UNFI - Outsized EBITDA Gains May Be Past But A High Single-Digit Algo Is Intact—The 6.9x Multiple Seems Reasonable, We Stay NEUTRAL-Rated

Research evidence excerpt

UNFI - Outsized EBITDA Gains May Be Past But A High Single-Digit Algo Is Intact—The 6.9x Multiple Seems Reasonable, We Stay NEUTRAL-Rated

June 9, 2026

John Heinbockel john.heinbockel@guggenheimpartners.com UNFI - Outsized EBITDA Gains May Be Past But A

212 381 4135 High Single-Digit Algo Is Intact—The 6.9x Multiple

Steven Forbes, CFA, CPA

steven.forbes@guggenheimpartners.com Seems Reasonable, We Stay NEUTRAL-Rated

212 381 4188

Julio Marquez Key Message: The seemingly odd sell-off on a strong bottom-line print reflects, we julio.marquez@guggenheimpartners.com believe, the natural transition from outsized EBITDA margin expansion in the early 212 823 6605

stages of a turnaround to a sustainable, multi-year high single-digit growth algo.

Jacob Nivasch Participating in the expanding natural and organic product market with what we believe

jacob.nivasch@guggenheimpartners.com are unmatched operational capabilities and leveraging efficiency-enhancing supply chain

212 338 8837 efforts underpins our confidence in healthy secular gains regardless of the macro

Max Horowitz backdrop. The forthcoming transition of FCF re-deployment toward capital returns,

max.horowitz@guggenheimpartners.com notably share repurchases, from de-leveraging augments the TSR. However, with year-

212 518 9974 to-date outperformance having raised the 2026E EBITDA multiple to 6.9x—see Exhibit

1—a reasonable level for a low-margin distribution business tied, in part, to the highly

competitive food retail market, we stay NEUTRAL-rated in search of an entry point.

UNFI NEUTRAL Trading Sales For Profits and the Productivity Pursuit. We believe the targeted high

United Natural Foods, Inc. single-digit EBITDA growth algo remains intact even as the finishing touches are placed