Q1 2025 US Foods Holding Corp Earnings Call Transcript
Key Points
- US Foods Holding Corp (USFD) delivered strong profitability with adjusted EBITDA growing more than 9% and adjusted diluted EPS increasing 26% despite challenging conditions.
- The company achieved its 16th consecutive quarter of share gains with independent restaurants and 18th consecutive quarter with Healthcare.
- A new $1 billion share repurchase program was authorized, building on a cumulative buyback of over 24 million shares since late 2022.
- US Foods Holding Corp (USFD) reported a 5% growth in adjusted gross profit, driven by volume growth, improved cost of goods savings, and increased private label penetration.
- The company continues to make progress in improving on-time delivery and service levels, achieving the best service levels since 2019.
- The CHEF'STORE business is not considered a long-term strategic fit, and efforts to sell it were unsuccessful due to the current macro environment.
- Independent restaurant case growth was negatively impacted by severe weather and multiple storms, resulting in a net headwind of approximately 160 basis points.
- The broader industry faced headwinds with foot traffic down 3% for the first quarter, impacting overall performance.
- Chain restaurant volume declined 4.3%, aligning with industry foot traffic challenges.
- The company expects lower total case growth of 1% to 3% due to slower foot traffic and a soft macro environment.
Hello, and thank you for standing by. My name is Lacy, and I will be your conference operator today. At this time, I would like to welcome everyone to the US Foods Holding Corp first-quarter 2025 earnings call. (Operator Instructions)
I would now like to turn the call over to Mike Neese, SVP of Investor Relations. Please go ahead.
Thank you, Lacy. Good morning, everyone and welcome to the US Foods first-quarter fiscal 2025 earnings call. On today's call, we have Dave Flitman, our CEO; and Dirk Locascio, CFO. We will take your questions after our prepared remarks conclude. (Event Instructions)
Our earnings release issued this morning and today's presentation can be found on the Investor Relations page of our website at ir.usfoods.com.
During today's call, unless otherwise stated, we're comparing our first quarter of fiscal year 2025 for the same period in fiscal year 2024. In addition to historical information, certain statements made during today's call
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