United Nat'l Foods a Growth Play
Headquartered in Dayville, Connecticut,
United Natural Foods, Inc. (
UNFI) is the leading domestic distributor of natural and organic products, providing over 40,000 stock keeping units (SKUs) to more than 17,000 customers. United Natural Foods is a growth company in a growth industry. The $46 billion Natural Products sector is growing 8% versus 2% for the overall grocery industry.
United Natural Foods, Inc. continues to experience broad-based revenue growth and stable-to-improving operating margins ex one-time items. Benefiting from the positive trends in the natural foods industry and improved distribution capacity, sales are expected to continue to grow at a double-digit rate.
The near-term earnings dilution from the Millbrook acquisition has created a valuation-based buying opportunity. The Buy rating is maintained.
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