united natural foods reports it system breach affecting operations

United Natural Foods , Inc. (NYSE:UNFI), a $1.69 billion market cap distributor whose stock has declined 11.7% in the past week, disclosed a cybersecurity breach that has disrupted its operations. The company, based in Providence, Rhode Island, revealed that it identified unauthorized activity on its IT systems last Thursday. In response, United Natural Foods activated its incident response plan, which included taking some systems offline to contain the breach. This action has temporarily hindered the company’s ability to fulfill and distribute customer orders. The company maintains a healthy liquidity position with a current ratio of 1.45, providing some financial flexibility during this operational disruption.

The company is working with third-party cybersecurity experts to assess, mitigate, and remediate the incident’s impact. Law enforcement has also been notified. Despite the disruptions, United Natural Foods has implemented workarounds to continue servicing its customers where possible.

The investigation into the breach is ongoing and still in its early stages. The company has not yet determined the full scope and impact of the incident. This information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, United Natural Foods reported its second-quarter earnings for fiscal year 2025, surpassing expectations with an adjusted earnings per share (EPS) of $0.22, compared to the forecasted $0.18. The company also reported revenue of $8.16 billion, exceeding the expected $7.95 billion. United Natural Foods has raised its full-year net sales guidance to between $31.3 billion and $31.7 billion, reflecting a 3.6% increase. Analysts from Jefferies have adjusted their outlook on the company, reducing the price target to $28 from $32 while maintaining a Hold rating, following the company’s impressive earnings report. UBS also revised its price target for United Natural Foods, lowering it to $30 from $31, but kept a Neutral rating, acknowledging the company’s progress in net sales growth and strategic realignment. BTIG analysts maintained a Neutral rating, noting that while the company delivered another positive quarter, there is caution about the expected slowdown in sales and earnings growth in the second half of the year. The company’s strategic initiatives, focusing on product-led growth and efficiency improvements, are anticipated to support its three-year plan.

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