US Foods (NYSE:USFD) Announces Earnings Results, Beats Expectations By $0.08 EPS

US Foods (NYSE:USFD) announced its earnings results on Thursday. The company reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.08, FiscalAI reports. The business had revenue of $10.53 billion during the quarter, compared to analyst estimates of $10.46 billion. US Foods had a return on equity of 20.53% and a net margin of 1.81%.US Foods’s revenue for the quarter was up 4.5% compared to the same quarter last year. During the same period last year, the company earned $1.19 EPS. US Foods updated its FY 2026 guidance to 4.696-4.935 EPS.

Here are the key takeaways from US Foods’ conference call:

• Positive Sentiment: US Foods reported strong second-quarter results, with net sales up 4.5% to $10.5 billion, adjusted EBITDA up 10.2% to a record $604 million, and adjusted diluted EPS up 21% to $1.44. Adjusted EBITDA margin expanded 29 basis points to a record 5.7%.
• Positive Sentiment: Independent restaurant case volume accelerated 5.1%, supported by the strongest net-new-account generation in three years, while healthcare and hospitality volumes grew 3.5% and 4.4%, respectively. The company said it gained share with independent restaurants for the 21st consecutive quarter and healthcare for the 23rd.
• Positive Sentiment: Pronto sales are expected to reach approximately $1.3 billion in 2026, and US Foods raised its 2027 sales outlook for the program to more than $1.7 billion from $1.5 billion previously. Management also cited early encouraging behavior from the new sales compensation plan, though the full impact may take two to three years.
• Positive Sentiment: Self-help initiatives continued to support margins, including more than $50 million of cost-of-goods savings in the first half and over $20 million of incremental indirect procurement savings year to date. The company is also expanding AI applications in sales, forecasting, labor planning, routing, and inventory management to improve productivity and service.
• Neutral Sentiment: US Foods reaffirmed its 2026 guidance for 4%–6% net sales growth, 9%–13% adjusted EBITDA growth, 18%–24% adjusted EPS growth, and 2.5%–4.5% total case volume growth. Management continues to cite industry traffic, inflation, and fuel prices as key variables, while noting that higher sales-force costs will remain elevated for the next couple of quarters.

US Foods Trading Up 1.9%

Shares of USFD stock traded up $2.01 during mid-day trading on Friday, hitting $108.98. The company’s stock had a trading volume of 2,423,713 shares, compared to its average volume of 2,496,714. The company has a market cap of $24.00 billion, a PE ratio of 33.53, a P/E/G ratio of 1.37 and a beta of 0.81. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.70 and a current ratio of 1.14. The company’s fifty day simple moving average is $96.42 and its 200-day simple moving average is $91.94. US Foods has a 52 week low of $69.88 and a 52 week high of $110.08.

Analysts Set New Price Targets

USFD has been the topic of a number of analyst reports. BMO Capital Markets reiterated an “outperform” rating and issued a $120.00 price target on shares of US Foods in a research report on Friday. JPMorgan Chase & Co. lowered their price objective on US Foods from $98.00 to $90.00 and set a “neutral” rating for the company in a research report on Thursday, May 14th. Guggenheim lifted their price objective on US Foods from $115.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday. Citigroup upped their target price on US Foods from $110.00 to $124.00 and gave the company a “buy” rating in a report on Friday. Finally, BTIG Research increased their target price on shares of US Foods from $105.00 to $120.00 and gave the company a “buy” rating in a research report on Friday. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, US Foods presently has a consensus rating of “Moderate Buy” and a consensus target price of $112.38.

Key Stories Impacting US Foods

Here are the key news stories impacting US Foods this week:

• Positive Sentiment: Solid Q2 earnings: US Foods reported adjusted EPS of $1.44, exceeding the $1.36 consensus estimate, while revenue reached $10.53 billion versus expectations of $10.46 billion. Revenue increased 4.5% year over year, and adjusted EBITDA rose 10.2% to a record $604 million. US Foods earnings report
• Positive Sentiment: Growth and guidance reaffirmed: Independent restaurant case volume accelerated 5.1%, total case volume increased 1.9%, and net income rose 22.8% to $275 million. Management reaffirmed fiscal 2026 targets, including 4%–6% sales growth, 9%–13% adjusted EBITDA growth and 18%–24% adjusted EPS growth. The company also repurchased $374 million of stock during the quarter. US Foods Q2 results and outlook
• Positive Sentiment: Analyst optimism increased: Citigroup raised its price target from $110 to $124 and initiated a “buy” rating. Wells Fargo lifted its target from $110 to $125 with an “overweight” rating, while BTIG increased its target from $105 to $120 and reiterated “buy.” These targets imply additional upside and reinforce the positive reaction to the earnings report. Analyst price-target revisions
• Neutral Sentiment: Valuation remains a consideration: Despite a reported 206% five-year return, one analysis cautioned that US Foods stock may now look expensive, potentially limiting further gains unless earnings continue to grow rapidly. US Foods valuation analysis
• Negative Sentiment: Insider selling: Company insiders have reported three open-market sales and no purchases over the past six months, including sales by the chief financial officer. While not necessarily a fundamental concern, the activity is a potential sentiment headwind.

Institutional Investors Weigh In On US Foods

Several large investors have recently added to or reduced their stakes in USFD. Boston Partners lifted its stake in US Foods by 6.0% in the third quarter. Boston Partners now owns 16,130,224 shares of the company’s stock valued at $1,235,585,000 after buying an additional 908,993 shares during the period. Wellington Management Group LLP grew its position in shares of US Foods by 7.0% during the 4th quarter. Wellington Management Group LLP now owns 13,780,526 shares of the company’s stock worth $1,037,949,000 after buying an additional 904,556 shares during the period. Invesco Ltd. grew its position in shares of US Foods by 8.6% during the 3rd quarter. Invesco Ltd. now owns 8,164,062 shares of the company’s stock worth $625,530,000 after buying an additional 649,950 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of US Foods by 412.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,165,611 shares of the company’s stock valued at $313,755,000 after acquiring an additional 3,353,396 shares in the last quarter. Finally, Primecap Management Co. CA increased its stake in shares of US Foods by 3.1% in the 4th quarter. Primecap Management Co. CA now owns 3,911,610 shares of the company’s stock valued at $294,622,000 after acquiring an additional 118,401 shares in the last quarter. Institutional investors and hedge funds own 98.76% of the company’s stock.

About US Foods

US Foods (NYSE: USFD) is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.