United Natural Foods Inc. (UNFI) saw its shares plummet 5.55% in pre-market trading on Tuesday, following a series of challenging announcements that overshadowed its better-than-expected third-quarter results. The company is grappling with the termination of a key supply agreement, a distribution center closure, a lowered profit outlook, and the impact of a recent cyber incident.

In a significant development, UNFI announced the termination of its Amended and Restated Northeast Supply Agreement with Key Food Stores Co-Operative, Inc., effective around September 20, 2025. This move ends UNFI's role as the primary grocery wholesaler to Key Food locations in the Northeast. Additionally, the company plans to discontinue operations at its Allentown, Pennsylvania distribution center as part of efforts to optimize its distribution network.

Despite reporting Q3 adjusted earnings of $0.44 per share, surpassing analysts' expectations of $0.21, and net sales of $8.06 billion beating estimates of $7.78 billion, UNFI has cut its profit outlook for the year. The company now expects a loss of $80 million to $55 million, or $1.30 to $0.90 per share, compared to its previous guidance of a loss of $13 million to a profit of $3 million. Adding to its woes, UNFI is also dealing with the aftermath of a cyber incident that occurred on June 5, which has affected its ability to fulfill and distribute orders. The company has refrained from updating its adjusted earnings and sales outlook for the year due to the ongoing assessment of this incident's impact.