Financial Data and Key Metrics Changes - For Q4 2025, net sales were $7.7 billion, down from $8.2 billion in the previous year, reflecting a 1.6% growth when excluding the $582 million benefit from an extra week in last year's quarter [22][23] - Full-year adjusted EBITDA was $552 million, slightly above the midpoint of the outlook provided earlier, with a Q4 adjusted EBITDA of $116 million compared to $133 million in the prior year [27][28] - Free cash flow for Q4 was $86 million, bringing the full-year total to approximately $240 million, a significant improvement from a cash use of about $90 million in fiscal 2024 [28][29] Business Line Data and Key Metrics Changes - The natural segment grew by 9% on a comparable 13-week basis, outperforming the market, while conventional segment sales declined by 6% [23] - For the full year, net sales rose 4.6%, with volume growth of 1.4% and inflation at about 1.8% [24] Market Data and Key Metrics Changes - The company is targeting a $90 billion addressable market, focusing on natural, organic, specialty, multicultural, and conventional grocery retailers [10] - The company expects net sales to grow in the low single digits on average from fiscal 2024 to 2027, reflecting better-than-projected organic growth [17] Company Strategy and Development Direction - The company aims to become the food industry's most valued partner by providing innovative products and services to help retailers and suppliers grow profitably [9] - The refresh strategy focuses on creating more value for customers and suppliers while becoming a more effective and efficient business [10][12] - The company plans to enhance capabilities in merchandising, revenue growth management, and technology to drive long-term growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and ability to create sustainable long-term value despite challenges faced during the cyber incident [20] - The company anticipates continued execution of its strategy and another year of profitable growth, with adjusted EBITDA expected to exceed $730 million by fiscal 2027 [18][34] Other Important Information - The company reduced net debt to around $1.8 billion, the lowest level since 2018, and reduced net leverage by 0.7 turns compared to the previous year [8][29] - The company is focused on improving the experience for independent customers and emerging suppliers, which are critical to the industry's vitality [16] Q&A Session Summary Question: Opportunities in natural merchandising initiatives - Management highlighted three key areas: innovation for natural retailers, deepening involvement in categories for conventional retailers, and simplifying the experience for emerging suppliers [37] Question: Improving conventional profitability - Management noted that natural products have historically higher margins, and efforts are focused on improving product mix, driving efficiency, and embedding lean practices [40] Question: Updated three-year guidance and customer attrition - Management indicated solid growth in the customer file and better-than-expected organic growth, particularly in natural and organic segments [46] Question: Industry promotional backdrop - Management observed a disciplined increase in promotional activities, with volume sold on deal still below 2019 levels [48] Question: Volume metrics and cyber incident impact - Management clarified that volume growth was skewed towards natural products, with a heavier impact from the cyber incident on conventional sales [51] Question: Factors leading to raised adjusted EBITDA algorithm - Management cited stronger top-line growth, continuous progress on shrink reduction, and productivity efforts as key contributors [52] Question: Relationship with Amazon - Management refrained from commenting on specific customers but emphasized a tailored strategy for enterprise accounts [56] Question: Capital investment and facility expansion - Management confirmed ongoing rationalization and optimization of distribution centers, with plans for automation and modernization [62] Question: Margin gain flow in 2026 - Management outlined key components for EBITDA growth, including the exit of unprofitable contracts and continuous shrink reduction efforts [66] Question: Tariff impact - Management is closely monitoring tariffs and working with suppliers and customers to manage costs effectively [68]

Core Insights - United Natural Foods Inc. (UNFI) reported fiscal fourth-quarter 2025 results that exceeded analyst expectations despite a decline in year-over-year sales [1][3] - The company faced significant challenges due to a cyber incident in June 2025, which impacted net sales and adjusted EBITDA [2] Financial Performance - Net sales for the fourth quarter reached $7.70 billion, surpassing Wall Street's estimate of $7.64 billion, but down 5.6% from $8.16 billion a year earlier [1] - The adjusted net loss was 11 cents per share, better than the expected 19-cent loss, compared to an adjusted earnings of 1 cent per share in the prior year [3] - Adjusted EBITDA for the fourth quarter was $116 million, down from $143 million in the previous year [5] Segment Performance - The natural segment experienced strong growth of 9.1%, contributing an additional $335 million in year-over-year sales [3] - The conventional segment declined by 6.1%, resulting in a decrease of $223 million, while the retail segment saw a modest decline of 1.7%, totaling $10 million [4] Cyber Incident Impact - The cyber incident is estimated to have caused a reduction of approximately $400 million in net sales and around $50 million in adjusted EBITDA [2] - After adjusting for the extra week in fiscal 2024 and the estimated 5% impact from the cyber incident, the company achieved underlying sales growth of 1.6% [4] Financial Position - On a GAAP basis, the company reported a wider net loss of $1.43 per share, compared to a loss of 63 cents in the prior year [5] - The net leverage ratio improved from 4.0x at the end of fiscal 2024 to 3.3x by the end of fiscal 2025, indicating progress toward deleveraging goals [5] - Cash and cash equivalents stood at $44 million at the end of the fourth quarter of fiscal 2025 [6] Future Outlook - For fiscal year 2026, the company expects net sales to be in the range of $31.6 billion to $32 billion, slightly below the estimated $32.31 billion [7]

Group 1 - The union movement at United Natural Foods Inc. (UNFI) is gaining momentum, with over 3,000 workers joining Teamsters since 2022, including recent votes from more than 50 drivers in South Carolina [1][2] - Workers in South Carolina are seeking better wages, stronger benefits, and improved working conditions [1] - UNFI maintains constructive relationships with unions and engages in good faith bargaining to reach fair agreements addressing wages, benefits, and employment conditions [2] Group 2 - Teamsters unions have successfully ratified contracts for over 1,000 truck drivers and warehouse workers in multiple states, including Florida, Georgia, and Illinois [3] - Recent agreements include an $8-per-hour wage increase, improved benefits, and a defined benefit pension plan, along with safety protections and additional time off [4] - The South Carolina group aims to negotiate a strong first agreement to protect their rights and ensure fair wages and benefits [5]

Core Viewpoint - US Foods Holding Corp. reaffirms its fiscal year 2025 guidance and long-range growth plan for 2025 to 2027, indicating confidence in its operational strategies and market position [1] Financial Performance - The company reported strong results for the first half of 2025, highlighting progress in self-help initiatives and growth in Adjusted EBITDA [1]

Core Viewpoint - Colabor Group Inc. has entered into forbearance agreements with its principal lenders and Investissement Québec to temporarily avoid defaults related to financial covenants for the third and fourth quarters of 2025 [1][2][3] Group 1: Forbearance Agreements - The forbearance agreements allow Colabor to avoid immediate financial penalties while it works on amendments to its credit facilities [2][3] - The forbearance period is effective until October 15, 2025, contingent on Colabor's compliance with specified financial and operational covenants [3] Group 2: Financial Position and Stability - The agreements provide Colabor with additional flexibility following a cybersecurity incident in July 2025, aimed at strengthening its financial position [4] - Colabor remains committed to normal operations and fulfilling obligations to customers and suppliers while implementing its business plan [4] Group 3: Company Overview - Colabor is a distributor and wholesaler of food products serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces [5]

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies such as Chefs' Warehouse, Perdoceo Education, Adtalem Global Education, and Nomad Foods exhibit strong net profit margins, making them attractive to investors [1][8] Financial Metrics - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value [3] Investment Considerations - A strong net profit margin provides clarity on a company's business model, including pricing, cost structure, and manufacturing efficiency, making it a preferred metric for investors [4] - However, net profit margin varies significantly across industries, and its relevance can diminish for companies that rely heavily on debt financing [5] Screening Criteria - The screening parameters for selecting stocks include a net margin of at least 0%, positive earnings per share (EPS) growth, and a strong broker rating [7] - Stocks like CHEF, PRDO, ATGE, and NOMD were selected based on their strong net margins and favorable EPS growth outlooks, each holding a Zacks Rank of 2 and a VGM Score of A [8] Company Performance - Chefs' Warehouse has seen its 2025 earnings estimate revised upward to $1.75 per share, with a historical average earnings surprise of 11.3% [10] - Perdoceo Education's 2025 earnings estimate increased to $2.52 per share, with an average earnings surprise of 6.2% [12] - Adtalem Global Education maintains a fiscal 2026 earnings estimate of $6.52 per share, with an average earnings surprise of 18.4% [13] - Nomad Foods' 2025 earnings estimate was revised upward to $2.13 per share, with an average earnings surprise of 3.2% [14]

Core Insights - Chefs' Warehouse reported strong Q2 2025 results, with GAAP revenue of $1,034.9 million and Non-GAAP earnings per share of $0.52, exceeding analyst expectations [1][2] - The company modestly raised its full-year financial guidance, reflecting confidence in ongoing growth initiatives [1][10] Financial Performance - Q2 2025 Non-GAAP EPS was $0.52, up 30% year-over-year from $0.40 in Q2 2024 [2] - Revenue increased by 8.4% year-over-year, from $954.7 million in Q2 2024 to $1,034.9 million in Q2 2025 [2] - Net income rose to $21.2 million, a 36.8% increase from $15.5 million in Q2 2024 [2] - Adjusted EBITDA reached $65.4 million, up 16.4% from $56.2 million in the previous year [2] - Gross profit improved to $254.3 million, an 11.1% increase from $229.0 million in Q2 2024 [2] Business Model and Strategy - Chefs' Warehouse specializes in distributing high-end specialty foods, including proteins and kitchen staples, to fine-dining restaurants, hotels, and gourmet retailers [3] - The company offers over 88,000 unique products sourced from more than 4,000 suppliers globally, focusing on artisan and family-owned businesses [3] - Recent strategic initiatives include expanding the product catalog, investing in digital ordering systems, and enhancing supplier partnerships [4] Growth Drivers - Organic revenue growth was driven by increased demand for specialty foods, with a 3.5% increase in organic case count [5] - Unique customer relationships and product placements grew by 3.6% and 8.7%, respectively [5] - The exit from a low-margin commodity poultry program led to a 4.0% decline in organic pounds sold in that category, aligning with the company's focus on profitability [6] Profitability and Efficiency - Gross profit margin expanded by 59 basis points to 24.6%, with improved operating income as a percentage of revenue [7] - SG&A expenses rose by 9.7%, but higher profits from product mix and pricing contributed to stronger overall margins [7] - The company accelerated its online ordering system adoption, now handling approximately 58% of specialty customer orders in the US, up from 48% [8] Future Outlook - Management raised FY2025 revenue guidance to between $4.0 billion and $4.06 billion, with gross profit expectations of $964 million to $979 million [10] - Adjusted EBITDA is projected to be between $240 million and $250 million, reflecting strength in core categories and digital initiatives [10] - Key metrics to monitor include margin trends, SG&A expense ratios, and management of the company's $690 million long-term debt [11]

Core Insights - AMCON Distributing Company's shares increased by 4.9% following the earnings report for the quarter ended June 30, 2025, outperforming the S&P 500's 1.2% growth during the same period [1] - The company reported earnings per share of $2.13, down from $2.46 in the prior-year quarter [1] Financial Performance - Quarterly sales rose by 3% year over year to $739.6 million, up from $717.9 million, driven by modest revenue gains across two operating segments [2] - Operating income fell by 13.5% to $4.9 million compared to $5.6 million in the prior-year period [2] - Net income available to common shareholders decreased to $1.3 million from $1.5 million a year earlier [2] Segment Performance - The wholesale distribution segment generated revenues of $728.3 million and operating income of $7.3 million [3] - The retail health food segment contributed $11.3 million in revenues and $0.1 million in operating income [3] - Gross profit increased to $49.6 million from $48 million, while selling, general, and administrative expenses rose by 6.5% to $42.5 million due to inflation-related costs [3] Cost and Expenses - Interest expenses were $2.7 million, slightly down from $2.9 million last year [4] - Income before taxes decreased to $2.1 million from $2.4 million in the prior-year quarter [4] Management Insights - The CEO emphasized the focus on integrating recent acquisitions and optimizing new facilities to strengthen AMCON's position as the third-largest convenience distributor in the U.S. [5] - The COO acknowledged challenges in the convenience retailing sector, including sluggish consumer spending and persistent inflation, while reaffirming foodservice as a strategic growth area [6] Macroeconomic Factors - AMCON's results reflect broader macroeconomic pressures, particularly inflation affecting product costs and operating expenses, which have compressed margins despite revenue growth [7] Dividend and Shareholder Returns - The company maintained its dividend payout at $0.18 per share for the quarter, consistent with the prior year, totaling $0.82 per share year-to-date [8] Financial Position - As of June 30, 2025, shareholders' equity was $113.2 million, up from $111.7 million as of September 30, 2024 [9] - Cash and equivalents were reported at $0.8 million, with total assets reaching $393.9 million [9] Cash Flow and Capital Expenditures - Cash flows from operations were negative $12.5 million for the nine-month period ended June 30, 2025, compared to positive $26.9 million in the prior-year period [10] - Capital expenditures totaled $8.2 million, with acquisitions consuming an additional $6.1 million in cash [10] Recent Developments - AMCON completed the acquisition of Arrowrock Supply for approximately $6.1 million in cash, aligning with its strategy to expand in the convenience distribution space [11]

Company Overview - Colabor Group Inc. is a distributor and wholesaler of food and related products serving the hotel, restaurant, and institutional markets (HRI) in Quebec and the Atlantic provinces, as well as the retail market [4]. Upcoming Financial Results - Colabor will release its results for the first quarter ended June 14, 2025, after market close on Thursday, July 24, 2025 [1]. - A conference call to discuss these results is scheduled for Friday, July 25, 2025, at 9:30 a.m. (Eastern Time) [1]. Conference Call Details - The conference call will be accessible via the Company's website under the Investors section [2]. - North-American participants can dial toll-free at 1-800-990-4777, while international participants can call 1-289-819-1299 or 1-514-400-3794 [2]. - A quick link for connection is provided: https://emportal.ink/4l7iHyQ [2]. Recording of Conference Call - A recording of the conference call will be available by calling toll-free in North America at 1-888-660-6345 or 1-289-819-1450, using the code 34320 [3]. - The recording will be accessible until August 1, 2025 [3].

Group 1 - Colabor Group Inc. has appointed Mr. Yanick Blanchard as Interim Senior Vice-President and Chief Financial Officer effective immediately [1] - Mr. Blanchard brings over 25 years of experience in corporate finance, previously serving as Executive Vice-President and Global Head of Corporate & Investment Banking at National Bank of Canada [3] - The company is actively searching for a permanent Chief Financial Officer to fill the position [4] Group 2 - Colabor operates as a distributor and wholesaler of food products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces [5] - The company offers a range of specialty food products, including fish, seafood, and meat, through its Broadline activities [5]