United Natural Foods (NYSE:UNFI) Issues Earnings Results

United Natural Foods (NYSE:UNFI) announced its quarterly earnings data on Tuesday. The company reported $0.77 earnings per share for the quarter, missing analysts’ consensus estimates of $0.81 by ($0.04), FiscalAI reports. United Natural Foods had a negative net margin of 0.12% and a positive return on equity of 7.42%. The business had revenue of $7.72 billion during the quarter, compared to analysts’ expectations of $7.79 billion. During the same period in the prior year, the firm posted $0.44 EPS. United Natural Foods’s revenue for the quarter was down 4.2% compared to the same quarter last year. United Natural Foods updated its FY 2026 guidance to 2.400-2.600 EPS.

Here are the key takeaways from United Natural Foods’ conference call:

• UNFI said Q3 results showed strong profitability and free cash flow, with adjusted EBITDA up nearly 17% to $183 million and adjusted EPS rising to $0.77 from $0.44 a year ago.
• The company reduced net leverage to 2.5 turns and ended the quarter with net debt of $1.63 billion, its lowest level since fiscal 2018. Management also highlighted a $150 million debt prepayment and a refinancing that lowered annual borrowing costs.
• Underlying sales, excluding optimization actions and short-term project work, were said to be in line with the low-single-digit growth of UNFI’s target market. Management expects the broader wholesale business to return to sales growth in fiscal 2027.
• The company pointed to ongoing productivity and supply-chain gains, including higher DC productivity, improved fill rates and on-time deliveries, and expanded use of AI-based planning and fleet-management tools. Lean daily management is now deployed in 40 distribution centers.
• For Q4, UNFI kept its outlook midpoints but said it is balancing continued operational benefits against higher fuel and transportation costs and some additional investment in technology and supply chain capabilities. Management reiterated confidence in a return to growth in fiscal 2027.

United Natural Foods Stock Performance

UNFI opened at $50.66 on Thursday. The stock has a market cap of $3.08 billion, a P/E ratio of -76.76 and a beta of 0.81. The company has a debt-to-equity ratio of 1.04, a current ratio of 1.33 and a quick ratio of 0.52. The stock’s 50 day simple moving average is $49.26 and its 200 day simple moving average is $41.24. United Natural Foods has a 1-year low of $20.78 and a 1-year high of $57.02.

Insider Buying and Selling at United Natural Foods

In related news, insider Danielle Benedict sold 4,807 shares of the company’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $52.00, for a total value of $249,964.00. Following the sale, the insider owned 98,470 shares in the company, valued at $5,120,440. This represents a 4.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Quarry LP acquired a new position in shares of United Natural Foods during the 3rd quarter worth approximately $29,000. Larson Financial Group LLC raised its position in shares of United Natural Foods by 4,266.7% during the 3rd quarter. Larson Financial Group LLC now owns 786 shares of the company’s stock worth $30,000 after purchasing an additional 768 shares during the last quarter. Arax Advisory Partners raised its position in shares of United Natural Foods by 37.4% during the 4th quarter. Arax Advisory Partners now owns 1,102 shares of the company’s stock worth $37,000 after purchasing an additional 300 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new position in shares of United Natural Foods during the 4th quarter worth approximately $38,000. Finally, EverSource Wealth Advisors LLC raised its position in shares of United Natural Foods by 84.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,332 shares of the company’s stock worth $31,000 after purchasing an additional 609 shares during the last quarter. 87.63% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have weighed in on UNFI. Roth Mkm reaffirmed a “neutral” rating and issued a $43.00 price objective on shares of United Natural Foods in a report on Wednesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of United Natural Foods in a report on Wednesday, April 8th. UBS Group boosted their price target on United Natural Foods from $44.00 to $47.00 and gave the stock a “neutral” rating in a research note on Wednesday. Wall Street Zen cut United Natural Foods from a “buy” rating to a “hold” rating in a report on Monday, May 4th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on United Natural Foods from $40.00 to $46.00 and gave the stock a “hold” rating in a report on Thursday, March 12th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $46.38.

Key United Natural Foods News

Here are the key news stories impacting United Natural Foods this week:

• Negative Sentiment: UNFI missed Wall Street’s revenue expectations, with Q3 net sales of about $7.72 billion coming in below forecasts and down year over year, which pressured the stock. UNFI Q3 Earnings Miss Estimates, Sales Guidance Range Narrowed
• Negative Sentiment: The company narrowed its full-year guidance and signaled ongoing pressure from higher energy costs and weaker consumer spending, adding to investor concern about near-term growth. United Natural Foods Warns Higher Energy Prices, SNAP Cuts Are Impacting Consumers
• Neutral Sentiment: Management emphasized margin expansion, improved adjusted EBITDA, and deleveraging efforts, suggesting execution is improving even though the top line remains under pressure. UNFI expects return to growth in fiscal 2027 while reiterating $695M adjusted EBITDA midpoint
• Neutral Sentiment: On the earnings call, UNFI framed fiscal 2027 as the likely return-to-growth year, which may reassure long-term investors but does little to offset the immediate sales miss. UNFI Q3 Earnings Call Puts Focus on 2027 Growth Path

About United Natural Foods

United Natural Foods, Inc (NYSE: UNFI) is a leading distributor of natural, organic and specialty foods in North America. Founded in 1976 and headquartered in Providence, Rhode Island, the company has grown through strategic acquisitions and organic expansion to become one of the largest food distributors serving retail, foodservice and e-commerce customers.

UNFI’s core business centers on the procurement, warehousing and distribution of a broad portfolio of products, including fresh produce, groceries, frozen foods, dairy, bakery items, beverages, supplements and household essentials.