US Foods (NYSE:USFD) Announces Earnings Results

US Foods (NYSE:USFD) 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.