MarketBeat
6 min read
Key Points
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Interested in US Foods Holding Corp.? Here are five stocks we like better.
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US Foods delivered stronger Q3 earnings: Net sales rose 2.1% to $10.4 billion, adjusted EBITDA increased 9.9% to $555 million, and adjusted EPS climbed 17.8% to $1.26. The company continued market-share gains with independent restaurants and healthcare customers, though total case volume growth of 1.3% missed expectations.
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Technology and customer-focused growth supported performance: Pronto generated more than $1 billion in sales through the first nine months, while AI initiatives are contributing over $75 million in adjusted EBITDA. Net new account growth reached its strongest level in more than three years.
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The 2026 outlook reflects cost and demand headwinds: US Foods expects 4%–5% sales growth, 9%–11% adjusted EBITDA growth, and 18%–20% adjusted EPS growth. Weaker consumer demand, higher fuel costs, and temporary seller-compensation expenses are weighing on the outlook.
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US Foods (NYSE:USFD) reported higher third-quarter earnings and continued market share gains, even as weaker consumer demand and rising fuel costs pressured its foodservice distribution business.
Net sales increased 2.1% from a year earlier to $10.4 billion, while adjusted EBITDA rose 9.9% to $555 million. Adjusted diluted earnings per share increased 17.8% to $1.26, helped by margin expansion and share repurchases.
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Chair and CEO Dave Flitman said the company gained share with independent restaurants and healthcare customers for the 22nd and 24th consecutive quarters, respectively. But total case volume growth of 1.3% fell short of the company’s expectations as consumer confidence and labor market conditions weakened and customers became more value-conscious.
“Although these factors pressured overall demand and resulted in total volume growth below our expectations, we remained focused on execution,” Flitman said.
Target customers drive growth
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Independent restaurant case volume grew 5% in the quarter, matching the prior quarter’s pace. Healthcare volume increased 3.3% and hospitality volume rose 3.7%, while chain restaurant volume declined 1.5%.
Flitman said independent restaurant performance was fairly consistent throughout the third quarter. After some softness in the first two to three weeks of October, he said growth had reaccelerated in the following weeks to a level at or above the third-quarter exit rate.
