US Foods (NYSE:USFD) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded US Foods from “buy” to “hold”, even as most other analysts remain constructive on the stock. The broader analyst view is still a Moderate Buy with an average price target of $106.75.
• US Foods’ latest quarterly results were mixed: EPS of $0.78 missed estimates of $0.82 and revenue of $9.61 billion came in slightly below expectations. However, sales still rose 2.8% year over year, and adjusted EBITDA increased 6.2% to $413 million.
• The company reaffirmed its 2026 outlook for 9% to 13% adjusted EBITDA growth and issued full-year EPS guidance of $4.696 to $4.935. Insider and institutional activity was notable, with a senior insider selling shares while institutional investors continue to hold the vast majority of the stock.

US Foods (NYSE:USFD - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

A number of other equities analysts have also recently commented on the company. BMO Capital Markets lifted their target price on US Foods from $95.00 to $115.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. Morgan Stanley set a $94.00 target price on US Foods and gave the stock a "mixed" rating in a report on Friday, February 13th. UBS Group reiterated a "buy" rating and issued a $117.00 target price on shares of US Foods in a report on Friday, February 13th. Wells Fargo & Company lifted their target price on US Foods from $87.00 to $110.00 and gave the stock an "overweight" rating in a report on Friday, February 13th. Finally, Sanford C. Bernstein reissued an "outperform" rating and set a $106.00 price target on shares of US Foods in a research note on Friday, February 13th. Ten analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $106.75.

US Foods Stock Performance

NYSE USFD opened at $84.44 on Friday. The stock has a market capitalization of $18.60 billion, a PE ratio of 28.43, a P/E/G ratio of 1.07 and a beta of 0.90. The business has a 50 day simple moving average of $91.75 and a two-hundred day simple moving average of $83.96. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.14 and a quick ratio of 0.68. US Foods has a 1-year low of $69.88 and a 1-year high of $102.13.

US Foods (NYSE:USFD - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.78 earnings per share for the quarter, missing the consensus estimate of $0.82 by ($0.04). The firm had revenue of $9.61 billion for the quarter, compared to analysts' expectations of $9.66 billion. US Foods had a net margin of 1.71% and a return on equity of 19.37%. The business's quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.68 EPS. US Foods has set its FY 2026 guidance at 4.696-4.935 EPS. On average, research analysts predict that US Foods will post 4.51 EPS for the current fiscal year.

Insider Activity

In related news, insider James David Works, Jr. sold 65,737 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $96.52, for a total transaction of $6,344,935.24. Following the completion of the sale, the insider directly owned 88,176 shares of the company's stock, valued at approximately $8,510,747.52. This trade represents a 42.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.74% of the company's stock.

Institutional Investors Weigh In On US Foods

A number of institutional investors and hedge funds have recently modified their holdings of USFD. Price T Rowe Associates Inc. MD lifted its stake in shares of US Foods by 412.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,165,611 shares of the company's stock worth $313,755,000 after acquiring an additional 3,353,396 shares during the last quarter. Bank of Montreal Can raised its position in US Foods by 8,056.1% during the 4th quarter. Bank of Montreal Can now owns 2,866,721 shares of the company's stock valued at $215,921,000 after purchasing an additional 2,831,573 shares in the last quarter. Norges Bank bought a new stake in US Foods during the 4th quarter valued at $192,849,000. Wellington Management Group LLP raised its position in US Foods by 14.2% during the 3rd quarter. Wellington Management Group LLP now owns 12,875,970 shares of the company's stock valued at $986,557,000 after purchasing an additional 1,599,033 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. raised its position in US Foods by 9,713.4% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,243,456 shares of the company's stock valued at $114,659,000 after purchasing an additional 1,230,785 shares in the last quarter. 98.76% of the stock is owned by institutional investors.

US Foods News Roundup

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

• Positive Sentiment: US Foods said first-quarter case volume rose 1.4%, with independent restaurant case volume up 4.6%, while net sales increased 2.8% to $9.6 billion and adjusted EBITDA climbed 6.2% to $413 million. US Foods Reports First Quarter Fiscal Year 2026 Earnings
• Positive Sentiment: The company reaffirmed its 2026 outlook for 9% to 13% adjusted EBITDA growth and issued full-year EPS guidance of $4.696 to $4.935, signaling confidence in its operating plans despite near-term cost pressures. US Foods reaffirms 2026 outlook for 9%-13% adjusted EBITDA growth amid elevated fuel costs
• Neutral Sentiment: Management highlighted continued profit improvement on the earnings call, but investors are weighing that against weather disruptions, higher fuel costs, and other headwinds that could pressure margins in coming quarters. US Foods Earnings Call Highlights Profits Amid Headwinds
• Negative Sentiment: Quarterly EPS of $0.78 missed estimates of $0.82, and revenue of $9.61 billion also came in below expectations, which is the main reason the stock is under pressure today. US Foods NYSE: USFD Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings

About US Foods

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.

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