SFM

Sprouts Farmers Market

HALAL — METHODS DIFFERstock

Is SFM Halal?

Natural grocery retail — financial ratios pass with limited disclosed interest income.

What You Should Know

Sprouts' March 29, 2026 filing reports debt/assets of 2.33%, liquidity/assets of 5.91%, receivables plus cash/assets of 7.39% and disclosed net interest income of 0.01% of quarterly sales. Grocery retail is generally permissible, while alcohol, non-halal products and sourcing require qualitative review.

⚠️ Concerns

  • Some stores sell alcohol and non-halal products
  • Food sourcing and labor practices require review
  • Disclosed interest income is not a complete purification prescription

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-29; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
2.33%Within limit
Below 33.333% under FTSE Yasaar

99.593 / 4,269.374

Cash + interest-bearing securities / assets
5.91%Within limit
Below 33.333% under FTSE Yasaar

252.161 / 4,269.374

Receivables + cash / assets
7.39%Within limit
Below 50% under FTSE Yasaar

315.474 / 4,269.374

Non-compliant income / revenue
0.01%Within limit
No more than 5% under FTSE Yasaar

0.129 / 2,329.179

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt is 2.33% of assets, liquidity is 5.91%, receivables plus cash are 7.39% and disclosed interest income is 0.01%; activity classification remains incomplete.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Examined financial ratios are below the total-assets limits; this is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Examined financial ratios are below Malaysia SAC limits; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed historical market-cap series is not stored.

Business-activity disclosure

Sprouts operates natural and organic grocery stores. Grocery retail is generally permissible, while alcohol, non-halal products, sourcing, labor and supply-chain practices require qualitative review.

Limitation: The filing does not quantify a scholar-specific prohibited-revenue numerator; the disclosed interest-income figure is a screen input, not a complete purification prescription.

Purification

Sprouts discloses $0.129 million of net interest income but does not prescribe a scholar-approved purification percentage; no fixed amount is estimated.

Inputs, assumptions and primary sources
  • Amounts are USD thousands converted to millions from Sprouts' March 29, 2026 Form 10-Q.
  • Debt includes $2.549 million current finance obligations and $97.044 million long-term debt and finance obligations; operating leases are excluded.
  • Cash is $252.161 million and no separately identified unrestricted interest-bearing securities are added.
  • Net accounts receivable are $63.313 million; quarterly net sales are $2,329.179 million and interest income, net, is $0.129 million.
  • The filing does not allocate grocery, prepared-food, alcohol or other revenue into a universal prohibited-activity numerator.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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