United Natural Foods, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsUNFI is a North American grocery wholesaler and retailer serving over 30,000 customer locations from 46 distribution centers.
What they do
United Natural Foods distributes grocery and non-food products to retailers in the U.S. and Canada, offering roughly 200,000-230,000 products across center store, fresh, frozen, wellness and bulk categories. It operates 46 distribution centers and warehouses totaling about 26 million square feet, with customers in all 50 states and all ten Canadian provinces. The business reports in three segments: Natural, Conventional and Retail.
Revenue drivers
- Natural segment — Largest segment at $17.1B in fiscal 2026 net sales, up 7.0% year-over-year, driven by natural, organic and specialty products distribution.
- Conventional segment — Second-largest segment at $13.0B in fiscal 2026 net sales, down 11.5% year-over-year, distributing national and private label grocery and general merchandise.
- Retail segment — Smallest segment at $2.2B in fiscal 2026 net sales, down 7.9% year-over-year, operating retail grocery stores.
- Eliminations — $1.1B of intersegment eliminations in fiscal 2026.
Recent performance
Fiscal 2026 net sales decreased 2.0% to $31.15B from $31.78B in fiscal 2025. Full-year net income was $84M, or $1.34 diluted EPS, versus a $118M loss and $1.95 loss per share last year. Adjusted EBITDA rose 27.0% to $701M, and free cash flow grew 35.1% to $323M. Fourth-quarter net sales fell 0.7% to $7.64B, while quarterly net income was $35M, or $0.57 per share, and Adjusted EBITDA rose 48.3% to $172M. Operating cash flow for the year was $540M, up from $470M.
Strategy
Management is focused on becoming a more effective and efficient company while adding value for customers and suppliers. The company completed initial deployment of Lean daily management to 44 distribution centers, supporting a fourth consecutive quarter of year-over-year improvement in fill rates, on-time deliveries and throughput. UNFI is onboarding additional business from new and existing customers expected to produce revenue growth in fiscal 2027 after cycling larger optimization actions. It aims to improve profitability, disciplined capital investment and working capital management while reducing debt.
Risks
- Customer concentration — The largest customer accounted for approximately 28% of fiscal 2026 net sales, so its loss or reduced purchasing could materially hurt results.
- Low margins and competition — The business has relatively low margins that are sensitive to inflationary and deflationary pressures and intense competition from retailer consolidation and alternative grocery options.
- Technology systems — UNFI depends on reliable and secure technology systems, and a 10-Q filing references an unauthorized incident on its technology systems that could affect business continuity.
- Supply chain and labor — Disruptions from severe weather, labor shortages or work stoppages, and union-organizing activities could increase costs or interrupt distribution.
Outlook
Management's fiscal 2027 guidance reflects high single digit growth for Adjusted EBITDA, with a midpoint $25 million higher than guidance provided at the December 2025 Investor Day. The company expects to return to revenue growth in fiscal 2027 after cycling larger optimization actions, supported by onboarding additional business from new and existing customers. CEO Sandy Douglas stated the focus remains on helping partners execute their growth strategies and accelerating operating momentum.