US Foods trims 2026 forecast as Q3 sales miss estimates

US Foods (USFD) trimmed its fiscal 2026 forecasts after third-quarter net sales of $10.40 billion missed the $10.81 billion consensus estimate.

Shares were little changed at 10:06 a.m. ET, from a $109.93 close.

Net sales rose 2.1%, driven by case volume growth and food cost inflation of 0.4%. Total case volume rose 1.3%, with independent restaurant case volume up 5.0%.

Here's how the company did:

• Net sales: $10.40 billion vs. $10.19 billion a year earlier
• Adjusted diluted EPS: $1.26 vs. $1.27 expected
• Diluted EPS: $1.00 vs. 67 cents a year earlier
• Net income: $218 million vs. $153 million a year earlier
• Adjusted EBITDA: $555 million vs. $505 million a year earlier

Gross profit rose 8.6% to $1.9 billion, helped by a $49 million favorable year-over-year LIFO adjustment.

Fiscal 2026 outlook

Net sales growth is now 4% to 5%, down from 4% to 6%.

Adjusted EBITDA growth is now 9% to 11%, down from 9% to 13%. Adjusted diluted EPS growth is 18% to 20%, down from 18% to 24%.

The guidance includes a 53rd week in fiscal 2026, which the company expects to add about 1% to total case growth and adjusted EBITDA growth.

CFO Dirk Locascio said the company “tightened our full-year outlook to reflect the reality of a sustained slower macroeconomic environment and the impact of elevated fuel costs.”

Cash, debt and buybacks

Operating cash flow for the first nine months was $1.16 billion, up from $1.08 billion a year earlier.

Net debt stood at $5.1 billion, a ratio of 2.4 times adjusted EBITDA, against 2.7 times at the end of fiscal 2025.

The company repurchased $191 million of common stock in the quarter and $690 million in the first nine months. It had $450 million remaining under the November 2025 share repurchase program.

Prime Line acquisition

Subsequent to the quarter, the company closed its acquisition of Prime Line Distributors, a Fort Lauderdale, Florida-based specialty distributor of gourmet Italian products.