US Foods (NYSE:USFD) reported higher third-quarter earnings and continued market share gains, even as weaker consumer demand and rising fuel costs pressured its foodservice distribution business.
Net sales increased 2.1% from a year earlier to $10.4 billion, while adjusted EBITDA rose 9.9% to $555 million. Adjusted diluted earnings per share increased 17.8% to $1.26, helped by margin expansion and share repurchases.
→ Duolingo’s User Growth Is Outpacing Bookings, But Is Its Strategy Paying Off?
Chair and CEO Dave Flitman said the company gained share with independent restaurants and healthcare customers for the 22nd and 24th consecutive quarters, respectively. But total case volume growth of 1.3% fell short of the company’s expectations as consumer confidence and labor market conditions weakened and customers became more value-conscious.
“Although these factors pressured overall demand and resulted in total volume growth below our expectations, we remained focused on execution,” Flitman said.
Target customers drive growth
→ 3 Dividend ETFs Offer Different Ways to Navigate the Post-Election Sell-Off
Independent restaurant case volume grew 5% in the quarter, matching the prior quarter’s pace. Healthcare volume increased 3.3% and hospitality volume rose 3.7%, while chain restaurant volume declined 1.5%.
Flitman said independent restaurant performance was fairly consistent throughout the third quarter. After some softness in the first two to three weeks of October, he said growth had reaccelerated in the following weeks to a level at or above the third-quarter exit rate.
→ Arista Networks Cashes In on the AI Infrastructure Buildout
Net new account growth reached 5.5%, its strongest level in more than three years, according to Flitman. Lines per customer increased slightly, while cases per line were flat to slightly lower, which he attributed in part to restaurant foot traffic pressure.
US Foods’ Pronto platform, which offers smaller orders and more frequent deliveries, generated more than $1 billion in sales through the first nine months, already exceeding its full-year 2025 total. The company operates Pronto in 52 markets and expects $1.3 billion in sales from the platform this year and more than $1.7 billion in 2027.
AI tools and seller compensation
Flitman said AI initiatives deployed over the past two years are generating more than $75 million of adjusted EBITDA across sales, supply chain and other functions. The company expects that figure to exceed $110 million next year.
