Overview

* US Foods ( USFD ) Q3 net sales rose 4.8% to $10.2 bln, slightly beating expectations

* Adjusted EPS for Q3 beats consensus, reflecting strong performance

* Company repurchased ~$335 mln of shares, signed agreement to acquire Shetakis

Outlook

* US Foods ( USFD ) updates FY 2025 net sales growth to 4%-5%

* Company expects FY 2025 adjusted EBITDA growth of 10%-12%

* US Foods ( USFD ) projects FY 2025 adjusted diluted EPS growth of 24%-26%

Result Drivers

* CASE VOLUME GROWTH - Independent restaurant case volume rose 3.9%, contributing to overall sales increase

* MARGIN EXPANSION - Adjusted EBITDA margin expanded by 28 basis points, driving 11% growth in Adjusted EBITDA

* COST MANAGEMENT - Improved cost of goods sold and inventory management boosted gross profit by 5.2%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Slight $10.19 $10.18

Beat* bln bln (13

Analysts

)

Q3 Beat $1.07 $1.03

Adjusted (14

EPS Analysts

)

Q3 Net $153 mln

Income

Q3 Gross $1.75

Profit bln

Q3 $282 mln

Operatin

g Income

Q3 $206 mln

Pretax

Profit

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "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 $90.00, about 17.7% above its November 5 closing price of $74.10

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

Press Release:

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(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.)