Boyar Value Group, a long‑standing equity research firm founded in 1975, sent an open letter to UniFirst Corporation’s board on December 4, 2025 urging the company to conduct a strategic review after it declined several credible acquisition offers. The letter cites a $275‑per‑share proposal from Cintas, which represented a 46% premium to UniFirst’s 90‑day average closing price as of January 6, 2025, and argues that the board’s refusal to engage with buyers raises fiduciary concerns and has eroded shareholder confidence.
The Cintas offer triggered a 31% surge in UniFirst’s stock price on the day it was announced, reflecting investors’ enthusiasm for a high‑premium sale. The letter also points to UniFirst’s Q4 2025 earnings, where the company reported revenue of $614.4 million, down 3.9% from $639.9 million a year earlier but up 3.4% when adjusted for an extra week in fiscal 2024. Operating margin fell to 8.1% from 8.4% in the prior year, and net income dropped to $41.0 million from $44.6 million. Diluted earnings per share were $2.23, missing the consensus estimate of $2.08 by $0.15.
Management explained that the margin compression was largely due to the cost of “Key Initiatives” – CRM and ERP projects – which have been capitalized and are expected to deliver long‑term efficiencies. The company also highlighted investments in growth, customer retention, and digital transformation, noting that these initiatives have temporarily weighed on profitability. For fiscal 2026, UniFirst guided revenue to a range of $2.475 billion to $2.495 billion, below the analyst consensus of $2.537 billion, and maintained a cautious outlook on operating income.
Boyar’s letter accuses UniFirst of underperformance, questionable governance, and failed technology investments. The firm argues that a strategic sale would unlock significant synergies for a buyer and that the current management’s strategy is not maximizing shareholder value. It also warns that the board’s focus on a lower‑upside alternative may be influenced by the annual compensation of non‑employee directors, implying a potential conflict of interest.
Following the Q4 earnings release, UniFirst’s stock fell more than 11% in pre‑market trading, a reaction driven by the company’s lower‑than‑expected revenue guidance and the EPS miss. The market’s negative response underscores investor concern that the company’s standalone strategy may not generate the growth and profitability required to justify its current valuation.
The letter’s critique is significant because it represents a credible third‑party short report from an established research firm, a type of event that is considered market‑moving and newsworthy. If the board takes the letter seriously, it could trigger a formal strategic review, potentially leading to a sale or a board refresh, both of which would materially alter UniFirst’s future trajectory and shareholder value.
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