United Natural Foods, Inc. (UNFI) reported first‑quarter fiscal 2026 results on December 2, 2025, showing net sales of $7.84 billion—a 0.4% decline from the same period a year earlier. Adjusted earnings per share rose to $0.56 from $0.16 in the prior year, a 250% increase that beat the consensus estimate of $0.40 by $0.16, or 40%. Adjusted EBITDA grew 24.6% to $167 million, driven by stronger sales in the natural‑product segment and cost efficiencies from ongoing network optimization.
Revenue slipped because conventional sales fell 11.7% as the Allentown, Pennsylvania distribution center closed and strategic retail store closures reduced volume. In contrast, the natural‑segment grew 10.5%, offsetting the decline in legacy products. The company’s gross profit rate expanded to 13.4% from 13.2% a year earlier, reflecting a favorable mix shift and improved procurement gains.
The EPS beat was largely a result of disciplined cost control and operational leverage. Network optimization reduced transportation and labor costs, while the natural‑segment’s higher margin contributed to a 24.6% jump in adjusted EBITDA. The company also improved its net loss to $4 million from a $21 million loss in the prior year, underscoring the effectiveness of its cost‑cutting program.
UNFI reiterated its full‑year outlook, maintaining guidance of net sales between $31.6 billion and $32.0 billion and adjusted EPS between $1.50 and $2.30. The company confirmed a capital‑expenditure plan of approximately $250 million for 2026, focused on cloud and automation investments. Management highlighted that the Allentown distribution center closure and other facility adjustments are proceeding ahead of schedule, reinforcing confidence in the transformation agenda.
CEO Sandy Douglas said the quarter “demonstrates solid execution and continued progress in delivering value to customers and suppliers.” He added that the company is “strengthening service levels and throughput” and will keep focusing on tailored solutions to support growth. The results, combined with the company’s debt‑reduction target of a net leverage ratio below 2.5× by year‑end, signal a resilient business model amid a challenging conventional grocery environment.
Market reaction was strongly positive, with the stock surging 10.22% after the announcement. Investors were driven by the significant EPS beat, margin expansion, and the company’s clear path to cost discipline and network optimization, all of which reinforce confidence in UNFI’s strategic transformation.
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