US Foods Beats Q1 Earnings Expectations, Maintains FY24 Outlook

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US Foods Holding Corp, a leading foodservice distributor in the United States, has reported a modest beat in its first-quarter earnings, exceeding analyst predictions.

CEO Dave Flitman remarked on the quarter’s performance, stating, “Our first-quarter results were in line with our expectations, underscoring the resilience of our business model and our ability to excel in any environment. We successfully navigated both internal and external challenges to commence the year.”

Flitman highlighted the company’s sustained market share growth with independent restaurants for twelve consecutive quarters and improvements in operational efficiency, including a 30% enhancement in safety results and nearly a 4% increase in delivery productivity.

Net income available to common shareholders was reported at $82 million, marking an increase from the previous year. Adjusted EBITDA also grew by 5.6% to $356 million, with an adjusted EBITDA margin of 4.0%, slightly up from the previous year.

Looking forward, US Foods reaffirmed its fiscal year 2024 guidance, anticipating net sales between $37.5 and $38.5 billion and adjusted EBITDA ranging from $1.69 to $1.74 billion. The adjusted diluted EPS guidance is set at $3.00 to $3.20, with the midpoint of the EPS guidance range at $3.10, slightly below the analyst consensus of $3.11.