Sprouts Farmers Market, Inc. (NASDAQ:SFM) Q4 2022 Earnings Call Transcript

Kendall Toscano: Got it. That’s helpful. Thanks. And then one other question it was just on the, in terms of January trends something we’d seen in the data is that it looked like there was a bit of a shifts away from food at home spending towards food away from home spending in January. I know you mentioned traffic being up quarter-to-date for 1Q. So, I was just curious if you could speak to whether or not you’d seen anything like that with your customers?

Chip Molloy: Well, our business first coming out of the blocks in January, again we were competent against the King Soopers strike in Colorado. We have several stores in Colorado. We were also competent against Omicron. So, we saw the comps were weaker in the beginning of the quarter as we expect they’ve improved since traffic’s been steady though even we’re positive traffic even against those comps last year that I just described. So, we’re encouraged by that. And when you think about our deli business, which has been a very positive business for us both the last year and it continues to be strong going and this year as consumers are looking for prepared meals quick to be able to, it’s a savings of time, but our deli meals are really high quality.

They’re good for you, they taste great. And so that’s another business that you can see where the consumer is they’re chasing that idea of a complete meal at home, but easy to make. And I think the contrast between food at home and food away from home; it’s kind of getting blurred a little bit by categories like the meals thing that we’ve got is convenience. It seems to be driving the biggest influence here so that, that we think we’re well placed and we’re certainly doubling down and investing in both equipment and cabinets and product development to make sure that we are hyper convenient within the context of this healthy target customers that we have. So as I say, I think the fusion between away from home, and in-home is kind of getting a bit blurred.

Operator: Thank you. This concludes the Q&A session. I’d now like to turn the call back over to Jack Sinclair for any further remarks.

Jack Sinclair: Well, thank you everyone. Thank you to everyone for the questions and thanks for everyone this listening begin on the call. We appreciate your interest in our business and we look forward to updating you throughout the year as we go through the 2023. So take care everyone. Thanks so much.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.