US Foods (USFD) Q1 2026 earnings summary

Executive summary

• Net sales grew 2.8% year-over-year to $9.6 billion, with total case volume up 1.4% and independent restaurant case volume accelerating 4.6%; healthcare and hospitality volumes rose 3.7% and 5.0%, respectively, while chain volume declined 2.3%.

• Adjusted EBITDA increased 6.2% to $413 million, and Adjusted Diluted EPS rose 14.7% to $0.78; net income was $116 million, up 0.9% year-over-year.

• Achieved 20th consecutive quarter of market share gains with independent restaurants and 22nd with healthcare; continued progress on productivity and digital innovation initiatives.

• Repurchased $125 million of shares during the quarter, maintaining net leverage at 2.6x.

• Delivered strong results despite severe weather, Middle East conflict, rising fuel costs, and record-low consumer sentiment.

Financial highlights

• Net sales reached $9.6 billion, up 2.8% year-over-year, driven by 1.4% total case volume growth and 1.0%–1.4% food cost inflation/mix.

• Adjusted EBITDA grew 6.2% to $413 million; Adjusted EBITDA margin improved by 14 basis points to 4.3%.

• Adjusted Gross Profit rose 4.4% to $1.7 billion; Adjusted Gross Profit per case increased 2.9% to $8.12.

• Operating cash flow was $294 million, down year-over-year due to less working capital benefit and higher tax payments.

• Adjusted Operating Expenses per case rose 2.3% to $6.14; Adjusted OpEx per case increased $0.14 (2.3%).

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: Net sales growth of 2.5%–6%, Adjusted EBITDA growth of 9%–13%, and Adjusted Diluted EPS growth of 18%–24%, including a 53rd week.

• Q2 Adjusted EBITDA growth expected in mid to upper single digits due to macro uncertainty and elevated fuel costs.

• If fuel and macro pressures persist, results may be at the lower end of guidance; otherwise, growth should align with long-term targets.

• Capital expenditures for fiscal 2026 expected at $400–$450 million, funded by cash or operations.

• Guidance includes a 53rd week, expected to add about 1% to case and Adjusted EBITDA growth.