US Foods (NYSE:USFD) Issues Earnings Results

US Foods (NYSE:USFD) announced its earnings results on Thursday. The company reported $1.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.25 by $0.01, FiscalAI reports. US Foods had a net margin of 1.81% and a return on equity of 20.53%. The company had revenue of $10.40 billion during the quarter, compared to analysts’ expectations of $10.58 billion. During the same quarter in the previous year, the business posted $1.07 earnings per share. The firm’s quarterly revenue was up 2.1% compared to the same quarter last year.

Here are the key takeaways from US Foods’ conference call:

• US Foods reported 10% adjusted EBITDA growth, 38 basis points of margin expansion and 18% adjusted EPS growth. Independent restaurant cases rose 5%, with the company extending its market-share gains to 22 consecutive quarters in independents and 24 in healthcare.
• Management said weaker consumer confidence and labor conditions pressured demand, leaving total volume growth below expectations. It cited higher fuel costs and temporary seller-compensation transition expenses as additional Q4 headwinds, while forecasting full-year case growth of 2.5%–3.5%, adjusted EBITDA growth of 9%–11% and adjusted EPS growth of 18%–20%.
• AI initiatives are generating more than $75 million in adjusted EBITDA, and the company expects that figure to exceed $110 million next year. Accounts using sales insights are growing cases nearly 10% faster, supporting a lower expected seller-headcount growth rate of low single digits.
• The October acquisition of Prime Line adds more than $110 million in annual sales and specialty Italian products that US Foods plans to expand through its broadline network and Pronto. Pronto generated more than $1 billion in sales year to date, and the company expects $1.3 billion this year and more than $1.7 billion in 2027.
• US Foods generated nearly $1.2 billion in operating cash flow through the first nine months and repurchased $690 million of shares year to date. Net leverage was 2.4 times, within its target range, leaving capacity for investment and acquisitions.

US Foods Trading Down 0.4%

Shares of NYSE:USFD traded down $0.43 during midday trading on Friday, reaching $106.42. The company’s stock had a trading volume of 2,255,270 shares, compared to its average volume of 1,930,697. The firm has a market cap of $23.02 billion, a price-to-earnings ratio of 29.73, a price-to-earnings-growth ratio of 1.34 and a beta of 0.87. The company has a quick ratio of 0.70, a current ratio of 1.14 and a debt-to-equity ratio of 1.19. US Foods has a 1 year low of $69.88 and a 1 year high of $112.57. The business has a 50 day moving average price of $99.23 and a 200 day moving average price of $94.98.

Key US Foods News

Here are the key news stories impacting US Foods this week:

• Positive Sentiment: US Foods earned $1.26 per share, slightly above the $1.25 consensus and up from $1.07 a year earlier. Stronger margins and case volumes contributed to the earnings beat; adjusted EBITDA rose 10% year over year. US Foods Q3 Earnings Surpass Estimates, Sales Increase Y/Y
• Positive Sentiment: TD Cowen raised its price target to $125 from $119 and reaffirmed a Buy rating. BTIG also reiterated Buy and set a $120 target, signaling analyst confidence in further upside. US Foods Stock Price Target Raised at TD Cowen
• Negative Sentiment: Quarterly revenue of $10.40 billion was below analysts’ $10.58 billion estimate, despite increasing 2.1% year over year. The company also narrowed its fiscal 2026 growth outlook, which could temper investor expectations. US Foods Q3 2026: Earnings Beat, Guidance Cut, Revenue Miss

Insiders Place Their Bets

In related news, insider Randy J. Taylor sold 11,630 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $110.37, for a total transaction of $1,283,603.10. Following the transaction, the insider directly owned 73,618 shares in the company, valued at approximately $8,125,218.66. This represents a 13.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.74% of the company’s stock.

Analyst Upgrades and Downgrades

USFD has been the topic of several research reports. Piper Sandler increased their price target on shares of US Foods from $88.00 to $108.00 and gave the company a “neutral” rating in a research report on Wednesday, August 12th. Guggenheim lifted their price objective on US Foods from $115.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $120.00 target price on shares of US Foods in a research note on Friday, August 7th. Citigroup lifted their price objective on US Foods from $110.00 to $124.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Zacks Research raised shares of US Foods from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, US Foods currently has a consensus rating of “Moderate Buy” and an average price target of $115.31.

US Foods Company Profile

US Foods Holding Corp. is a foodservice distributor that supplies restaurants and other foodservice businesses across the United States. Its customers include independent restaurants, healthcare and senior-care facilities, hotels, educational institutions, and government organizations.

The company distributes a broad range of products, including fresh and frozen foods, meat, seafood, produce, dairy, beverages, and nonfood supplies. It also offers services and digital tools intended to help customers manage menus, purchasing, and kitchen operations.

US Foods is headquartered in Rosemont, Illinois, and traces its history to predecessor businesses dating back to the 19th century.