US Foods Raises 'Adjusted' EBITDA Outlook For Q2, Repurchases $166M Worth Of Shares

US Foods Holding Corp USFD reported second-quarter 2023 sales growth of 2.1% Y/Y to $9.01 billion, missing the consensus of $9.34 billion.

Total case volume rose 2.7% Y/Y, and independent restaurant case volume grew 4.8% Y/Y.

Adjusted gross profit increased 8.8% Y/Y to $1.6 billion with a profit margin of 17.5%.

Operating expenses rose 2.9% Y/Y to $1.3 billion in the quarter. 

Adjusted EBITDA grew 17.4% Y/Y to $432 million, with the margin expanding 60 basis points Y/Y to 4.8%.

Adjusted EPS was $0.79, beating the $0.76 estimate.

Operating cash flow for the first six months stood at $653 million. As of July 1, cash and cash equivalents came in at $379.

The company prepaid $60 million of debt in the quarter.

"We continue to drive healthy case volume growth overall and especially in our target customer types, with broadline independent restaurant customer case volume increasing 5.5%. This represents the ninth consecutive quarter we have taken share with independents. We also grew case volume 7% in both healthcare and hospitality," said Dave Flitman, CEO,

Repurchase: The company repurchased 4.2 million shares worth $166 million in the quarter. 

FY23 Outlook: US Foods revised the outlook for adjusted EPS to $2.55-$2.65 from $2.45 - $2.65 vs. an estimate of $2.59 and raised adjusted EBITDA to $1.51 billion-$1.54 billion from $1.45 billion- $1.51 billion.

Also Read: US Foods Buys Renzi Foodservice, Looks To Expand Reach Across Upstate New York

Price Action: USFD shares are trading higher by 1.44% at $42.92 premarket on the last check Thursday.