US Foods

USFD Q1 2025 Earnings

Reported May 8, 2025 at 6:48 AM ET · SEC Source

Q1 25 EPS

$0.68

MISS 2.05%

Est. $0.69

Q1 25 Revenue

$9.35B

MISS 0.43%

Est. $9.39B

vs S&P Since Q1 25

+0.5%

BEATING MARKET

USFD +28.0% vs S&P +27.5%

Market Reaction

Did USFD Beat Earnings? Q1 2025 Results

US Foods came in just shy of expectations in the first quarter of fiscal 2025, with adjusted diluted EPS of $0.68 missing the $0.69 consensus estimate by 2.05% and net sales of $9.35 billion falling 0.43% below forecasts, even as revenue climbed 4.5%… Read more US Foods came in just shy of expectations in the first quarter of fiscal 2025, with adjusted diluted EPS of $0.68 missing the $0.69 consensus estimate by 2.05% and net sales of $9.35 billion falling 0.43% below forecasts, even as revenue climbed 4.5% year over year amid weather-related headwinds that management acknowledged weighed on the period. The underlying business showed genuine momentum, with net income jumping 40.2% to $115 million and Adjusted EBITDA rising 9.3% to $389 million, supported by operating leverage that saw Adjusted Gross Profit grow 5.1% while Adjusted Operating Expenses rose a more modest 3.9%. Independent restaurant case volume grew for the 16th consecutive quarter, and the company's expanding digital tools, including AI-based menu management and real-time inventory capabilities, were cited as meaningful contributors to growth in key segments. US Foods also announced a new $1 billion share repurchase program and reaffirmed full-year 2025 guidance calling for net sales growth of 4% to 6% and Adjusted Diluted EPS growth of 17% to 23%.

Key Takeaways

  • Independent restaurant case volume grew 2.5%, marking 16th consecutive quarter of growth
  • Healthcare volume increased 6.1%, 18th consecutive quarter of growth
  • Hospitality volume increased 3.6%
  • Food cost inflation of 3.0% contributed to top-line growth
  • Improved cost of goods sold and pricing optimization drove gross profit expansion
  • Favorable year-over-year LIFO adjustment
  • Operating leverage improvement as Adjusted Gross Profit grew faster than Adjusted Operating Expenses
  • Distribution productivity improvements and streamlined administrative processes
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USFD YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“During the first quarter we outperformed the industry and again delivered strong profitability, with Adjusted EBITDA growing 9% and Adjusted Diluted EPS increasing 26%, despite the challenging operating environment and weather-related headwinds. Our results speak to the strength of our customer value proposition and relentless execution of our strategy.”

— Dave Flitman, Q1 2025 Earnings Press Release