Is United Natural Foods Making Money?
A UNFI sale of Supervalu’s supermarkets raises doubts about the viability of brick and mortar grocers as an investment.
Grocers are not making much money in today’s market. For instance, Supervalu reported $36 million in cash and short-term investments on September 9 2018. In addition, Supervalu reported a free cash flow of $8 million and an operating cash flow of $48 million for 3rd Quarter 2018.
Supervalu reported a net loss of -$57 million and an operating loss of $53 million on $3.512 billion in revenues for 3rd Quarter 2018. Therefore, it is easy to see why UNFI wants out of the supermarket business.
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