SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS



This Quarterly Report on Form 10-Q and any documents incorporated by reference
may contain forward-looking statements within the meaning of the federal
securities laws. Forward-looking statements contained in this Quarterly Report
on Form 10-Q and any documents incorporated by reference are subject to the safe
harbor created by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as "estimates,"
"anticipates," "projects," "plans," "expects," "intends," "believes," "seeks,"
"could," "should," "may," "will," "strategy," "objective," "assume," "strive,"
or the negative versions thereof, and similar expressions and by the context in
which they are used. Such forward-looking statements are based upon our current
expectations and speak only as of the date made. Such statements are highly
dependent upon a variety of risks, uncertainties and other important factors
that could cause actual results to differ materially from those reflected in
such forward-looking statements. Such factors include, but are not limited to,
uncertainties caused by adverse economic conditions, including, without
limitation, as a result of extraordinary events or circumstances such as the
COVID-19 pandemic, and their impact on our customers' businesses and workforce
levels, disruptions of our business and operations, including limitations on, or
closures of, our facilities, or the business and operations of our customers or
suppliers in connection with extraordinary events or circumstances such as the
COVID-19 pandemic, uncertainties regarding our ability to consummate and
successfully integrate acquired businesses, uncertainties regarding any existing
or newly-discovered expenses and liabilities related to environmental compliance
and remediation, any adverse outcome of pending or future contingencies or
claims, our ability to compete successfully without any significant degradation
in our margin rates, seasonal and quarterly fluctuations in business levels, our
ability to preserve positive labor relationships and avoid becoming the target
of corporate labor unionization campaigns that could disrupt our business, the
effect of currency fluctuations on our results of operations and financial
condition, our dependence on third parties to supply us with raw materials,
which such supply could be severely disrupted as a result of extraordinary
events or circumstances such as the COVID-19 pandemic, any loss of key
management or other personnel, increased costs as a result of any changes in
federal or state laws, rules and regulations or governmental interpretation of
such laws, rules and regulations, uncertainties regarding the price levels of
natural gas, electricity, fuel and labor, the negative effect on our business
from sharply depressed oil and natural gas prices, including, without
limitation, as a result of extraordinary events or circumstances such as the
COVID-19 pandemic, the continuing increase in domestic healthcare costs,
increased workers' compensation claim costs, increased healthcare claim costs,
including as a result of extraordinary events or circumstances such as the
COVID-19 pandemic, our ability to retain and grow our customer base, demand and
prices for our products and services, fluctuations in our Specialty Garments
business, political or other instability, supply chain disruption or infection
among our employees in Mexico and Nicaragua where our principal garment
manufacturing plants are located, including, without limitation, as a result of
extraordinary events or circumstances such as the COVID-19 pandemic, our ability
to properly and efficiently design, construct, implement and operate a new
customer relationship management ("CRM") computer system, interruptions or
failures of our information technology systems, including as a result of
cyber-attacks, additional professional and internal costs necessary for
compliance with any changes in Securities and Exchange Commission, New York
Stock Exchange and accounting rules, strikes and unemployment levels, our
efforts to evaluate and potentially reduce internal costs, economic and other
developments associated with the war on terrorism and its impact on the economy,
the impact of foreign trade policies and tariffs or other impositions on
imported goods on our business, results of operations and financial condition,
general economic conditions, our ability to successfully implement our business
strategies and processes, including our capital allocation strategies and the
other factors described under "Item 1A. Risk Factors" and elsewhere in our
Annual Report on Form 10-K for the year ended August 29, 2020 and in our other
filings with the Securities and Exchange Commission, including, without
limitation, under "Item 1A. Risk Factors" and elsewhere in this Quarterly Report
on Form 10-Q. We undertake no obligation to update any forward-looking
statements to reflect events or circumstances arising after the date on which
they are made.

Business Overview

UniFirst Corporation, together with its subsidiaries, hereunder referred to as
"we", "our", the "Company", or "UniFirst", is one of the largest providers of
workplace uniforms and protective work wear clothing in the United States. We
design, manufacture, personalize, rent, clean, deliver, and sell a wide range of
uniforms and protective clothing, including shirts, pants, jackets, coveralls,
lab coats, smocks, aprons and specialized protective wear, such as flame
resistant and high visibility garments. We also rent and sell industrial wiping
products, floor mats, facility service products and other non-garment items, and
provide restroom and cleaning supplies and first aid cabinet services and other
safety supplies as well as provide certain safety training to a variety of
manufacturers, retailers and service companies.

We serve businesses of all sizes in numerous industry categories. Typical
customers include automobile service centers and dealers, delivery services,
food and general merchandise retailers, food processors and service operations,
light manufacturers, maintenance facilities, restaurants, service companies,
soft and durable goods wholesalers, transportation companies, healthcare
providers and others who require employee clothing for image, identification,
protection or utility purposes. We also provide our customers with restroom and
cleaning supplies, including air fresheners, paper products and hand soaps.

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At certain specialized facilities, we also decontaminate and clean work clothes
and other items that may have been exposed to radioactive materials and service
special cleanroom protective wear and facilities. Typical customers for these
specialized services include government agencies, research and development
laboratories, high technology companies and utilities operating nuclear
reactors.

We continue to expand into additional geographic markets through acquisitions
and organic growth. We currently service over 300,000 customer locations in the
United States, Canada and Europe from over 260 customer service, distribution
and manufacturing facilities.

As mentioned and described in Note 16 to our Consolidated Financial Statements,
we have five reporting segments: U.S. and Canadian Rental and Cleaning, MFG,
Corporate, Specialty Garments and First Aid. We refer to the laundry locations
of the U.S. and Canadian Rental and Cleaning reporting segment as "industrial
laundries" or "industrial laundry locations", and to the U.S. and Canadian
Rental and Cleaning, MFG, and Corporate reporting segments combined as our "Core
Laundry Operations."

Critical Accounting Policies and Estimates



The discussion of our financial condition and results of operations is based
upon the Consolidated Financial Statements, which have been prepared in
conformity with United States generally accepted accounting principles ("U.S.
GAAP"). As such, management is required to make certain estimates, judgments and
assumptions that are believed to be reasonable based on the information
available. These estimates and assumptions affect the reported amount of assets
and liabilities, revenues and expenses, and disclosure of contingent assets and
liabilities at the date of the financial statements. Actual results may differ
from these estimates under different assumptions or conditions.

Critical accounting policies are defined as those that are reflective of
significant judgments and uncertainties, the most important and pervasive
accounting policies used and areas most sensitive to material changes from
external factors. The critical accounting estimates that we believe affect our
more significant judgments and estimates used in the preparation of our
consolidated financial statements presented in this report are described in
Management's Discussion and Analysis of Financial Condition and Results of
Operations and in the Notes to the Consolidated Financial Statements included in
our Annual Report on Form 10-K for the fiscal year ended August 29, 2020.

COVID-19 Assessment



The outbreak of a novel strain of coronavirus (COVID-19) continues to impact a
number of countries, including the United States, Canada, Mexico, Nicaragua and
the European countries in which we operate. Developments continue to occur
rapidly with respect to the spread of COVID-19 and its impact on human health
and businesses. New and changing government actions to address the COVID-19
pandemic continue to occur on a daily basis. Our revenues in the second half of
fiscal 2020 and the first quarter of fiscal 2021 were significantly adversely
impacted as a result of many customers closing their businesses or operating at
limited capacities. Although many of our customers have reopened or increased
their operating levels as government restrictions have begun to be lifted, our
sales to many such customers are below their pre-pandemic levels and may not
return to such pre-pandemic levels. In addition, although many of our customers
reopened or increased their operating levels, such customers may again be forced
to close or limit operations as any new COVID-19 outbreaks occur. Any such
closures or reductions in operating levels could have a significant adverse
impact on our business. At times during the pandemic, we have also experienced
supply chain disruptions with respect to certain products, including hand
sanitizer and masks. Such disruptions continue to occur, but have moderated to
some extent more recently.

We remain focused on the safety and well-being of our team partners and on the
service of our customers. We will continue to review and assess the
rapidly-changing COVID-19 pandemic and its impacts on our team partners, our
customers, our suppliers and our business so that we can seek to address the
impacts on our business and service our customers.

Because developments with respect to the spread of COVID-19 and its impacts
continue to occur so rapidly, and because of the unprecedented nature of the
pandemic, we are unable to predict the extent and duration of the adverse impact
of COVID-19 on our business, financial condition and results of operations.

We have assessed the current impact of COVID-19 on our consolidated financial
condition, results of operations, and cash flows, as well as our estimates and
accounting policies. We have made additional disclosures of these assessments,
as necessary. Given the unprecedented nature of this situation, we cannot
reasonably estimate the full extent of the impact COVID-19 will have on our
consolidated financial condition, results of operations, and cash flows in the
foreseeable future. The ultimate impact of COVID-19 on the Company is highly
uncertain and will depend on future developments, and such impacts could exist
for an extended period of time, even after the COVID-19 pandemic subsides.

As of November 28, 2020, our cash, cash equivalents, and short-term investments
were $473.0 million, and we had access to $177.3 million of borrowing capacity
under our $250 million unsecured revolving credit facility, which we believe
will continue to help us manage the impacts of the COVID-19 pandemic on our
business and address related liquidity needs.

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National, state and local governments have responded to the COVID-19 pandemic in
a variety of ways, including, without limitation, by declaring states of
emergency, restricting people from gathering in groups or interacting within a
certain physical distance (i.e., social distancing), and in certain cases,
ordering businesses to close or limit operations or people to stay at home.
Although we have been permitted to continue to operate in all of the
jurisdictions in which we operate, including in jurisdictions that have mandated
the closure of certain businesses and we expect to be permitted to continue to
operate under any orders or other restrictions imposed by any government
authorities in the future, there is no assurance that we will be permitted to
operate under every future government order or other restriction and in every
location. If we were to be subject to government orders or other restrictions on
the operation of our business, we may be required to limit, or close, our
operations at certain locations in the future. Any such limitations or closures
could have a material adverse impact on our ability to service our customers and
on our business, financial condition and results of operations. In particular,
any limitations on, or closures of, our manufacturing facilities in Mexico or
Nicaragua, or our distribution center in Owensboro, Kentucky, could have a
material adverse impact on our ability to manufacture products and service
customers and could have a material adverse impact on our business, financial
condition and results of operations.

The COVID-19 pandemic has caused significant disruptions to our business and
operations and could cause material disruptions to our business and operations
in the future as a result of, among other things, quarantines, worker illness,
worker absenteeism as a result of illness or other factors, social distancing
measures and other travel, health-related, business or other restrictions. For
similar reasons, the COVID-19 pandemic has also adversely impacted, and may
continue to adversely impact, our suppliers and their manufacturers. Depending
on the extent and duration of all of the above-described effects on our business
and operations and the business and operations of our suppliers, our costs could
increase, including our costs to address the health and safety of personnel, our
ability to obtain products or services from suppliers may be adversely impacted,
our ability to service certain customers could be adversely impacted and, as a
result, our business, financial condition and results of operations could be
materially adversely affected. In addition, depending on the extent and duration
of the COVID-19 pandemic, we may be subject to significant increases in
healthcare costs in the event that a significant number of our personnel become
infected with COVID-19 and require medical treatment. As a result, any
significant increases in healthcare costs as a result of COVID-19 or otherwise
could have a material adverse impact on our business, financial condition and
results of operations.

The COVID-19 pandemic has also resulted in material adverse economic conditions
that are impacting, and may continue to impact, our business and the businesses
of our suppliers and customers. Unemployment levels have increased
significantly, and the U.S. economy has entered an economic recession. Some
analysts have predicted that the current economic recession may persist for a
significant period of time and become severe. Although the extent and duration
of the impact of the COVID-19 pandemic on our business and operations and the
business and operations of our customers and suppliers remain uncertain, the
continued spread of COVID-19, the imposition of related public health measures
and travel, health-related, business and other restrictions and the resulting
materially adverse economic conditions may materially adversely impact our
business, financial condition, results of operations and cash flows.

Please see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the
year ended August 29, 2020 for an additional discussion of risks and potential
risks of the COVID-19 pandemic on our business, financial condition and results
of operations.

Results of Operations

The following table presents certain selected financial data, including the percentage of revenues represented by each item, for the thirteen weeks ended November 28, 2020 and November 30, 2019.





                                                          Thirteen weeks ended
(In thousands, except          November 28,         % of        November 30,         % of           %
percentages)                       2020           Revenues          2019           Revenues       Change
Revenues                       $     446,853          100.0 %   $     465,398          100.0 %       (4.0 )%
Operating expenses:
Cost of revenues (1)                 275,800           61.7           289,316           62.2         (4.7 )
Selling and administrative
expenses (1)                          88,703           19.9            90,528           19.5         (2.0 )
Depreciation and
amortization                          26,308            5.9            25,459            5.5          3.3
Total operating expenses             390,811           87.5           405,303           87.1         (3.6 )
Operating income                      56,042           12.5            60,095           12.9         (6.7 )
Other income, net                        181            0.0            (1,833 )         (0.4 )     (109.9 )
Income before income taxes            55,861           12.5            61,928           13.3         (9.8 )
Provision for income taxes            13,965            3.1            13,686            2.9          2.0
Net income                     $      41,896            9.4 %   $      48,242           10.4 %      (13.2 )%

(1) Exclusive of depreciation on our property, plant and equipment and


    amortization on our intangible assets.


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General

We derive our revenues through the design, manufacture, personalization, rental,
cleaning, delivering, and selling of a wide range of uniforms and protective
clothing, including shirts, pants, jackets, coveralls, lab coats, smocks and
aprons and specialized protective wear, such as flame resistant and high
visibility garments. We also rent industrial wiping products, floor mats,
facility service products, other non-garment items, and provide restroom and
cleaning supplies and first aid cabinet services and other safety supplies, to a
variety of manufacturers, retailers and service companies. We have five
reporting segments, U.S. and Canadian Rental and Cleaning, MFG, Specialty
Garments, First Aid and Corporate. We refer to the U.S. and Canadian Rental and
Cleaning, MFG, and Corporate reporting segments combined as our "Core Laundry
Operations."

Cost of revenues include the amortization of rental merchandise in service and
merchandise costs related to direct sales as well as labor and other production,
service and delivery costs and distribution costs associated with operating our
Core Laundry Operations, Specialty Garments facilities and First Aid locations.
Selling and administrative costs include costs related to our sales and
marketing functions as well as general and administrative costs associated with
our corporate offices, non-operating environmental sites and operating locations
including information systems, engineering, materials management, manufacturing
planning, finance, budgeting and human resources.

We have a substantial number of plants and conduct a significant portion of our
business in energy producing regions in the U.S. and Canada. In general, we are
relatively more dependent on business in these regions than are many of our
competitors. Recent volatility in energy prices have had and may continue to
have a significant impact on wearer levels at existing customers in our North
American energy-dependent markets. Our operating results are also directly
impacted by the costs of the gasoline used to fuel our vehicles and the natural
gas used to operate our plants. While it is difficult to quantify the positive
and negative impacts on our future financial results from changes in energy
prices, in general, we believe that significant decreases in oil and natural gas
prices would have an overall negative impact on our results due to cutbacks by
our customers both in, and dependent upon, the oil and natural gas industries,
which would outweigh the benefits in our operating costs from lower energy
costs.

Our results of operations may also be adversely impacted by the decline in the Canadian exchange rate.



Our business is subject to various state and federal regulations, including
employment laws and regulations, minimum wage requirements, overtime
requirements, working condition requirements, citizenship requirements,
healthcare insurance mandates and other laws and regulations that impact our
labor costs. Labor costs increased in fiscal 2020 as a result of increases in
state and local minimum wage levels as well as the overall impact of wage
pressure as the result of a low unemployment environment.

On October 23, 2019, we announced that we would be raising our quarterly
dividend to $0.25 per share for Common Stock and to $0.20 per share for Class B
Common Stock, up from $0.1125 and $0.09 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 January 2, 2019, our Board of Directors approved a share repurchase program
authorizing the Company to repurchase from time to time up to $100.0 million of
its outstanding shares of Common Stock. Repurchases made under the program, if
any, will be made in either the open market or in privately negotiated
transactions. The timing, manner, price and amount of any repurchases will
depend on a variety of factors, including economic and market conditions, the
Company stock price, corporate liquidity requirements and priorities, applicable
legal requirements and other factors. The share repurchase program will be
funded using our available cash or capacity under its credit agreement and may
be suspended or discontinued at any time. As of November 28, 2020, we
repurchased a total of 355,917 shares for an average price per share of $167.12
under the share repurchase program using cash on hand. During the thirteen weeks
ended November 28, 2020, we repurchased 41,000 shares for an average price per
share of $176.01. During the thirteen weeks ended November 30, 2019, we
repurchased 50,600 shares for an average price per share of $197.11.

In our fourth fiscal quarter of 2018, we initiated a multiyear CRM project to
further develop, implement and deploy a third-party application we licensed.
This new solution is intended to improve functionality, capability and
information flow as well as increase automation in servicing our customers. As
of November 28, 2020, we have capitalized $25.5 million related to our new CRM
project.

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Thirteen weeks ended November 28, 2020 compared with thirteen weeks ended November 30, 2019

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