NYSE$USFD

US Foods Holding Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

US Foods reported record results driven by net sales growth, increased gross profit, and record adjusted EBITDA.

US Foods reported a strong second quarter with net sales of $9.0 billion, a 2.1% increase from Q2 2022. Gross profit increased by 15% to $1.6 billion, and net income improved to $182 million. The company delivered a record adjusted EBITDA of $432 million, with an adjusted EBITDA margin expansion of 60 bps. They also raised their adjusted EBITDA guidance for fiscal year 2023 to $1.51 billion - $1.54 billion.

  • Net sales increased 2.1% to $9.0 billion.
  • Adjusted EBITDA increased 17.4% to $432 million.
  • Total case volume increased 2.7%; independent restaurant case volume increased 4.8%.
  • Adjusted EBITDA margin expanded by 60 bps.

Headline financials

Total Revenue

$9.01B

Previous: $8.83B+2.1%
EPS (adj)

$0.79

Previous: $0.67+17.9%
Adjusted EBITDA

$432M

Previous: $368M+17.4%
Total Case Volume Growth

2.7%

No prior period
Food Cost Inflation

-0.3%

Previous: 15.0%-102.0%
Adjusted EBITDA Margin

4.8%

Previous: 4.2%+14.3%
Capital Expenditures

-$108M

Previous: -$143M+24.5%
Free Cash Flow

$74M

Previous: -$73M+201.4%
Net Income

$182M

Previous: $70M+160.0%
Operating Income

$322M

Previous: $150M+114.7%
Gross Profit

$1.59B

Previous: $1.38B+15.0%
Cash & Equivalents

$379M

Previous: $197M+92.4%
Total Assets

$13B

Previous: $13B-0.0%
Stock-Based Comp

$14M

Previous: $9M+55.6%

Revenue & EPS history

US Foods · Revenue · Quarterly

$9.01B

Q2 2023+2.1%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

The Company is updating its previously announced fiscal year 2023 guidance to: Adjusted EBITDA of $1.51-$1.54 billion, compared to previous guidance of $1.45-$1.51 billion and Adjusted Diluted EPS of $2.55-$2.65, compared to previous guidance of $2.45-$2.65.

Tailwinds

  • Adjusted EBITDA of $1.51-$1.54 billion
  • Adjusted Diluted EPS of $2.55-$2.65
  • Interest expense of $320-$325 million
  • Total capital expenditures of $410-$430 million
  • Net Debt to Adjusted EBITDA leverage below 3.0x by end of fiscal year 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.6%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.6%

Avg return

30 days after

64%

29 / 45 earnings

Positive

+15.5%

Q3 2022

Best reaction

-16.7%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.7%-8.8%-8.1%
Q4 2025+13.4%+8.0%+5.2%
Q3 2025-3.8%-2.6%+1.5%
Q1 2025+3.8%+6.8%+12.5%
Q4 2024+1.7%+1.3%-6.3%
Q3 2024+1.7%+1.8%+9.4%
Q2 2024+1.8%+5.3%+11.8%
Q1 2024+4.6%+4.1%+2.0%
Q4 2023+5.6%+6.0%+15.0%
Q3 2023+3.5%+5.8%+8.7%
Q2 2023-2.8%-5.8%-7.9%
Q1 2023+8.2%+7.0%+10.4%
Q4 2022+7.2%+6.3%-5.1%
Q3 2022+15.5%+15.1%+17.7%
Q2 2022+3.0%+3.0%-3.0%
Q1 2022+1.6%+2.4%-13.2%
Q4 2021-2.2%-3.7%-5.2%
Q3 2021-7.5%-11.8%-11.6%
Q2 2021+1.7%+0.6%-3.3%
Q1 2021-4.2%-2.9%-3.9%
Q4 2020-4.6%-1.3%-0.1%
Q3 2020+10.2%+11.6%+55.8%
Q2 2020+9.1%+15.5%+20.8%
Q1 2020-8.3%-1.6%+5.9%
Q4 2019-0.7%-0.6%-50.8%
Q3 2019+0.8%-2.8%+0.0%
Q2 2019+10.3%+10.8%+16.0%
Q1 2019+3.6%+5.5%-2.1%
Q4 2018+0.6%+0.1%-1.8%
Q3 2018+13.4%+12.5%+15.0%
Q2 2018-16.7%-18.5%-20.9%
Q1 2018+1.6%+1.1%+10.2%
Q4 2017+9.3%+6.6%+14.3%
Q3 2017-1.1%-1.3%+13.6%
Q2 2017-5.8%-6.4%-5.3%
Q1 2017-2.4%-0.3%+3.5%
Q4 2015-0.9%-1.2%-0.3%
Q4 2014-0.9%-1.2%-0.3%
Q4 2016-0.9%+1.6%-0.9%
Q3 2016+1.1%+1.8%+6.6%
Q3 2015+1.1%+1.8%+6.6%
Q2 2015+1.4%+1.6%+1.4%
Q1 2016+1.4%+1.6%+1.4%
Q1 2015+1.4%+1.6%+1.4%
Q2 2016+1.4%+1.6%+1.4%

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