Kroger vs Sprouts Farmers Market
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KIRA’s take AI analyst
I put Kroger and Sprouts Farmers Market side by side, using each one’s latest annual report. Here is what stands out:
- Kroger is the larger business, with $147.6B of revenue in fiscal 2025 against $8.8B for Sprouts Farmers Market, about 17 times as much.
- Sprouts Farmers Market grew revenue faster (14.1%, against 0.4%).
- Sprouts Farmers Market kept more of each dollar of sales as operating profit (7.8% operating margin, against 1.3%).
- Sprouts Farmers Market turned more of its sales into free cash flow (5.3% FCF margin, against 2.3%).
- Sprouts Farmers Market earned a higher return on the capital invested in it (46.9%, against 7.6%).
- Investors pay more for each dollar of Kroger’s earnings: a P/E of 37.1x against 12.6x for Sprouts Farmers Market.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Kroger
KR
1/10
Share count change
Sprouts Farmers Market
SFM
9/10
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | KR FY25 | SFM FY25 |
|---|---|---|
| Size | ||
| Market cap | $40.6B | $6.2B |
| Revenue | $147.6B | $8.8B |
| Free cash flow | $3.5B | $468M |
| Net income | $1.0B | $524M |
| Growth | ||
| Revenue growth | 0.4% | 14.1% |
| 5-year growth | 2.2% | 6.4% |
| Share count change | −9.0% | −2.6% |
| Profitability | ||
| Gross margin | — | 38.8% |
| Operating margin | 1.3% | 7.8% |
| Net margin | 0.7% | 6.0% |
| FCF margin | 2.3% | 5.3% |
| Return on capital | 7.6% | 46.9% |
| Return on equity | 14.3% | 38.4% |
| Balance sheet | ||
| Net debt | $14.2B | −$244M |
| Net debt / EBITDA | 2.7x | −0.3x |
| Dividends and buybacks | $3.6B | $472M |
| Valuation & quality | ||
| P/E | 37.1x | 12.6x |
| Piotroski F-score | 4 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.