US Foods Reaffirms Fiscal Year 2024 Guidance

Rhea-AI Summary

US Foods Holding Corp. (NYSE: USFD) has reaffirmed its fiscal year 2024 guidance, maintaining the projections announced during its Q3 earnings call on November 7, 2024. The company expects Net Sales between $37.7 billion and $38.0 billion, Adjusted EBITDA of $1.72 billion to $1.74 billion, and Adjusted Diluted EPS ranging from $3.05 to $3.15.

The company also announced its participation in the 27th Annual ICR Conference in Orlando, where CEO Dave Flitman and CFO Dirk Locascio will participate in a fireside chat on January 14, 2025. US Foods serves approximately 250,000 restaurants and foodservice operators through more than 70 broadline locations and about 90 cash and carry stores, employing 30,000 associates.

Positive

• Maintained strong fiscal year 2024 guidance with projected Net Sales up to $38.0 billion
• Robust Adjusted EBITDA guidance of up to $1.74 billion
• Healthy Adjusted Diluted EPS projection of up to $3.15

Negative

• None.

Insights

Financial Analyst

The reaffirmation of FY2024 guidance demonstrates US Foods' confidence in maintaining its growth trajectory, with projected $37.7-38.0 billion in net sales and $1.72-1.74 billion in Adjusted EBITDA. The guided Adjusted EPS of $3.05-$3.15 suggests stable operational efficiency and margin management despite industry-wide inflationary pressures.

Breaking this down for everyday investors: US Foods is essentially telling the market "we're right on track with what we promised." With a market cap of $15.7 billion, the company's projected EBITDA implies a forward EV/EBITDA multiple around 11x, which is reasonable for the food distribution sector. The guidance suggests a healthy 4.5% EBITDA margin, indicating effective cost management in a typically low-margin industry.

The company's extensive network serving 250,000 customers through 70 broadline locations and 90 cash and carry stores provides significant operational leverage and distribution efficiency. This infrastructure positions US Foods well to maintain its market share in the competitive foodservice distribution landscape.

Market Research Analyst

The foodservice distribution market dynamics remain favorable for US Foods, as post-pandemic recovery in restaurant traffic continues. The company's digital transformation and e-commerce initiatives are particularly noteworthy as they help maintain competitive advantages in a consolidating industry. The maintained guidance suggests stable demand from their core restaurant customer base, despite ongoing concerns about consumer discretionary spending.

For context: A $38 billion revenue target in foodservice distribution indicates US Foods has successfully navigated supply chain challenges and food inflation that have impacted the industry. The company's broad customer base across different foodservice segments provides natural hedging against sector-specific downturns. Their technology investments in e-commerce and operational solutions are creating sticky customer relationships, which is important for maintaining pricing power and market share.

Company to Participate at the 2025 ICR Conference

ROSEMONT, Ill.--(BUSINESS WIRE)-- US Foods Holding Corp. (NYSE: USFD) announced today that it is reaffirming its fiscal year 2024 guidance introduced on its third quarter earnings call on Nov. 7, 2024.

Outlook for Fiscal Year 2024¹

The Company is reaffirming its previously announced fiscal year 2024 guidance of:

• Net Sales of $37.7 billion to $38.0 billion
• Adjusted EBITDA of $1.72 billion to $1.74 billion
• Adjusted Diluted EPS of $3.05 to $3.15

Additionally, US Foods will attend the 27th Annual ICR Conference in Orlando, Fla. on Jan. 13 and 14. Dave Flitman, Chief Executive Officer, and Dirk Locascio, Chief Financial Officer, will participate in a fireside chat on Tuesday, Jan. 14 at 9:30 a.m. EST (8:30 a.m. CST).

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/news-events/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 more than 70 broadline locations and approximately 90 cash and carry stores, US Foods and its 30,000 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 Rosemont, Ill. Visit www.usfoods.com to learn more.

Forward-Looking Statements

Statements in this press release which are not historical in nature, including those under the heading “Outlook for Fiscal Year 2024,” 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; 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 30, 2023 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.

Source: US Foods

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 activity 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/20250113767201/en/

INVESTOR CONTACT:

Mike Neese

847-232-5894

Michael.Neese@usfoods.com

MEDIA CONTACT:

Sara Matheu

773-580-3775

Sara.Matheu@usfoods.com

Source: US Foods

FAQ

What is US Foods' (USFD) revenue guidance for fiscal year 2024?

US Foods has projected Net Sales between $37.7 billion and $38.0 billion for fiscal year 2024.

What is USFD's Adjusted EBITDA guidance for 2024?

US Foods expects Adjusted EBITDA to be between $1.72 billion and $1.74 billion for fiscal year 2024.

What is US Foods' (USFD) projected EPS for 2024?

The company projects Adjusted Diluted EPS to be between $3.05 and $3.15 for fiscal year 2024.

When will US Foods (USFD) present at the ICR Conference 2025?

US Foods will present at the ICR Conference on January 14, 2025, at 9:30 a.m. EST through a fireside chat.

How many locations does US Foods (USFD) operate?

US Foods operates more than 70 broadline locations and approximately 90 cash and carry stores across America.