United Natural Foods(US:UNFI) The Motley Fool·2025-12-02 15:15Core Viewpoint - United Natural Foods reported strong adjusted earnings, exceeding analyst expectations, but faced challenges with GAAP earnings and declining sales [2][3][4] Financial Performance - For fiscal Q1 2026, United Natural Foods achieved adjusted earnings of $0.56 per share, surpassing the forecast of $0.40, despite sales of $7.8 billion, slightly below the expected $7.9 billion [2][3] - The company's GAAP earnings reported a loss of $0.06 per share, with a sales decline of 0.4% year-over-year [3] - Free cash flow was negative at $54 million, although it showed improvement compared to the previous year [3][4] Management Commentary - CEO Sandy Douglas emphasized "solid execution and continued progress," highlighting nearly 25% growth in adjusted EBITDA [4] Market Outlook - United Natural Foods projected full-year sales between $31.6 billion and $32 billion, with adjusted earnings per share ranging from $1.50 to $2.30, both below analyst estimates [6] - The company aims for at least break-even GAAP earnings by year-end, with potential profits between $0 and $0.80 per share [6] Valuation Concerns - Even with maximum earnings guidance, the stock's P/E ratio could exceed 47, raising concerns about its valuation in the grocery sector [7]