USFD · US Foods Holding Corp.

US Foods delivered solid Q1 FY2026 results amid a deteriorating macro environment and weather disruptions, with net sales rising 2.8% to $9.6 billion on 1.4% total case volume growth and 1.0% food cost inflation. Independent restaurant cases accelerated to 4.6% growth, outpacing overall volume and reflecting share gains in high-margin segments, alongside 3.7% healthcare and 5.0% hospitality increases, partially offset by chain volume declines. Gross profit grew 2.4% to $1.7 billion (17.2% margin), with Adjusted Gross profit up 4.4% to 17.6%, driven by volume and COGS improvements despite a $33 million unfavorable LIFO adjustment. Operating expenses rose 3.4% to 15.0% of sales on volume and higher distribution costs, but Adjusted Operating expenses improved to 13.3% through productivity gains and cost streamlining. Adjusted EBITDA expanded 6.2% to $413 million (4.3% margin, +14 bps), and Adjusted Diluted EPS surged 14.7% to $0.78, outpacing EBITDA growth via self-help initiatives. CEO Dave Flitman highlighted momentum in target customers and strategy execution as weather normalized, while CFO Dirk Locascio noted strong cash flow generation ($294 million operating cash flow) supporting growth investments, $125 million share repurchases (1.4 million shares), and a healthy balance sheet with Net Debt at $5.1 billion (2.6x Adjusted EBITDA, improved from 2.7x). The company reaffirmed FY2026 guidance for 4-6% net sales growth, 9-13% Adjusted EBITDA growth, and 18-24% Adjusted Diluted EPS growth, incorporating a 53rd week impact of ~1% on cases and EBITDA, signaling confidence in sustained performance.