Ahead of its Investor Day presentation in New York City Wednesday, United Natural Foods (UNFI) outlined its long-term goals and its strategic priorities through 2028, including profitable growth and sustainable free cash flow.
“We have been successfully executing the strategy we introduced over a year ago, and we are continuing to pursue our aspiration to become the food retail industry’s most valued partner. With our improved financial position and scaled network, we are poised for continued profitable growth and value creation,” said United Natural Foods CEO Sandy Douglas.
For fiscal 2025 to fiscal 2028, UNFI expects annual net sales growth to be in the low-single digits with a $33B target for FY28. This compares to the consensus estimate of $33.3B.
Adjusted EBITDA is expected to increase annually by low-double digits with an $800M target for FY28.
Finally, the company expects $300M annual free cash flow from FY26 to FY28,
To achieve these goals, the company — a supplier to Whole Foods (AMZN), Kroger (KR), Costco (COST), and Walmart (WMT) — plans to create “new capabilities to add value for retailers and suppliers,” develop technology and innovation to improve performance and efficiency, invest in next-generation supply chain technologies and expand Lean Daily Management processes across its networks, and eliminate waste in its operations and streamline SG&A.
Unfortunately, the company’s outlook and below-consensus 2028 sales target failed to impress investors who are driving down shares into Wednesday’s open.