Will United Natural Foods, Inc. (UNFI), Whole Foods Market, Inc. (WFM): Earnings Satisfy Bullish Shareholders?

At the same time, United Natural Foods, Inc. (NASDAQ:UNFI) has other avenues to pursue in expanding its business. Despite a slowdown in growth in its most recent quarter, The Fresh Market Inc (NASDAQ:TFM) has seen double-digit percentage increases in sales and earnings that show the breadth of the healthy-food movement. The trend could get even more attention as Fresh Market expands into key Whole Foods Market, Inc. (NASDAQ:WFM) areas like California and Texas. Moreover, even traditional grocery chains have boosted their offerings of organic and natural foods, giving United Natural’s brands more exposure on store shelves.

The big question in the long run is whether United Natural Foods, Inc. (NASDAQ:UNFI)’s success will entice food-distribution giant SYSCO Corporation (NYSE:SYY) into the natural-food segment. Sysco’s own earnings results were tepid at best, with an 11% drop in year-over-year earnings that exposed its vulnerability to rising costs and weak demand from its customers. Pursuing higher-growth opportunities could naturally push Sysco into United Natural’s niche, and although Sysco couldn’t take over overnight, its economies of scale could pose a long-term threat.

In the United Natural Foods, Inc. (NASDAQ:UNFI) earnings report, watch to see whether the company can finally top expectations. Good news could easily send the stock soaring to new all-time highs once more.

The article Will United Natural Earnings Satisfy Bullish Shareholders? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Sysco and The Fresh Market. It recommends and owns shares of Whole Foods Market. 

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