UNFIUnited Natural Foods Inc.
Earnings Recap
United Natural Foods Inc. affirms its fiscal year 2026 outlook, projecting net sales between $31.6–$32.0 billion, Adjusted EPS of $1.50–$2.30, and Adjusted EBITDA of $630–$700 million, with free cash flow of approximately $300 million. For the first quarter of fiscal 2026, the company reported GAAP EPS of -$0.06 (a small net loss), on net sales of approximately $7.8–$7.84 billion. Management also reiterated a target for net leverage to decline toward about 2.5x or less by the end of fiscal 2026, from the current 3.2x level.
Bullish
United Natural Foods Inc. demonstrated improved Adjusted EBITDA and EPS, expanded its gross profit rate through network optimization, and reduced its net leverage ratio while significantly improving free cash flow.
Bearish
United Natural Foods Inc. experienced decreased net sales due to conventional segment declines and store closures, an increase in total outstanding debt to $1.90 billion, and incurred costs related to a cybersecurity incident and asset impairment.