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, with margin improving to 4.3% of net sales; Adjusted Diluted EPS rose 14.7% to $0.78.

• Maintained strong balance sheet and repurchased $125 million of shares, with net leverage at 2.6x.

• Continued market share gains in independent restaurants, healthcare, and hospitality, supported by digital innovation, supply chain improvements, and sales force transformation.

• Launched MenuIQ, an AI-powered menu management tool, and SIGNATURE, a new hospitality solution; celebrated 10th IPO anniversary and advanced veteran hiring.

Financial highlights

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

• Adjusted EBITDA grew 6.2% to $413 million; Adjusted Diluted EPS rose 14.7% to $0.78; Adjusted Net Income increased 9.4% to $174 million.

• Adjusted Gross Profit was $1.7 billion, up 4.4%, with gross profit per case up 2.9% to $8.12.

• Operating cash flow was $294 million; free cash flow was $197 million, down from prior year.

• $125 million invested in share repurchases; $98 million in CapEx; $1 billion remains authorized.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: Net sales growth of 2.5%–6%, total case 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 elevated fuel costs and macro uncertainty.

• Full-year guidance range depends on fuel and macro trends; one-third of 2026 fuel gallons locked at lower fixed prices.

• CapEx for fiscal 2026 expected at $400–$450 million; net leverage target range remains 2.0x–3.0x.

• Confident in achieving sequential improvement in total case growth for the year.