a gloomy outlook, and RBC and BofA Securities cut their ratings on the stock.
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what happened
Sprouts Farmers Market stock hit its lowest level in two years on Thursday, dropping more than 20% after the specialty grocer issued a gloomy forecast for the rest of the year, according to Seeking Alpha. Comparable sales in the third quarter fell 0.9%, and earnings per share declined by one cent. The company blamed the cyclospora outbreak, higher shrink and tighter consumer budgets.
Management now says the problems are structural rather than cyclical and plans price cuts, which could mean a 150 basis point year-over-year margin decline in 2027. RBC Capital's Steven Shemesh downgraded the stock to Sector Perform from Outperform and more than halved his target to $49. BofA Securities' Robert Ohmes double-downgraded it to Underperform from Buy with a $47 target.
why it matters
The stock has lost more than 50% of its value since last year, and the market is now weighing how long margin pressure will last in the competitive grocery sector.
market impact
SFM shares: weak outlook and analyst downgrades pressure the stock
- Sprouts Farmers Market shares (SFM) pressure down — weak outlook and analyst downgrades
tags
instruments
sources
- Sprouts Farmers Market's problems are structural, not cyclical -- analysts — Seeking Alpha, 29 October 2026 at 15:51 UTC
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