United Natural Foods Q3 Revenue Falls 4.2% to $7.72B; EPS Beats, Shares Drop 12%
UNFI•United Natural Foods reported Q3 revenue of $7.72 billion, a 4.2% year-over-year decline missing consensus, while EPS of $0.77 beat estimates by $0.01. The company’s long-term debt is $1.66 billion, free cash flow plunged 54%, and shares slid 12% on margin and leverage concerns.
1. Quarterly Financial Results
United Natural Foods posted Q3 revenue of $7.72 billion, missing the $7.80 billion consensus and marking a 4.2% year-over-year decline. The company delivered EPS of $0.77, outpacing the $0.76 estimate by $0.01 per share.
2. Debt and Cash Flow
Long-term debt reached $1.66 billion, with a debt-to-equity ratio of 1.97, underscoring elevated financial leverage. Free cash flow declined 54% year-over-year, highlighting liquidity pressures and operational cash constraints.
3. Market Reaction
Shares dropped 12% following the earnings release as investors reacted to thin profit margins and high debt levels. Concerns over sustained cash flow performance and balance sheet strength fueled the sell-off.
