A Little-Known Retailer Puts Up Another Quality Quarter
Sprouts Farmers Market (NASDAQ: SFM) is a specialty grocery chain with a heavy presence in the South and Southwest. The grocer released its full-year 2020 earnings on Feb. 25, putting up fantastic sales and profit growth with an eye on sustainable store expansion.
Shares were up on the news, but they're still down over the last three years, even though management seems to have turned around this business. For that reason and others outlined below, investors should take a hard look at Sprouts Farmers Market as a potential addition to their portfolio.
While Sprouts competes in the grocery industry, its unique concept leaves it free of much direct competition. The company focuses on supplying fresh, healthy options for special diets and lifestyles (like vegan or gluten-free) at an affordable price. This gives it a competitive advantage over Whole Foods but also leaves it free from battling with Kroger or Walmart for customers. Its only true competitor is Trader Joe's, a private grocer with 530 stores scattered across the United States. However, Sprouts also competes with local concepts with the same focus on health and wellness.
Source Fool.com
