US Foods Dishes Out 40% Net Income Gain, Readies $1 Billion Buyback

US Foods Holding Corp. USFD shares are trading higher after the company reported first-quarter results.

The company reported adjusted earnings per share of 68 cents, missing the analyst consensus estimate of 69 cents. Quarterly sales of $9.35 billion (up 4.5% year over year) missed the Street view of $9.38 billion.

Sysco reported a 1.1% rise in total case volume, including a 2.5% increase from independent restaurants, while gross profit grew 8% to $1.6 billion.

Net income surged 40.2% to $115 million, and adjusted EBITDA rose 9.3% to $389 million. Adjusted EBITDA margin was 4.2%, an increase of 18 basis points compared to the prior year.

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CEO Dave Flitman noted how adjusted diluted EPS increased 26% “despite the challenging operating environment and weather-related headwinds.”

Total case volume rose 1.1% year-over-year, led by a 2.5% gain in independent restaurant volume.

Healthcare and hospitality volumes grew 6.1% and 3.6%, respectively, while chain volume declined 4.3%.

Adjusted Gross profit was $1.6 billion, an increase of 5.1% from the prior year. Adjusted Gross profit as a percentage of net sales was 17.3%.

On May 7, the company authorized a new share repurchase program of up to $1 billion.

Outlook: US Foods reaffirmed its fiscal 2025 adjusted EPS guidance of $3.69 to $3.88, compared to the $3.79 analyst estimate.

The company also maintained its fiscal 2025 sales outlook of $39.39 billion to $40.15 billion, compared with the $39.75 billion estimate.

Price Action: US Foods shares are trading higher by 4.51% to $72.29 at last check Thursday.

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