US Foods Holding Corp.

Second quarter net sales increased 4.5% to $10.5 billion, driven by total case volume growth of 1.9% plus food cost inflation and mix impact of 2.6%. Adjusted EBITDA grew 10.2% to a record $604 million, adjusted EBITDA margin expanded 29 basis points to a record 5.7%, and adjusted diluted EPS increased 21% to $1.44. Case growth included independent restaurants up 5.1%, health care up 3.5%, hospitality up 4.4%, and chain restaurants down 1.5%. Year to date, the company generated $725 million of operating cash flow, repurchased $374 million of shares in the quarter, and ended with net leverage of 2.6x. For fiscal 2026, US Foods reaffirmed guidance for net sales growth of 4% to 6%, adjusted EBITDA growth of 9% to 13%, adjusted EPS growth of 18% to 24%, and total case volume growth of 2.5% to 4.5%; management said the 53rd week should add about 1% to total case and adjusted EBITDA growth.

Dave Flitman struck an upbeat tone, calling the quarter one of the strongest since he joined and emphasizing that the company is gaining profitable share through disciplined execution, Pronto, and an increasingly aligned sales force. He repeatedly pointed to independent restaurant momentum, health care and hospitality growth, and AI-enabled tools as structural advantages that should widen US Foods’ competitive moat. He also framed the business as well positioned for sustained double-digit EPS growth, with strong cash flow supporting reinvestment, buybacks, and tuck-in M&A.

Dirk Locascio focused on the mechanics of the quarter: net sales up 4.5% to $10.5 billion, adjusted EBITDA up 10.2% to $604 million, and adjusted EPS up 21% to $1.44. He highlighted operating leverage, with adjusted gross profit per case up $0.41 or 5% and adjusted operating expenses per case up $0.21 or 3.7%, while year-to-date operating cash flow reached $725 million. On capital allocation, he noted $374 million of share repurchases in Q2, about $500 million year to date, net leverage of 2.6x, and an ABL refinancing that extended maturity to 2031 and increased the facility to $2.5 billion.

Analysts pressed on what is driving the acceleration in independent restaurant growth, and management said the momentum is broad-based, with strong net new account generation, improving penetration, and early benefits from the new compensation plan. On Pronto, management said the company is expanding carefully but sees a long runway, with the program expected to generate about $1.3 billion in sales this year and more than $1.7 billion in 2027. Questions also focused on AI, margin expansion, salesforce costs, and productivity; management said AI is already improving sales, supply chain, and customer service, while sales-cost pressure should ease after the transition period and margin expansion still has room to continue.