Sprouts Farmers Market 2013 Annual Report Download - page 44
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Table of Contents
If securities or industry analysts cease publishing research or reports about us, our business, or our market, or if they
adversely change their recommendations regarding our stock, our stock price and trading volume could decline.
The trading market for our common stock is influenced by the research and reports that industry or securities analysts may
publish about us, our business, our market or our competitors. If we do not maintain adequate research coverage, or if any of the
analysts who may cover us downgrade our stock or publish inaccurate or unfavorable research about our business or provide
relatively more favorable recommendations about our competitors, our stock price could decline. If any analyst who may cover us
were to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets,
which in turn could cause our stock price or trading volume to decline.
Since we do not expect to pay any cash dividends for the foreseeable future, investors may be forced to sell their stock in
order to obtain a return on their investment.
We do not anticipate declaring or paying in the foreseeable future any cash dividends on our capital stock. Instead, we plan to
retain any earnings to finance our operations and growth plans. In addition, our Credit Facility contains covenants that would restrict
our ability to pay cash dividends. Accordingly, investors must rely on sales of their common stock after price appreciation, which
may never occur, as the only way to realize any return on their investment. As a result, investors seeking cash dividends should not
purchase our common stock.
Not applicable.
As of December 29, 2013, we had 167 stores located in eight states, as shown in the chart below:
In fiscal 2012, on a combined company basis, we opened 11 new stores, and we opened 19 new stores in fiscal 2013. As of
the date of this Annual Report on Form 10-K, we have opened three stores in 2014, including our first store in Kansas and
relocated one store in Texas bringing our total store count to 170.
We lease all of our stores from unaffiliated third parties. A typical store lease is for an initial 10 to 20 year term with four
renewal options of five years each. We expect that we will be able to renegotiate these leases or relocate these stores as
necessary. In addition to new store openings, we remodel or relocate stores periodically in order to improve performance. For fiscal
2013, we remodeled 12 stores, and for fiscal 2014, we plan to remodel approximately 15 stores.
39
Item 1B.
Unresolved Staff Comments
Item 2.
Properties
State
Number of Stores
State
Number of Stores
Arizona
26
New Mexico
6
California
73
Oklahoma
4
Colorado
24
Texas
29
Nevada
2
Utah
3