US Foods' Q2 adjusted EPS beats estimates

US Foods Holding

07/08/2025 11:55

Overview

US Foods Q2 fiscal 2025 sales rise 3.8% to $10.1 bln, missing estimates

Adjusted EPS up 28% to $1.19, beating analyst expectations

Co repurchased $250 mln in shares, reduced net leverage to 2.6x

Outlook

Company maintains FY 2025 net sales growth forecast of 4% to 6%

US Foods raises FY 2025 adjusted EBITDA growth to 9.5% to 12%

Company increases FY 2025 adjusted EPS growth forecast to 19.5% to 23%

Result Drivers

VOLUME GROWTH - Total case volume rose 0.9%, driven by a 2.7% increase in independent restaurant case volume

MARGIN EXPANSION - Adjusted EBITDA margin increased by 40 basis points to 5.4%, attributed to strategic initiatives and execution

FOOD COST INFLATION - Sales growth was supported by a 2.5% increase in food cost inflation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$10.08 bln
$10.18 bln (14 Analysts)
Q2 Adjusted EPS
Beat
$1.19
$1.13 (15 Analysts)
Q2 EPS
$0.96
Q2 Net Income
$224 mln
Q2 Gross Profit
$1.78 bln
Q2 Operating Income
$372 mln
Q2 Pretax Profit
$300 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the food retail & distribution peer group is "buy"

Wall Street's median 12-month price target for US Foods Holding Corp is $85.00, about 0.4% above its August 6 closing price of $84.68

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw47XzgNa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)