United Natural Foods, Inc. (UNFI) used its 2025 Investor Day in New York to unveil an updated long-term value creation framework, emphasizing a clearer path to profitable growth, improved operational execution and stronger free cash flow through fiscal 2028.
Management said the company has strengthened its balance sheet and operational footprint over the past year, creating a clearer path to steady growth and stronger cash generation. It highlighted ongoing initiatives to expand services for retailers and suppliers, enhance digital capabilities and modernize the distribution network.
UNFI plans to broaden the range of support it provides to retail and supplier partners, while also investing in technology to streamline processes and reduce complexity across the business.
The company is advancing its supply-chain modernization efforts with a focus on data-driven systems, network efficiency improvements and wider adoption of Lean Daily Management practices to strengthen consistency and execution across facilities. These initiatives are supported by ongoing productivity measures, including tighter SG&A management, waste reduction and broader transformation projects overseen by the company’s value delivery office.
UNFI Updates Long-Term Financial Outlook
As part of its multi-year plan, United Natural Foods introduced a revised financial framework that outlines targets through fiscal 2028. The company expects revenues to grow at a low single-digit average annual growth, reaching approximately $33 billion for fiscal 2028. Adjusted EBITDA is projected to rise at a low double-digit annual pace, with a goal of around $800 million in fiscal 2028. Free cash flow is expected to average about $300 million annually from fiscal 2026 to fiscal 2028.
The company noted that its priorities include strengthening its competitive position while generating the cash needed to reinvest in the network and operating capabilities.
United Natural Foods’ Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have lost 20.6% in the past month compared with the broader Consumer Staples sector and the industry’s 1.1% and 2.9% decline. UNFI has also underperformed the S&P 500 index’s growth of 0.5%, during the same period.
UNFI Stock's Past Month Performance
Image Source: Zacks Investment Research
Is UNFI a Value Play Stock?
United Natural Foods currently trades at a forward 12-month P/E ratio of 16.9, which is up from the industry average of 14.3 and the sector average of 16.07. This valuation places the stock at a noticeable premium relative to comparable peers and the sector overall.
UNFI P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
Village Farms International, Inc. (VFF) produces, markets and distributes greenhouse-grown tomatoes, bell peppers, cucumbers and mini-cukes in North America. It sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Village Farms’ current fiscal-year earnings indicates growth of 165.6% from the prior-year levels. VFF delivered a trailing four-quarter earnings surprise of 155.6%, on average.
Lamb Weston Holdings, Inc. (LW) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It carries a Zacks Rank #2 (Buy) at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.
The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.
Pilgrim's Pride Corporation (PPC) produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products to retailers, distributors and foodservice operators. It currently holds a Zacks Rank of 2. Pilgrim's Pride delivered a trailing four-quarter earnings surprise of 10.4%, on average.
The Zacks Consensus Estimate for Pilgrim's Pride’s current fiscal-year earnings indicates growth of 0.6% from the prior-year levels.
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This article originally published on Zacks Investment Research (zacks.com).
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