US Foods (USFD) Q1 2025 Earnings
How Did USFD Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.73%.
Did USFD Beat Earnings? Q1 2025 Results
No. US Foods reported Q1 2025 earnings of $0.68 a share on May 8, 2025, missing the $0.69 consensus estimate by 2.0%. Revenue was $9.4B against a $9.4B estimate.
US Foods came up just short of Wall Street's expectations in the first quarter of fiscal 2025, posting adjusted diluted EPS of $0.68 against a consensus estimate of $0.69, a 2.05% miss, while net sales of $9.35 billion fell narrowly below the $9.39 billion forecast despite growing 4.5% year over year. The headline shortfall, however, obscured a quarter of genuine operational progress: Adjusted EBITDA climbed 9.3% to $389.00 million, with margin expanding 18 basis points to 4.2%, as the company wrung meaningful operating leverage from distribution productivity gains and administrative cost controls. Volume growth in higher-margin segments, including a 6.1% increase in healthcare and a 2.5% rise in independent restaurants, drove the mix improvement, while digital tools and AI-enabled services were cited as key contributors to those customer-segment gains. Management reaffirmed its full-year fiscal 2025 guidance calling for net sales growth of 4% to 6% and Adjusted EBITDA growth of 8% to 12%, expressing confidence in the company's ability to navigate near-term macro uncertainty.
- Independent restaurant case volume increased 2.5%
- Healthcare case volume increased 6.1%
- Hospitality case volume increased 3.6%
- Food cost inflation of 3.0% contributed to top-line growth
- Improved cost of goods sold and pricing optimization
- Favorable year-over-year LIFO adjustment
- Distribution productivity improvement and administrative process streamlining
- Adjusted Gross Profit grew faster than Adjusted Operating Expenses, demonstrating operating leverage
“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.”
US Foods CEO, on the earnings call
What Was US Foods's Outlook in Q1 2025?
US Foods reaffirmed its Fiscal Year 2025 guidance: Net Sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. CEO Dave Flitman expressed confidence in achieving these targets despite near-term macro uncertainty, citing the resilience of the business model and the company's ability to adjust to any macro environment.
USFD YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $9.4B | $8.9B | +4.5% |
| Gross Profit | $1.6B | $1.5B | +8.0% |
| Operating Income | $224.0M | $165.0M | +35.8% |
| Net Income | $115.0M | $82.0M | +40.2% |
Figures from SEC filings and company reports. Not investment advice.