United Natural Foods (NYSE:UNFI) Posts Earnings Results, Beats Expectations By $0.07 EPS

United Natural Foods (NYSE:UNFI) released its quarterly earnings results on Tuesday. The company reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.07, FiscalAI reports. United Natural Foods had a positive return on equity of 7.42% and a negative net margin of 0.12%.The company had revenue of $7.64 billion for the quarter, compared to analysts’ expectations of $7.71 billion. During the same period in the previous year, the business posted ($0.11) earnings per share. The business’s quarterly revenue was down .7% compared to the same quarter last year. United Natural Foods updated its FY 2027 guidance to 3.000-3.500 EPS.

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

• Positive Sentiment: UNFI reported fiscal 2026 Adjusted EBITDA of $701 million, up 27% year over year, and record free cash flow of $323 million. Net leverage fell to 2.2x from 3.3x, supported by lower debt and refinancing savings.
• Positive Sentiment: Management expects fiscal 2027 Adjusted EBITDA of $730 million to $780 million, or high-single-digit growth at the midpoint, with Adjusted EPS of $3.00 to $3.50. The company said the outlook positions it to reach its fiscal 2028 margin target one year early.
• Neutral Sentiment: Fiscal 2027 sales are expected to rise about 1% at the midpoint to $31.2 billion-$31.8 billion, but revenue is likely to decline in the first quarter as optimization actions and project work are lapped before returning to profitable growth in the second half.
• Negative Sentiment: Conventional product sales declined mid-single digits and retail sales fell 8% in the quarter, while higher fuel costs, low-single-digit inflation, and increased fiscal 2027 capital spending of about $300 million are expected to pressure results and offset some EBITDA growth in free cash flow.
• Positive Sentiment: The board authorized a new $200 million share-repurchase program after UNFI repurchased approximately $50 million of stock in fiscal 2026, while management plans to reduce leverage below 2.0x by the end of fiscal 2027.

United Natural Foods Stock Performance

Shares of UNFI stock opened at $44.93 on Wednesday. The stock has a market capitalization of $2.72 billion, a PE ratio of -68.07 and a beta of 0.80. The business’s 50 day simple moving average is $47.58 and its 200 day simple moving average is $46.89. The company has a debt-to-equity ratio of 1.04, a current ratio of 1.33 and a quick ratio of 0.51. United Natural Foods has a one year low of $27.97 and a one year high of $57.02.

Insider Transactions at United Natural Foods

In other news, insider Mark Bushway sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $51.56, for a total value of $515,600.00. Following the transaction, the insider owned 51,119 shares in the company, valued at approximately $2,635,695.64. The trade was a 16.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On United Natural Foods

Several large investors have recently modified their holdings of UNFI. Trexquant Investment LP bought a new position in United Natural Foods during the fourth quarter worth $12,885,000. Arrowstreet Capital Limited Partnership boosted its position in United Natural Foods by 40.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,300,414 shares of the company’s stock valued at $48,922,000 after acquiring an additional 374,487 shares during the last quarter. Millennium Management LLC boosted its position in United Natural Foods by 912.4% during the fourth quarter. Millennium Management LLC now owns 398,946 shares of the company’s stock valued at $13,433,000 after acquiring an additional 359,541 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in United Natural Foods by 198.4% during the 4th quarter. JPMorgan Chase & Co. now owns 439,897 shares of the company’s stock worth $14,811,000 after acquiring an additional 292,496 shares during the period. Finally, Wellington Management Group LLP bought a new position in shares of United Natural Foods in the 4th quarter worth about $9,472,000. 87.63% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about United Natural Foods

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

• Positive Sentiment: Quarterly earnings beat expectations: UNFI reported adjusted earnings of $0.69 per share for the fourth quarter, above the $0.62 consensus estimate and sharply better than the $0.11-per-share loss reported a year earlier. UNFI Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Fiscal 2027 outlook supports the stock: Management guided to adjusted EPS of $3.00-$3.50 and revenue of $31.2-$31.8 billion. The earnings range brackets the $3.18 analyst consensus, while management expects productivity improvements—not price increases—to drive margin expansion despite additional inflation. UNFI Fiscal 2027 Guidance
• Positive Sentiment: Capital returns and deleveraging: UNFI authorized a new $200 million share-buyback program and outlined a plan to reduce leverage to below two times, potentially improving shareholder returns and financial flexibility. UNFI Announces New Share Buyback
• Neutral Sentiment: Sales performance was mixed: Fourth-quarter revenue of approximately $7.64 billion fell short of the $7.71 billion estimate and declined 0.7% year over year. Natural-products sales increased, but the conventional segment weakened, highlighting continued pressure on demand and mix. UNFI Natural and Conventional Sales
• Negative Sentiment: Revenue guidance was below expectations: The fiscal 2027 sales outlook of $31.2-$31.8 billion is below the roughly $31.9 billion consensus, and the company continues to operate with a very thin net margin, limiting tolerance for execution or inflation setbacks.

Wall Street Analyst Weigh In

Several research firms recently commented on UNFI. Zacks Research downgraded shares of United Natural Foods from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Roth Capital restated a “neutral” rating and issued a $43.00 price target on shares of United Natural Foods in a research report on Wednesday, June 10th. The Goldman Sachs Group reiterated a “neutral” rating and set a $47.00 price target on shares of United Natural Foods in a report on Wednesday, June 10th. BMO Capital Markets reissued an “outperform” rating and issued a $56.00 price objective on shares of United Natural Foods in a research note on Wednesday, June 10th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of United Natural Foods in a report on Monday, July 6th. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $47.86.

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.