United Natural Foods (UNFI) continues to demonstrate strong performance, with shares climbing 33.9% since March of last year. This gain outpaces the S&P 500, highlighting the company’s robust position in the market.
Strategic Shift to Higher-Margin Segments
The company is prioritizing natural and organic products over conventional ones, aiming to boost growth through private label brands that offer superior margins. This transition positions UNFI to capture expanding demand in healthier food options.
EBITDA Growth Forecast
Management projects EBITDA to increase from $552 million in 2025 to $800 million by 2028. This expansion is expected to generate substantial cash flow, enhancing the company’s financial health and supporting further investments.
Valuation and Investment Potential
Currently, UNFI shares trade at a discount compared to industry peers. Meeting these 2028 targets could yield annualized returns of 24.7% to 29.1%, making the stock an attractive opportunity for investors seeking value and growth.
