US Foods Holding Corp. (NYSE:USFD) reported third-quarter adjusted earnings of $1.26 per share on Thursday, matching analysts’ expectations, while revenue of $10.4 billion fell below the consensus estimate of $10.61 billion.
The foodservice distributor’s shares rose 0.56% in premarket trading following the announcement.
Net sales increased 2.1% year over year, supported by 1.3% growth in case volumes and 0.4% food cost inflation.
Independent Restaurant Volumes Increase
US Foods reported a 5.0% increase in independent restaurant case volumes, marking its 22nd consecutive quarter of market share gains in the segment.
Adjusted EBITDA increased 9.9% to $555 million, while the adjusted EBITDA margin expanded 38 basis points to 5.3%.
Net income rose 42.5% to $218 million, and diluted earnings per share increased 49.3% to $1.00.
“Our third quarter results reflect the strength of our strategy and disciplined execution, with continued market share gains and strong earnings growth,” said Dave Flitman, Chair of the Board and CEO.
“Building on the progress we have made over the past several years, our team continues to demonstrate the impact of our self-help initiatives and laser focus on execution, driving 10% Adjusted EBITDA growth and 18% Adjusted Diluted EPS growth.”
Full-Year 2026 Guidance Narrowed
US Foods revised its fiscal 2026 outlook, forecasting net sales growth of 4% to 5%, compared with its previous range of 4% to 6%.
The company now expects adjusted EBITDA growth of 9% to 11%, narrowing its earlier forecast of 9% to 13%.
Adjusted diluted earnings per share growth is projected at 18% to 20%, compared with the previous guidance range of 18% to 24%.
Share Repurchases and Acquisition
US Foods repurchased $191 million of common stock during the third quarter.
The company also completed its acquisition of Prime Line Distributors in October, expanding its distribution operations.
The quarterly results showed higher sales volumes and profitability, while the updated annual guidance narrowed the expected ranges for revenue, adjusted EBITDA and earnings growth.