United Natural Foods Inc. (UNFI) saw its stock surge 5.11% in Tuesday's session, as the company provided updates on its recovery from a recent cybersecurity incident. The food distributor, which supplies major retailers including Amazon's Whole Foods Market, has been grappling with system disruptions that have affected its operations and led to empty shelves at some stores across the country.
Despite the challenges, investors seem to be responding positively to UNFI's proactive approach and recovery timeline. The company announced it is "working toward the goal of returning to full operational capacity by June 15 or sooner," according to Bloomberg News. This clear timeline and the company's collaboration with cybersecurity firm CrowdStrike to address the breach have apparently boosted market confidence.
The cyberattack, detected last week, forced UNFI to take certain systems offline, causing disruptions to its operations and preventing stores from placing orders. The incident has highlighted the vulnerability of supply chains to digital threats and the far-reaching consequences of such attacks on the U.S. food system. While the full financial impact is yet to be determined, UNFI's CEO Sandy Douglas expressed confidence in the company's ability to manage the situation, stating on a call with analysts that they "will be able to manage it."