US Foods Reaffirms Fiscal Year 2023 Guidance; Company to Participate at the 2024 ICR Conference
- None.
- None.
Insights
The reaffirmation of fiscal year 2023 guidance by US Foods Holding Corp. is a significant indicator for investors and analysts monitoring the company's performance. The projection of Adjusted EBITDA between $1.54-$1.56 billion and Adjusted Diluted EPS of $2.60-$2.70 suggests operational stability and management confidence in the company's ability to meet its financial targets. The anticipated Interest expense of $320-$325 million and Total capital expenditures of $410-$430 million provide a glimpse into the company's investment strategy and debt management. Furthermore, the goal to maintain Net Debt to Adjusted EBITDA leverage below 3.0x underscores a commitment to maintaining a healthy balance sheet.
This guidance is a pivotal factor for stock valuation, as it helps in forecasting future cash flows and assessing the risk profile of the company. Investors might view this reaffirmation as a positive signal, potentially leading to increased investor confidence and stock stability. However, it is crucial to consider macroeconomic factors and industry trends that could impact the company's ability to achieve these projections.
US Foods Holding Corp.'s reaffirmed guidance must be contextualized within the broader food distribution industry. The company's performance is closely tied to the health of the restaurant and hospitality sectors, which are susceptible to economic cycles and changing consumer behavior. The specified capital expenditure figures imply strategic investments in logistics and distribution, which could enhance competitiveness and operational efficiency. A Net Debt to Adjusted EBITDA leverage below 3.0x is also indicative of prudent financial management, which is particularly vital in an industry facing thin margins and high competition.
It is crucial to analyze how US Foods' guidance compares with industry benchmarks and competitors' performance. If their projections are in line with or exceed industry norms, it could suggest a competitive advantage or a more optimistic outlook on market conditions. Conversely, if projections are conservative relative to peers, it may signal caution or specific challenges faced by the company. Understanding these nuances can provide investors with a more nuanced perspective on the company's market position and potential growth opportunities.
The reaffirmation of financial guidance by US Foods Holding Corp. needs to be evaluated against the backdrop of the current economic environment. Inflationary pressures, interest rate hikes and supply chain disruptions are among the macroeconomic challenges that could affect the company's cost structure and profit margins. The company's ability to maintain its projected financial metrics in such an environment could be indicative of robust cost control mechanisms and pricing power.
Additionally, the leverage ratio is an important metric for assessing a company's financial health. A Net Debt to Adjusted EBITDA ratio below 3.0x is generally considered sustainable, but this standard can vary by industry. For US Foods, maintaining this leverage could provide them with the financial flexibility to navigate economic uncertainties. Stakeholders should monitor economic indicators such as consumer spending, commodity prices and interest rates, as these will have direct implications for the company's financial performance and its ability to meet the reaffirmed guidance.
Outlook for Fiscal Year 20231
The Company is reaffirming its previously announced fiscal year 2023 guidance of:
-
Adjusted EBITDA of
$1.54 -$1.56 billion -
Adjusted Diluted EPS of
$2.60 -$2.70 -
Interest expense of
$320 -$325 million -
Total capital expenditures of
$410 -$430 million $290 -$310 million ~ of fleet capital leases$120 million - Net Debt to Adjusted EBITDA leverage below 3.0x by end of fiscal year 2023
Additionally, US Foods will be attending the 26th Annual ICR Conference in
Media and investors can listen to a live audio webcast by visiting the Investor Relations page of the company’s website at https://ir.usfoods.com/investors/events-and-presentations/default.aspx. A replay of the webcast will be available later that same day.
About US Foods
With a promise to help its customers Make It, US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 restaurants and foodservice operators to help their businesses succeed. With 70 broadline locations and more than 85 cash and carry stores, US Foods and its 29,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in
Forward-Looking Statements
Statements in this press release which are not historical in nature, including those under the heading “Outlook for Fiscal Year 2023,” are “forward-looking statements” within the meaning of the federal securities laws. These statements often include words such as “believe,” “expect,” “project,” “anticipate,” “intend,” “plan,” “outlook,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecast,” “mission,” “strive,” “more,” “goal,” or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures; the impact of climate change or related legal, regulatory or market measures; impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets; the impact of governmental regulations; product recalls and product liability claims; our reputation in the industry; labor relations and increased labor costs and continued access to qualified and diverse labor; indebtedness and restrictions under agreements governing our indebtedness; interest rate increases; the replacement of LIBOR with an alternative reference rate; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; risks associated with intellectual property, including potential infringement; effective consummation of pending acquisitions and effective integration of acquired businesses; potential costs associated with shareholder activism; changes in tax laws and regulations and resolution of tax disputes; certain provisions in our governing documents; health and safety risks to our associates and related losses; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and management of retirement benefits and pension obligations.
For a detailed discussion of these risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC’s website at www.sec.gov. Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.
1 The Company is not providing a reconciliation of certain forward-looking non-GAAP financial measures, including Adjusted EBITDA and Adjusted Diluted EPS, because the Company is unable to predict with reasonable certainty the financial impact of certain significant items, including restructuring costs and asset impairment charges, share-based compensation expenses, non-cash impacts of LIFO reserve adjustments, losses on extinguishments of debt, business transformation costs, other gains and losses, business acquisition and integration related costs and diluted earnings per share. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance periods. For the same reasons, the Company is unable to address the significance of the unavailable information, which could be material to future results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240105330145/en/
INVESTOR CONTACT:
Mike Neese
(847) 232-5894
Michael.Neese@usfoods.com
MEDIA CONTACT:
Sara Matheu
(847) 720-2392
Sara.Matheu@usfoods.com
Source: US Foods
FAQ
What is US Foods Holding Corp.'s ticker symbol?
What is US Foods Holding Corp.'s fiscal year 2023 guidance for adjusted EBITDA?
When will the 26th Annual ICR Conference take place?
Who will participate in the fireside chat at the 26th Annual ICR Conference?
Where can media and investors listen to a live audio webcast of the fireside chat?
