US Foods Holding Corp
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −7.99%.
Did USFD Beat Earnings? Q4 2024 Results
US Foods closed out fiscal 2024 on a strong note, posting Q4 adjusted diluted EPS of $0.84, beating the consensus estimate of $0.80 by 4.37%, even as net sales of $9.49 billion came in just a hair below the $9.50 billion estimate. Revenue still climbed 6.2% year over year, fueled by total case volume growth of 3.5% and food cost inflation of 2.9%, with independent restaurant case volume, a closely watched margin indicator, rising 3.2% in the quarter. The clearest driver of adjusted outperformance was a 13.7% jump in Q4 Adjusted EBITDA to $441.00 million, reflecting pricing optimization and distribution productivity gains, even as a $124.00 million pension termination charge weighed heavily on GAAP results. The company also flagged a potential sale of its CHEF'STORE business to sharpen focus on delivered broadline operations. Looking ahead, management guided for fiscal 2025 Adjusted Diluted EPS growth of 17% to 23%, anchoring a new three-year plan that targets a 20% Adjusted Diluted EPS CAGR and more than $4.00 billion in cumulative cash flow through 2027.
- Total case volume increased 3.5% in Q4; independent restaurant case volume grew 3.2%
- Food cost inflation of 2.9% contributed to net sales growth
- Improved cost of goods sold and pricing optimization drove gross profit growth
- Continued distribution productivity improvement offset higher labor costs
- Healthcare volume increased 4.7%, hospitality 2.4%, and chain volume 2.6% in Q4
- Adjusted EBITDA margin expanded 30 basis points to 4.6% in Q4
“We delivered another strong quarter which resulted in Adjusted EBITDA growth of 11.7% to a record $1.74 billion for 2024, capping off the final year of our long-range plan. We are proud to have achieved the key financial outcomes from our three-year plan, underpinned by the focused execution of our strategy.”
US Foods CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2025, US Foods is guiding for net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. Over the longer term, the company is targeting a 5% sales CAGR, 10% Adjusted EBITDA CAGR, and 20% Adjusted Diluted EPS CAGR through 2027, with expectations to generate more than $4 billion of cumulative cash flow over that period.
USFD YoY Financials
Figures from SEC filings and company reports. Not investment advice.