Latest news with #UnitedNaturalFoods
Bloomberg
2 hours ago
- Business
- Bloomberg
Whole Foods Supplier Hack Leaves Empty Shelves, Stalls Forklifts
United Natural Foods Inc., a grocery distributor for Amazon Inc. 's Whole Foods Market, is working to bring systems back online by June 15 and resume product deliveries after a cyberattack disrupted its operations, leaving some store shelves barren of ice cream, bread and other goods. The Providence, Rhode Island-based chain shut down IT systems and limited shipping orders after determining on June 5 that intruders had penetrated its network, Chief Executive Officer Sandy Douglas said in an earnings call Tuesday. United Natural Foods, or UNFI, is working with customers to find short-term solutions 'wherever possible' while it works to bring systems back online, Douglas said.
CNN
5 hours ago
- Business
- CNN
Empty shelves plague some Whole Foods after distributor knocked offline
Whole Foods employees say a major cyberattack on a leading distributor has left some store shelves and freezers empty. 'Our frozen cooler is empty, our bread hearth is bare and customers are increasingly upset,' one barista and bakery employee at a Whole Foods located in Arkansas told CNN. The employee, who requested anonymity because she was not authorized to speak to the media, complained there is a 'complete lack of transparency' about the disruption and that 'nearly every department has been heavily impacted.' United Natural Foods, the primary food distributor to Whole Foods, disclosed the damaging cyberattack and disruption to its business on Monday, sending its stock plunging 7%. UNFI (UNFI) shares tumbled another 6% on Tuesday. It's unclear how widespread the supply disruptions to Whole Foods are, but an update from UNFI on Tuesday suggests significant problems. The company said it's currently shipping to customers only on a 'limited basis.' Whole Foods would not provide details on how many of its locations have been impacted by the cyberattack. However, a Whole Foods spokesperson told CNN that the Amazon-owned grocery store is working to restock shelves as quickly as possible and apologized to customers for any inconvenience. The Whole Foods barista from Arkansas shared photos with CNN that showed thinly stocked shelves. 'We've spent time deep-cleaning our freezers – an unusual task – simply because our normally overstocked freezers are now completely bare,' the Whole Foods employee said. Another Whole Foods employee who spoke to CNN on condition of anonymity said her California location has been unable to accept or process orders. 'We've had quite a few customer complaints,' the employee told CNN. Multiple customers and apparent employees on social media reported empty shelves and delivery problems. One user on Reddit posted a photo of an empty refrigerator with a sign saying the store is 'experiencing a temporary out of stock issue for some products.' The incident underscores how cyberattacks on delicate supply chains can have real-world impact for customers and employees. UNFI said 'unauthorized activity in our systems' discovered last Thursday forced it to completely shut down its systems by late Friday. 'We're working as rapidly and safely as possible to bring our systems back online,' UNFI CEO Sandy Douglas said during a conference call with analysts. Douglas said the company is working with customers and suppliers 'transparently to do everything that we can possibly do to help them manage through the short-term difficulty that the situation creates.' Douglas said he's been in touch with many customers and the conversations have been 'extremely constructive and collaborative.' The UNFI CEO defended his company's cybersecurity efforts and pledged to review existing protocols. 'The threat actors out there are always looking for ways to innovate and find new ways to penetrate systems,' Douglas said. 'We just got penetrated. So we will be continuing to look at every aspect of our defense, every aspect of how our tools are working and what may be necessary to bolster it going forward.' During Tuesday's conference call, UNFI executives faced questions about the decision to wait until Monday morning to disclose the breach. One analyst noted that UNFI shares started falling before last Thursday, when the company says it became aware of the cyberattack. 'It very much appears someone knew this was going to happen,' said the analyst, who also asked if the Securities and Exchange Commission is involved. Indeed, UNFI shares fell sharply early last week, including a 9% plunge on June 3 and a 4% drop on June 4 despite an absence of official company news. Douglas declined to comment on regulatory authorities but stressed that 'there is no way we could have communicated any faster.' The UNFI CEO added that the company has engaged with 'all the authorities' and has reported 'all that we know' to the FBI. The FBI declined to comment on the incident. A spokesperson for the SEC said the agency does not comment on the existence or nonexistence of a possible investigation. CNN's Jordan Valinsky contributed to this report
CNN
5 hours ago
- Business
- CNN
Empty shelves plague some Whole Foods after distributor knocked offline
Whole Foods employees say a major cyberattack on a leading distributor has left some store shelves and freezers empty. 'Our frozen cooler is empty, our bread hearth is bare and customers are increasingly upset,' one barista and bakery employee at a Whole Foods located in Arkansas told CNN. The employee, who requested anonymity because she was not authorized to speak to the media, complained there is a 'complete lack of transparency' about the disruption and that 'nearly every department has been heavily impacted.' United Natural Foods, the primary food distributor to Whole Foods, disclosed the damaging cyberattack and disruption to its business on Monday, sending its stock plunging 7%. UNFI (UNFI) shares tumbled another 6% on Tuesday. It's unclear how widespread the supply disruptions to Whole Foods are, but an update from UNFI on Tuesday suggests significant problems. The company said it's currently shipping to customers only on a 'limited basis.' Whole Foods would not provide details on how many of its locations have been impacted by the cyberattack. However, a Whole Foods spokesperson told CNN that the Amazon-owned grocery store is working to restock shelves as quickly as possible and apologized to customers for any inconvenience. The Whole Foods barista from Arkansas shared photos with CNN that showed thinly stocked shelves. 'We've spent time deep-cleaning our freezers – an unusual task – simply because our normally overstocked freezers are now completely bare,' the Whole Foods employee said. Another Whole Foods employee who spoke to CNN on condition of anonymity said her California location has been unable to accept or process orders. 'We've had quite a few customer complaints,' the employee told CNN. Multiple customers and apparent employees on social media reported empty shelves and delivery problems. One user on Reddit posted a photo of an empty refrigerator with a sign saying the store is 'experiencing a temporary out of stock issue for some products.' The incident underscores how cyberattacks on delicate supply chains can have real-world impact for customers and employees. UNFI said 'unauthorized activity in our systems' discovered last Thursday forced it to completely shut down its systems by late Friday. 'We're working as rapidly and safely as possible to bring our systems back online,' UNFI CEO Sandy Douglas said during a conference call with analysts. Douglas said the company is working with customers and suppliers 'transparently to do everything that we can possibly do to help them manage through the short-term difficulty that the situation creates.' Douglas said he's been in touch with many customers and the conversations have been 'extremely constructive and collaborative.' The UNFI CEO defended his company's cybersecurity efforts and pledged to review existing protocols. 'The threat actors out there are always looking for ways to innovate and find new ways to penetrate systems,' Douglas said. 'We just got penetrated. So we will be continuing to look at every aspect of our defense, every aspect of how our tools are working and what may be necessary to bolster it going forward.' During Tuesday's conference call, UNFI executives faced questions about the decision to wait until Monday morning to disclose the breach. One analyst noted that UNFI shares started falling before last Thursday, when the company says it became aware of the cyberattack. 'It very much appears someone knew this was going to happen,' said the analyst, who also asked if the Securities and Exchange Commission is involved. Indeed, UNFI shares fell sharply early last week, including a 9% plunge on June 3 and a 4% drop on June 4 despite an absence of official company news. Douglas declined to comment on regulatory authorities but stressed that 'there is no way we could have communicated any faster.' The UNFI CEO added that the company has engaged with 'all the authorities' and has reported 'all that we know' to the FBI. The FBI declined to comment on the incident. A spokesperson for the SEC said the agency does not comment on the existence or nonexistence of a possible investigation. CNN's Jordan Valinsky contributed to this report
Yahoo
5 hours ago
- Business
- Yahoo
Shelves getting bare at Whole Foods? Distributor hit with cyberattack. What to know in Florida
If you're finding shelves a little bare at Whole Foods, there's a reason for that. A major food distributor that supplies items to Amazon-owned Whole Foods and other grocers was hit by a cyberattack. North American wholesale distributor United Natural Foods issued a statement June 9 saying unauthorized activity in its systems forced it to take some of them offline. Here's what you should know. North American wholesale distributor United Natural Foods said June 9 unauthorized activity in its systems forced it to take some of the systems offline. United Natural Foods is the largest health and specialty food distributor in the United States and Canada and the main supplier for high-end supermarket chain Whole Foods, according to The cyberattack was discovered on June 5. "The investigation to assess the impact and scope of the incident remains ongoing and is in its early stages," the company told the Securities and Exchange Commission. United Natural Foods said in a filing with the Securities and Exchange Commission the incident "has temporarily impacted the company's ability to fulfill and distribute customer orders." "As we work through this issue, our customers, suppliers, and associates are our highest priority. We are working closely with them to minimize disruption as much as possible," a statement said. United Natural Foods said it "has implemented workarounds for certain operations in order to continue servicing its customers where possible. The company is continuing to work to restore its systems to safely bring them back online." " 'Temporary disruptions' are expected at the more than 30,000 locations it serves in all 50 U.S. states and all 10 provinces of Canada." A Whole Foods spokesperson said the supermarket chain is working to restock its shelves as quickly as possible and said it apologies for any inconveniences to customers. Cyberattacks targeting the food and agriculture sector have surged over the past five years, with research showing a more than 600% spike in attacks in 2020 alone, according to The FBI published a warning to the private sector about cyberattacks, saying "the food and agriculture sector is among the critical infrastructure sectors increasingly targeted by cyberattacks. "Ransomware attacks targeting the food and agriculture sector disrupt operations, cause financial loss, and negatively impact the food supply chain. "Ransomware may impact businesses across the sector, from small farms to large producers, processors and manufacturers, and markets and restaurants," the FBI said. "Cyber criminal threat actors exploit network vulnerabilities to exfiltrate data and encrypt systems in a sector that isincreasingly reliant on smart technologies, industrial control systems, and internet-based automation systems. "The most common means of infection are email phishing campaigns, Remote Desktop Protocol (RDP) vulnerabilities, and software vulnerabilities," the FBI said. According to data company scrapehero, there are 525 Whole Foods stores in the U.S., with 35 in Florida. Top states with Whole Foods locations: California: 95 Florida: 35 Texas: 35 New York: 34 Massachusetts: 32 Florida-based grocery store chain Publix is the largest employee-owned company in the U.S. and dominates the Sunshine State in the number of locations. According to its website, Publix has 1,407 grocery stores in eight states. There are 878 stores in Florida. Florida: 878 stores Georgia: 220 stores Alabama: 94 stores South Carolina: 70 stores Tennessee: 59 stores North Carolina: 58 stores Virginia: 24 stores Kentucky: 4 stores Contributing: Anthony Robledo, USA Today This article originally appeared on Florida Times-Union: United Natural Foods cyberattack threatens Whole Foods groceries
Yahoo
6 hours ago
- Business
- Yahoo
United Natural Foods (UNFI) Beats Q3 Earnings and Revenue Estimates
United Natural Foods (UNFI) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 83.33%. A quarter ago, it was expected that this organic and specialty foods distributor would post earnings of $0.18 per share when it actually produced earnings of $0.22, delivering a surprise of 22.22%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. United Natural , which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $8.06 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.71%. This compares to year-ago revenues of $7.5 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. United Natural shares have lost about 5% since the beginning of the year versus the S&P 500's gain of 2.1%. While United Natural has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for United Natural: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $7.7 billion in revenues for the coming quarter and $0.82 on $31.58 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Conagra Brands (CAG), has yet to report results for the quarter ended May 2025. This company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of -1.6%. The consensus EPS estimate for the quarter has been revised 2.3% lower over the last 30 days to the current level. Conagra Brands' revenues are expected to be $2.86 billion, down 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
