United Natural Foods Inc

United Natural Foods reported fiscal fourth-quarter adjusted earnings per share of $0.69, beating analyst expectations, while revenue of $7.64 billion came in below consensus. The grocery wholesaler guided for fiscal 2027 net sales of $31.2 billion to $31.8 billion, a return to growth after full-year fiscal 2026 sales declined 2% to $31.2 billion. Full-year adjusted EBITDA rose 27% to $701 million and free cash flow hit a record $323 million, with net debt falling by $295 million and net leverage improving to 2.2 times. Fourth-quarter natural-products sales increased 6.6% even as conventional-products sales declined 8.6%, and management guided fiscal 2027 adjusted EPS to $3.00 to $3.50 versus $2.65 previously. The fiscal 2027 revenue outlook implies growth of only about 0.2% to 2.1% and falls below the $31.95 billion analyst estimate.

United Natural Foods reported fourth-quarter fiscal 2026 results that beat the Zacks Consensus Estimate on both the top and bottom lines, with adjusted earnings of 69 cents per share versus the expected 62 cents, and net sales of $7,642 million, down 0.7% year over year but above the $7,576 million consensus. The sales decline included an approximately 500-basis-point adverse impact from planned optimization actions and a 150-basis-point headwind from the unwind of short-term project work, partly offset by the prior-year cybersecurity incident comparison. Gross profit rose 1.9% to $1,050 million, with the gross margin improving to 13.7% from 13.4%, while operating expenses fell to $984 million from $1,046 million, improving as a percentage of sales to 12.9% from 13.6%. Adjusted EBITDA surged 48.3% to $172 million, and the company generated free cash flow of $80 million. For fiscal 2027, UNFI guided net sales of $31.2-$31.8 billion, adjusted earnings of $3.00-$3.50 per share, and adjusted EBITDA of $730-$780 million, and its board authorized a new $200 million share repurchase program.

United Natural Foods shares jumped 3.5% in afternoon trading after the company reported fiscal second-quarter earnings that beat Wall Street estimates on profit and raised its full-year guidance. Net sales came in at $7.64 billion, flat year-over-year and slightly below the consensus estimate of $7.70 billion, but adjusted earnings per share reached $0.69, beating the $0.62 consensus by 11.9%. Adjusted EBITDA was $172.0 million, a 1.2% beat over expectations, with an adjusted EBITDA margin of 2.3%. Management raised its fiscal 2027 outlook, projecting adjusted EPS of $3.25 at the midpoint, above forecasts by 1.1%, and full-year adjusted EBITDA guidance of $755.0 million, above the consensus of $747.3 million. The stock was trading at $45.68, up 4% from the previous close.

GEN Restaurant Group announced second quarter 2026 revenue rose 1.2% year-over-year to $55.7 million, while net loss widened to $4.6 million from $1.7 million a year earlier. The company also disclosed it received a non-binding letter of intent from a nationwide multi-concept restaurant operator to acquire its U.S. restaurant operations, which would leave GEN as a pure-play consumer packaged goods company retaining 100% of its CPG business. The CPG division, which grew revenue 341% sequentially and surpassed $2 million in June alone, secured purchase commitments from more than 100 Costco warehouses and new distribution agreements with United Natural Foods and C&S Wholesale Grocers. Comparable restaurant sales declined 9.3% in the quarter, and the company exited six underperforming locations. GEN estimates a forward 12-month CPG revenue run rate of $35 million to $40 million based on doors secured and pipeline.

Zacks Equity Research has identified Mondelez International, Sysco, United Natural Foods, and Mama's Creations as stocks to watch within the Food-Miscellaneous industry, which faces pressure from value-conscious consumers and persistent cost inflation. The industry carries a Zacks Industry Rank of 214, placing it in the bottom 13% of more than 247 Zacks industries, and its consensus earnings estimate for the current financial year has declined 2.7% since the beginning of May 2026. United Natural Foods holds a Zacks Rank of 1, or Strong Buy, with shares gaining 109.4% over the past year, while Mama's Creations is ranked 2, or Buy, and has rallied 115.2%. Mondelez and Sysco both carry a Zacks Rank of 3, or Hold, with Mondelez shares down 10.4% and Sysco shares up 9.2% over the same period.

Kingdom Capital Advisors, in its second-quarter 2026 investor letter, said United Natural Foods continues to execute its business plan and trades at a cheap valuation, expecting the company to inflect its earnings power higher in coming quarters ahead of street expectations. The advisor's KCA Value Composite returned 11.97% net of fees in the quarter and 20.94% year-to-date, compared to 22.57% for the Russell 2000 Total Return and 10.18% for the S&P 500 Total Return. United Natural Foods shares closed at $47.94 on July 9, 2026, with a market capitalization of $2.90 billion, and gained 101.34% over the past 52 weeks.

United Natural Foods received a broker rating upgrade, drawing investor attention as the stock is considered 4.4% undervalued with a fair value estimate of $49.38 compared to a recent close of $47.18. The company's share price has eased 8.64% over the past month but remains up 41.17% year to date and 104.77% over one year. The valuation narrative is supported by disciplined customer segmentation, exit from unprofitable relationships, and distribution network optimization, which are unlocking operational leverage and supporting free cash flow growth. Strategic technology investments in warehouse management and data-driven inventory systems are reinforcing UNFI's competitive edge and long-term revenue resiliency. However, the company faces ongoing pressures from heightened competition, retailer consolidation, and cybersecurity and IT spending that could weigh on profitability.

Zacks.com featured United Natural Foods, Rockwell Automation, and Wayfair as stocks with recently upgraded broker ratings. United Natural Foods saw a 9.1% upward revision in broker ratings over the past four weeks, with fiscal 2026 earnings expected to surge 254.9% year over year. Rockwell Automation's broker ratings were revised up by 3.9%, and its fiscal 2026 earnings are projected to rise 23.3%. Wayfair experienced a 3.2% upward revision in broker ratings, with 2026 earnings expected to increase 11.9%.

United Natural Foods reported stronger-than-expected third-quarter results, prompting BMO Capital and Goldman Sachs to raise their price targets. BMO lifted its target to $56 from $52, maintaining an Outperform rating, noting that earnings exceeded both its own and management's forecasts due to productivity initiatives delivering benefits sooner than anticipated. Goldman Sachs increased its target to $47 from $42, keeping a Neutral rating, and believes near-term headwinds from higher fuel costs and technology investments are manageable while the broader profit improvement story remains intact. The company's ongoing network optimization strategy is seen as a key driver of improving profitability.

United Natural Foods currently holds a Zacks Rank #2, or Buy, and a Value grade of A. The company's price-to-book ratio stands at 1.11, below the industry average of 1.65, and its price-to-cash-flow ratio is 6.80, compared to the industry average of 10.50. These metrics suggest the stock may be undervalued, and combined with a strong earnings outlook, United Natural Foods appears to be a great value stock at the moment.

United Natural Foods hosted its 2026 Holiday and Winter Selling Show, connecting over 1,400 grocery retailers with 715 suppliers. The event featured nearly 70 new brands and highlighted products for the upcoming holiday and winter selling periods. UNFI recognized 19 supplier partners for product innovation and contributions to community impact. The show reinforces the company's role as a central connector in the natural and organic products sector, emphasizing category curation and supplier relationships.

United Natural Foods reported a 16.6% year-over-year increase in adjusted EBITDA to $183 million in the third quarter of fiscal 2026, crediting AI-driven tools and supply-chain optimization for faster-than-expected productivity gains. Operating expenses fell nearly 7% from a year earlier, while operating expenses as a percentage of net sales decreased 40 basis points. The company expanded its use of Samsara, an AI-powered fleet management platform, which helped improve on-time deliveries by more than 4% and reduce average miles driven per delivery by nearly 5% year to date. Management plans to continue investing in technology and supply-chain capabilities as profitability strengthens.

Zacks Investment Research recommends five health and fitness stocks that delivered strong first-half returns and carry favorable Zacks Ranks, signaling further upside. Columbia Sportswear, a Zacks Rank #1, is advancing its ACCELERATE strategy targeting younger consumers and has seen its current-year earnings estimate rise 3.8% over the last 30 days. OneSpaWorld Holdings, a Zacks Rank #2 provider of wellness services on cruise ships and on land, has a current-year earnings growth estimate of 17.2% and a 3.6% upward revision in the past 60 days. United Natural Foods, also a Zacks Rank #2, is benefiting from efficiency initiatives and private-brand innovation, with next-year earnings estimates up 10.9% over the last 30 days. Vita Coco, a Zacks Rank #1, is projected to grow earnings 47.9% this year and has seen estimates climb 11.4% over 60 days. Life Time Group, a Zacks Rank #2 operator of health and fitness communities, has a current-year earnings growth estimate of 16% and a 5% positive revision over 60 days.

United Natural Foods' 2026 outlook depends on execution offsetting uneven revenue trends, as profitability and cash flow improve while reported sales remain pressured. Natural segment sales, which represented 50.4% of fiscal 2025 revenues, rose 4.4% year over year to $4.34 billion in the fiscal third quarter, while the Conventional segment declined 13.6% to $3.14 billion and Retail sales fell 10.1% to $515 million due to store closures. Adjusted earnings rose 75% to 77 cents per share and adjusted EBITDA increased 16.6% to $183 million, supported by a 20-basis-point gross margin improvement to 13.6% and a nearly 40-basis-point reduction in the expense ratio to 12.4% of net sales. Management maintained fiscal 2026 outlook midpoints, including adjusted EBITDA of $685-$705 million and adjusted earnings of $2.40-$2.60 per share, while free cash flow reached $243 million year to date, helping reduce net leverage to 2.5X.

United Natural Foods is leveraging AI-powered supply-chain tools and lean management practices to improve efficiency and cash flow while natural and organic demand supports growth. The company has expanded its AI procurement platform across all distribution centers and broadened its AI fleet management system, helping on-time deliveries rise more than 4% year to date and average miles per delivery fall nearly 5%. Lean Daily Management has been implemented across 40 distribution centers, contributing to a more than 7% increase in distribution-center productivity and a nearly 7% year-over-year decline in operating expenses in the fiscal third quarter. Free cash flow reached $243 million year to date, up $90 million from the prior-year period, reducing net debt to $1.63 billion and net leverage to 2.5 times. Natural segment sales rose 4.4% year over year to $4.34 billion in the fiscal third quarter, with underlying natural growth again outperforming the market and the two-year stack remaining in the mid-teens for the past five quarters. The company also introduced more than 30 new private-brand SKUs and offers an Endless Aisle marketplace for emerging brands. Macro pressures from inflation, fuel costs, and competition from Sysco and US Foods remain risks, and the stock carries a Neutral recommendation with no Zacks Rank or Style Scores provided.

New York Times Co. has returned 7.3% year-to-date, outperforming the Consumer Staples sector's average return of 6.6%. The company holds a Zacks Rank of #2 (Buy), and its full-year earnings consensus estimate has risen 5.1% over the past quarter. Within the sector, the Publishing - Newspapers industry, of which New York Times Co. is the sole member, has lost an average of 0.6% year-to-date. Another Consumer Staples stock, United Natural Foods, has returned 47.5% year-to-date and also carries a Zacks Rank of #2 (Buy).