You should read the following discussion of our financial condition and results of operations together with the consolidated financial statements and related notes that are included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report on Form 10-K for the 2025 fiscal year, filed with the Securities and Exchange Commission ("SEC") on February 19, 2026 (“2025 Form 10-K”). All dollar amounts included below are in thousands, unless otherwise noted. Business Overview Sprouts Farmers Market offers a unique specialty grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. We continue to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. From our founding in 2002, we have grown rapidly, significantly increasing our sales, store count and profitability. Headquartered in Phoenix with 490 stores in 25 states as of June 28, 2026, we are one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Our Growth Strategy We continue to execute on our long-term growth strategy that we believe is transforming our company and driving profitable growth, focusing on the following areas: •Win with Target Customers. We are focusing attention on our target customers, identified through research as ‘health enthusiasts’ and ‘selective shoppers’, where there is ample opportunity to gain share within these customer segments. We believe our business can continue to grow by leveraging existing strengths in a unique assortment of better-for-you, quality products and by providing a full omnichannel offering through delivery or pickup via our website or the Sprouts app. •Market Expansion. We are delivering unique smaller stores with expectations of stronger returns, while maintaining the approachable, fresh-focused farmer’s market heritage Sprouts is known for. From 2021 through June 28, 2026, we have opened 125 new stores and remodeled one store featuring our updated format. Our geographic store expansion and new store placement will intersect where our target customers live, in markets with growth potential and supply chain support, which we believe will provide a long runway of approximately 10% annual unit growth. •Create an Advantaged Supply Chain. We believe our network of distribution centers can drive efficiencies across the chain and support our growth plans. To further deliver on our fresh commitment and reputation, as well as to increase our local offerings and improve our financial results, we aspire to ultimately position fresh distribution centers within a 250-mile radius of stores. As a step to improve our fresh supply chain, in 2025 we began the transition to a self-distribution model for meat and seafood through our fresh distribution centers. As a result, we are better leveraging our existing distribution center capacity, and approximately 80% of our stores were within 250 miles of a distribution center as of June 28, 2026. •Customer Engagement and Personalization. We believe we are elevating our national brand recognition and positioning by telling our unique brand story rooted in product innovation and differentiation. We are increasing our use of data analytics and insights, including through the nationwide launch of our Sprouts Rewards loyalty program in 2025. We believe this data-driven intelligence will increase customer engagement through personalization efforts with digital and social connections to drive additional sales growth and loyalty. •Inspire and Engage Our Talent to Make Sprouts a Best Place to Work. Subsequent to the initial launch of our long-term growth strategy, we have added the focus area of inspiring and engaging our talent through our culture, acquisition and development and total rewards program to attract and retain the talent we believe we need to execute on our strategic goals and transform our company into a premier place to work. •Invest in Technology for Growth. We continue to make investments in technology in support of our strategy, with a focus on enhancing efficiency, scalability, and customer experience. While 20 Table of Contents we are showing positive outcomes on our strategic investments in inventory management and customer personalization, we believe that ongoing investments in our technology foundation will allow us to streamline operations and improve decision making to execute on our strategy. •Deliver on Key Financial Metrics. We are measuring and reporting on the success of this strategy against a number of long-term financial and operational targets. Since the implementation of our strategy beginning in 2020, we have significantly improved our margin structure above our 2019 baseline. The twenty-six weeks ended June 28, 2026 were characterized by an uneven macroeconomic backdrop, with customers continuing to make thoughtful choices around their healthy grocery spend amid cost pressures. We are taking action to address these challenges through our initiatives in affordability, innovation, personalization, marketing, and supply chain as we continue executing our long-term growth strategy. Results of Operations for Thirteen Weeks Ended June 28, 2026 and June 29, 2025 The following tables set forth our unaudited results of operations and other operating data for the periods presented. The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods. Thirteen weeks ended June 28, 2026 June 29, 2025 Unaudited Quarterly Consolidated Statement of Income Data: Net sales $ 2,325,804 $ 2,220,602 Cost of sales 1,425,156 1,358,002 Gross profit 900,648 862,600 Selling, general and administrative expenses 682,633 645,127 Depreciation and amortization (exclusive of depreciation included in cost of sales) 43,081 36,606 Store closure and other costs, net 760 1,511 Income from operations 174,174 179,356 Interest expense/(income), net 68 (431) Income before income taxes 174,106 179,787 Income tax provision 44,911 46,084 Net income $ 129,195 $ 133,703 Weighted average shares outstanding - basic 93,988 97,858 Diluted effect of equity-based awards 422 916 Weighted average shares and equivalent shares outstanding - diluted 94,410 98,774 Diluted net income per share $ 1.37 $ 1.35 Thirteen weeks ended June 28, 2026 June 29, 2025 Other Operating Data: Comparable store sales (1.0) % 10.2 % Stores at beginning of period 483 443 Closed — — Opened 7 12 Stores at end of period 490 455 21 Table of Contents Comparison of Thirteen Weeks Ended June 28, 2026 to Thirteen Weeks Ended June 29, 2025 Net sales Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Net sales $ 2,325,804 $ 2,220,602 $ 105,202 5 % Comparable store sales (1.0) % 10.2 % Net sales during the thirteen weeks ended June 28, 2026 totaled $2.3 billion, an increase of $105.2 million, or 5%, compared to the thirteen weeks ended June 29, 2025. The sales increase was driven by sales from new stores opened in the last twelve months, partially offset by a 1.0% decrease in comparable store sales. Comparable stores contributed approximately 93% of total sales for the thirteen weeks ended June 28, 2026 and June 29, 2025. Cost of sales and gross profit Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Net sales $ 2,325,804 $ 2,220,602 $ 105,202 5 % Cost of sales 1,425,156 1,358,002 67,154 5 % Gross profit 900,648 862,600 38,048 4 % Gross margin 38.7 % 38.8 % (0.1) % Gross profit totaled $900.6 million during the thirteen weeks ended June 28, 2026, an increase of $38.0 million, or 4%, compared to the thirteen weeks ended June 29, 2025, driven by increased sales volume from new stores. Gross margin decreased by 0.1% to 38.7% for the thirteen weeks ended June 28, 2026, compared to 38.8% for the thirteen weeks ended June 29, 2025, primarily driven by the impact from our loyalty program and elevated fuel costs. This was partially offset by benefits from self-distribution and vendor participation. Selling, general and administrative expenses Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Selling, general and administrative expenses $ 682,633 $ 645,127 $ 37,506 6 % Percentage of net sales 29.4 % 29.1 % 0.3 % Selling, general and administrative expenses during the thirteen weeks ended June 28, 2026 increased $37.5 million, or 6%, compared to the thirteen weeks ended June 29, 2025. The increase was primarily due to the increase in new stores opened since the comparable period last year. As a percentage of net sales, selling, general and administrative expenses increased slightly, primarily due to lower comparable store sales and investments in the business made during the period. This was partially offset by cost control initiatives and operating expense management. 22 Table of Contents Depreciation and amortization Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Depreciation and amortization $ 43,081 $ 36,606 $ 6,475 18 % Percentage of net sales 1.9 % 1.6 % 0.3 % Depreciation and amortization expense (exclusive of depreciation included in cost of sales) was $43.1 million for the thirteen weeks ended June 28, 2026, compared to $36.6 million for the thirteen weeks ended June 29, 2025. Depreciation and amortization expense primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment for new stores. Store closure and other costs, net Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Store closure and other costs, net $ 760 $ 1,511 $ (751) (50) % Percentage of net sales — % 0.1 % (0.1) % Store closure and other costs, net decreased $0.8 million to $0.8 million for the thirteen weeks ended June 28, 2026, compared to $1.5 million for the thirteen weeks ended June 29, 2025. Store closure and other costs, net primarily consist of ongoing occupancy costs associated with our closed store locations as well as one-time costs associated with disaster recovery activity. Interest expense/(income), net Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Long-term debt $ 181 $ 215 $ (34) (16) % Finance leases 251 168 83 49 % Deferred financing costs 133 193 (60) (31) % Interest income and other (497) (1,007) 510 51 % Total interest expense/(income), net $ 68 $ (431) $ 499 116 % The change to interest expense/(income), net for the thirteen weeks ended June 28, 2026 compared to interest expense/(income), net in the thirteen weeks ended June 29, 2025 was primarily due to lower interest rates and invested cash. See Note 4, “Long-Term Debt and Other Finance Obligations” of our unaudited consolidated financial statements. 23 Table of Contents Income tax provision Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pretax income as a result of the following: The table below provides the updated requirements of ASU no. 2023-09 for the thirteen weeks ended June 28, 2026. Thirteen weeks ended June 28, 2026 Federal statutory rate $ 36,562 21.0 % Change in income taxes resulting from: State income taxes, net of federal benefit(1) 8,641 5.0 % Enhanced charitable contributions (1,579) (0.9) % Federal credits (32) — % Transferable Tax Credits (47) — % Share-based payment awards (411) (0.3) % Non-deductible Executive Compensation 1,717 1.0 % Other, net(2) 60 — % Effective tax rate $ 44,911 25.8 % (1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category. (2) Includes items that are immaterial individually and in total. Thirteen weeks ended June 29, 2025 Federal statutory rate 21.0 % Change in income taxes resulting from: State income taxes, net of federal benefit 5.1 % Enhanced charitable contributions (1.0) % Federal credits (0.2) % Share-based payment awards (0.9) % Non-deductible Executive Compensation 1.7 % Other, net (0.1) % Effective tax rate 25.6 % The effective tax rate increased to 25.8% for the thirteen weeks ended June 28, 2026 from 25.6% for the thirteen weeks ended June 29, 2025. The increase in the effective tax rate was primarily driven by a reduction in the benefit for share-based compensation and amended return true up in the prior year quarter, partially offset by a decrease in non-deductible executive compensation. Net income Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Net income $ 129,195 $ 133,703 $ (4,508) (3) % Percentage of net sales 5.6 % 6.0 % (0.4) % Net income decreased $4.5 million primarily due to decreased comparable store sales and higher selling, general and administrative expenses for the reasons discussed above. 24 Table of Contents Diluted earnings per share Thirteen weeks ended June 28, 2026 June 29, 2025 Change % Change Diluted earnings per share $ 1.37 $ 1.35 $ 0.02 1 % Diluted weighted average shares outstanding 94,410 98,774 (4,364) The increase in diluted earnings per share of $0.02 was driven by fewer outstanding shares largely due to share repurchase activity during the thirteen weeks ended June 28, 2026 under our share repurchase program. Results of Operations for Twenty-six Weeks Ended June 28, 2026 and June 29, 2025 The following tables set forth our unaudited results of operations and other operating data for the periods presented. The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods. Twenty-six weeks ended June 28, 2026 June 29, 2025 Unaudited Quarterly Consolidated Statement of Income Data: Net sales $ 4,654,983 $ 4,457,038 Cost of sales 2,837,059 2,708,075 Gross profit 1,817,924 1,748,963 Selling, general and administrative expenses 1,341,414 1,268,353 Depreciation and amortization (exclusive of depreciation included in cost of sales) 85,108 71,705 Store closure and other costs, net 1,921 3,217 Income from operations 389,481 405,688 Interest expense/(income), net (61) (1,355) Income before income taxes 389,542 407,043 Income tax provision 96,623 93,314 Net income $ 292,919 $ 313,729 Weighted average shares outstanding - basic 94,401 98,198 Diluted effect of equity-based awards 594 1,061 Weighted average shares and equivalent shares outstanding - diluted 94,995 99,259 Diluted net income per share $ 3.08 $ 3.16 Twenty-six weeks ended June 28, 2026 June 29, 2025 Other Operating Data: Comparable store sales growth (1.4) % 10.9 % Stores at beginning of period 477 440 Closed — — Opened 13 15 Stores at end of period 490 455 25 Table of Contents Comparison of Twenty-six Weeks Ended June 28, 2026 to Twenty-six Weeks Ended June 29, 2025 Net Sales Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Net sales $ 4,654,983 $ 4,457,038 $ 197,945 4 % Comparable store sales growth (1.4) % 10.9 % Net sales during the twenty-six weeks ended June 28, 2026 totaled $4.7 billion, an increase of $197.9 million, or 4%, compared to the twenty-six weeks ended June 29, 2025. The sales increase was primarily due to new stores opened in the last twelve months, partially offset by a 1.4% decrease in comparable store sales. Comparable stores contributed approximately 93% of total sales for the twenty-six weeks ended June 28, 2026 and June 29, 2025. Cost of sales and gross profit Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Net sales $ 4,654,983 $ 4,457,038 $ 197,945 4 % Cost of sales 2,837,059 2,708,075 128,984 5 % Gross profit 1,817,924 1,748,963 68,961 4 % Gross margin 39.1 % 39.2 % (0.1) % Gross profit totaled $1.8 billion during the twenty-six weeks ended June 28, 2026, an increase of $69.0 million, or 4%, compared to the twenty-six weeks ended June 29, 2025, driven by increased sales volume from new stores. Gross margin decreased to 39.1% for the twenty-six weeks ended June 28, 2026, compared to 39.2% for the twenty-six weeks ended June 29, 2025, primarily driven by the impact from our loyalty program and elevated fuel costs. This was partially offset by benefits from self-distribution and vendor participation. Selling, general and administrative expenses Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Selling, general and administrative expenses $ 1,341,414 $ 1,268,353 $ 73,061 6 % Percentage of net sales 28.8 % 28.5 % 0.3 % Selling, general and administrative expenses during the twenty-six weeks ended June 28, 2026 increased by $73.1 million, or 6%, compared to the twenty-six weeks ended June 29, 2025. The increase was primarily driven by the increase in new stores opened since the prior year period. As a percentage of net sales, selling, general and administrative expenses increased slightly, primarily due to lower comparable store sales during the period, while fixed cost components, including payroll and occupancy expenses, remained relatively consistent. Depreciation and amortization Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Depreciation and amortization $ 85,108 $ 71,705 $ 13,403 19 % Percentage of net sales 1.8 % 1.6 % 0.2 % Depreciation and amortization expense (exclusive of depreciation included in cost of sales) was $85.1 million for the twenty-six weeks ended June 28, 2026, compared to $71.7 million for the twenty-six weeks ended 26 Table of Contents June 29, 2025. Depreciation and amortization expenses (exclusive of depreciation included in cost of sales) primarily consist of depreciation and amortization for buildings, store leasehold improvements, and equipment for new stores. Store closure and other costs, net Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Store closure and other costs, net $ 1,921 $ 3,217 $ (1,296) (40) % Percentage of net sales — % 0.1 % (0.1) % Store closure and other costs, net for the twenty-six weeks ended June 28, 2026 decreased $1.3 million to $1.9 million, compared to $3.2 million for the twenty-six weeks ended June 29, 2025. Store closure and other costs, net primarily consists of ongoing occupancy costs associated with our closed store locations as well as one-time costs associated with disaster recovery activity. Interest expense/(income), net Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Long-term debt $ 377 $ 425 $ (48) (11) % Finance leases 512 344 168 49 % Deferred financing costs 267 386 (119) (31) % Interest income and other (1,217) (2,510) 1,293 52 % Total interest expense/(income), net $ (61) $ (1,355) $ 1,294 95 % Interest expense/(income), net decreased to $(0.1) million for the twenty-six weeks ended June 28, 2026, compared to $(1.4) million for the twenty-six weeks ended June 29, 2025 primarily due to lower average debt outstanding and higher interest income earned as a result of higher interest rates. See Note 4, “Long-Term Debt and Other Finance Obligations” of our unaudited consolidated financial statements. 27 Table of Contents Income tax provision Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pretax income as a result of the following: The table below provides the updated requirements of ASU no. 2023-09 for the twenty-six weeks ended June 28, 2026. Twenty-six weeks ended June 28, 2026 Federal statutory rate $ 81,804 21.0 % Change in income taxes resulting from: State income taxes, net of federal benefit(1) 19,331 5.0 % Enhanced charitable contributions (3,638) (0.9) % Federal credits (72) — % Transferable Tax Credits (174) (0.1) % Share-based payment awards (4,614) (1.2) % Non-deductible Executive Compensation 4,081 1.0 % Other, net(2) (95) — % Effective tax rate $ 96,623 24.8 % (1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category. (2) Includes items that are immaterial individually and in total. Twenty-six weeks ended June 29, 2025 Federal statutory rate 21.0 % Change in income taxes resulting from: State income taxes, net of federal benefit 5.0 % Enhanced charitable contributions (0.9) % Federal credits (0.2) % Share-based payment awards (3.5) % Non-deductible Executive Compensation 1.6 % Other, net (0.1) % Effective tax rate 22.9 % The effective tax rate increased to 24.8% for the twenty-six weeks ended June 28, 2026 from 22.9% for the twenty-six weeks ended June 29, 2025. The increase in the effective tax rate was primarily driven by a reduction in the benefit for share-based compensation in the current year partially offset by a decrease in non-deductible executive compensation. Net income Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Net income $ 292,919 $ 313,729 $ (20,810) (7) % Percentage of net sales 6.3 % 7.0 % (0.7) % Net income decreased $20.8 million primarily due to decreased comparable store sales and higher selling, general and administrative expenses for the reasons discussed above. 28 Table of Contents Diluted earnings per share Twenty-six weeks ended June 28, 2026 June 29, 2025 Change % Change Diluted earnings per share $ 3.08 $ 3.16 $ (0.08) (3) % Diluted weighted average shares outstanding 94,995 99,259 (4,264) The decrease in diluted earnings per share of $0.08 was driven by lower net income, partially offset by fewer outstanding shares largely due to our share repurchase program. Return on Invested Capital In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, we provide information regarding Return on Invested Capital (“ROIC”) as additional information about our operating results. ROIC is a non-GAAP financial measure and should not be reviewed in isolation or considered as a substitute for our financial results as reported in accordance with GAAP. ROIC is an important measure used by management to evaluate our investment returns on capital and provides a meaningful measure of the effectiveness of our capital allocation over time. We define ROIC as net operating profit after tax (“NOPAT”), including the effect of capitalized operating leases, divided by average invested capital. Operating lease interest represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases were owned or accounted for as a finance lease. The assumed ownership and associated interest expense are calculated using the discount rate for each lease as recorded as a component of rent expense within selling, general and administrative expenses. Invested capital reflects a trailing four-quarter average. As numerous methods exist for calculating ROIC, our method may differ from methods used by other companies to calculate their ROIC. It is important to understand the methods and the differences in those methods used by other companies to calculate their ROIC before comparing our ROIC to that of other companies. 29 Table of Contents Our calculation of ROIC for the fiscal periods indicated was as follows: Rolling Four Quarters Ended June 28, 2026 June 29, 2025 (dollars in thousands) Net income (1) $ 502,860 $ 484,941 Interest (income) expense, net of tax (2) (995) (3,215) Net operating profit after tax (NOPAT) $ 501,865 $ 481,726 Total rent expense, net of tax (2) 217,718 199,181 Estimated depreciation on operating leases, net of tax (2) (119,452) (110,089) Estimated interest on operating leases, net of tax (2), (3) 98,266 89,092 NOPAT, including effect of operating leases $ 600,131 $ 570,818 Average net working capital 155,303 153,340 Average property and equipment 1,062,294 880,888 Average other assets 610,502 604,569 Average other liabilities (119,626) (108,197) Average invested capital $ 1,708,473 $ 1,530,600 Average operating leases (4) 1,873,047 1,676,647 Average invested capital, including operating leases $ 3,581,520 $ 3,207,247 ROIC, including operating leases 16.8 % 17.8 % (1)Net income amounts represent total net income for the past four trailing quarters. (2)Net of tax amounts are calculated using the normalized effective tax rate for the periods presented. (3)2026 and 2025 estimated interest on operating leases is calculated by multiplying operating leases by the discount rate of 7.0% for each lease recorded as rent expense within direct store expense. (4)Average operating leases represent the average net present value of outstanding lease obligations over the past four trailing quarters. Liquidity and Capital Resources The following table sets forth the major sources and uses of cash for each of the periods set forth below, as well as our cash, cash equivalents and restricted cash at the end of each period: Twenty-six weeks ended June 28, 2026 June 29, 2025 Cash, cash equivalents and restricted cash at end of period $ 226,519 $ 263,497 Cash flows from operating activities $ 368,995 $ 410,337 Cash flows used in investing activities $ (189,907) $ (120,319) Cash flows used in financing activities $ (213,463) $ (293,734) We have generally financed our operations principally through cash generated from operations and borrowings under our credit facilities. Our primary uses of cash are for purchases of inventory, operating expenses, capital expenditures primarily for opening new stores, remodels and maintenance, repurchases of our common stock and debt service. Our principal contractual obligations and commitments consist of 30 Table of Contents obligations under our Credit Agreement, interest on our Credit Agreement, operating and finance leases, purchase commitments and self-insurance liabilities. Our operating and finance leases for the rental of land, buildings, and for rental of facilities and equipment expire or become subject to renewal clauses at various dates through 2049. We believe that our existing cash, cash equivalents and restricted cash, and cash anticipated to be generated from operations will be sufficient to meet our anticipated cash needs for at least the next 12 months and going forward. Our future capital requirements will depend on many factors, including new store openings, remodel and maintenance capital expenditures at existing stores, store initiatives and other corporate capital expenditures and activities. Our cash, cash equivalents and restricted cash position benefits from the fact that we generally collect cash from sales to customers the same day or, in the case of credit or debit card transactions, within days from the related sale. Operating Activities Cash flows from operating activities decreased by $41.3 million to $369.0 million for the twenty-six weeks ended June 28, 2026 compared to $410.3 million for the twenty-six weeks ended June 29, 2025. The decrease in cash flows from operating activities was primarily a result of changes in working capital of $72.5 million partially offset by a $19.6 million decrease in payment on our operating lease liabilities, higher net income adjusted for non-cash items of $6.0 million, and a $5.5 million increase in long term liabilities. Cash flows (used in)/provided by operating activities from changes in working capital were $(56.9) million in the twenty-six weeks ended June 28, 2026 compared to $15.6 million in the twenty-six weeks ended June 29, 2025. The $72.5 million decrease in cash flows from changes in working capital was primarily attributable to the following factors, each of which had a negative impact on working capital: (i) $59.5 million change in accounts payable and accrued liabilities primarily due to timing differences of payments for goods and services, (ii) $14.9 million change in accounts receivable driven by the timing of collections, (iii) $12.7 million change in accrued salaries and benefits primarily driven by the payout of annual corporate bonuses, and (iv) $1.9 million change in inventory largely driven by increased store count. These decreases were partially offset by a $16.4 million change in prepaid expenses primarily driven by tax expense exceeding tax payments. Investing Activities Cash flows used in investing activities consist primarily of capital expenditures in new stores, including leasehold improvements and store equipment, capital expenditures to maintain the appearance of our stores, sales enhancing initiatives and other corporate investments as well as cash outlays for acquisitions. Cash flows used in investing activities were $189.9 million and $120.3 million, for the twenty-six weeks ended June 28, 2026 and the twenty-six weeks ended June 29, 2025, respectively. We expect capital expenditures to be approximately $310 million in fiscal year 2026, including expenditures incurred to date, net of landlord reimbursements, primarily to fund investments in new stores, remodels, maintenance capital expenditures and corporate capital expenditures. We expect to fund our capital expenditures with cash on hand and cash generated from operating activities. Financing Activities Cash flows used in financing activities were $213.5 million for the twenty-six weeks ended June 28, 2026 compared to $293.7 million for the twenty-six weeks ended June 29, 2025. In both periods, the cash flows used in financing activities primarily consisted of repurchases of our common stock. Long-Term Debt and Credit Facilities The Company had no long-term debt outstanding as of June 28, 2026 and December 28, 2025. See Note 4, “Long-Term Debt and Other Finance Obligations” of our unaudited consolidated financial statements for a description of our Credit Agreement and our Former Credit Facility (each as defined therein). 31 Table of Contents Share Repurchase Program Our board of directors from time to time authorizes share repurchase programs for our common stock. The following table outlines the share repurchase program authorized by our board, and the related repurchase activity and available authorization as of June 28, 2026: Effective date Expiration date Amount authorized Cost of repurchases Authorization available May 22, 2024 May 22, 2027 $ 600,000 $ 457,408 $ — August 13, 2025 N/A $ 1,000,000 $ 373,994 $ 626,006 The shares under our current repurchase program may be purchased on a discretionary basis from time to time, 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. Our board’s authorization of the share repurchase program does not obligate our Company to acquire any particular amount of common stock, and the repurchase program may be commenced, suspended, or discontinued at any time. Share repurchase activity under our repurchase program for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended Twenty-six weeks ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Number of common shares acquired 873,478 466,420 2,761,752 2,034,437 Average price per common share acquired $ 80.93 $ 158.99 $ 76.69 $ 144.88 Total cost of common shares acquired $ 70,688 $ 74,155 $ 211,810 $ 294,749 Shares purchased under our 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. Subsequent to June 28, 2026 and through July 27, 2026, we repurchased an additional 0.5 million shares of common stock for $40.0 million, excluding excise tax. Contractual Obligations Our principal contractual obligations and commitments arising in the normal course of business consist of obligations under our Credit Agreement, interest on our Credit Agreement, operating and finance leases, purchase commitments and self-insurance liabilities. Except as otherwise disclosed in Note 4, “Long-Term Debt and Other Finance Obligations” and Note 6, "Commitments and Contingencies" of our unaudited consolidated financial statements, there have been no material changes outside the normal course of business as of June 28, 2026 in our contractual obligations and commitments from those reported in our 2025 Form 10-K. Impact of Inflation and Deflation Inflation and deflation in the prices of food and other products we sell may periodically affect our sales, gross profit and gross margin. Food inflation, when combined with reduced consumer spending, could also reduce sales, gross profit margins and comparable store sales. Inflationary pressures on compensation, utilities, commodities, equipment and supplies may also impact our profitability. Food deflation or declining levels of inflation across multiple categories, particularly in produce, could reduce sales growth and earnings, particularly if our competitors react by lowering their retail pricing and expanding their promotional activities, which can lead to retail deflation higher than cost deflation that could reduce our sales, gross profit margins and comparable store sales. The short-term impact of inflation and deflation is largely dependent on whether or not the effects are passed through to our customers, which is subject to competitive market conditions. Food inflation and deflation are affected by a variety of factors and our determination of whether to pass on the effects of inflation or deflation to our customers is made in conjunction with our overall pricing and 32 Table of Contents marketing strategies, as well as our competitors’ responses. Although we may experience periodic effects on sales, gross profit, gross margins and cash flows as a result of changing prices, we do not expect the effect of inflation or deflation to have a material impact on our ability to execute our long-term business strategy. Critical Accounting Estimates Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP. These principles require us to make estimates and judgments that affect the reported amounts of assets, liabilities, sales and expenses, cash flow and related disclosure of contingent assets and liabilities. Our critical accounting estimates include inventories, lease assumptions, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, and income taxes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected. There have been no substantial changes to these estimates, or the policies related to them during the thirteen and twenty-six weeks ended June 28, 2026. For a full discussion of these estimates and policies, see "Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” in Part II — Item 7 of our 2025 Form 10-K. Recently Issued Accounting Pronouncements See Note 2, “Summary of Significant Accounting Policies” to our accompanying unaudited consolidated financial statements contained in this Quarterly Report on Form 10-Q.