US Foods (NYSE:USFD) Announces Earnings Results

Key Points

• US Foods beat quarterly expectations: Adjusted EPS reached $1.44 versus the $1.36 consensus, while revenue rose 4.5% year over year to $10.53 billion. Adjusted EBITDA increased 10.2% to a record $604 million.
• Growth remained strong and guidance was reaffirmed: Independent restaurant case volume grew 5.1%, and management maintained its fiscal 2026 outlook for 4%–6% sales growth, 9%–13% adjusted EBITDA growth and 18%–24% adjusted EPS growth.
• Market sentiment was positive: Several analysts raised their price targets, with the consensus rating remaining “Moderate Buy” and an average target of $112.38. Shares gained 1.9% to $108.98, though valuation and insider selling remain potential concerns.

US Foods (NYSE:USFD - Get Free Report) posted its earnings results on Thursday. The company reported $1.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.36 by $0.08, FiscalAI reports. US Foods had a net margin of 1.71% and a return on equity of 19.37%. The firm had revenue of $10.53 billion during the quarter, compared to analyst estimates of $10.46 billion. During the same period in the previous year, the business posted $1.19 EPS. US Foods's revenue was up 4.5% on a year-over-year basis. US Foods updated its FY 2026 guidance to 4.696-4.935 EPS.

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

• Positive Sentiment: US Foods reported strong second-quarter results, with net sales up 4.5% to $10.5 billion, adjusted EBITDA up 10.2% to a record $604 million, and adjusted diluted EPS up 21% to $1.44. Adjusted EBITDA margin expanded 29 basis points to a record 5.7%.
• Positive Sentiment: Independent restaurant case volume accelerated 5.1%, supported by the strongest net-new-account generation in three years, while healthcare and hospitality volumes grew 3.5% and 4.4%, respectively. The company said it gained share with independent restaurants for the 21st consecutive quarter and healthcare for the 23rd.
• Positive Sentiment: Pronto sales are expected to reach approximately $1.3 billion in 2026, and US Foods raised its 2027 sales outlook for the program to more than $1.7 billion from $1.5 billion previously. Management also cited early encouraging behavior from the new sales compensation plan, though the full impact may take two to three years.
• Positive Sentiment: Self-help initiatives continued to support margins, including more than $50 million of cost-of-goods savings in the first half and over $20 million of incremental indirect procurement savings year to date. The company is also expanding AI applications in sales, forecasting, labor planning, routing, and inventory management to improve productivity and service.
• Neutral Sentiment: US Foods reaffirmed its 2026 guidance for 4%–6% net sales growth, 9%–13% adjusted EBITDA growth, 18%–24% adjusted EPS growth, and 2.5%–4.5% total case volume growth. Management continues to cite industry traffic, inflation, and fuel prices as key variables, while noting that higher sales-force costs will remain elevated for the next couple of quarters.

US Foods Stock Up 1.9%

NYSE:USFD traded up $2.01 during trading hours on Friday, hitting $108.98. 2,423,713 shares of the stock traded hands, compared to its average volume of 2,743,044. The firm has a market cap of $24.00 billion, a price-to-earnings ratio of 36.69, a PEG ratio of 1.28 and a beta of 0.81. US Foods has a fifty-two week low of $69.88 and a fifty-two week high of $110.08. The company has a current ratio of 1.14, a quick ratio of 0.70 and a debt-to-equity ratio of 1.16. The firm has a 50 day moving average price of $96.42 and a 200 day moving average price of $91.94.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Wall Street Zen cut US Foods from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Citigroup raised their target price on US Foods from $110.00 to $124.00 and gave the company a "buy" rating in a research report on Friday. BTIG Research lifted their target price on US Foods from $105.00 to $120.00 and gave the company a "buy" rating in a research note on Friday. Wells Fargo & Company boosted their price target on US Foods from $110.00 to $125.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, UBS Group increased their price target on US Foods from $117.00 to $127.00 and gave the stock a "buy" rating in a research note on Friday. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $112.38.

US Foods News Roundup

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

• Positive Sentiment: Solid Q2 earnings: US Foods reported adjusted EPS of $1.44, exceeding the $1.36 consensus estimate, while revenue reached $10.53 billion versus expectations of $10.46 billion. Revenue increased 4.5% year over year, and adjusted EBITDA rose 10.2% to a record $604 million. US Foods earnings report
• Positive Sentiment: Growth and guidance reaffirmed: Independent restaurant case volume accelerated 5.1%, total case volume increased 1.9%, and net income rose 22.8% to $275 million. Management reaffirmed fiscal 2026 targets, including 4%–6% sales growth, 9%–13% adjusted EBITDA growth and 18%–24% adjusted EPS growth. The company also repurchased $374 million of stock during the quarter. US Foods Q2 results and outlook
• Positive Sentiment: Analyst optimism increased: Citigroup raised its price target from $110 to $124 and initiated a “buy” rating. Wells Fargo lifted its target from $110 to $125 with an “overweight” rating, while BTIG increased its target from $105 to $120 and reiterated “buy.” These targets imply additional upside and reinforce the positive reaction to the earnings report. Analyst price-target revisions
• Neutral Sentiment: Valuation remains a consideration: Despite a reported 206% five-year return, one analysis cautioned that US Foods stock may now look expensive, potentially limiting further gains unless earnings continue to grow rapidly. US Foods valuation analysis
• Negative Sentiment: Insider selling: Company insiders have reported three open-market sales and no purchases over the past six months, including sales by the chief financial officer. While not necessarily a fundamental concern, the activity is a potential sentiment headwind.

Hedge Funds Weigh In On US Foods

A number of hedge funds have recently added to or reduced their stakes in USFD. Boston Partners raised its holdings in shares of US Foods by 6.0% during the 3rd quarter. Boston Partners now owns 16,130,224 shares of the company's stock valued at $1,235,585,000 after purchasing an additional 908,993 shares in the last quarter. Wellington Management Group LLP boosted its holdings in US Foods by 7.0% in the fourth quarter. Wellington Management Group LLP now owns 13,780,526 shares of the company's stock worth $1,037,949,000 after purchasing an additional 904,556 shares in the last quarter. Invesco Ltd. boosted its holdings in US Foods by 8.6% in the third quarter. Invesco Ltd. now owns 8,164,062 shares of the company's stock worth $625,530,000 after purchasing an additional 649,950 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in US Foods by 412.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,165,611 shares of the company's stock worth $313,755,000 after purchasing an additional 3,353,396 shares in the last quarter. Finally, Primecap Management Co. CA increased its position in US Foods by 3.1% during the fourth quarter. Primecap Management Co. CA now owns 3,911,610 shares of the company's stock worth $294,622,000 after buying an additional 118,401 shares during the last quarter. Institutional investors and hedge funds own 98.76% of the company's stock.

US Foods Company Profile

US Foods NYSE: USFD is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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