What a $20 Million Bet on a Stock Down 3% Signals for Investors

On February 2, Tweedy, Browne disclosed a new position in UniFirst (NYSE:UNF), acquiring 102,059 shares during the fourth quarter in an estimated $19.69 million trade based on quarterly average pricing.

What happened

According to a SEC filing dated February 2, Tweedy, Browne reported a new position in UniFirst (NYSE:UNF), acquiring 102,059 shares during the fourth quarter. This increased the quarter-end position value by $19.69 million, a figure that reflects the new purchase of shares.

What else to know

The new UniFirst position accounts for 1.59% of Tweedy, Browne’s $1.24 billion in reportable U.S. equity assets after the fourth-quarter filing.

Top holdings after the filing:

• NASDAQ: IONS: $195.00 million (15.8% of AUM)
• NYSE: CNH: $186.07 million (15.03% of AUM)
• NYSE: KOF: $112.59 million (9.10% of AUM)
• NYSE: BRK-A: $108.69 million (8.78% of AUM)
• NASDAQ: GOOGL: $62.46 million (5.05% of AUM)

As of February 2, UniFirst shares were priced at $208.02, down 2.7% over the past year and underperforming the S&P 500 by 17.70 percentage points.

Company overview

Company snapshot

• UniFirst offers uniforms, protective workwear, facility service products, and first aid supplies, with revenue primarily from rental and cleaning services, as well as direct sales.
• The company operates a multi-segment business model including full-service rental programs, garment leasing, and direct sales, generating recurring revenue from ongoing service contracts.
• It serves a diversified customer base across automotive, retail, manufacturing, food service, healthcare, government, and high-technology sectors in the United States, Canada, and Europe.

UniFirst is a leading provider of workplace uniforms and facility services, operating at scale across North America and select international markets. The company leverages a vertically integrated model, from manufacturing to delivery, to ensure quality and service consistency. Its broad customer reach and focus on recurring service contracts provide stable cash flows and a defensible market position.

What this transaction means for investors

For long-term investors, this move matters less because of near-term stock performance and more because of what it adds to the portfolio’s overall shape. The position lands in a business built around recurring revenue, contractual relationships, and operational scale rather than cyclical upside. That stands out when viewed next to Tweedy, Browne’s relatively top-heavy allocation to higher-volatility growth names and conglomerates.

UniFirst’s most recent quarter showed why patience is required. Revenue rose 2.7% year over year to $621.3 million, driven by organic growth in its core uniform and facility services segment, but margins compressed as the company leaned into planned technology and growth investments. Operating margin fell to 7.3% from 9.2%, while diluted EPS declined to $1.89 from $2.31 one year earlier. The headline numbers were softer, yet management reaffirmed full-year revenue guidance of up to $2.50 billion and highlighted improved customer retention and new account wins.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, and Ionis Pharmaceuticals. The Motley Fool has a disclosure policy.