US Foods Reports First Quarter Fiscal Year 2026 Earnings

Grew Net Sales 2.8% to $9.6 Billion, Net Income 0.9% to $116 Million and Diluted EPS 6.1% to $0.52 Grew Adjusted EBITDA 6.2% to $413 Million and Adjusted Diluted EPS 14.7% to $0.78 Accelerated Independent Restaurant Case Growth to 4.6% Repurchased $125 Million of SharesROSEMONT, Ill.--(BUSINESS WIRE)--US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced results for the first quarter of fiscal year 2026. First Quarter Fiscal 2026 Highlights Total case volume increased 1.4%; independent restaurant case volume increased 4.6% Net sales increased 2.8% to $9.6 billion Gross profit increased 2.4% to $1.7 billion Net income increased 0.9% to $116 million Adjusted EBITDA1 increased 6.2% to $413 million Diluted EPS increased 6.1% to $0.52; Adjusted Diluted EPS1 increased 14.7% to $0.78 “During the first quarter, we accelerated year-over-year independent restaurant case growth, gained share with our target customer types and delivered 15% Adjusted Diluted EPS growth despite a deteriorating macro environment and weather-related disruptions,” said Dave Flitman, CEO. “As weather normalized, we exited the quarter with sustained momentum, reflecting our unwavering commitment to our customers, the strength of our business model and the continued disciplined execution of our strategy.” “We continue to deliver solid financial results, fueled by the progress on our self-help initiatives,” added Dirk Locascio, CFO. “As a result, we again grew Adjusted EBITDA, expanded margins and grew Adjusted Diluted EPS meaningfully faster than Adjusted EBITDA. We also generated significant operating cash flow and remained disciplined with our capital allocation priorities -- investing in the business to support growth and repurchasing shares while maintaining a strong balance sheet.” First Quarter Fiscal Year 2026 Results Total case volume increased 1.4% from the prior year driven by a 4.6% increase in independent restaurant case volume, a 3.7% increase in healthcare volume and a 5.0% increase in hospitality volume, partially offset by a 2.3% decrease in chain volume. Total organic case volume increased 1.1%, which includes 4.4% organic independent restaurant case volume growth. Net sales of $9.6 billion for the quarter increased 2.8% from the prior year, driven by case volume growth and food cost inflation of 1.0%. Gross profit of $1.7 billion increased by $39 million, or 2.4%, from the prior year, primarily as a result of an increase in total case volume and improved cost of goods sold, partially offset by a $33 million unfavorable year-over-year LIFO adjustment. Gross profit as a percentage of Net sales was 17.2%. Adjusted Gross profit was $1.7 billion, an increase of $72 million, or 4.4% from the prior year. Adjusted Gross profit as a percentage of Net sales was 17.6%. Operating expenses of $1.4 billion increased by $47 million, or 3.4%, from the prior year, primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. Operating expenses as a percentage of Net sales were 15.0%. Adjusted Operating expenses were $1.3 billion, an increase of $48 million, or 3.9% from the prior year. Adjusted Operating expenses as a percentage of Net sales were 13.3%. Net income of $116 million, increased by $1 million, or 0.9%, from the prior year. Net income margin was 1.2%, a decrease of 2 basis points compared to the prior year. Adjusted EBITDA of $413 million, increased by $24 million, or 6.2%, from the prior year. Adjusted EBITDA margin was 4.3%, an increase of 14 basis points compared to the prior year. Diluted EPS was $0.52; Adjusted Diluted EPS was $0.78. Cash Flow and Debt Cash flow provided by operating activities for the first three months of fiscal year 2026 was $294 million, a decrease of $97 million from the prior year driven by changes in operating assets and liabilities including an increase in tax payments for 2026. Cash capital expenditures for the first three months of fiscal year 2026 totaled $98 million, an increase of $14 million from the prior year, related to investments in information technology, property and equipment and construction of and improvements to distribution facilities. Net Debt at the end of the first quarter of fiscal year 2026 was $5.1 billion. The ratio of Net Debt to Adjusted EBITDA was 2.6x at the end of the first quarter of fiscal year 2026, compared to 2.7x at the end of fiscal year 2025. During the first quarter of fiscal year 2026, the Company repurchased 1.4 million shares of common stock for $125 million, of which, $50 million were settlements from the accelerated share repurchase entered into in November 2025. The Company had $14 million in remaining funds authorized under the May 2025 Share Repurchase Program and $1 billion in remaining funds authorized under the November 2025 share repurchase program. Outlook for Fiscal Year 20262 The Company is reaffirming its Fiscal Year 2026 guidance provided on February 12, 2026 of: Net Sales growth of 4% to 6% Adjusted EBITDA growth of 9% to 13% Adjusted Diluted EPS growth of 18% to 24% The guidance provided above includes the impact of a 53rd week in fiscal year 2026, which is expected to add approximately 1% to total case growth and Adjusted EBITDA growth. Conference Call and Webcast Information US Foods will host a live webcast to discuss the first quarter of fiscal year 2026 results on Thursday, May 7, 2026, at 8 a.m. CDT. The call can also be accessed live over the phone by dialing (877) 344-2001; the conference ID number is 2528845. Presentation slides will be available shortly before the webcast begins. The webcast, slides, and a copy of this press release can be found in the Investor Relations section of our website at https://ir.usfoods.com. About US Foods With a promise to help its customers Make It, US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 customer locations to help their businesses succeed. With more than 70 broadline locations and more than 90 cash and carry stores, US Foods and its 30,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, Ill. Visit www.usfoods.com to learn more. Forward-Looking StatementsRead the full story here

US Foods Reports First Quarter Fiscal Year 2026 Earnings

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