US Foods Holding Corp.

US Foods Holding Corp. distributes food and related products to restaurants, healthcare providers, hospitality customers and other foodservice operators. Its shares trade on the New York Stock Exchange under USFD. The company uses a 52- or 53-week fiscal calendar; fiscal 2026 contains 53 weeks.

Latest quarterly performance

Sales grew 2.1%, net income 42.5% and adjusted EBITDA 9.9%. Adjusted EBITDA excludes interest, taxes, depreciation and amortization, plus specified items including restructuring, stock compensation and LIFO reserve adjustments. Adjusted net income increased 12.2% to $275 million. Diluted shares declined to 217.7 million from 228.4 million, helping adjusted earnings per share rise 17.8%.

Total case volume grew 1.3% and organic case volume 1.2%. Organic volume growth at independent restaurants remained 5%, matching the preceding quarter. Healthcare volume rose 3.3%, hospitality 3.7% and chain volume fell 1.5%. Food-cost inflation slowed to 0.4% from 2.3% in Q2.

A $3 million LIFO inventory-reserve benefit replaced a $46 million expense in the prior-year quarter. That $49 million favorable comparison contributed to the $89 million increase in reported operating income. Adjusted gross profit increased $102 million and adjusted operating expenses $52 million, supporting a $50 million adjusted EBITDA gain.

The annual forecast and operating priorities

November's 2026 targets are sales growth of 4% to 5%, adjusted EBITDA growth of 9% to 11% and adjusted earnings-per-share growth of 18% to 20%. The original February ranges, reaffirmed in August, were 4% to 6%, 9% to 13% and 18% to 24%. Lower endpoints held while upper endpoints fell.

The annual outlook includes an extra fiscal week, expected to add approximately one percentage point to case-volume and adjusted EBITDA growth. The latest presentation puts total case growth at 2.5% to 3.5%, inflation and mix at approximately 1.5%, and cash capital expenditures at $410 million to $430 million.

Management is pursuing purchasing savings and warehouse, delivery and administrative productivity. Pronto sales passed $1 billion in the first nine months, exceeding all of 2025. Management is extending its next-day delivery network. Pronto sales are part of the consolidated business.

Cash generation and shareholder returns

Operating cash flow was $1.160 billion over the first 39 weeks, versus $1.076 billion a year earlier. Cash capital expenditures were $266 million versus $276 million. Adding $4 million of property-sale proceeds produces the company's $898 million free-cash-flow figure, compared with $806 million. Financing-lease principal payments were a separate $96 million.

The cash-flow statement reports $635 million of share-repurchase payments. The company also reports $690 million of year-to-date share purchases, including fees, commissions and applicable excise tax, with $191 million purchased during Q3. These purchase and cash-payment measures differ. Remaining authorization was $450 million at September 26.

Debt, liquidity and the October refinancing

At September 26, cash and cash equivalents were $54 million. Debt at carrying value totaled $5.104 billion, including $587 million of financing-lease obligations. The current portion was $152 million. A separate cash-overdraft liability was $165 million. The company's net debt was $5.050 billion and its net leverage ratio 2.4 times trailing adjusted EBITDA.

The asset-based revolving facility had a $2.5 billion commitment, $304 million drawn and $315 million of letters of credit, leaving $1.881 billion available. Its stated maturity is May 28, 2031, subject to conditions tied to earlier-maturing debt.

On October 2, US Foods completed an $810 million term-loan refinancing due October 2, 2033. Proceeds and cash on hand repaid the old 2028 term loan, reduced revolving borrowings by $100 million and prepaid $100 million of the 2031 term loan, with approximately $11 million of fees. The new loan's SOFR spread is 1.50%, compared with 1.75% on the older term facilities. Senior notes due in 2028 remain outstanding.

Completed Prime Line acquisition

US Foods completed the stock acquisition of Prime Line Distributors on October 30 for approximately $125 million, funded with cash on hand. The Florida specialty-food distributor adds gourmet and imported Italian products alongside Pronto and the broadline business. The purchase came after the September balance sheet and nine-month cash flows; the acquired assets and liabilities were still being measured in the latest report.