US Foods NYSE: USFD reported record second-quarter adjusted EBITDA and margin, supported by accelerating growth with independent restaurants, healthcare and hospitality customers, while reaffirming its full-year 2026 outlook.
Net sales rose 4.5% to $10.5 billion in the second quarter, driven by 1.9% total case-volume growth and a 2.6% contribution from food-cost inflation and mix, Chief Financial Officer Dirk Locascio said. Adjusted EBITDA increased 10.2% to a record $604 million, while adjusted diluted earnings per share climbed 21% to $1.44.
Adjusted EBITDA margin expanded 29 basis points to a record 5.7%. The company said adjusted gross profit per case increased 5% to $0.41 higher than the prior year, outpacing a 3.7%, or $0.21, increase in adjusted operating expenses per case. Adjusted EBITDA per case rose 8.3% to $2.73.
Independent Restaurant Growth Accelerates
Independent restaurant case volume grew 5.1%, the strongest result since the fourth quarter of 2023 and the company’s fifth consecutive quarter of acceleration, according to Chair and CEO Dave Flitman. Healthcare case volume increased 3.5%, while hospitality volume grew 4.4%. Chain restaurant volume declined 1.5%, though Locascio said that was 30 basis points better than industry traffic reported by Black Box.
Flitman said the independent restaurant performance was driven primarily by net new account generation, which reached its strongest level in three years. The company also reported its 21st consecutive quarter of independent restaurant share gains and its 23rd consecutive quarter of healthcare share gains.
During the question-and-answer session, Flitman said July trends were broadly consistent with the second quarter. He described the restaurant market as “pressured but stable,” citing continued industry foot-traffic challenges, but said the company’s customer acquisition and existing-account penetration efforts continued to improve.
US Foods launched its new seller compensation plan companywide in June. The plan is designed to align incentives with priorities including independent restaurant growth, exclusive-brand penetration and Pronto service adoption. Flitman said early behavior changes have been encouraging, though it will take time for the compensation transition to have a larger effect on growth. Sales-force attrition remained flat year over year, he said.
Pronto Expansion and Productivity Initiatives
The company continued to expand Pronto, its small-truck delivery service that offers later order cutoff times, smaller order sizes and more frequent delivery options. Pronto is operating in 52 markets, while Pronto Next Day service for existing independent customers is available in 35 markets. US Foods plans to add eight Pronto Next Day markets this year.
After generating $1 billion in sales during 2025, US Foods now expects Pronto to produce about $1.3 billion in 2026 sales and more than $1.7 billion in 2027, up from its previous 2027 estimate of $1.5 billion. Flitman said the company has tested the service carefully to ensure it maintains margins and does not simply shift existing broadline volume to smaller, less efficient deliveries.
Management also highlighted cost and productivity programs. Strategic Vendor Management generated more than $50 million in additional cost-of-goods savings during the first half, putting the company on track to exceed $300 million in savings under its three-year plan ending in 2027. Inventory management is expected to deliver an additional $10 million in gross-profit benefit during 2026 after generating $35 million last year.
US Foods said it generated more than $20 million in year-to-date incremental indirect-spend savings following the baseline deployment of a new indirect procurement system. The company expects that program to provide more than $75 million of benefit this year and more than $100 million in 2027.
AI and Automation Efforts
Flitman said the company is applying artificial intelligence across sales, supply chain and enterprise functions. An internally developed tool called Visit Assistant Insights delivered more than 700,000 customer-specific insights to sellers serving independent restaurant accounts during its first six weeks, he said.
The company is also piloting a generative AI sales chatbot called Sue AI Assistant. In supply chain operations, US Foods is using AI-driven demand forecasting, labor planning and Descartes routing tools to improve in-stock performance, delivery execution, productivity and working-capital management.
US Foods has begun testing autonomous inventory-scanning robots in one warehouse and plans to extend the test to six additional locations by year-end. The company said early results from the initial pilot have been encouraging.
Cash Flow, Buybacks and Outlook
Year-to-date operating cash flow totaled $725 million, supported by earnings growth and working-capital management. US Foods repurchased $374 million of shares during the second quarter, bringing year-to-date buybacks to about $500 million. Net leverage ended the quarter at 2.6 times, within the company’s 2 times to 3 times target range.
The company also refinanced its asset-based lending facility, extending its maturity to 2031 and increasing its size to $2.5 billion. Locascio said US Foods has no long-term debt maturities until 2028.
US Foods reaffirmed its fiscal 2026 guidance, calling for:
- Net sales growth of 4% to 6%;
- Total case-volume growth of 2.5% to 4.5%;
- Adjusted EBITDA growth of 9% to 13%; and
- Adjusted EPS growth of 18% to 24%.
The outlook includes the expected effect of a 53rd week, which the company estimates will add about 1% to total case-volume and adjusted EBITDA growth. Locascio said the midpoint of the guidance assumes fuel costs remain near current levels, while acknowledging that restaurant traffic, inflation and fuel prices could affect results.
About US Foods (NYSE:USFD)
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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