UNITED NATURAL FOODS INC (UNFI): Results of Operations and Financial Condition
UNITED NATURAL FOODS INC (UNFI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 UNITED NATURAL FOODS, INC. REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2026 RESULTS Providence, RI - September 8, 2026 -- United Natural Foods, Inc. (NYSE: UNFI) (the “Company” or “UNFI”) today reported financial results for the fourth quarter (13 weeks) and fiscal y
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data for valuation models and may trigger re‑rating by analysts.
Market read
First‑report earnings with updated guidance; actionable for traders and analysts covering consumer staples.
What to watch
The 500‑bp adverse impact from optimization actions could signal future cost pressures.
United Natural Foods, Inc. reports fourth quarter and full year fiscal 2026 results, with fourth-quarter net sales of $ 7,642 million and Adjusted EBITDA of $ 172 million.
Fourth-quarter sales declined 0.7%, but the company returned to GAAP profitability, expanded gross profit rate, reduced operating expenses as a percentage of sales, grew Adjusted EBITDA 48.3%, and reduced net debt. Fiscal 2027 guidance calls for higher net income, Adjusted EBITDA and free cash flow.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 net salesGAAP | $ 7,642 million | – | (0.7) % |
| Fiscal 2026 net salesGAAP | $ 31,152 million | – | (2.0) % |
| Q4 gross profitGAAP | $ 1,050 million | – | 1.9% |
| Q4 gross profit rateGAAP | 13.7% of net sales | – | – |
| Fiscal 2026 gross profitGAAP | $ 4,196 million | – | – |
| Q4 operating expensesGAAP | $ 984 million | – | – |
| Q4 operating expenses as a percentage of net salesGAAP | 12.9% of net sales | – | – |
| Fiscal 2026 operating expensesGAAP | $ 3,906 million | – | – |
| Q4 operating income (loss)GAAP | $ 69 million | – | – |
| Fiscal 2026 operating income (loss)GAAP | $ 211 million | – | – |
| Q4 net income attributable to United Natural Foods, Inc.GAAP | $ 35 million | – | N/M |
| Fiscal 2026 net income attributable to United Natural Foods, Inc.GAAP | $ 84 million | – | N/M |
| Q4 diluted income (loss) per shareGAAP | $ 0.57 | – | N/M |
| Fiscal 2026 diluted income (loss) per shareGAAP | $ 1.34 | – | N/M |
| Q4 basic income (loss) per shareGAAP | $ 0.59 | – | – |
| Fiscal 2026 basic income (loss) per shareGAAP | $ 1.39 | – | – |
| Q4 Adjusted EBITDAnon-GAAP | $ 172 million | – | 48.3 % |
| Fiscal 2026 Adjusted EBITDAnon-GAAP | $ 701 million | – | 27.0 % |
| Q4 Adjusted EPSnon-GAAP | $ 0.69 | – | N/M |
| Fiscal 2026 Adjusted EPSnon-GAAP | $ 2.65 | – | 273.2 % |
| Q4 net cash provided by operating activitiesGAAP | $ 197 million | – | 23.1 % |
| Fiscal 2026 net cash provided by operating activitiesGAAP | $ 540 million | – | 14.9 % |
| Q4 payments for capital expendituresGAAP | $ (117) million | – | 58.1 % |
| Fiscal 2026 payments for capital expendituresGAAP | $ (217) million | – | (6.1) % |
| Q4 Free cash flownon-GAAP | $ 80 million | – | (7.0) % |
| Fiscal 2026 Free cash flownon-GAAP | $ 323 million | – | 35.1 % |
| Net leverage rationon-GAAP | 2.2x | – | – |
| Fiscal 2026 U.S. GAAP Effective Tax RateGAAP | 18 % | – | – |
| Fiscal 2026 Adjusted Effective Tax Ratenon-GAAP | 24 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| NaturalFourth-quarter sales increased while total sales included an approximately 500 basis point impact from planned accretive optimization actions and a 150 basis point headwind from the completed unwind of short-term project work. | $ 4,260 million | – | 6.6 % |
| ConventionalFourth-quarter sales declined; total sales included an approximately 500 basis point impact from planned accretive optimization actions and a 150 basis point headwind from the completed unwind of short-term project work. | $ 3,121 million | – | (8.6) % |
| RetailThe company cited a lower gross margin rate in the Retail segment as a partial offset to gross profit rate benefits. | $ 528 million | – | (7.9) % |
| EliminationsIntersegment eliminations as reported. | $ (267) million | – | 7.6 % |
| Natural, fiscal 2026Fiscal-year segment sales as reported. | $ 17,132 million | – | 7.0 % |
| Conventional, fiscal 2026Fiscal-year segment sales as reported. | $ 12,974 million | – | (11.5) % |
| Retail, fiscal 2026Fiscal-year segment sales as reported. | $ 2,157 million | – | (7.9) % |
| Eliminations, fiscal 2026Intersegment eliminations as reported. | $ (1,111) million | – | 10.5 % |
Fiscal Year Ending July 31, 2027 (52 weeks) outlook
- Revenue$31.2 - $31.8
- Tax rate27%
- NoteNet income ($ in millions): $105 - $145
- NoteEPS: $1.70 - $2.30
- NoteAdjusted EPS: $3.00 - $3.50
- NoteAdjusted EBITDA ($ in millions): $730 - $780
- NoteCapital and cloud implementation expenditures ($ in millions): ~ $300
- NoteFree cash flow ($ in millions): $275-$325
Capital returns
- During the fourth quarter of 2026, the Company repurchased 420,502 shares at an average price of $49.94 for an aggregate cost of approximately $21 million.
- On September 3, 2026, the Board of Directors approved a new stock repurchase program authorizing repurchases of up to $200 million of shares.
- Repurchases of common stock were $ (50) million in fiscal 2026, compared with $ — million in fiscal 2025.
What drove it
- Fourth-quarter net sales included an approximately 500 basis point impact from planned accretive optimization actions and a 150 basis point headwind from the completed unwind of short-term project work.
- Fourth-quarter fiscal 2025 sales were impacted by the previously disclosed cybersecurity incident.
- The fourth-quarter gross profit rate benefitted from network optimization actions and customer mix.
- Lower operating expenses as a percentage of sales reflected cost saving initiatives, including network optimization actions and higher levels of distribution center productivity.
- Fourth-quarter fiscal 2025 operating expenses included investment in servicing customers during the cybersecurity incident.
- Interest expense declined primarily because of lower average outstanding debt balances.
- The company completed the initial deployment phase of Lean daily management to 44 distribution centers, supporting the fourth consecutive quarter of year-over-year improvement in fill rates, on-time deliveries, and throughput.
- The company began onboarding additional business from new and existing customers expected to produce revenue growth in fiscal 2027 after cycling larger optimization actions.
Concerns
- Fourth-quarter net sales decreased 0.7% and fiscal 2026 net sales decreased 2.0%.
- Conventional fourth-quarter net sales decreased 8.6%, Retail fourth-quarter net sales decreased 7.9%, and the Retail segment had a lower gross margin rate.
- Free cash flow was $ 80 million in the fourth quarter, down 7.0 %, as payments for capital expenditures rose to $ (117) million.
- Fiscal 2027 net sales guidance of $31.2 - $31.8 compares with fiscal 2026 net sales of $ 31,152 million, while the company expects approximately $300 million of capital and cloud implementation expenditures.
- Fiscal 2026 included $30 million in non-cash asset impairment charges related to decisions to close certain retail store locations and discontinue operations at certain distribution centers, warehouses or offsite storage facilities.
What to watch
- Fiscal 2027 net sales guidance of $31.2 - $31.8.
- Fiscal 2027 Adjusted EBITDA guidance of $730 - $780 and the company’s stated high single digit growth expectation.
- Fiscal 2027 Free cash flow guidance of $275-$325 and capital and cloud implementation expenditures of ~ $300.
- Revenue contribution from onboarding additional business from new and existing customers after cycling larger optimization actions.
- Execution of Lean daily management across the 44 distribution centers and the reported trends in fill rates, on-time deliveries, and throughput.
- Use of the new stock repurchase program authorizing up to $200 million of share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $ 37 million at August 1, 2026, compared with $ 44 million at August 2, 2025.
- Total outstanding debt, net of cash, was $1.54 billion at the end of the fourth quarter of 2026, a decrease of $93 million compared to the end of the third quarter of fiscal 2026 and a decrease of $295 million during fiscal 2026.
- Current portion of long-term debt and finance lease liabilities was $ 5 million, long-term debt was $ 1,561 million, and long-term finance lease liabilities were $ 10 million at August 1, 2026.
- Net carrying value of debt and finance lease liabilities was $ 1,539 million at August 1, 2026.
- Total liquidity was approximately $1.27 billion as of August 1, 2026, consisting of $37 million in cash and unused capacity of approximately $1.23 billion under the asset-based lending facility.
- Accounts receivable, net was $ 921 million, compared with $ 1,093 million.
- Inventories, net was $ 1,946 million, compared with $ 2,095 million.
- Total assets were $ 7,109 million, compared with $ 7,595 million.
- Total liabilities were $ 5,487 million, compared with $ 6,041 million.
- Total United Natural Foods, Inc. stockholders’ equity was $ 1,621 million, compared with $ 1,551 million.
- Fiscal 2026 proceeds from dispositions of assets were $ 56 million, compared with $ 30 million.
- Fiscal 2026 repayments of long-term debt and finance leases were $ (167) million, compared with $ (124) million.
- Fiscal 2026 net cash used in investing activities was $ (169) million, compared with $ (218) million.
- Fiscal 2026 net cash used in financing activities was $ (377) million, compared with $ (248) million.
- Fiscal 2026 net decrease in cash and cash equivalents was $ (7) million, compared with a net increase of $ 4 million.
Analysis
UNFI closed fiscal 2026 with a fourth-quarter sales decline but materially improved earnings. Fourth-quarter net sales were $ 7,642 million, down 0.7 %, and fiscal-year net sales were $ 31,152 million, down 2.0 %. The quarter included an approximately 500 basis point impact from planned accretive optimization actions and a 150 basis point headwind from unwinding short-term project work. Natural sales grew 6.6 % in the quarter, while Conventional and Retail sales declined 8.6 % and 7.9 %, respectively.
Profitability improved sharply. Fourth-quarter gross profit increased to $ 1,050 million and gross profit rate rose to 13.7% of net sales from 13.4% of net sales. Network optimization actions and customer mix supported the gross profit rate, partially offset by a lower Retail segment gross margin rate. Operating expenses fell to $ 984 million, or 12.9% of net sales, from $ 1,046 million, or 13.6% of net sales. The company attributed the expense-rate improvement to cost savings, network optimization, and higher distribution-center productivity.
GAAP results moved to profit. Fourth-quarter operating income was $ 69 million versus an operating loss of $ (78) million, while net income attributable to UNFI was $ 35 million versus a loss of $ (87) million. Diluted EPS was $ 0.57 compared with $ (1.43), and Adjusted EBITDA rose 48.3 % to $ 172 million. For fiscal 2026, Adjusted EBITDA reached $ 701 million, up 27.0 %, and Adjusted EPS was $ 2.65 versus $ 0.71. Fiscal-year GAAP effective tax rate was 18 %, while adjusted effective tax rate was 24 %.
Cash generation remained positive despite heavier fourth-quarter investment. Fourth-quarter operating cash flow increased to $ 197 million, but Free cash flow declined to $ 80 million as capital expenditures rose to $ (117) million, primarily for supply chain and technology. Fiscal-year operating cash flow was $ 540 million and Free cash flow was $ 323 million. The company reported net carrying value of debt and finance lease liabilities of $ 1,539 million and a 2.2x net leverage ratio, with total outstanding debt net of cash down $295 million during fiscal 2026.
Fiscal 2027 guidance targets net sales of $31.2 - $31.8, net income of $105 - $145, Adjusted EBITDA of $730 - $780, and Free cash flow of $275-$325. The outlook assumes ~ $300 of capital and cloud implementation expenditures and a 27% tax rate for Adjusted EPS. Management also stated that the Adjusted EBITDA guidance midpoint is $25 million higher than the guidance provided at its December 2025 Investor Day. The principal execution focus is converting onboarding activity into revenue growth after larger optimization actions cycle, while sustaining supply-chain productivity and managing investment spending.
Management, verbatim
UNFI delivered a strong fiscal year through disciplined execution of our strategy to add value for customers and suppliers while becoming a more effective and efficient company. We continued strengthening commercial and supply chain capabilities to better serve our partners, while generating solid growth in Adjusted EBITDA and Free cash flow, enabling us to further reduce net debt.
Sandy Douglas, Chief Executive Officer
Our progress demonstrates the strength of our customer base and our commitment to creating long-term, shared value for all stakeholders. In fiscal 2027, we remain focused on helping our partners execute their growth strategies, accelerating our operating momentum, and returning to revenue growth.
Sandy Douglas, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; comparisons of actual results with prior guidance are unavailable.
- Prior-quarter values and quarter-over-quarter changes for reported operating metrics were not provided.
- Fiscal 2026 gross profit rate was not provided.
- Fiscal 2026 operating expense rate as a percentage of net sales was not provided.
- Fiscal 2027 guidance for gross margin and operating expenses was not provided.
- Dividend information was not provided.
- Separate segment operating income, profit, or margin metrics were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
UNFI disclosed its FY2026 results via an SEC Form 8‑K, highlighting modest sales decline but strong profit recovery and guidance for FY2027.
Ticker impact
UNFI filed its Q4 FY2026 earnings on Sep 8, reporting net sales of $7.6B, net income $35M and FY2027 adjusted EBITDA guidance.
Potential short‑term rally, especially on the back‑side of the upgraded EBITDA guidance.
The company posted a turnaround from a loss to profit, improved margins and raised guidance, which typically drives buying pressure.
Market effects
Improves outlook for the food distribution sector as UNFI shows operational efficiency gains.
Positive for U.S. consumer staples equities.
Limited to investors tracking U.S. grocery and distribution stocks.
Counterpoint
Higher leverage ratio of 2.2x may limit upside if debt costs rise.
Key entities
- ExecutiveSandy Douglas
CEO of UNFI, provided commentary on results.
