01—Abstract
Summary
Summary of the 8-K filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. (NYSE: USFD) reported results for its fiscal first quarter ended March 29, 2025, in a press release attached as Exhibit 99.1.
Net sales rose 4.5% to $9.4 billiona ($9,351 million), driven by total case volume growth of 1.1% and food cost inflation of 3.0%. Gross profit increased 8.0% to $1.6 billion, net income rose 40.2% to $115 million, and Adjusted EBITDA grew 9.3% to $389 million. Diluted EPS was $0.49, and Adjusted Diluted EPS increased 25.9% to $0.68.
The company reaffirmed its fiscal 2025 guidance of net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. Management said it expects to return to more meaningful share repurchases in the second quarter and the balance of the year. On May 7, 2025, the Board authorized a new share repurchase program of up to $1 billionb.
The company repurchased 328,000 shares for about $23 millionc during the quarter and had about $52 million remaining under its prior $1 billion program. Balance sheet and cash flow improved.
Cash flow from operating activities was $391 milliond, up $252 million year over year, and Net Debt was $4.7 billion, with the Net Debt to Adjusted EBITDA ratio at 2.7x, down from 2.8x at fiscal year-end 2024. During the quarter the company acquired Jake's Finer Foods, a Houston broadline distributor, for $92 million in cash, closed January 10, 2025.
02—Key points
Key Highlights
- Net sales increased 4.5% to $9.4 billion, with total case volume up 1.1% and independent restaurant case volume up 2.5%.
- Net income rose 40.2% to $115 million; diluted EPS was $0.49 versus $0.33 a year earlier.
- Adjusted EBITDA increased 9.3% to $389 million, with Adjusted EBITDA margin at 4.2%, up 18 basis points.
- Adjusted Diluted EPS increased 25.9% to $0.68.
- Fiscal 2025 guidance reaffirmed: net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, Adjusted Diluted EPS growth of 17% to 23%.
- Board authorized a new $1 billion share repurchase program on May 7, 2025.
- Net Debt of $4.7 billion; Net Debt to Adjusted EBITDA ratio of 2.7x, down from 2.8x at fiscal year-end 2024.
03—Questions
Frequently Asked Questions
What drove the growth in sales and profits this quarter?
Net sales grew 4.5% to $9.4 billion, driven by case volume growth and food cost inflation of 3.0%. Gross profit rose 8.0% to $1.6 billion on higher case volume, improved cost of goods sold, pricing optimization and a favorable year-over-year LIFO adjustment. Operating expenses rose 4.5%, but Adjusted Gross profit grew faster than Adjusted Operating expenses, which management attributed to self-help initiatives.
Is the company changing its full-year outlook?
No. The company reaffirmed its fiscal 2025 guidance from February 13, 2025: net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. Management said it remains confident in delivering on this guidance despite near-term macro uncertainty.
What does the new $1 billion share repurchase program mean for shareholders?
The Board authorized up to $1 billion in share repurchases on May 7, 2025. The company repurchased 328,000 shares for about $23 million in the first quarter, had about $52 million remaining under its prior program, and expects to return to more meaningful repurchases in the second quarter and the balance of the year.
How is the company's balance sheet and cash generation trending?
Cash flow from operating activities was $391 million, up $252 million from the prior year due to changes in operating assets and liabilities. Net Debt was $4.7 billion, and the Net Debt to Adjusted EBITDA ratio was 2.7x, compared with 2.8x at the end of fiscal 2024. Cash capital expenditures were $84 million.
04—Continue