Deutsche Bank Adjusts United Natural Foods Price Target to $53 From $46, Maintains Hold Rating

United Natural Foods (UNFI) reported Q4 adjusted EPS of $0.69, beating estimates, but revenue of $7.64B missed expectations. The company guided fiscal 2027 sales to $31.2B-$31.8B, up from $31.15B in 2026. Adjusted EBITDA rose 27% to $701M, and free cash flow hit a record $323M. Management expects fiscal 2027 adjusted EPS of $3.00-$3.50. Hedge fund interest declined in Q2.

United Natural Foods (UNFI) reported Q4 FY26 adjusted EBITDA of $172M, up 48.3% YoY, and adjusted EPS of $0.69, reversing a prior-year loss. Full-year adjusted EBITDA grew 27% to $701M. Net sales declined 0.7% YoY due to optimization initiatives. Capital spending rose to $117M, reducing free cash flow. Hedge fund ownership declined, with BlackRock as the largest stakeholder. FY27 guidance expects modest sales growth and margin expansion.

United Natural Foods reported fiscal 2026 net sales of $31.2b, net income of $84m, and record free cash flow. The company raised full-year guidance due to higher profitability from AI-driven supply chain upgrades. Management forecasts fiscal 2027 net income of $105m to $145m and EPS of $1.70 to $2.30, with an $200m share repurchase program. Investors will watch for sustained margin improvements and cash generation.

UNFI reported Q4 2026 net sales of $7.6B, down 0.7%, with adjusted EBITDA up 48.3% to $172M. Sales grew in the natural segment (+6.6%) but declined in conventional (-8.6%) and retail (-7.9%) segments. Adjusted EPS rose to $0.69 from a loss last year. Full-year free cash flow increased by $84M. The company guided fiscal 2027 net sales to $31.2B-$31.8B and adjusted EBITDA to $730M-$780M. Management highlighted cost-saving initiatives, debt reduction, and share repurchases.

United Natural Foods Inc. (UNFI) reported a 0.7% Q4 sales decline and 2% full-year drop, citing network optimization and project completions. Adjusted EBITDA rose 48.3% in Q4 and 27% annually. CEO Sandy Douglas highlighted focus on helping retailers compete. UNFI expects fiscal 2027 sales growth in low-single digits and adjusted EBITDA growth in high-single digits.

United Natural Foods reported 27% adjusted EBITDA growth for 2026 despite sales declines from network optimization. Management cited operational efficiency and a $90B target market. Fiscal 2027 guidance projects a return to profitable growth in H2, with margin targets met early. Capital expenditure is $300M, and a $200M share repurchase program was authorized. Management highlighted Lean 2.0, fill rate improvements, and organic growth focus.