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UniFirst Investing To Compete With Cintas

Apr. 07, 2021 9:35 AM ETUniFirst Corporation (UNF)ARMK, CTAS3 Comments
Alex Pitti profile picture
Alex Pitti


  • UniFirst had a good quarter, but the stock corrected because it was overheated. This is a good entry point since the economy is reopening. Energy & hospitality should improve.
  • 2022 EPS estimates are likely too low given the speed of the economic recovery. 2021 guidance is probably too cautious.
  • UniFirst is investing in a new CRM system and opening a new service center in NYC. They should help improve speed, reliability, and lower costs.
  • UniFirst needs to invest in technology and scale the business to catch up to Cintas. Then, it can turn this industry into a duopoly.
  • Some of the market share the top uniform companies don't have isn't worth acquiring. Restaurants and hotels are less sticky and less profitable to serve.

Mechanics at work
Photo by monkeybusinessimages/iStock via Getty Images


In this article I will discuss UniFirst's (NYSE:UNF) latest earnings report and its attempt to catch up to Cintas (CTAS) through investing in a CRM system. I will use an interview

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Alex Pitti profile picture
I'm currently looking for an analyst position. If you like my posts, please shoot me a DM on here or email me at interviewsalexpitti@gmail.com.

Analyst’s Disclosure: I am/we are long UNF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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