US Foods Battles Severe Weather, Weak Spending And Fuel Inflation In Tough Quarter

US Foods Holding Corp. (NYSE:USFD) stock slipped on Thursday after the foodservice distributor reported first-quarter 2026 results. Quarter In Detail The company reported first-quarter adjusted earnings per share of 78 cents, missing the analyst consensus estimate of 81 cents. Quarterly sales of $9.610 billion (+2.8%) missed the Street view of $9.647 billion. In the quarter under review, total case volume increased 1.4%, while independent restaurant case volume increased 4.6%. Healthcare volume rose 3.7% and hospitality volume increased 5%, partially offset by a 2.3% decline in chain volume. Gross profit increased 2.4% to $1.7 billion. The growth slowed partly because of a $33 million unfavorable LIFO inventory adjustment. Adjusted gross profit was $1.7 billion, an increase of $72 million, or 4.4% from the prior year. Adjusted gross profit as a percentage of net sales was 17.6%. Adjusted EBITDA of $413 million, increased by 6.2% from the prior year. Adjusted EBITDA margin was 4.3%, an increase of 14 basis points. Cash flow provided by operating activities for the first three months of fiscal year 2026 was $294 million, a decrease of $97 million from the prior year. US Foods exited the quarter with cash and equivalents worth $49 million. Executive Commentary CEO Dave Flitman said the company accelerated independent restaurant case growth and gained market share despite "a deteriorating macro environment and weather-related disruptions." He added that momentum improved as weather conditions normalized later in the quarter. Chief Financial Officer Dirk Locascio said the company continued to benefit from self-help initiatives that supported margin expansion and faster adjusted earnings growth relative to EBITDA growth. Weather-related disruptions and elevated fuel costs reduced adjusted EBITDA growth by approximately four percentage points. During the earnings call, management noted that these factors, combined with increased operating expenses per case, pressured the first quarter despite subsequent normalization. Management cited headwinds from severe weather, the conflict in the Middle East, rising fuel costs, and weakening consumer sentiment, which fell to a record low in March, as factors that weighed on the industry. US Foods Outlook US Foods affirmed its fiscal 2026 adjusted earnings per share guidance range of $4.70 to $4.93, compared with the analyst estimate of $4.78. The company affirmed its fiscal 2026 sales outlook of $41.001 billion to $41.789 billion, versus the Street estimate of $41.605 billion. USFD Price Action: US Foods shares were down 5.28% at $87.19 at the time of publication on Thursday, according to Benzinga Pro data. Photo via Shutterstock