US Foods Reports First Quarter Fiscal 2026 Earnings (05/07/2026 00: 00

Published: 2026-05-07 07:16:14 ET USFD

Published on 05/07/2026 at 07:16 am EDT

May 7, 2026

1 Continued share gains with target customer types; accelerated year-over-year organic independent restaurant case growth by more than 300 basis points to 4.4%

2 Focused execution drove profitable growth and improved operational efficiency resulting in 15% Adjusted EPS growth

3 Maintained strong balance sheet while executing accretive capital allocation priorities; repurchased $125 million of shares

Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.

CULTURE

EMBRACE THE US FOODS® CULTURE

SAFE: Always keep our people safe and embrace a path to zero accidents and injuries

SUPPORTIVE: Champion a diverse and inclusive work environment for all; foster employee engagement; attract world-class talent

RESPONSIBLE: Be environmentally and socially conscious

SERVICE

CULTURE

EMBRACE THE US FOODS® CULTURE

DELIVER WORLD-CLASS SERVICE

GROWTH

GROW MARKET SHARE

PROFIT

EXPAND EBITDA MARGIN

Embrace the US Foods Culture

Improved injury and accident rates by 12% compared to prior year and 45% over the past three years

Continued deployment of safer center-ride powered industrial equipment; 80% complete and on track to finish by year-end

Held our Sales Leadership Academy bringing together 500+ leaders; focused on strengthening critical leadership skills, building high-performing sales teams and preparing them for the rollout of our new seller compensation plan

Donated to the American Red Cross Annual Disaster Giving Program to prepare for disasters before they strike

CULTURE

EMBRACE THE US FOODS® CULTURE

GROWTH

SERVICE

DELIVER WORLD-CLASS SERVICE

GROW MARKET SHARE

PROFIT

EXPAND EBITDA MARGIN

DELIVER WORLD-CLASS SERVICE

RELIABLE: Ensure best-in-class delivery: on-time and in full

EFFICIENT: Drive routing transformation and logistics management; increase replenishment effectiveness

EASY-TO-USE: Create best-in-class experiences for the

customer powered by digital and omni-channel capabilities

Deliver Service Excellence

Launched Menu IQ, an AI-powered tool that helps restaurant operators better manage food cost and gives them real-time visibility into menu profitability

Introduced SIGNATURE, our new differentiated solution for Hospitality customers; a comprehensive suite of industry-leading products, smart technology and support designed to help our customers manage labor and staffing, identify cost-savings opportunities and improving menu profitability for high volume events

Drove 21% improvement in Operations Quality Composite (Ops QC); enhancing the quality of service that our customers experience and improving our cost structure

GROWTH

GROW MARKET SHARE

TARGET: Grow market share with independent restaurants, healthcare, hospitality and targeted tuck-in acquisitions

DIFFERENTIATE: Capitalize on our food innovations, team-based selling and value added services

BE FRESH: Improve our capabilities and drive share in produce and COP

CULTURE

EMBRACE THE US FOODS® CULTURE

SERVICE

DELIVER WORLD-CLASS SERVICE

PROFIT

GROWTH

GROW MARKET SHARE

EXPAND EBITDA MARGIN

Grow Profitable Market Share

Expanded Pronto to 47 markets; Pronto Next Day now live in 26 markets with plans to add

~10 more this year

Overall Pronto program growing at strong double-digits rates; remains on track for $1.5B in sales in 2027

On track to launch new sales comp plan in June to create better alignment with business strategy, enhance the earning potential of our sellers and fuel future case growth

Generated strong net new Independent account growth at 4.7%

Launched new Spring Scoop with 19 featured US Foods private label brand products designed to attract and retain diners and deliver profit-boosting benefits, such as back-of-house labor savings and menu versatility

PROFIT

EXPAND EBITDA MARGIN

MARGIN: Expand through EB growth, strategic vendor management and pricing initiatives

PRODUCTIVITY: Embrace continuous improvement and drive 3-5% annual gains

OPTIMIZATION: Enhance indirect spend management

CULTURE

EMBRACE THE US FOODS® CULTURE

SERVICE

DELIVER WORLD-CLASS SERVICE

GROWTH

GROW MARKET SHARE

PROFIT

EXPAND EBITDA MARGIN

Further Optimize EBITDA Margin

Expanded Adjusted EBITDA margin by 14 basis points through self-help initiatives focused on sustainable margin improvement

Grew Adjusted Gross Profit 4.4% to $1.7B, driven by increased volume and improved cost of goods sold

Maintained strong private label penetration at 54% with our core independent restaurants

Continued deployment of our US Foods Market Operating System (UMOS); live in 70 markets and expect to finish deployment by middle of this year

Expect to deliver $75M+ of indirect spend savings in 2026, on track for $100M+ in 2027

Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable 7

GAAP measures are included in the Appendix.

Dirk Locascio

Chief Financial Officer

$0.78

+14.7%

Q1 2026

B/(W) vs. Q1 2025

Total Case Volume

+1.4%

Independent Restaurant Case Volume

+4.6%

Healthcare Case Volume

+3.7%

Hospitality Case Volume

+5.0%

Net Sales ($millions)

$9,610

+2.8%

Adjusted EBITDA(1) ($millions)

$413

+6.2%

Adjusted EBITDA Margin(1)

4.3%

+14 bps

Adjusted Diluted EPS(1)

Q1 2026

Q1 2025

$0.50

+$0.08

$1.00

$1.50

$2.00

$1.98

$1.90

$2.50

Adjusted EBITDA Per Case(1)

Adjusted Gross Profit Per Case(1)

$7.89

$8.12

+$0.23

Q1 2025 Q1 2026

Adjusted Operating Expenses Per Case(1)

$6.00

$6.14

+$0.14

Q1 2025 Q1 2026

Operating Cash Flow ($M)

$391

$294

Capital Allocation Priorities

Invest in the business

1 > Funding strong capital investment to maintain our business, support growth and drive attractive returns

$139

Return capital to shareholders

> Repurchased $125M of shares in Q1 2026

Q1 2024 Q1 2025 Q1 2026

Maintain net leverage range

3 > Net leverage at 2.6x; within target range of 2.0x - 3.0x

Q1 2024

Q1 2025

Q1 2026

Operating Cash Flow (OCF)

$139

$391

$294

Change in Net Working Capital (NWC)(1)

($78)

$122

$16

OCF less change in NWC(1)

$217

$269

$278

> No long-term debt maturities until 2028

4 Pursue accretive tuck-in M&A

Net Working Capital (NWC) defined as changes in operating assets and liabilities as shown in the Consolidated Statements of Cash Flows.

Fiscal Year 2026 Guidance(1)

Net Sales Growth 4% to 6%

Modeling Assumptions(1)

Total Case Growth

2.5% to 4.5%

Sales Inflation & Mix

~1.5%

Depreciation

$420M to $450M

Interest Expense

$300M to $315M

Tax Rate

~26%

Cash CapEx

$400M to $440M

Adjusted EBITDA Growth(2) 9% to 13%

Adjusted Diluted EPS Growth(2) 18% to 24%

Includes the impact of a 53rd week in fiscal year 2026, which is expected to add ~1% to Total Case Growth and Adjusted EBITDA Growth.

Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial

2025 to 2027

Financial Targets

Differentiated value proposition and

1 meaningful scale with most profitable customer types

Industry-leading digital ecosystem

2 embedded with AI powered features which enhances customer engagement,

drives efficiency and strengthens loyalty

Early innings of our operational

3 excellence journey with substantial opportunities ahead

Industry-leading Adjusted EPS growth

4 supporting our confidence to compound double-digit earnings growth through

2027 and beyond

Strong cash flow generation, enabling

5 consistent and effective capital deployment

~5%

Net Sales CAGR

20bps+

Annual Adj. EBITDA Margin Expansion

~10%

Adj. EBITDA CAGR

~20%

Adj. Diluted EPS CAGR

Deployable Capital of $4B+ from 2025 to 2027

Appendix

Organic Case Growth by Quarter

YOY percent change

Independent Restaurant Case Growth

YOY percent change for total and organic cases

2.5% 2.7%

3.9%

Acquisitions

3.7%

1.3%

2.3%

3.5%

4.4%

4.1% 4.6%

Q1 Q2 Q3 Q4 Q1

2025 2026

Total Case Growth

YOY percent change for total and organic cases

Independent Restaurants

Healthcare Hospitality

1.1%

0.9%

1.1%

0.8%

0.1%

0.3%

0.5%

0.8%

1.1%

1.4%

Q1 Q2 Q3 Q4 Q1

Q1 Q2 Q3 Q4

2025

2026

2025 2026

Funding strong capital investment to maintain our business, support growth and drive attractive returns

Repurchased $125 million of shares in Q1 2026; ~$1 billion remaining on share repurchase authorizations

Reduced net leverage to

2.6x; within target range of 2.0x - 3.0x

No long-term debt maturities until 2028

($ in millions)

Maturity Interest

Terms Interest Rates as of

March 28, 2026

Carrying Value as o

March 28, 2026

f Carrying Value as of

December 27, 2025

ABL Facility

December 7, 2027

5.35%

$388

$429

2021 Incremental Term Loan Facility (net of $1 1M Term SOFR +

and $1 of unamortized deferred financing costs, respectively)

November 22, 2028

1.75% 5.42% $609 $609

2024 Incremental Term Loan Facility (net of $7 and $7 of unamortized deferred financing costs, respectively)

October 3, 2031

1M Term SOFR 1.75%

5.42%

$710

$712

Total Floating Rate Debt

$1,707

$1,750

Senior Notes due 2028 (net of $2 and $3 of September 15, 2028

6.88%

$498

$497

Senior Notes due 2029 (net of $3 and $4 of February 15, 2029

4.75%

$897

$896

Senior Notes due 2030 (net of $2 and $2 of

unamortized deferred financing costs, respectively) June 1, 2030

4.63%

$498

Senior Notes due 2032 (net of $4 and $4 of January 15, 2032

7.25%

$496

Senior Notes due 2033 (net of $2 and $2 of April 15, 2033

5.75%

$498

unamortized deferred financing costs, respectively) unamortized deferred financing costs, respectively)

Obligations under financing leases(1) 2026 - 2033 1.26%-8.31% $565 $557

unamortized deferred financing costs, respectively) unamortized deferred financing costs, respectively)

Other Debt January 1, 2031 5.75% $8 $8

Total Fixed Rate(1)

$3,460

$3,450

Total Debt

$5,167

$5,200

Less: Cash

($49)

($41)

Net Debt(2)

$5,118

$5,159

Net Debt Leverage Ratio(2)

2.6x

2.7x

% Floating Rate(3)

~34%

Includes $16 million and $18 million of floating rate debt related to synthetic leases as of March 28, 2026 and December 27, 2025, respectively.

Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.

Floating Rate % includes the impact of interest rate caps.

(Case volume and $ in millions, except per share data)

Reported (unaudited)

Adjusted(1) (unaudited)

13 Weeks Ended

March 28, 2026

March 29, 2025

Change

March 28, 2026

March 29, 2025

Change

Case Volume

208

205

1.4%

Net Sales

$9,610

$9,351

2.8%

Gross Profit

$1,653

$1,614

2.4%

$1,691

$1,619

4.4%

% of Net Sales

17.2%

17.3%

(6 bps)

17.6%

17.3%

29 bps

Operating Expenses

$1,437

$1,390

3.4%

$1,279

$1,231

3.9%

% of Net Sales

15.0%

14.9%

9 bps

13.3%

13.2%

15 bps

Net Income

$116

$115

0.9%

$174

$159

9.4%

Diluted EPS(2)

$0.52

$0.49

6.1%

$0.78

$0.68

14.7%

Adjusted EBITDA(1)

$413

$389

6.2%

Adjusted EBITDA Margin(3)

4.3%

4.2%

14 bps

(Total cases and $ in millions, except per case data)

Adjusted(1) (unaudited)

13 Weeks Ended

March 28, 2026

March 29, 2025

Total Cases

208

205

Adjusted GP

$1,691

$1,619

Adjusted GP / Case

$8.12

$7.89

Adjusted OPEX

$1,279

$1,231

Adjusted OPEX / Case

$6.14

$6.00

Adjusted EBITDA

$413

$389

Adjusted EBITDA / Case

$1.98

$1.90

(1) Management uses these non-GAAP measures in evaluating operational and financial performance and we believe they provide investors with useful information. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results.

($ in millions)

13 Weeks Ended (unaudited)

March 28, 2026

March 29, 2025

Gross profit (GAAP)

$1,653

$1,614

LIFO reserve adjustments(1)

Adjusted Gross profit (Non-GAAP)

$1,691

$1,619

Operating expenses (GAAP)

$1,437

$1,390

Adjustments:

Depreciation expense

(105)

(98)

Amortization expense

(14)

Restructuring activity and asset impairment charges(2)

(8)

(5)

Share-based compensation expense(3)

(22)

Business transformation costs(4)

(7)

Business acquisition, integration related costs, divestitures and other(5)

(2)

(13)

Adjusted Operating expenses (Non-GAAP)

$1,279

$1,231

(1) - (5) footnotes located on next slide.

Represents the impact of LIFO reserve adjustments.

Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges.

Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan.

Transformational costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable technology. For the 13 weeks ended March 28, 2026 and March 29, 2025, business transformation costs related to projects associated with information technology infrastructure initiatives and related workforce efficiencies.

Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $1 million and $13 million for the 13 weeks ended March 28, 2026 and March 29, 2025, respectively and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness.

Disclaimer

US Foods Holding Corp. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:14 UTC.