1. 2 0 04 Annual Repor t

2. Our core values reflect the sense of collective fate among our stakeholders and are the soul of our
company. Our Team Members, customers, shareholders, vendors, community and environment must
flourish together through their affiliation with us or we are not succeeding as a business. It is leadership’s
role to balance the needs and desires of all of our stakeholders and increase the productivity of
Whole Foods Market. By growing the collective pie, we create larger slices for all of our stakeholders.
Our Core Values: Selling the Highest Quality Natural and Organic Products Available Satisfying
and Delighting Our Customers Team Member Happiness and Excellence Creating Wealth Through
Profits and Growth Caring About Our Communities and Our Environment

3. more than 54% of Americans have tried organic foods and beverages and nearly one in 10 use organic products regularly or several times per week. Of those
Americans buying organic products, 58% believe the products are better for the environment, 54% believe they are better for their health, 42% believe they
O C TO B E R 21, 2 0 04 – Organic food sales grew 20% to $10 billion last year. According to our 2004 Whole Foods Market Organic Foods Trend Tracker™ survey,
Financial Highlights 2004 2003 2002 2001 2000
$ 3,864,950 $ 3,148,593 $ 2,690,475
sales (000s) $ 2,272,231 $ 1,838,630
$ 216,646 $ 167,379 $ 140,985 $ 104,459 $
operating income (000s) 94,643
$ 1.98 $ 1.58 $ 1.32 $ $
diluted eps from continuing operations 0.84 0.46
163 145 135 126 117
number of stores at end of fiscal year
$ 482,000 $ 424,000 $ 393,000
average weekly sales per store $ 353,000 $ 325,000
8.6% 10.0%
comparable store sales increase 14.9% 9.2% 8.6%
2004 was the best year in our 24-year history.
Dear Fellow Stakeholders:
I want to appreciate all of our Team Members for their ditures, of which $155 million was for new stores, as well
continued hard work and dedication and all of our customers as $28 million paid to shareholders in quarterly cash div-
are better quality and 32% believe they taste better.
and shareholders for their continued support. In a year that idends that we initiated at the beginning of the year. We
was challenging for most food retailers, we grew sales 23% were very pleased to have the confidence in our financial
to just under $4 billion. Our 14.9% comparable store sales position to increase that quarterly dividend 27% to $0.19
increase set a new company record. We had strong sales per share at year end.
every quarter and across all regions, all departments, and Our industry-leading performance and strong balance
all age classes of stores. Even our stores over eight years of sheet position led to our corporate credit rating being raised
age produced double-digit sales increases. Eighty-four percent to investment grade by both Moody’s Investors Service and
of all stores set weekly sales records and our sales per S&P Ratings Services and to a sharp 59% increase in our
gross square foot were $786, up from $716 last year. stock price during the fiscal year.
Our net profit margin for the year improved 25 basis Last year I spoke of three goals that were created during
points to 3.4% of sales, we produced a 21% increase in our 2003 Future Search process which stood out for us as
diluted earnings per share to $1.98, well ahead of our initial major priorities in 2004. We made significant progress dur-
guidance of $1.87 to $1.95, and we reported four consec- ing the year toward each of these goals.
utive quarters of positive EVA resulting in record EVA improve-
MM
ment of $12.6 million. G lo b al E x pan si o n
During the year, we opened our second store in Canada and
We earned $330 million in cash from operations which
10
acquired six Fresh & Wild stores in the United Kingdom.
allowed us to self fund our $265 million in capital expen-
$

4. Whole Foo d s Market Unive rsity (WFM-U )
We are very excited about expanding our presence in
As we continue to expand, maintaining our Team Members’
Canada and extending our company mission and the Whole
passion for our Mission and Core Values is an essential
Foods Market brand beyond North America and into Europe.
ingredient in setting us apart from our competitors. Cindy
The U.K. was an obvious choice due to the advanced
Bradley, formerly our VP of Team Member Services, was
acceptance of organics and the lack of language barriers
selected as our new VP of Learning at WFM-U. The vision for
there. We felt an acquisition was the right strategy for our
WFM-U is to create online, self-paced learning modules that
first overseas venture because, as with other successful
will engage our Team Members in active education and devel-
acquisitions we have made, the infrastructure and intel-
opment. The “U-Learn Network” was launched this year and
lectual capital we gained provided us with an immediate
several modules, made up of learning vignettes, are already
platform for expansion. We are actively exploring real estate
accessible. In the future, we hope to create product-related
opportunities in the London area with the goal of signing
training materials that will be accessible to both Team
a lease for a large format Whole Foods Market store in the
Members and customers, thereby creating an in-store learn-
very near future.
ing environment that will become an important part of
the Whole Foods Market shopping and work experience.
A n i mal Com pas s i o n Stan dard s
We decided the existing paradigm for animal production
“Building on the strength of 2004, I’m looking
should change and that we now have the scale and scope
forward to an even brighter 2005!”
to make a difference. Last year we began a rigorous process
The question I am asked most often is “how many Whole
of creating enhanced farm animal treatment standards
Foods stores can there be?” I don’t answer that question
beyond the strict animal welfare we already required. These
anymore because I have always been wrong in the past,
enhanced standards are being developed jointly by Whole
thankfully on the low side. We certainly are not limited by
Foods Market, animal welfare advocacy groups and various
opportunity as demographically the world continues to move
farmers and ranchers that we do business with, and focus
in our direction with an overall aging of the population and
on providing environments that best support the animals’
a growing interest in health, well-being and longevity. Our
natural physical needs, behavior and well being. This year we
2004 class of new stores was our best yet, with the 12 new
created standards for several species but hope to complete
stores (six of which were in new markets) averaging $575,000
standards for every species we sell over the next three years.
in weekly sales for the year. We believe the fact that our new
We also created an Animal Compassion Foundation which
stores are successful in markets as diverse as New York
will provide education and research services to assist and
City and Charleston, South Carolina, speaks to the broad
inspire ranchers and meat producers around the world to
appeal of our stores and the growing awareness of our brand.
achieve a higher standard of animal welfare excellence while
And, while I am not ready today to say our comparable store
still maintaining economic viability. Please check our web-
sales have broken out of their historical 8% to 9% range,
site for additional information about our welfare standards
we certainly have seen accelerating trends over the last ten
and the Animal Compassion Foundation.
Where Does the Money Go?
Growth Since IPO 9/26 /04 9/29/91* cagr
63.1%
163 11 24%
number of stores
Cost of Goods
$3.9 b $92.5 m
sales 33% Sold/Occupancy
$1.98 $0.17 21%
earnings per share 24.2%
32,100 1,100 30% Salaries/Benefits
team members
9.2%
$84.73 $4.25
stock price 27%
Income Taxes/
*1991 results do not include the impact Other Expenses
of subsequent pooling transactions.
3.4%
Stock price is split-adjusted IPO price
in January 1992. Net Income
2

5. We are Canadapleased to announce that for the eighthWholein a row our Team Members have )ranked
ence in very and extending our company mission and year Foo d s Market Unive rsity (WFM-U
us as one Foods Market brand beyond“100 Best Companies we continueFor.” In determiningour Team Members’
the Whole of Fortune magazine’s North America and As to Work to expand, maintaining who makes the
list, Europe. The U.K. was company benefits and practices but for our Mission and Core Values is an essential
into Fortune evaluates an obvious choice due to the passion places the greatest weight on responses
from a random survey of employees. Withlanguage ingredient in setting us apart fromwhich approximately
advanced acceptance of organics and the lack of more than 32,000 Team Members, of our competitors. Cindy
84% are full-time, we an acquisition was the right strat- Bradley,make the our VP of moved up 17 places from
barriers there, and we felt are the only national food retailer to formerly list. We Team Member Services, was
last for our first overseas this year, our highest placement on the list so far, of Learning at WFM-U. The vision for
egy year to number 30 venture because, as with other selected as our new VP and of the 37 large companies
listed, we acquisitions we fifth. made, the infrastructure WFM-U is to create online,Fame list learningcompanies
successful were ranked have We were also recognized in the new Hall of self-paced of 22 modules that
thatintellectual capital we gained“100 Best”with an imme- inception our1998.Members in active education and devel-
have appeared on the provided us list since its will engage in Team
and
opment. The “U-Learn Network” was launched this year
diate platform for expansion. We are actively exploring real
and several modules — made up of learning vignettes —
estate opportunities in the London area with the goal of
are already accessible. In the future, we hope to create
signing a lease for a large format Whole Foods Market store
product-related training materials that will be accessible
in the very near future.
to both Team Members and customers, thereby creating an
in-store learning environment that will become an impor-
A n i mal Com pas s i o n ate Stan da rd s
tant part of the Whole Foods Market shopping and work
We decided the paradigm for animal production must
experience.
change and that we have the scale and scope to make a
difference so last year we began a rigorous process of creat-
“Building on the strength of 2004, I’m looking for-
ing enhanced farm animal treatment standards beyond the
ward to an even brighter 2005!”
strict animal welfare we already required. These enhanced
standards are being developed jointly by Whole Foods
The question I am asked most often is “how many Whole
Market and animal welfare advocacy groups and focus on
Foods stores can there be?” I don’t answer that question
providing environments that best support the animals’
anymore because I have always been wrong in the past,
natural physical needs, behavior and well being. This year
thankfully on the low side. We certainly are not limited by
we created standards for several species but hope to com-
opportunity as demographically the world continues to
plete standards for every species we sell over the next three
move in our direction with an overall aging of the popu-
years. We also created an Animal Compassion Foundation
lation and a growing interest in health, well being and
which will provide education and research services to assist
longevity. Our 2004 class of new stores was our best yet,
and inspire ranchers and meat producers around the world
with the 12 new stores (six of which were in new markets)
to achieve a higher standard of animal welfare excellence
averaging $575,000 in weekly sales for the year. We believe
while still maintaining economic viability. Please check our
the fact that our new stores are successful in markets as
website for additional information about our animal wel-
diverse as New York City and Charleston, South Carolina,
fare standards and Animal Compassion Foundation.
EPA O C TO B E R 5, 2 0 04 – The Environmental Protection Agency (EPA) recognized
us for our green power purchases with a 2004 Green Power Leadership Award.
We currently purchase or generate more than 20% of our total national power
from green power sources each year. 3

6. At 59,000 square feet, our Columbus Circle store in the Time Warner Center is the largest food store
in Manhattan. It is a true foodie paradise offering culinary treasures from the finest authentic artisans
and renowned purveyors of produce, meat, seafood, cheese, coffee, and baked goods that are free of
hydrogenated oils, artificial additives, preservatives, and sweeteners. Some of the store’s unique offer-
ings include: a 248-seat café where shoppers can enjoy our restaurant-quality prepared foods; a full
service Sushi Bar featuring fresh-cut sushi wrapped in organic seaweed; a walk-in Greenhouse show-
casing fresh cut and exotic flowers; a Wine Shop serving more than 700 varieties of wine; and a
Chocolate Enrobing Station where customers can request just about anything to be covered in chocolate.
4

7. AUGUST 3, 2 0 04 – We received top “Gourmet Market” and “Health and Natural Foods”
Manhattan-based locations. New Yorkers rave about the unprecedented amenities
rating in the Zagat Survey 2005 NYC Gourmet Marketplace Guide for our two
years, and most dramatically over the last year which top priority for us. One of our secrets is what I refer to as
seems to indicate we are still significantly under-stored. our “yogurt culture.” For example, in our Columbus Circle
Our goal is to produce 15% weighted average square store, about 25% of the Team Members transferred from
footage growth in fiscal 2005 and beyond. We have suffi- existing stores. They were the starting culture that launched
cient capital available to meet this goal, and over the last the fermentation that turned Columbus Circle into a true
five quarters, we have announced seven or more newly Whole Foods store. I will always remember when we opened
signed leases creating a pipeline of 53 stores covering 21 our second store back in 1982, and Team Members told me
states, Ontario, Canada, and the United Kingdom. These they feared we would get way too corporate and lose what
stores average 49,000 gross square feet, a 53% increase made us special. But we have proven that it doesn’t matter
over our existing average store size of 32,000 gross square how large we get as long we stay true to our core values
and food offerings.
feet. Our pipeline totals a record 2.6 million square feet, and continue to maintain and attract Team Members who
a 63% increase in square footage under development over share our passion.
Our motto — Whole Foods, Whole People, Whole Planet™
last year, and represents 50% of our existing square footage.
Our biggest challenges in 2005 center around meet- — emphasizes that our vision reaches far beyond just food
1
ing our higher square footage growth goals while delivering retailing. We are focused on selling the highest quality
strong results in light of the difficult comparisons we are natural and organic foods in the world and helping evolve
facing, particularly in the first half of the year. Despite 2004 a better person, company and world through our dedica-
NYC
being our best year ever, we still expect sales growth of 15% tion to our core values, stringent quality standards and
to 20% and comparable store sales growth of 8% to 10% principles of right livelihood, Team Member empowerment,
in 2005. Due primarily to significantly higher pre-opening community service, conscientious retailing and sustain-
expenses, it is likely our EPS growth will be lower than our able agriculture.
sales growth. In addition, new stores could have some We look forward to sharing and extending our vision
negative impact on store contribution, as new stores gen- with the rest of the world as we open bigger and better
erally have lower gross margins and higher direct store new stores at an accelerated rate in the years ahead, as
expenses than more mature stores. the brand awareness of Whole Foods Market continues to
The changes we made to our executive team and to increase, and as we progress toward our goal of $10 billion
our operating structure will better position us for the in sales by the year 2010.
accelerated growth ahead. I transferred the title of Presi-
dent to Walter Robb and A.C. Gallo, and we promoted Lee With warmest regards,
Valkenaar to the new position of Executive Vice President
of Global Support. We also expanded our number of oper-
ating regions from eight to ten for better regional support John Mackey
of our existing store base as well as for our anticipated Chairman of the B oard
future growth in those areas. Chie f E xe c utive O ffic e r
Even as we have grown at a rapid pace, hiring thou-
sands of new Team Members each year, we have managed
to spread and perpetuate our culture and this remains a
5

8. 2004 Global All*Stars
Whole Foods Market recognizes excellence in leadership throughout the company with our Global
All*Star awards. With more than 32,000 Team Members in over 200 stores, facilities and offices
across the company, being recognized as a Global All*Star is a true achievement. We honor these
48 individuals who have set incredibly high standards and have achieved truly outstanding results
over the course of the past year.
Rolando Alas Tee Ayer Michael Besancon Julie Birdsong Cindy Bradley Patrick Bradley
Produce Team Leader, Store Team Leader, President, Southern Project Leader, Vice President of President, Midwest
Mill Valley Galleria Pacific Region Central Support Learning/WFM-U Region
Tana Bronk Sean Byrne Steve Campbell Janet Chaykin Barbara Coffman Laura Derba
Whole Body Team Meat Team Leader, Store Team Leader, Bakery Coordinator, Whole Body Team Store Team Leader,
Member, Madison Pasadena Campbell Southwest Region Leader, Durham University Heights
Christopher Phillips- Omar Gaye Gary Giles Anthony Gilmore Stephen Goldberg Robin Graf
Frishman
Store Team Leader, Seafood Team Leader, President, Northern Prepared Foods Team Member Serv-
Store Team Leader, Alpharetta Pearl California Region Director, North ices Director, South-
West Bloomfield Hills Atlantic Region ern Pacific Region
Forrest Hoffmaster Don Hosfeld Bill Jordan George Khoury Paula Labian Roberta Lang
Director of Grocery Team Leader, Vice President, Vice President, Vice President of Team Vice President,
Operational Finance, Ft. Lauderdale Southern Pacific Region Southern Pacific Region Member Services General Counsel
Mid-Atlantic Region
6

9. Terry Layton Joel Leonard Mike Litka Jennifer McFarlin Adam Mitchel Alanya Nelson
Whole Body Team Prepared Foods Team Store Team Leader, Payroll Benefit Store Team Leader, In Store Educator,
Leader, Walnut Leader, Fresh Pond Marlton Specialist, Madison Madison Madison
Creek
Chris Pine John Robertson Joe Rogoff Gerre Scherz David Schwartz John Simrell
Vice President Store Team Leader, Vice President, Store Team Leader, Vice President, Director of Finance,
of Real Estate Charlottesville Northern California Wilcrest Midwest Region South Region
Region
Kel-e Sherman Dodi Steiniger Ron Stockman Rocco Terrazano Jeff Teter Michael Thompson
Team Member Director of Whole Body Meat Team Leader, President & General Store Receiver,
Services Director, Operational Finance, Coordinator, Florida Yorkville Manager, Allegro Madison
Midwest Region Southern Pacific Region Region Coffee Company
Robert Thompson Julianne Ugo Bobby Turner Theo Weening Felicia Williams Mark Wilson
Store Team Leader, Team Member Services Bakery Coordinator, Meat Category Customer Service Team Produce Coordinator,
Thousand Oaks Coordinator, Northern Midwest Region Manager, Mid-Atlantic Leader, Rose City Southern Pacific
Pacific Region Region Region
7

10. Our motto—Whole Foods, Whole People, Whole Planet™—emphasizes that our vision reaches far
beyond just food retailing. Through our new Animal Compassion Foundation, we will provide edu-
cation and research services to assist and inspire ranchers and meat producers around the world
to achieve a higher standard of animal welfare excellence while still maintaining economic viability.
We believe the existing paradigm for animal production should change, and we now have the scale
and scope to make a difference. Just as we played an important role in the creation of organic standards,
we will work to raise the bar in treating farm animals with more compassion, and we hope other retail-
ers and animal producers will follow our lead.
8

11. Trading Information
The common stock of Whole
Foods Market is traded on the
Nasdaq Stock Market (symbol:
WFMI). If you wish to become
Corporate and Shareholder Information a shareholder, please contact a
stockbroker.
Dividend Policy
In November 2003, the Board
of Directors declared a quarterly
dividend of $0.15 per share, or
Whole Foods Market
$37 million, to shareholders in
Leadership Team
four quarterly dividends during
the fiscal year. In November
Anthony Gilmore Ron Megahan
Scott Allshouse
2004, the Board of Directors
President President
President
approved a 27% increase in the
Northern California Region Pacific Northwest Region
South Region
quarterly dividend to $0.19 per
Marc Jonna Ken Meyer
Michael Besancon share. The first $0.19 per share
National Wine Buyer President
President quarterly dividend was payable in
Mid-Atlantic Region
Southern Pacific Region January 2005, and the Company
Paula Labian
expects to pay approximately $48
Vice President Juan Nunez
Cindy Bradley
million in dividend payments to
Team Member Services President
Vice President of Learning
shareholders in fiscal year 2005.
Florida Region
Edmund LaMacchia
Patrick Bradley
National Produce Coordinator Will Paradise
President Ordering Financial Statements
President
Midwest Region A copy of our Annual Report or
Roberta Lang
Rocky Mountain Region Form 10-K may be obtained by
Vice President
Mike Clifford
written or phone request to:
General Counsel Walter Robb
Vice President
Co-President
Chief Information Officer
David Lannon Shareholder Services
Chief Operating Officer
President
Mark Dixon Whole Foods Market, Inc.
North Atlantic Region Jim Sud
President 550 Bowie Street
Executive Vice President
Southwest Region Austin, Texas 78703
Cindy McCann
Growth and Business 512.477.5566 ext. 20801
Vice President
Glenda Flanagan
Development
Investor Relations
Executive Vice President
Annual Meeting
Lee Valkenaar
Chief Financial Officer
John Mackey
Executive Vice President April 4, 2005
Chairman of the Board
Betsy Foster
Global Support 9:00 a.m. (EDT)
Chief Executive Officer
Vice President
New York Marriott
Margaret Wittenberg
Purchasing and Distribution
Lee Matecko East Side Hotel
Vice President
Vice President
A.C. Gallo 525 Lexington Avenue
Marketing and Public Affairs
Operational Finance
Co-President New York, New York 10017
Chief Operating Officer
Transfer Agent & Registrar
Information about stock certifi-
Board of Directors
cates, change of address, owner-
ship transfer or other stock
David W. Dupree Gabrielle E. Greene Morris J. Siegel
matters can be obtained from:
Managing Director Chief Financial Officer, Former Vice Chairman
The Halifax Group Villanueva Companies of the Board, The Hain
Securities Transfer Corporation
Celestial Group, Inc.
Dr. John B. Elstrott John Mackey 2591 Dallas Parkway, Suite 102
Director Chairman of the Board and Dr. Ralph Z. Sorenson Frisco, Texas 75034
Levy-Rosenblum Institute Chief Executive Officer Managing Partner, 469.633.0101
for Entrepreneurship, Whole Foods Market, Inc. Sorenson Limited Partnership www.stctransfer.com
Tulane University’s Freeman
Linda A. Mason
School of Business Independent Auditors
Chairman of the Board,
Ernst & Young LLP
Avram J. Goldberg Bright Horizons Family
Austin, Texas
Chairman of the Board Solutions
AVCAR Group, Ltd.
Visit our web site
www.wholefoodsmarket.com

12. Whole Foods Market, Inc.
550 Bowie Street
Austin, Texas 78703
www.wholefoodsmarket.com