Financial Analysis

Acquisitions During the thirteen weeks ended May 30, 2026, the Company incurred approximately $20.7 million of Transaction-related Costs (as defined below) associated with the proposed merger with Cintas. These costs consisted primarily of legal, advisory and other professional service fees (Transaction-related Costs) and are included within selling and administrative expenses in the Consolidated Statements of Income. During the thirty-nine weeks ended May 30, 2026, the Company completed one acquisition in the Uniform & Facility Service Solutions segment, six acquisitions in the First Aid & Safety Solutions segment and one acquisition in the Other segment, for total purchase prices of approximately $0.8 million , $16.0 million and $0.9 million, respectively. The Company has prepared purchase price allocations for the business combinations on a preliminary basis. The purchase price was primarily allocated to goodwill and intangible assets, with tangible assets consisting mainly of inventory and property, plant and equipment. A portion of the total purchase price is subject to holdback arrangements, which are typically payable within a one-year period following the acquisition date and contingent upon the achievement of specified revenue targets. The operating results of these businesses have been included in the Companys consolidated financial statements from their respective acquisition dates. As these acquisitions were not material to the Companys consolidated result …

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Commitments and Contingencies The Company and its operations are subject to various federal, state and local laws and regulations governing, among other things, air emissions, wastewater discharges, and the generation, handling, storage, transportation, treatment and disposal of hazardous wastes and other substances. In particular, industrial laundries currently use and must properly dispose of detergent wastewater and other residues, and, in the past, used perchloroethylene and other dry-cleaning solvents. The Company is attentive to the environmental concerns surrounding the disposal of these materials and has, through the years, taken measures to avoid their improper disposal. The Company has settled, or contributed to the settlement of, past actions or claims brought against the Company relating to the disposal of hazardous materials at several sites and there can be no assurance that the Company will not have to expend material amounts to remediate the consequences of any such disposal in the future. U.S. GAAP requires that a liability for contingencies be recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants in its consideration of the relevant facts and circumstances before recording a contingent liability. Changes in …

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The following table presents the Companys revenues for the thirteen and thirty-nine weeks ended May 30, 2026 and May 31, 2025, respectively, disaggregated by segment: Thirteen Weeks Ended Thirty-Nine Weeks Ended May 30, 2026 May 31, 2025 May 30, 2026 May 31, 2025 (In thousands, except percentages) Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Uniform & Facility Service Solutions $ 575,747 90.7 % $ 554,331 90.7 % $ 1,710,447 91.1 % $ 1,658,490 91.2 % First Aid & Safety Solutions 30,809 4.9 % 29,787 4.9 % 91,846 4.9 % 83,463 4.6 % Other 27,846 4.4 % 26,660 4.4 % 75,932 4.0 % 75,952 4.2 % Total revenues $ 634,402 100.0 % $ 610,778 100.0 % $ 1,878,225 100.0 % $ 1,817,905 100.0 % …

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Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the thirty-nine weeks ended May 30, 2026 were as follows (in thousands): Balance as of August 30, 2025 $ 657,748 Goodwill recorded during the period 12,160 Other 17 Balance as of May 30, 2026 $ 669,925 Intangible assets, net in the Companys Consolidated Balance Sheets were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount May 30, 2026 Customer contracts $ 321,907 $ 253,785 $ 68,122 Software 80,078 56,252 23,826 Other intangible assets 40,296 39,651 645 $ 442,281 $ 349,688 $ 92,593 August 30, 2025 Customer contracts $ 318,148 $ 243,364 $ 74,784 Software 81,659 52,355 29,304 Other intangible assets 40,003 38,262 1,741 $ 439,810 $ 333,981 $ 105,829 …

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Income Taxes In accordance with ASC 740, Income Taxes (ASC 740), each interim period is considered integral to the annual period and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period. Effective tax rate The Companys effective tax rate for the thirteen weeks ended May 30, 2026 was 18.5% as compared to 25.7% for the corresponding period in the prior year. The Companys effective tax rate for the thirty-nine weeks ended May 30, 2026 was 24.3% as compared to 25.5% for the corresponding period in the prior year. The decrease in the effective tax rate for both periods was primarily due to provision-to-return adjustments associated with income tax credits recognized upon finalization of the prior-year U.S. federal income tax return. These adjustments reflect refinement of estimates used in the prior year tax provision and resulted in a benefit of approximately $3.1 million. Uncertain tax positions The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense, consistent with prior periods. During the thirty-nine weeks ended May 30, 2026, unrecognized tax positions increased by $3.3 million due to changes in existing reserve …

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Long-Term Debt On August 12, 2025, the Company entered into an amended and restated $300.0 million unsecured revolving credit agreement, (the Credit Agreement) with a syndicate of banks, which matures on August 12, 2030. Under the Credit Agreement, the Company is able to borrow funds at variable interest rates based on, at the Companys election, the Secured Overnight Financing Rate (SOFR) or a base rate, plus in each case a spread based on the Companys consolidated funded debt ratio. Provided there is no default or event of default under the Credit Agreement and the Company is in compliance with its financial covenants on a pro forma basis, the Company may request an increase in the aggregate commitments under the Credit Agreement (in the form of revolving or term tranches) of up to an additional $100.0 million, for a total aggregate commitment of up to $400.0 million. Availability of credit requires compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio as defined in the Credit Agreement. The Company evaluates its compliance with these financial covenants on a fiscal quarterly basis. As of May 30, 2026, the interest rates applicable to the Companys borrowings under the Credit Agreement would be calculated as SOFR plus 1.00% at the time of the respective borrowing. As of May 30, 2026, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ …

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Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances effective tax rate reconciliation disclosure requirements and provides clarity to the disclosures of income taxes paid, income before taxes and provision for income taxes. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis. Retrospective application is permitted. The Company has evaluated the provisions of this ASU and does not expect its adoption to have a material impact on the Company's consolidated financial statements other than requiring additional income tax disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures . The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within ann …

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Employee Benefit Plans Defined Contribution Retirement Savings Plan The Company has a defined contribution retirement savings plan with a 401(k) feature for all eligible U.S. and Canadian employees not under collective bargaining agreements. The Company matches a portion of the employees contribution and may make an additional contribution at its discretion. Contributions charged to expense under the plan for the thirteen weeks ended May 30, 2026 and May 31, 2025 were $4.1 million and $3.9 million, respectively. Contributions charged to expense under the plan for the thirty-nine weeks ended May 30, 2026 and May 31, 2025 were $12.4 million and $11.7 million, respectively. Pension Plan and Supplemental Executive Retirement Plan The Company accounts for its pension plan and Supplemental Executive Retirement Plan on an accrual basis over certain employees estimated service periods. The Company maintains an unfunded Supplemental Executive Retirement Plan for certain eligible employees of the Company and one frozen non-contributory defined benefit pension plan. The amounts charged to expense related to these plans for the thirteen weeks ended May 30, 2026 and May 31, 2025 were $0.3 million and $0.4 million, respectively. The amounts charged to expense related to these plans for the thirty-nine weeks ended May 30, 2026 and May 31, 2025 were $1.0 million and $1.3 million, respectively. Non-qualified Deferred Compensation Plan The Company adopted the UniFirst Corporation Deferred Comp …

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Related Party During the thirteen and thirty-nine weeks ended May 30, 2026, the Company recognized $0.4 million and $1.2 million of revenue, respectively, with a company for which a member of the Companys Board of Directors served as senior officer throughout such periods. During the thirteen and thirty-nine weeks ended May 31, 2025, the Company recognized $0.4 million and $1.2 million of revenue, respectively, with a company for which a member of the Companys Board of Directors served as a senior officer throughout such periods. …

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Revenue Recognition The following table presents the Companys revenues for the thirteen and thirty-nine weeks ended May 30, 2026 and May 31, 2025, respectively, disaggregated by segment: Thirteen Weeks Ended Thirty-Nine Weeks Ended May 30, 2026 May 31, 2025 May 30, 2026 May 31, 2025 (In thousands, except percentages) Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Uniform & Facility Service Solutions $ 575,747 90.7 % $ 554,331 90.7 % $ 1,710,447 91.1 % $ 1,658,490 91.2 % First Aid & Safety Solutions 30,809 4.9 % 29,787 4.9 % 91,846 4.9 % 83,463 4.6 % Other 27,846 4.4 % 26,660 4.4 % 75,932 4.0 % 75,952 4.2 % Total revenues $ 634,402 100.0 % $ 610,778 100.0 % $ 1,878,225 100.0 % $ 1,817,905 100.0 % See Note 13, Segment Reporting for additional details of segment definitions. The following table presents the change in the allowance for credit losses, which is included in Receivables, net of reserves on the Consolidated Balance Sheets for the thirty-nine weeks ended May 30, 2026 (in thousands): Balance as of August 30, 2025 $ 6,802 Current period provision 7,525 Write-offs and other (7,142) Balance as of May 30, 2026 $ 7,185 Costs to Obtain a Contract The following table presents deferred commissions on the Companys Consolidated Balance Sheets as of May 30, 2026 and August 30, 2025: (in thousands) May 30, 2026 August 30, 2025 Prepaid expenses and other current assets $ 21,155 $ 19,795 Other assets 89,618 84,884 The following tab …

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Segment Reporting Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. Prior to May 31, 2025, the Company organized its business into six operating segments: U.S. Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The U.S. Rental and Cleaning and Canadian Rental and Cleaning operating segments were previously combined to form the U.S. and Canadian Rental and Cleaning reporting segment, and as a result, the Company had five reporting segments. The Company previously referred to its U.S. and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its Core Laundry Operations. Beginning with the fourth quarter of 2025, the Company reorganized its business into three reportable operating segments: Uniform & Facility Service Solutions: This reporting segment consolidates the former U.S. and Canadian Rental and Cleaning, MFG and Corporate segments and includes our cleanroom solutions, which was previously part of the Specialty Garments reporting segment. The Uniform & Facility Service Solutions reporting segment designs, manufactures, purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment item …

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Summary of Significant Accounting Policies Basis of Presentation These Consolidated Financial Statements of UniFirst Corporation (the Company) included herein have been prepared, without audit, in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the information furnished reflects all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim period. It is suggested that these Consolidated Financial Statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended August 30, 2025. There have been no material changes in the accounting policies followed by the Company during the current fiscal year. Results for an interim period are not indicative of results for any future interim periods or for an entire fiscal year. Merger Agreement On March 10, 2026, the Company entered into an Agreement and Plan of Merger (the Merger Agreement) with Cintas Corporation (Parent or Cintas), Bruin Merger Sub I, Inc., a wholly …

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Shares Repurchased and Dividends The Company has two classes of common stock: Common Stock and Class B Common Stock. Each share of Common Stock is entitled to one vote, is freely transferable, and is entitled to a cash dividend equal to 125% of any cash dividend paid on each share of Class B Common Stock. Each share of Class B Common Stock is entitled to ten votes and can be converted to Common Stock on a share-for-share basis. However, until converted to Common Stock, shares of Class B Common Stock are not freely transferable. During the thirteen and thirty-nine weeks ended May 31, 2025, 5,000 shares and 36,860 shares, respectively, of Class B Common Stock were converted to Common Stock. No such conversions occurred during the thirty-nine weeks ended May 30, 2026. On October 28, 2025, the Companys Board of Directors declared increased quarterly cash dividends of $0.365 per share of Common Stock and $0.292 per share of Class B Common Stock, up from $0.350 and $0.280 per share, respectively. The amount and timing of any future dividend payment is subject to the approval of the Board of Directors each quarter. On October 24, 2023, the Companys Board of Directors authorized a new share repurchase program to repurchase up to $100.0 million of its outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved on October 18, 2021. On April 8, 2025, the Companys Board of Directors authorized a new share repur …

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