US Foods’ fourth quarter results were met with a positive market reaction, as the company delivered margin expansion and non-GAAP profit above Wall Street expectations despite missing on revenue. Management pointed to the company’s ability to gain share among independent restaurants, healthcare, and hospitality customers, noting that operational improvements and cost controls helped offset flat overall sales volumes. CEO Dave Flitman emphasized that “our independent restaurant case volume accelerated and resulted in our 19th consecutive quarter of share gains,” attributing the outperformance to targeted growth initiatives and productivity gains.
Is now the time to buy USFD? Find out in our full research report (it’s free for active Edge members).
US Foods (USFD) Q4 CY2025 Highlights:
- Revenue: $9.8 billion vs analyst estimates of $9.90 billion (3.3% year-on-year growth, 1% miss)
- Adjusted EPS: $1.04 vs analyst estimates of $1.01 (3.4% beat)
- Adjusted EBITDA: $490 million vs analyst estimates of $486.8 million (5% margin, 0.7% beat)
- Operating Margin: 3.3%, in line with the same quarter last year
- Sales Volumes were flat year on year (3.5% in the same quarter last year)
- Market Capitalization: $21.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From US Foods’s Q4 Earnings Call
- Edward Kelly (Wells Fargo) asked about underlying business momentum excluding weather impacts. CEO Dave Flitman emphasized post-weather volume recovery and ongoing strong net new account growth.
- John Heinbockel (Guggenheim) inquired about productivity from the 7% sales force expansion. Flitman explained that new seller productivity should benefit case growth in the back half of the year.
- Lauren Silberman (Deutsche Bank) questioned whether net new business was driven by headcount or existing sales force productivity. Flitman responded that both factors contributed and noted stable competitive dynamics.
- Kelly Bania (BMO) sought details on case growth by customer type and cadence throughout the year. Flitman highlighted strong pipelines in healthcare and hospitality, expecting continued momentum despite tougher comparisons.
- Jacob Aiken-Phillips (Melius Research) asked about the impact of the compensation model transition on seller productivity. Flitman said the company anticipates a neutral to positive effect, stressing individualized transitions to support the sales force.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) continued acceleration in independent restaurant and healthcare customer case growth, (2) realization of productivity gains from the full deployment of AI-driven MOXe features and Descartes routing, and (3) the effectiveness of the shift to a 100% variable sales compensation model. Additionally, progress toward higher private label penetration and the outcome of ongoing tuck-in acquisitions will be key indicators of success.
US Foods currently trades at $96.57, up from $89.93 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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