Investment Thesis
United Natural Foods (UNFI) saw its Q3 F2019 EPS decline due to higher than anticipated integration and optimization expenses related to its acquisition of SUPERVALU. Looking forward, there is still a long road ahead to achieve its goal to integrate the two businesses together. In addition, the company continues to struggle to re-accelerate its sales growth. Its balance sheet is also leveraged and it may take several years to have it reduced to its target level. Nevertheless, its shares are trading at a significant discount to its historical average and to