United Natural Foods (NYSE:UNFI) 2025 Investor Day December 10, 2025 09:00 AM ET Company ParticipantsKristyn Farahmand - Chief Strategy OfficerSteve Bloomquist - VP of Investor RelationsDavid Best - President and CEO of RetailDanielle Benedict - CHRONone - Video NarratorLouis Martin - President of Conventional Grocery Products and Chief Commercial OfficerMatteo Tarditi - President and CFOSandy Douglas - CEOMark Bushway - President of Natural Products and Chief Supply Chain OfficerMario Maffie - CIOConferenc ...

Welcome Disclaimer Certain information in this presentation and discussed on the conference call which this presentation accompanies constitutes forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this presentation regarding the Company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ material ...

PROVIDENCE, R.I.--(BUSINESS WIRE)--United Natural Foods, Inc. (NYSE: UNFI) today is hosting its 2025 Investor Day in New York City. At the event, the Company will highlight its strategic priorities, operating focus, and long-term financial algorithm. "We are advancing our strategy and building unique capabilities to help our customers and suppliers more effectively differentiate and compete in the marketplace,†said Sandy Douglas, UNFI's Chief Executive Officer. "We have been successfully executing the strat ...

Core Insights - United Natural Foods (UNFI) has seen a stock price increase of approximately 57% since June, indicating strong market performance and investor confidence [1] Company Transformation - The company is undergoing a significant transformation, which is reflected in its financial results [1] Investment Strategy - The investment strategy focuses on medium-term opportunities where catalysts can unlock value, as well as short selling in the presence of downside catalysts [1] - The analyst has a preference for growth stories that are available at reasonable prices [1] Sector Expertise - The analyst has extensive experience in analyzing the industrial, consumer, and technology sectors, which informs investment decisions [1]

We came across a bullish thesis on United Natural Foods, Inc. on The Value Road’s Substack. In this article, we will summarize the bulls’ thesis on UNFI. United Natural Foods, Inc.'s share was trading at $35.95 as of December 2nd. UNFI’s trailing and forward P/E were 9.45 and 17.64 respectively according to Yahoo Finance. United Natural Foods, Inc. (UNFI), a major food distributor serving retailers like Whole Foods, experienced significant volatility over the past year. The company’s share price surged a ...

Core Insights - United Natural Foods, Inc. (UNFI) reported improved adjusted earnings of 56 cents per share for Q1 fiscal 2026, surpassing the Zacks Consensus Estimate of 39 cents, and up from 16 cents in the same quarter last year [1][9] - However, net sales decreased by 0.4% year over year to $7,840 million, missing the consensus estimate of $7,886 million, primarily due to lower conventional sales and strategic store closures [2][9] Financial Performance - The natural segment experienced a sales growth of 10.5% year over year, while the conventional and retail segments saw declines of 11.7% and 5.5%, respectively [3] - Gross profit increased by 1.3% year over year to $1,051 million, with a gross profit margin of 13.4%, up 20 basis points from the previous year [4] - Operating expenses decreased to $996 million from $1,015 million year over year, representing 12.7% of sales compared to 12.9% in the prior year, reflecting cost-saving initiatives [5] Cash Flow and Debt - The company had total liquidity of $1.33 billion as of November 1, 2025, with free cash flow used amounting to $54 million, a significant improvement from $159 million in the prior year [6] - Total outstanding debt, net of cash, was $1.90 billion, with a net leverage ratio of 3.2x as of November 1, 2025 [7] Guidance and Projections - UNFI reaffirmed its fiscal 2026 outlook, expecting net sales between $31.6 billion and $32 billion [8] - Adjusted EPS is projected to be between $1.50 and $2.30, with adjusted EBITDA expected to be between $630 million and $700 million [10]

Financial Performance - Net sales for the first quarter of fiscal 2026 decreased by approximately 0.4% to $7,840 million from $7,871 million in the first quarter of fiscal 2025, primarily driven by a decrease in unit volumes, partially offset by inflation [124]. - Gross profit increased by $13 million, or 1.3%, to $1,051 million for the first quarter of fiscal 2026, with a gross profit margin of 13.4% compared to 13.2% in the prior year [129]. - Operating expenses decreased by $19 million, or 1.9%, to $996 million, representing 12.7% of net sales, down from 12.9% in the first quarter of fiscal 2025, due to cost-saving initiatives [130]. - Adjusted EBITDA increased by $33 million, or 24.6%, to $167 million for the first quarter of fiscal 2026, compared to $134 million in the prior year [138]. - Net loss attributable to United Natural Foods, Inc. was $4 million, or $0.06 per diluted common share, compared to a net loss of $21 million, or $0.35 per diluted common share, in the first quarter of fiscal 2025 [136]. Cost and Inflation - The company reported a product cost inflation of approximately 3% in Q1 fiscal 2026 compared to Q1 fiscal 2025 [106]. - Natural net sales increased by approximately 10.5% to $4,240 million, driven by higher unit volumes and inflation, while conventional net sales decreased by 11.7% to $3,325 million due to lower unit volumes [124][126][127]. Strategic Initiatives - The termination of a supply agreement in the East region is expected to accelerate progress towards long-term strategic objectives, with the affected business accounting for approximately $1 billion in annual sales [102]. - The company plans to continue investing in its Retail segment, focusing on customer-facing merchandising initiatives and technology [105]. - The company is focused on optimizing its cost structure and reducing net working capital [96]. Debt and Liquidity - Total liquidity as of November 1, 2025, was $1,327 million, consisting of $1,289 million in unused credit and $38 million in cash and cash equivalents [149]. - Total debt increased by $58 million to $1,920 million as of November 1, 2025, primarily due to net borrowings under the ABL Credit Facility [149]. - Interest expense, net decreased to $34 million from $36 million in the prior year, primarily due to lower outstanding long-term debt balances [134]. Capital Expenditures and Investments - Capital expenditures for the first quarter of fiscal 2026 were $16 million, a decrease of $33 million compared to $49 million in the first quarter of fiscal 2025 [154]. - Fiscal 2026 capital and cloud implementation spending is expected to be approximately $250 million, focusing on technology platform investments [155]. Pension and Other Obligations - The company expects to contribute approximately $50 million to multiemployer pension plans in fiscal 2026, subject to collective bargaining outcomes [162]. - Restructuring, acquisition, and integration-related expenses increased by $10 million to $22 million, primarily due to adjustments related to multiemployer pension plan withdrawal liabilities [131]. Operational Metrics - The company operates 70 grocery stores, including 53 Cub Foods and 17 Shoppers stores, as of November 1, 2025 [104]. - The company has 49 distribution centers across North America, representing approximately 28 million square feet of warehouse space [95]. - The company’s diversified customer base includes over 30,000 customer locations, ranging from large grocers to smaller retailers [95]. - The company is actively monitoring macroeconomic and geopolitical impacts on consumer behavior and discretionary income levels [100]. Tax and Regulatory - The effective tax rate for the first quarter of fiscal 2026 was a benefit rate of 55.6% on pre-tax loss, compared to 16.7% in the prior year, influenced by discrete tax benefits and a solar array tax credit [135]. - The company has not been subject to the fixed charge coverage ratio covenant under the ABL Loan Agreement as of the filing date of the Quarterly Report [150]. Share Repurchase - The company did not repurchase any shares in the first quarter of fiscal 2026, with $138 million remaining under the 2022 Repurchase Program [165].

Core Insights - The natural foods sector is the primary growth driver for United Natural Foods Inc. (UNFI), compensating for weak performance in conventional grocery sales during Q1 2026 [1][2] Financial Performance - Net sales in the natural and organic segment increased by 10.5% year over year, exceeding $4.2 billion, while conventional sales fell by 11.7% [2] - Retail sales declined by 5.5%, and same-store sales decreased by 3%, attributed to store closures aimed at strengthening the network and improving cash flow [2] - Consolidated net sales growth was reduced by approximately 3% due to the closure of a distribution center in Allentown, PA [3] - The company maintains an annual sales outlook between $31.6 billion and $32 billion, with net income potentially reaching $50 million [4] Strategic Initiatives - UNFI is focusing on enhancing its private-label business, with the recent hiring of Pamela Ofri as chief brands officer to drive growth in this area [5] - The implementation of Lean Daily Management in 34 out of 49 distribution centers aims to improve operational efficiency and reduce waste [6] - The deployment of the AI-powered supply-chain management platform, RELEX, in about half of UNFI's distribution centers is expected to enhance fill rates and inventory effectiveness [7] Customer Engagement - Customer appeal rates have improved and are now above the levels seen in 2024 and 2025, indicating a positive trend in customer engagement [8] - Fill rates are also on the rise, contributing to better service delivery [8]

Core Insights - United Natural Foods, Inc. (UNFI) is a leading distributor of natural, organic, and specialty foods in the U.S. and Canada, facing competition from Sysco and US Foods [1] Financial Performance - UNFI reported Earnings Per Share (EPS) of $0.56, exceeding the estimated $0.39 [2][5] - Adjusted EBITDA increased by 24.6% to $167 million, despite a net loss of $4 million [2][5] - Revenue for the first quarter of fiscal 2026 was $7.84 billion, slightly below the estimated $7.91 billion, with a minor decrease in net sales of 0.4% [3][5] Financial Ratios - The debt-to-equity ratio stands at 2.24, indicating a higher level of debt compared to equity [4] - The current ratio of 1.38 suggests reasonable short-term liquidity to cover liabilities [4] - The enterprise value to sales ratio is 0.174, and the enterprise value to operating cash flow ratio is 10.17, providing insights into valuation and cash flow efficiency [4]

Core Insights - United Natural Foods, Inc. (UNFI) exceeded Wall Street expectations for quarterly profit, reporting adjusted earnings per share of 56 cents, surpassing the consensus estimate of 41 cents despite a slight decline in sales [1][5] Financial Performance - Quarterly sales amounted to $7.840 billion, a decrease of 0.4% year over year, falling short of the expected $7.911 billion [2] - Adjusted EBITDA for the first quarter was $167 million, an increase from $134 million in the same quarter of the previous fiscal year [3] - Free cash flow used totaled $54 million, showing improvement from $159 million used in the first quarter of fiscal 2025 [4] Segment Performance - Sales in the natural channel rose by 10.5% to $4.24 billion, indicating strong performance in that segment [2] - Conventional channel sales decreased by 11.7% to $3.33 billion, while retail sales fell by 5.5% to $554 million [2] Liquidity and Capital Expenditure - As of November 1, 2025, the company had total liquidity of approximately $1.33 billion, which included $38 million in cash and about $1.29 billion of unused capacity under its asset-based lending facility [3] - Capital expenditures in the first quarter of 2026 were $16 million, down from $49 million a year earlier [3] Outlook - The company reaffirmed its fiscal 2026 adjusted EPS outlook at $1.50 to $2.30, compared to the analyst estimate of $2.03 [5] - Sales forecast for 2026 is maintained at $31.6 billion to $32.0 billion, against a consensus of $31.953 billion [5] - UNFI shares rose by 10.68% to $38.03 at the time of publication [5]