US Foods Reports Q4 Beat, Eyes Big Growth Through 2027

US Foods Holding Corp. USFD shares are trading lower on Thursday.

The company reported fourth-quarter adjusted earnings per share of 84 cents, beating the street view of 80 cents. Quarterly sales of $9.49 billion (up 6.2% year over year) came in line with the analyst consensus estimate.

The company’s total case volume increased 3.5%, with independent restaurant case volume up 3.2% year over year.

Adjusted gross profit was $1.7 billion, an increase of 7.2% from the prior year. Adjusted gross profit as a percentage of net sales was 17.5%.

“We delivered another strong quarter which resulted in Adjusted EBITDA growth of 11.7% to a record $1.74 billion for 2024, capping off the final year of our long-range plan,” said Dave Flitman, CEO. 

In the fourth quarter, adjusted EBITDA margin was 4.6%, an increase of 30 basis points compared to the prior year. 

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The company exited the quarter with cash and equivalents worth $59 million, compared with $269 million in the year-ago period. Long-term debt at the end of the quarter expanded to $4.819 billion from $4.564 billion prior year.

Outlook: US Foods projects FY25 net sales growth of 4% – 6%, with adjusted EPS growth between 17% and 23%. The company sees Adjusted EBITDA growth of 8% to 12%.

“Our future is promising, with a long runway of profitable growth in front of us, giving us confidence in achieving a 5% sales CAGR, a 10% Adjusted EBITDA CAGR and a 20% Adjusted Diluted EPS CAGR through 2027,” the CEO added.

Price Action: USFD shares are trading lower by 4.5% to $66.77 at last check Thursday.

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