United Natural Foods Q1 sales dip 0.4%, marginally miss estimates

Overview

• United Natural Foods fiscal Q1 net sales decreased 0.4%, slightly missing analysts' expectations

• However, adjusted EPS beats analysts' estimates

• Adjusted EBITDA increased 24.6%, driven by efficiency initiatives

Outlook

• Company affirms fiscal 2026 net sales outlook of $31.6 bln to $32.0 bln

• Company expects fiscal 2026 adjusted EPS of $1.50 to $2.30

• Company projects fiscal 2026 adjusted EBITDA between $630 mln and $700 mln

Result Drivers

• SUPPLY CHAIN IMPROVEMENTS - Co attributes adjusted EBITDA growth to incremental benefits of lean daily management

• NETWORK OPTIMIZATION - Co says network optimization and process improvements enhanced service levels and throughput

• CUSTOMER MIX AND SUPPLIER PROGRAMS - Co cites positive impact of customer mix and supplier programs on gross profit rate

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "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 $40.00, about 14.1% above its December 1 closing price of $34.36

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBwNCwsLa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)