- UniFirst had a good quarter, but the stock corrected because it was overheated. This is a good entry point since the economy is reopening. Energy & hospitality should improve.
- 2022 EPS estimates are likely too low given the speed of the economic recovery. 2021 guidance is probably too cautious.
- UniFirst is investing in a new CRM system and opening a new service center in NYC. They should help improve speed, reliability, and lower costs.
- UniFirst needs to invest in technology and scale the business to catch up to Cintas. Then, it can turn this industry into a duopoly.
- Some of the market share the top uniform companies don't have isn't worth acquiring. Restaurants and hotels are less sticky and less profitable to serve.
For further details see:
UniFirst Investing To Compete With Cintas