US Foods (NYSE:USFD) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

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

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. 2,255,270 shares of the stock were exchanged, compared to its average volume of 1,930,697. The company has a 50 day simple moving average of $99.23 and a 200 day simple moving average of $94.98. The stock has a market capitalization of $23.02 billion, a P/E ratio of 29.73, a PEG ratio of 1.34 and a beta of 0.87. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.70 and a current ratio of 1.14. US Foods has a twelve month low of $69.88 and a twelve month high of $112.57.

Wall Street Analyst Weigh In

A number of research firms have weighed in on USFD. Morgan Stanley boosted their price objective on US Foods from $107.00 to $111.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 15th. Wall Street Zen downgraded US Foods from a “buy” rating to a “hold” rating in a research note on Saturday. Wells Fargo & Company lifted their price target on US Foods from $110.00 to $125.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. UBS Group boosted their price target on shares of US Foods from $117.00 to $127.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Finally, BTIG Research reissued a “buy” rating and set a $120.00 price target on shares of US Foods in a research report on Friday. 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 company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $115.31.

Trending Headlines about US Foods

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

Insider Activity at US Foods

In related news, insider Randy J. Taylor sold 11,630 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $110.37, for a total value 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 legal filing with the SEC, which is accessible through this link. Insiders own 0.74% of the company’s stock.

About US Foods

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.