Here’s What Pressuring UniFirst Corporation (UNF)

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Small-Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 7.18% compared to 8.97% for the MSCI USA Small-Cap Value Index (the “Index”) and 12.60% return for the Russell 2000 Value Index. Positive contributions from a wide range of businesses led the fund’s performance in the quarter. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks such as UniFirst Corporation (NYSE:UNF). UniFirst Corporation (NYSE:UNF) provides workplace uniforms and protective work wear clothing. The one-month return of UniFirst Corporation (NYSE:UNF) was -2.75%, and its shares lost 22.44% of their value over the last 52 weeks. On November 5, 2025, UniFirst Corporation (NYSE:UNF) stock closed at $151.81 per share, with a market capitalization of $2.75 billion.

Third Avenue Small-Cap Value Fund stated the following regarding UniFirst Corporation (NYSE:UNF) in its third quarter 2025 investor letter:

“Other detractors from performance included UniFirst Corporation (NYSE:UNF), which remains under pressure to fully demonstrate its value proposition as a stand-alone business after rebuffing an acquisition offer from Cintas Corporation earlier in the year.”

UniFirst Corporation (NYSE:UNF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 31 hedge fund portfolios held UniFirst Corporation (NYSE:UNF) at the end of the second quarter, compared to 34 in the previous quarter. While we acknowledge the risk and potential of UniFirst Corporation (NYSE:UNF) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UniFirst Corporation (NYSE:UNF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered UniFirst Corporation (NYSE:UNF) and shared The London Company Small Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.