Sep 8, 2026 earnings call — Fiscal 26 results and fiscal 27 outlook
UNFI gave fiscal 27 adjusted EBITDA guidance of $730 to $780 million.
Revenue $7.6B (est $7.7B) · EPS $0.69 (est $0.61) · Next-quarter revenue outlook $31.5B
Key quotes
"Our value creation strategy is purpose built. For this part of the market and anchored on 2 priorities, adding value for customers and suppliers, and becoming a more effective and efficient company."
"In the fourth quarter, we consolidated our Racine, Wisconsin facility and expanded our nearby Joliet, Illinois DC with full case automation, which is now in the early stages of implementation."
"From a capital allocation perspective, we will continue to prioritize organic investments and deleveraging we will also evaluate opportunistic share repurchases."
Analyst Q&A 11
Project work impact on sales
Q (Edward Kelly · Wells Fargo): Analyst asked for detail on the 150 basis points short-term project work, top-line outlook by division, cadence for returning to growth, and any other optimization plans not in the guide.
A: A large natural retailer asked UNFI to bridge a strategic transition, which added significant fresh business that is now being cycled. Management said the project was profitable and is roughly a 150 basis point drag on reported sales, and they expect growth to return in 2027 with second-half recovery as optimization laps fully cycle. They also said DC optimization work will continue as an ongoing review of locations and technology.
"It was profitable, and we are in the process of cycling it now having made the transition and it is approximately a 150 basis point drag on our reported sales results." — James Alexander Miller Douglas Jr.
Segment outlook and fuel impact
Q (Alex Slagle · Jefferies): Analyst asked for segment-level color on conventional vs. natural top-line and bottom-line, and how higher fuel costs affect the 2027-2028 outlook.
A: Management said natural grew faster in 2026 and is expected to continue outperforming within the company’s low single digit top-line guide for 2027. They noted a $5 million per quarter net fuel impact modeled for 2027 and listed hedges, contractual escalations, and route optimization as countermeasures against fuel cost rises.
"So the low single digit growth for the top line is rooted into the customer trends, extended stay, the $90 billion market that continues to grow at low single digit." — Giorgio Tarditi (COO)
Cyber incident and new business timing
Q (Kelly Bania · BMO Capital): Analyst asked whether the company fully cycled the cyber incident impact and for timing, size and drivers of new and onboarding business.
A: Management said the pipeline includes expanded share with existing customers and some new banners, and that the first half of the year will still be cycling optimization while growth returns in the second half. They said the cyber event impact is effectively behind them as they enter the first quarter and that the company is stronger in technology and security now.
"In general, we believe we have complete cycled it as we enter the first quarter" — James Alexander Miller Douglas Jr.
Food inflation and retail trends
Q (Leah Jordan · Goldman Sachs): Analyst asked what food inflation looks like today and what is embedded in the FY 2027 outlook, also asked about forward buying and the retail business competitive trends.
A: Management said fiscal 2027 assumes low single digit inflation and that the outlook is dynamic, with energy and logistics included in that view. They said procurement gains are treated as temporary and the plan relies basically on no out-of-pattern procurement gains, while retail initiatives are early stage and showing sequential improvement, with Cub used as a learning lab.
"When you think about our fiscal 27 outlook, we have embedded low single digit assumption for inflation, recognizing though the environment is dynamic, and it includes, you know, areas like energy, logistics, logistics." — Giorgio Tarditi (COO)
Fill rates in natural vs. conventional
Q (John Heinbockel · Guggenheim): Analyst asked how fill rates are progressing, especially natural fill rates versus conventional, and whether missed fill is leaving sales on the table.
A: Management said fill rates are improving in both natural and conventional at about the same rate but conventional rates remain higher due to SKU and demand differences. They said improving fill rate is a top priority, using inventory strategies, supplier work, and RELEX AI to boost in-stock levels and that progress is being made but more improvement is expected.
"Broadly, we are seeing fill rates improve in conventional and natural at about the same rate." — James Alexander Miller Douglas Jr.
Lean 2.0 and DC improvements
Q (Mark Carden · UBS): Analyst asked how Lean 2.0 differs from the initial deployment, where incremental gains are, and how changes will be phased across DCs.
A: Management said initial lean basics were deployed at 44 DCs and created early improvement signs, but Lean 2.0 will dig deeper into management routines, problem solving, data, and continuous improvement. They will expand beyond volunteer DCs by prioritizing rollouts where customer impact and improvement opportunity are largest.
"The plan here is to go a little bit on the volunteering basis as we did with the 44 DCs, but we also start having a better understanding of what are the larger opportunities based on customer feedback, customer impact, suppliers, out of stock, etcetera." — Giorgio Tarditi (COO)
Capital allocation priorities
Q (Scott Mushkin · R5 Capital): Analyst asked how management would prioritize organic growth, M&A, buybacks, and dividends over 3–5 years given expected free cash flow.
A: Management said they have not set a final long-term capital allocation policy but are focused first on deleveraging and disciplined investment in organic improvement, with opportunistic buybacks. They noted a current bias toward organic improvement because of the internal opportunities and said CapEx for 2027 is planned around $300 million with continued focus on reducing leverage and returning money to shareholders opportunistically.
"we really have not said anything about the long term capital allocation strategy other than we are gonna continue focusing on deleveraging investing in the business to drive organic performance in a highly disciplined way, and then opportunistically buying back our shares." — James Alexander Miller Douglas Jr.
Sales cycle length and balance sheet help
Q (Chuck Cerankosky · Northcoast): Analyst asked about the lead time to acquire or expand customer business and whether the stronger balance sheet helps that effort.
A: Management said the stronger balance sheet significantly frees up the ability to invest in capabilities, but the more important enabler is the talent and disciplined project management team. They said sales cycles vary widely—some changes are quick when supply fails, but banner conversions can take 6 to 9 months and implementations avoid high-volume seasons.
"Our balance sheet strength and financial foundation improvement is significantly freeing up our ability to invest in a high quality way around capability." — James Alexander Miller Douglas Jr.
Automation and facility move
Q (Peter Saleh · BTIG): Analyst asked why the Racine to Joliet automation move happened and what benefits are already visible, and whether more such facilities are planned.
A: Management said automation is one of multiple capability investments and the Racine to Joliet move follows the same playbook as prior network modernizations: larger, more automated facilities to support market growth. They said the program is early, has some expected growing pains, and they have a multi-year technology and improvement roadmap to continue similar implementations.
"Specifically on the Racine to Joliet move, this is similar to what we did a couple of years ago with the York to Chester transfer." — Giorgio Tarditi (COO)
Leverage target and buybacks
Q (William Reuter · BofA): Analyst asked whether the company would revise its 2.0x leverage target and how future cash flow will be allocated between CapEx and buybacks.
A: Management said the current focus is to delever below 2.0x and continue disciplined organic investments while returning money to shareholders opportunistically; they announced a new $200 million share buyback program. They also described actions taken to lower interest costs and said 2027 free cash flow outlook and CapEx plans reflect this balanced approach.
"And for now, our focus is really to delever, go below 2 times as we mentioned." — Giorgio Tarditi (COO)
Bond vs loan strategy and M&A bias
Q (Carla Casella · JPMorgan): Analyst asked whether the company plans to keep a bond market foothold or shift to loans, and whether M&A activity is increasing or if management prefers internal improvements or more conventional grocery deals.
A: Management said bonds mature at end of calendar 2028, giving them time to study markets and optimize capital structure, and they will continue to evaluate opportunities under current finance leadership. On M&A, they said the bias is toward internal capability development and improving execution, though they remain open to opportunities and will refresh allocation plans with the Street when ready.
"So the bonds will come up for, you know, full maturity at the end of calendar 2028." — Giorgio Tarditi (COO)