US Foods Earnings: Strong Profit Growth Despite Headwinds
- Hardik Shah
- May 8
- 2 min read
TL;DR
Solid Financial Performance: Adjusted EBITDA rose 9.3% YoY to $389M; Adjusted EPS jumped 25.9% to $0.68.
Shareholder Returns: Announced a new $1 billion share repurchase program.
Resilient Customer Growth: Delivered 16th consecutive quarter of independent restaurant gains and 18th in healthcare.
Business Overview
US Foods Holding Corp. (NYSE: USFD) is one of America's largest foodservice distributors, serving approximately 250,000 customer locations. It operates more than 70 broadline locations and 90+ CHEF'STORE cash-and-carry outlets nationwide. Its customer segments include independent restaurants, healthcare facilities, hospitality, and chain restaurants.
US Foods Earnings
Revenue: Net sales grew 4.5% YoY to $9.4 billion.
Volume: Total case volume rose 1.1%, with independent restaurant volume up 2.5%.
Profitability:
Adjusted EBITDA increased 9.3% to $389 million.
Net income surged 40.2% to $115 million.
Adjusted diluted EPS grew 25.9% to $0.68.
Margins: Adjusted EBITDA margin improved by 18 basis points to 4.2%.
"Our results speak to the strength of our customer value proposition and relentless execution of our strategy." — Dave Flitman, CEO.
Forward Guidance
Sales: Net sales growth expected between 4% and 6% for FY25.
Profitability: Adjusted EBITDA growth of 8%-12% and Adjusted EPS growth of 17%-23% reaffirmed.
Volume: Revised case volume growth assumption to 1%-3%, with independent restaurant case growth of 2%-5%.
Operational Performance
Independent Restaurants: 16th consecutive quarter of share gains.
Healthcare: 18th straight quarter of growth, leveraging technology and service model differentiation.
Technology Investments: Rolled out generative AI-based automatic ordering tools, aiding salesforce efficiency.
Product Innovation: 'Scoop' product line surpassed $1 billion in annual sales.
"We operate in a large, resilient and growing industry, and food away-from-home continues its multi-decade uptrend." — Dave Flitman, CEO.
Market Insights
Tariffs: Monitoring tariff risks; imports account for a mid-to-high single-digit portion of purchasing.
Macro Trends: Traffic and demand slightly pressured, but independent restaurants and healthcare remain resilient.
Competitive Landscape: Competitive intensity remains high, particularly from regional players, but large distributors like USFD continue gaining share.
Strategic Initiatives
Efficiency Focus: Delivered $30M in incremental administrative cost savings on top of $120M savings in 2024.
Private Label Growth: Penetration increased by 90bps YoY, now at 34% of total sales.
Pronto Program Expansion: Small truck delivery pilot showed 10-15% sustained case growth uplift; expanded from 6 to 10 markets.
M&A: Acquired Jake’s Finer Foods in Houston for $92 million.
"We have the fastest growth algorithm among our large competitors and a self-help execution story." — Dave Flitman, CEO.
Capital Allocation
Share Buybacks: Authorized a new $1 billion program; $23 million in shares repurchased in Q1.
Debt Management: Net leverage reduced to 2.7x from 2.8x; no major maturities until 2028.
The Bottom Line
US Foods delivered a strong Q1 2025 performance, expanding profits and market share despite macroeconomic headwinds and weather-related disruptions. The company's self-help strategies, targeted investments, private label growth, and efficient capital allocation — including a new $1 billion buyback authorization — reinforce confidence in meeting full-year targets and long-term growth ambitions.
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