US Foods (NYSE:USFD) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

US Foods (NYSE:USFD) posted its quarterly earnings results on Thursday. The company reported $1.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.08, FiscalAI reports. US Foods had a return on equity of 20.53% and a net margin of 1.81%.The business had revenue of $10.53 billion for the quarter, compared to analyst estimates of $10.46 billion. During the same period in the prior year, the company posted $1.19 EPS. The business’s revenue was up 4.5% compared to the same quarter last year. 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 Performance

Shares of NYSE:USFD traded up $2.01 during trading hours on Friday, hitting $108.98. The stock had a trading volume of 2,423,713 shares, compared to its average volume of 2,496,714. The stock’s fifty day simple moving average is $96.42 and its 200 day simple moving average is $91.94. US Foods has a 1-year low of $69.88 and a 1-year high of $110.08. The firm has a market capitalization of $24.00 billion, a price-to-earnings ratio of 26.81, a PEG ratio of 1.37 and a beta of 0.81. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.70 and a current ratio of 1.14.

Key Stories Impacting US Foods

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 institutional investors and hedge funds have recently added to or reduced their stakes in USFD. Royal Bank of Canada boosted its position in US Foods by 85.8% during the 1st quarter. Royal Bank of Canada now owns 148,512 shares of the company’s stock worth $9,722,000 after acquiring an additional 68,567 shares during the period. Empowered Funds LLC acquired a new position in shares of US Foods during the first quarter valued at $359,000. Sivia Capital Partners LLC bought a new stake in shares of US Foods during the second quarter valued at about $526,000. Brown Advisory Inc. bought a new stake in shares of US Foods during the second quarter valued at about $252,000. Finally, Cerity Partners LLC lifted its holdings in US Foods by 20.5% in the second quarter. Cerity Partners LLC now owns 47,977 shares of the company’s stock worth $3,695,000 after purchasing an additional 8,162 shares during the period. 98.76% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. BTIG Research lifted their price target on shares of US Foods from $105.00 to $120.00 and gave the company a “buy” rating in a report on Friday. JPMorgan Chase & Co. lowered their target price on US Foods from $98.00 to $90.00 and set a “neutral” rating for the company in a report on Thursday, May 14th. BMO Capital Markets restated an “outperform” rating and set a $120.00 price objective on shares of US Foods in a research report on Friday. Morgan Stanley set a $107.00 price objective on US Foods in a research note on Friday. Finally, UBS Group increased their target price on US Foods from $117.00 to $127.00 and gave the stock a “buy” rating in a research report on Friday. Eleven 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, the stock presently has an average rating of “Moderate Buy” and an average price target of $112.38.

About US Foods

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.