Added to YB: 2025-07-25
Pitch date: 2025-07-24
UNFI [bullish]
United Natural Foods, Inc.
+79.11%
current return
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
United Natural Foods, Inc., together with its subsidiaries, engages in the distribution of natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada.
Market Cap
$3.0B
Pitch Price
$27.86
Price Target
N/A
Dividend
N/A
EV/EBITDA
6.32
P/E
-38.63
EV/Sales
0.20
Sector
Consumer Staples Distribution and Retail
Category
turnaround
UNFI: A Turnaround Story deterred by an Accident
UNFI: Largest US natural food distributor executing turnaround w/ activist, new CFO. Outdated systems led to 75% stock drop 2023. 3Y plan targets 8% EBITDA CAGR to $660M FY27, $100M FCF FY25, <2.5x net leverage. June cyberattack wiped 30% market cap; $65-75M impact contained to Q4, insured. Stock recovered but 20% below pre-attack. Base case: 45-150% upside by 2027 at 6-9x EV/EBITDA. Blue sky: 4x upside if margin reaches peer levels (2.5-3%) at 10x multiple. Risk: Whole Foods (22% rev) dependence.
Read full article (7 min)