Overview

• US grocery wholesaler's fiscal Q3 sales fell 4.2% and missed analyst expectations

• Adjusted EPS missed analyst expectations

• Company repurchased 82,233 shares for about $4 mln and narrowed full-year guidance range

Outlook

• Company narrows full-year 2026 net sales outlook to $31.1 bln-$31.3 bln

• United Natural Foods expects fiscal 2026 EPS of $0.90-$1.10 and adjusted EPS of $2.40-$2.60

• Company expects full-year 2026 adjusted EBITDA guidance at $685 mln-$705 mln

Result Drivers

• OPTIMIZATION ACTIONS - Sales decline driven by network optimization, including transition out of Allentown, Pennsylvania distribution center and loss of short-term project-based work

• COST SAVINGS - Operating expenses fell nearly 7% due to cost-saving initiatives, network optimization, and insurance proceeds

• MARGIN IMPROVEMENT - Gross profit rate increased due to network optimization actions and improved customer mix, partially offset by lower retail margins

Company press release: ID:nBw3XyKJta

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Miss	$7.72 bln	$7.80 bln (9 Analysts)
Q3 Adjusted EPS	Miss	$0.77	$0.78 (10 Analysts)
Q3 EPS		$0.52
Q3 Net Income		$33 mln
Q3 Adjusted EBITDA		$183 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy."

• Wall Street's median 12-month price target for United Natural Foods Inc is $45.00, about 12.9% below its June 8 closing price of $51.64

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

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