UNFI held its 2025 Investor Day on December 10, 2025, in New York City. The webcast opened at 8:45 a.m. Eastern Time, but the formal presentation began at 9:00 a.m. During the session, the company outlined a new long‑term growth plan and a set of financial targets that will guide its strategy through fiscal 2028.
The long‑term targets set a net‑sales goal of $33 billion by fiscal 2028, an adjusted EBITDA target of $800 million for the same period, and a free‑cash‑flow target of $300 million per year from fiscal 2026 through 2028. These figures are built on current fiscal‑2024 revenue of $31.75 billion and an EBITDA of $521 million, underscoring a shift toward margin expansion and operational efficiency rather than aggressive top‑line growth.
UNFI plans to reduce its net leverage to below 2.5× by fiscal 2026, down from a current ratio of 2.8×. The company will use the projected free‑cash‑flow to pay down debt, with the remaining capital earmarked for network‑efficiency investments and technology upgrades that support its distribution network.
After the announcement, the market reacted negatively, with the stock falling roughly 7 %. The primary driver was the sales target, which fell short of the consensus estimate of $33.3 billion. Investors were disappointed by the modest top‑line growth, preferring a more aggressive outlook, even as the company highlighted strong EBITDA and cash‑flow prospects.
CEO Sandy Douglas said UNFI is “poised for continued profitable growth and value creation” and that the new plan builds on recent network‑optimization efforts. CFO Matteo Tarditi added that the company is confident in sustaining margin expansion and generating the cash needed to bring net leverage below 2.5×, emphasizing a disciplined focus on deleveraging.
While the company did not disclose a detailed segment breakdown, it highlighted investments in digital capabilities, supply‑chain modernization, and operational efficiency across its wholesale, retail, natural‑products, and conventional‑products lines. These initiatives aim to strengthen competitive positioning in a market that includes major retailers such as Whole Foods, Kroger, Costco, and Walmart.
The strategic shift reflects headwinds such as inflationary pressure and shifting consumer spending, but also tailwinds from growing demand for natural and organic products and the acceleration of e‑commerce. By focusing on profitability and debt reduction, UNFI seeks to build resilience against macro‑economic volatility.
Overall, the long‑term plan signals confidence in the company’s execution capabilities, but the modest sales target may temper enthusiasm among investors who favor higher growth rates. The emphasis on margin expansion and debt reduction positions UNFI to navigate current market challenges while pursuing sustainable, profitable growth.
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