company_name (UNFI) quarter year United Natural Foods Financial Results Summary
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United Natural Foods, Inc. (UNFI) Q4 2026: Mixed Results with Strong EBITDA Growth — Cautiously Optimistic
United Natural Foods, Inc. (UNFI) reported its fourth quarter and full year fiscal 2026 results, revealing a mixed performance compared to the previous year. In the fourth quarter, net sales decreased by $54 million, or 0.7%, to $7.6 billion, while net income rebounded to $35 million from a net loss of $87 million in the same quarter last year. This marks a significant turnaround for the company, showcasing its ability to recover from previous challenges.
Key Financial Metrics
- Fourth Quarter Fiscal 2026:
- Net Sales: $7.6 billion (decreased by $54 million or -0.7% YoY)
- Net Income: $35 million (compared to a net loss of $87 million in Q4 2025)
- Net Income per Diluted Share (EPS): $0.57 (compared to a loss of $1.43 in Q4 2025)
- Adjusted EBITDA: $172 million (increased by $56 million or +48.3% YoY)
- Adjusted EPS: $0.69 (compared to an adjusted loss of $0.11 in Q4 2025)
- Free Cash Flow: $80 million (compared to $86 million in Q4 2025)
- Full Year Fiscal 2026:
- Net Sales: $31.2 billion (decreased by $640 million or -2.0% YoY)
- Net Income: $84 million (compared to a net loss of $115 million in FY 2025)
- Net Income per Diluted Share (EPS): $1.34 (compared to a loss of $1.95 in FY 2025)
- Adjusted EBITDA: $701 million (increased by $149 million or +27.0% YoY)
- Adjusted EPS: $2.65 (compared to $0.71 in FY 2025)
Analyst Opinion
This quarter can be viewed as a cautiously optimistic outcome for shareholders. The significant recovery in net income and the impressive growth in adjusted EBITDA indicate that UNFI is effectively navigating its operational challenges. The company has successfully executed its optimization strategies, leading to improved profitability metrics. However, the decline in net sales raises concerns about revenue growth, which will need to be addressed in the upcoming fiscal year.
Operational Highlights
- The decrease in net sales was attributed to a 500 basis point adverse impact from planned optimization actions and a 150 basis point impact from short-term project work. However, these were partially offset by the company lapping last year’s cybersecurity incident.
- UNFI completed the initial deployment phase of Lean daily management across 44 distribution centers, contributing to improvements in fill rates, on-time deliveries, and throughput.
- The company has begun onboarding additional business from new and existing customers, which is expected to drive revenue growth in fiscal 2027.
Shareholder Returns and Guidance
During the fourth quarter, UNFI repurchased 420,502 shares at an average price of $49.94, totaling approximately $21 million. Additionally, the Board of Directors approved a new stock repurchase program authorizing up to $200 million, replacing the previous program from September 2022.
Looking ahead, UNFI has provided guidance for fiscal 2027, projecting:
- Net Sales: $31.2 billion to $31.8 billion
- Net Income: $105 million to $145 million
- Adjusted EPS: $3.00 to $3.50
- Adjusted EBITDA: $730 million to $780 million
- Free Cash Flow: $275 million to $325 million
Forward Catalysts
Investors should closely monitor UNFI's execution of its growth strategies in fiscal 2027, particularly as the company anticipates high single-digit growth for adjusted EBITDA. The successful onboarding of new customers and the impact of ongoing optimization efforts will be critical in determining whether UNFI can return to revenue growth. Additionally, the effectiveness of the new stock repurchase program may provide further support for shareholder value.
In summary, while the quarter showed some challenges in revenue, the recovery in profitability metrics and strategic initiatives position UNFI for potential growth in the upcoming fiscal year.
Note: The following tables present amounts in millions.
| August 1, 2026 | August 2, 2025 | August 1, 2026 | August 2, 2025 | ||
|---|---|---|---|---|---|
| Fourth Quarter | (13 weeks) | (13 weeks) | Fiscal Year | (52 weeks) | |
| Net sales | $7,642 | $7,696 | $31,152 | $31,784 | |
| Cost of sales | 6,592 | 6,666 | 26,956 | 27,562 | |
| Gross profit | 1,050 | 1,030 | 4,196 | 4,222 | |
| Operating expenses | 984 | 1,046 | 3,906 | 4,117 | |
| Restructuring, acquisition and integration related expenses | 12 | 59 | 52 | 94 | |
| (Gain) loss on sale of assets and other asset charges | -15 | 3 | 27 | 42 | |
| Operating income (loss) | 69 | -78 | 211 | -31 | |
| Net periodic benefit income excluding service cost | -5 | -5 | -23 | -20 | |
| Interest expense, net | 29 | 36 | 126 | 146 | |
| Other (income) expense, net | -1 | — | 6 | -3 | |
| Income (loss) before income taxes | 46 | -109 | 102 | -154 | |
| Provision (benefit) for income taxes | 11 | -23 | 18 | -39 | |
| Net income (loss) including noncontrolling interests | 35 | -86 | 84 | -115 | |
| Less net income attributable to noncontrolling interests | — | -1 | — | -3 | |
| Net income (loss) attributable to United Natural Foods, Inc. | $35 | $-87 | $84 | $-118 | |
| Basic income (loss) per share | $0.59 | $-1.43 | $1.39 | $-1.95 | |
| Diluted income (loss) per share | $0.57 | $-1.43 | $1.34 | $-1.95 | |
| Weighted-average shares outstanding | Basic 60.5 | 60.6 | 60.7 | 60.2 | |
| Diluted 62.9 | 60.6 | 62.8 | 60.2 |
| August 1, 2026 | August 2, 2025 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $37 | $44 |
| Accounts receivable, net | 921 | 1,093 |
| Inventories, net | 1,946 | 2,095 |
| Prepaid expenses and other current assets | 234 | 191 |
| Total current assets | 3,138 | 3,423 |
| Property and equipment, net | 1,716 | 1,749 |
| Operating lease assets | 1,334 | 1,474 |
| Goodwill | 19 | 19 |
| Intangible assets, net | 509 | 576 |
| Deferred income taxes | 158 | 162 |
| Other long-term assets | 235 | 192 |
| Total assets | $7,109 | $7,595 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Accounts payable | $1,771 | $1,875 |
| Accrued expenses and other current liabilities | 305 | 319 |
| Accrued compensation and benefits | 214 | 227 |
| Current portion of operating lease liabilities | 143 | 173 |
| Current portion of long-term debt and finance lease liabilities | 5 | 8 |
| Total current liabilities | 2,438 | 2,602 |
| Long-term debt | 1,561 | 1,859 |
| Long-term operating lease liabilities | 1,316 | 1,400 |
| Long-term finance lease liabilities | 10 | 11 |
| Pension and other postretirement benefit obligations | 13 | 14 |
| Other long-term liabilities | 149 | 155 |
| Total liabilities | 5,487 | 6,041 |
| Stockholders’ equity: | ||
| Preferred stock, $0.01 par value, authorized 5.0 shares; none issued or outstanding | — | — |
| Common stock, $0.01 par value, authorized 100.0 shares; 64.0 shares issued and 60.3 shares outstanding at August 1, 2026; 63.1 shares issued and 60.6 shares outstanding at August 2, 2025 | 1 | 1 |
| Additional paid-in capital | 690 | 658 |
| Treasury stock at cost | -136 | -86 |
| Accumulated other comprehensive loss | -38 | -42 |
| Retained earnings | 1,104 | 1,020 |
| Total United Natural Foods, Inc. stockholders’ equity | 1,621 | 1,551 |
| Noncontrolling interests | 1 | 3 |
| Total stockholders’ equity | 1,622 | 1,554 |
| Total liabilities and stockholders’ equity | $7,109 | $7,595 |
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