US Foods (NYSE:USFD) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• US Foods reported quarterly EPS of $1.26, beating analyst expectations by $0.01 and rising from $1.07 a year earlier. Revenue grew 2.1% year over year to $10.40 billion but fell short of the $10.58 billion consensus.
• Adjusted EBITDA increased 10%, with margin expansion and 18% adjusted EPS growth; independent restaurant cases rose 5%. Management cited weaker consumer confidence and labor conditions as demand pressures and forecast full-year case growth of 2.5%–3.5% and adjusted EBITDA growth of 9%–11%.
• The company said AI initiatives are generating more than $75 million in adjusted EBITDA, with that contribution expected to exceed $110 million next year. Accounts using sales insights are growing cases nearly 10% faster.

US Foods (NYSE:USFD - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $1.26 EPS for the quarter, topping analysts' consensus estimates of $1.25 by $0.01, FiscalAI reports. The business had revenue of $10.40 billion for the quarter, compared to analysts' expectations of $10.58 billion. US Foods had a net margin of 1.81% and a return on equity of 20.53%. The business's revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the company earned $1.07 EPS.

Here are the key takeaways from US Foods' conference call:

• US Foods reported 10% adjusted EBITDA growth, 38 basis points of margin expansion and 18% adjusted EPS growth. Independent restaurant cases rose 5%, with the company extending its market-share gains to 22 consecutive quarters in independents and 24 in healthcare.
• Management said weaker consumer confidence and labor conditions pressured demand, leaving total volume growth below expectations. It cited higher fuel costs and temporary seller-compensation transition expenses as additional Q4 headwinds, while forecasting full-year case growth of 2.5%–3.5%, adjusted EBITDA growth of 9%–11% and adjusted EPS growth of 18%–20%.
• AI initiatives are generating more than $75 million in adjusted EBITDA, and the company expects that figure to exceed $110 million next year. Accounts using sales insights are growing cases nearly 10% faster, supporting a lower expected seller-headcount growth rate of low single digits.
• The October acquisition of Prime Line adds more than $110 million in annual sales and specialty Italian products that US Foods plans to expand through its broadline network and Pronto. Pronto generated more than $1 billion in sales year to date, and the company expects $1.3 billion this year and more than $1.7 billion in 2027.
• US Foods generated nearly $1.2 billion in operating cash flow through the first nine months and repurchased $690 million of shares year to date. Net leverage was 2.4 times, within its target range, leaving capacity for investment and acquisitions.

US Foods Price Performance

Shares of US Foods stock traded down $0.43 during trading hours on Friday, reaching $106.42. 2,255,270 shares of the company's stock were exchanged, compared to its average volume of 1,930,697. US Foods has a 1 year low of $69.88 and a 1 year high of $112.57. The company has a market capitalization of $23.02 billion, a P/E ratio of 29.73, a price-to-earnings-growth ratio of 1.34 and a beta of 0.87. The business has a fifty day moving average of $99.23 and a two-hundred day moving average of $94.98. The company has a quick ratio of 0.70, a current ratio of 1.14 and a debt-to-equity ratio of 1.19.

Insider Activity at US Foods

In other news, insider Randy J. Taylor sold 11,630 shares of the firm's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $110.37, for a total value of $1,283,603.10. Following the transaction, the insider directly owned 73,618 shares of the company's stock, valued at approximately $8,125,218.66. This trade represents a 13.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.74% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on USFD. Wells Fargo & Company upped their price objective on shares of US Foods from $110.00 to $125.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. BMO Capital Markets reissued an "outperform" rating and issued a $120.00 price target on shares of US Foods in a research note on Friday, August 7th. Wall Street Zen lowered US Foods from a "buy" rating to a "hold" rating in a research note on Saturday. BTIG Research reissued a "buy" rating and set a $120.00 target price on shares of US Foods in a report on Friday. Finally, JPMorgan Chase & Co. decreased their target price on US Foods from $108.00 to $98.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $115.31.

US Foods News Summary

Here are the key news stories impacting US Foods this week:

• Positive Sentiment: US Foods earned $1.26 per share, slightly above the $1.25 consensus and up from $1.07 a year earlier. Stronger margins and case volumes contributed to the earnings beat; adjusted EBITDA rose 10% year over year. US Foods Q3 Earnings Surpass Estimates, Sales Increase Y/Y
• Positive Sentiment: TD Cowen raised its price target to $125 from $119 and reaffirmed a Buy rating. BTIG also reiterated Buy and set a $120 target, signaling analyst confidence in further upside. US Foods Stock Price Target Raised at TD Cowen
• Negative Sentiment: Quarterly revenue of $10.40 billion was below analysts’ $10.58 billion estimate, despite increasing 2.1% year over year. The company also narrowed its fiscal 2026 growth outlook, which could temper investor expectations. US Foods Q3 2026: Earnings Beat, Guidance Cut, Revenue Miss

About US Foods

US Foods Holding Corp. is a foodservice distributor that supplies restaurants and other foodservice businesses across the United States. Its customers include independent restaurants, healthcare and senior-care facilities, hotels, educational institutions, and government organizations.

The company distributes a broad range of products, including fresh and frozen foods, meat, seafood, produce, dairy, beverages, and nonfood supplies. It also offers services and digital tools intended to help customers manage menus, purchasing, and kitchen operations.

US Foods is headquartered in Rosemont, Illinois, and traces its history to predecessor businesses dating back to the 19th century.

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