Overview

* US Foods ( USFD ) 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 ( USFD ) 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/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $10.08 $10.18

bln bln (14

Analysts

)

Q2 Beat $1.19 $1.13

Adjusted (15

EPS Analysts

)

Q2 EPS $0.96

Q2 Net $224 mln

Income

Q2 Gross $1.78

Profit bln

Q2 $372 mln

Operatin

g Income

Q2 $300 mln

Pretax

Profit

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 ( USFD ) 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:

(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.)