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Cyber assault impacts United Natural Foods' quarterly profits, company admits

Grocery chain suppliers nationwide experience disruption in electronic ordering systems due to a recent cyberattack.

Cybersecurity breach at United Natural Foods to impact quarterly profits
Cybersecurity breach at United Natural Foods to impact quarterly profits

Cyber assault impacts United Natural Foods' quarterly profits, company admits

United Natural Foods Inc. (UNFI) Overcomes Cyberattack Disruption

The fourth quarter of 2025 saw a significant challenge for United Natural Foods Inc. (UNFI) as a cyberattack disrupted its supply chain operations, affecting grocery stores across the U.S., including Whole Foods locations[1][3]. The attack occurred on June 5 and caused critical system outages, leading to delivery delays, canceled shifts, and empty shelves in over 30,000 stores[1][2][3].

The cyberattack resulted in lost sales volume and increased recovery costs, substantially impacting UNFI’s quarterly profits[3][4]. The company took immediate action to contain the breach, launched investigations, and gradually restored IT and distribution functions while manually processing orders as a temporary measure[1][3].

UNFI emphasized that long-term operations remain on track, and it is likely implementing enhanced cybersecurity measures, employee training, and business continuity planning to prevent similar incidents[1]. The company also revealed that the cyberattack will materially affect its quarterly earnings, as disclosed in an SEC filing on June 21[6].

Despite the short-term disruption, UNFI does not expect the cyberattack to have a material impact on its financial condition or its ability to achieve its long-term strategic and financial objectives[7]. The company is regularly receiving and shipping products to retailers across its distribution network[8].

The cyberattack has highlighted the supply chain risks facing the food and agriculture sector, underscoring the importance of robust cybersecurity measures[9]. UNFI is optimistic about its financial future, with a strong operating performance in the third and fourth quarters of the fiscal year, including the estimated impact of the cyberattack[7]. The company will provide a financial update in July, detailing its performance and the estimated impact of the cyberattack.

UNFI is also confident that its cybersecurity insurance policy will cover the costs associated with the incident[10]. Core systems for electronic ordering and invoicing have been restored, enabling business operations to normalize[2]. The recovery process is expected to extend into UNFI's 2026 fiscal year[4].

References:

  1. Supermarket News
  2. The Wall Street Journal
  3. CNBC
  4. Reuters
  5. Natural Grocers
  6. SEC Filing
  7. Yahoo Finance
  8. BusinessWire
  9. Forbes
  10. Insurance Journal
  11. United Natural Foods Inc. (UNFI) is likely enhancing its cybersecurity measures to prevent future incidents, recognizing the importance of robust cybersecurity in the face of a disrupted fourth quarter due to a cyberattack that impacted their financial condition and business operations.
  12. Given the substantial impact of the cyberattack on UNFI's financial performance, the company will likely focus on technology solutions to improve its cybersecurity and business continuity planning, understanding the critical role these have in the food and agriculture sector.

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