Core Insights - United Natural Foods, Inc. (UNFI) is restructuring its wholesale business by separating its natural and organic divisions to strengthen market position and streamline operations [1][2] - The separation aims to enhance customized value for customers and suppliers while driving profitable growth [2][5] Business Strategy - UNFI will realign its commercial wholesale organization into two divisions: Conventional Grocery Products and Natural, Organic, Specialty & Fresh Products [2] - Specialized sales teams will support each division, focusing on the unique needs of the 30,000 retail locations served [3] Operational Efficiency - UNFI plans to establish capability centers of excellence in areas like supply chains and private brands to support sales leaders and create customized growth programs [4] - Lean management principles are being implemented to drive cost savings and improve efficiency, including the optimization of the distribution network [8] Growth Potential - The natural and organic business segment is experiencing impressive growth due to increased consumer demand for healthier products, with private brand growth rates ranging from mid-single digits to mid-teens [7] - UNFI has closed underperforming facilities and transitioned operations to larger centers, streamlining logistics while retaining most business [9] Market Performance - UNFI's shares have gained 47% in the past three months, contrasting with a 9.4% decline in the industry [9]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding in identifying securities with high potential for market outperformance [2][3] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales [3] - Growth Score assesses a company's financial health and future outlook through earnings and sales projections [4] - Momentum Score evaluates price trends and earnings estimate changes to identify favorable buying opportunities [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - The combination of Zacks Rank and Style Scores helps investors select stocks with the highest probability of success [9][10] Company Spotlight: United Natural Foods (UNFI) - United Natural Foods, Inc. is a leading distributor of natural and organic products in the U.S. and Canada, offering around 250,000 products across various categories [11] - UNFI holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [12] - The company has seen a 13.6% increase in share price over the past four weeks, with upward revisions in earnings estimates from analysts [12] - UNFI's average earnings surprise stands at an impressive 553.1%, further solidifying its attractiveness to investors [12][13]

In less than a year, United Natural Foods (NYSE: UNFI ) has run from under $10 to $27 a share, providing an exceptional return for investors. Given the stock has exhibited relatively muted increases in EBITDA over last year’s trough, someAnalyst’s Disclosure: I/we have a beneficial long position in the shares of UNFI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alp ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

News of an estimates-busting quarter and subsequent analyst price target raises drove United Natural Foods (UNFI 1.35%) stock higher over the past few days. Consequently, according to data compiled by S&P Global Market Intelligence, as of early morning Friday the company's shares were more than 18% higher in price week to date.A fine way to start the new fiscal yearUnited, which is the No. 1 wholesale provider of organic and natural food products, unveiled its latest set of quarterly results on Tuesday. In ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...

Financial Performance - Net sales for the first quarter of fiscal 2025 increased by 4.2% to $7,871 million, compared to $7,552 million in the first quarter of fiscal 2024[137] - Gross profit rose by $8 million, or 0.8%, to $1,038 million, with a gross profit margin of 13.2%, down from 13.6% in the prior year[141] - Operating expenses decreased by $8 million, or 0.8%, to $1,015 million, representing 12.9% of net sales, down from 13.5%[142] - Operating income improved by $21 million to $5 million, compared to an operating loss of $16 million in the first quarter of fiscal 2024[145] - Net loss attributable to United Natural Foods, Inc. was $21 million, or $0.35 per diluted share, compared to a net loss of $39 million, or $0.67 per diluted share, in the prior year[151] - Adjusted EBITDA increased by $17 million to $134 million, driven by gross profit growth and decreased operating expenses[153] - Wholesale net sales increased by $309 million to $7,590 million, primarily due to higher unit volumes and inflation[153] - Retail net sales decreased by $20 million to $586 million, primarily due to a 1.4% decrease in identical store sales[155] Cost and Expenses - The company reported a product cost inflation of approximately 1% in Q1 fiscal 2025 compared to Q1 fiscal 2024[117] - Restructuring, acquisition, and integration-related expenses rose to $12 million from $4 million, driven by higher employee severance costs[143] - Interest expense increased to $36 million from $35 million, primarily due to higher average interest rates[146] Liquidity and Debt - Total liquidity as of November 2, 2024, was $1,174 million, consisting of $1,137 million in unused credit and $37 million in cash[159] - Total debt increased by $162 million to $2,247 million as of November 2, 2024, primarily due to additional net borrowings under the ABL Credit Facility[159] - Working capital rose by $176 million to $1,213 million as of November 2, 2024, driven by seasonal increases in inventory and accounts receivable[159] Capital Expenditures and Investments - Capital expenditures for the first quarter of fiscal 2025 were $49 million, a decrease of $25 million compared to $74 million in the first quarter of fiscal 2024[170] - Fiscal 2025 capital and cloud implementation spending is expected to be approximately $300 million, focusing on distribution network automation and technology platform investments[171] - The company anticipates financing fiscal 2025 capital and cloud implementation expenditures with cash generated from operations and borrowings under the ABL Credit Facility[171] Distribution and Operations - A new distribution center in Manchester, Pennsylvania, with approximately 1.3 million square feet, began operations in Q1 fiscal 2025[113] - The company has 53 distribution centers and warehouses, totaling approximately 31 million square feet of warehouse space across North America[104] - The company is optimizing its distribution center network to achieve cost savings and improve customer experience[112] - The company plans to evaluate its distribution center network for further optimization and efficiency improvements[114] Market Risks - The company's exposure to market risk is primarily due to fluctuations in interest rates on borrowings and interest rate swap agreements[191] - Price increases in diesel fuel also contribute to the company's market risk exposure[191] - There have been no material changes to the company's exposure to market risks compared to those disclosed in the Annual Report[191] Shareholder Actions - The company did not repurchase any shares in the first quarter of fiscal 2025, with $138 million remaining authorized under the 2022 Repurchase Program[185] Pension Contributions - The company expects to contribute approximately $51 million to multiemployer pension plans in fiscal 2025, subject to collective bargaining outcomes[182]

United Natural Foods is implementing a turnaround as the economy continues to grow. Heading into this week investors in North American food distributor United Natural Foods (UNFI 3.14%) didn't have much to cheer about. But a week containing positive news can make a big difference in a portfolio's returns. After the company surprised investors with its fiscal 2024 fourth-quarter results, the stock hit a level it hadn't seen since June of last year. After rocketing higher by as much as 27% this week, United N ...

Core Insights - United Natural Foods, Inc. (UNFI) reported strong fourth-quarter fiscal 2024 results, with revenues and earnings exceeding expectations and showing year-over-year growth [1][3] - The company has achieved four consecutive quarters of increasing profitability, driven by same-customer growth, an extended agreement with its largest customer, and efficiency initiatives [1][2] Financial Performance - Adjusted earnings for the quarter were 1 cent per share, surpassing the Zacks Consensus Estimate of a loss of 8 cents, compared to an adjusted loss of 25 cents in the same period last year [3] - Net sales increased by 10% year over year to $8,155 million, exceeding the Zacks Consensus Estimate of $7,874 million, with a $582 million gain attributed to an extra week in fiscal 2024 [4] - Excluding the impact of the additional week, sales grew by 2.1%, supported by improving unit volumes and inflation [4] Sales Growth by Channel - Year-over-year sales growth was observed across various channels: Chains (9%), Independent retailers (4.5%), Supernatural (18.6%), and Retail (3.1%), with Other channels rising by 9.6% [5] Profitability Metrics - Gross profit rose 15.5% year over year to $1.12 billion, with a gross margin of 13.7% for the fourth quarter, compared to 13% in the previous year [6] - Operating expenses were $1.08 billion, up from $1 billion in the prior year, but as a percentage of sales, they decreased to 13.2% from 13.5% [7] - Adjusted EBITDA increased by 53.8% to $143 million from $93 million in the year-ago quarter [7] Financial Health - Total liquidity stood at $1.28 billion as of August 3, 2024, with free cash flow reported at $71 million, down from $117 million in the prior year [8] - Total outstanding debt reached $2.06 billion, with a net debt to adjusted EBITDA leverage ratio of 4.0X [9] Future Guidance - For fiscal 2025, UNFI anticipates net sales between $30.3 billion and $30.8 billion, with adjusted EBITDA expected to be between $520 million and $580 million [9][10] - The company projects a net loss of $41 million to $3 million for fiscal 2025 and adjusted earnings between 20 cents and 80 cents [10] Stock Performance - Shares of UNFI have increased by 82.2% over the past three months, significantly outperforming the industry growth of 9% [11]

Group 1 - United Natural Foods Inc (UNFI) shares fell 4.01% to $21.08 on October 2, reaching an intraday low of $21.02, which is 8.94% below its 52-week high of $23.15 and 145.69% above its 52-week low of $8.58 [1] - The trading volume for UNFI was 704,307 shares, which is 97.6% of the average daily volume of 721,816 [1] Group 2 - Wall Street analysts have set an average one-year price target for UNFI at $16.71, indicating a downside of 20.71% from the current price of $21.08, with a high estimate of $23.00 and a low estimate of $12.00 [2] - The consensus recommendation from 12 brokerage firms gives UNFI an average rating of 3.1, indicating a "Hold" status on a scale where 1 is Strong Buy and 5 is Sell [2] - GuruFocus estimates the GF Value for UNFI at $40.29 in one year, suggesting an upside of 91.13% from the current price of $21.08 [2]