US Foods Q4 Earnings Surpass Estimates, Sales Increase Y/Y

US Foods Holding Corp. USFD reported solid fourth-quarter fiscal 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.Management highlighted that the current momentum gives confidence in achieving a 5% sales CAGR, 10% adjusted EBITDA CAGR and 20% adjusted EPS CAGR through 2027. The company remains focused on long-term value creation and margin expansion through strategic initiatives.USFD’s Quarterly Performance: Key Metrics and InsightsUS Foods adjusted quarterly earnings of 84 cents per share beat the Zacks Consensus Estimate of 80 cents. The metric also increased 31.3% from 64 cents in the prior-year period.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.US Foods Holding Corp. Price, Consensus and EPS Surprise US Foods Holding Corp. price-consensus-eps-surprise-chart | US Foods Holding Corp. QuoteThe company reported consolidated net sales of $9,491 million, which beat the Zacks Consensus Estimate of $9,474 million. The metric increased 6.2% from $8,936 million posted in the year-ago period. This year-over-year growth was driven by case volume growth and 2.9% food-cost inflation.Total case volume grew 3.5% year over year, driven by a 3.2% increase in independent restaurant volume, 4.7% growth in healthcare, 2.4% growth in hospitality and a 2.6% rise in chain volume. Organic case volume increased 1.4%, including 1.8% growth in organic independent restaurant volume.US Foods’ adjusted gross profit increased 7.2% year over year to $1,659 million. The adjusted gross margin expanded 20 basis points (bps) to 17.5% compared with 17.3% in the fourth quarter of fiscal 2023.Adjusted operating expenses rose 4.8% year over year to $1,217 million in the quarter. However, as a percentage of net sales, adjusted operating expenses decreased 20 bps year over year to 12.8%. Adjusted EBITDA increased 13.7% year over year to $441 million, driven by profitable volume growth, gross profit gains and improved operating expense productivity. Adjusted EBITDA margin was 4.6%, an increase of 30 bps compared with the prior year.USFD’s Financial Health SnapshotUS Foods exited the quarter with cash and cash equivalents of $59 million, long-term debt of $4,819 million and total shareholders’ equity of $4,528 million. For the year ended Dec. 28, 2024, cash flow provided by operating activities was $1,174 million. Capital expenditures totaled $341 million allocated to investments in information technology, property and equipment, and distribution facility maintenance.In the fourth quarter of fiscal 2024, the company repurchased 5 million shares of common stock for a total of $323 million.What to Expect From USFD in 2025For 2025, management expects net sales growth of 4% to 6%, driven by total case growth of 2% to 4%, with independent restaurant case growth anticipated at 4% to 7%. USFD anticipates adjusted EBITDA growth of 8% to 12%. The company anticipates adjusted earnings growth of 17% to 23%, driven by profitable volume growth, margin expansion and adjusted gross profit per case outpacing adjusted operating expense growth.This Zacks Rank #2 (Buy) stock has rallied 9% in the past three months against the industry’s decline of 4.5%.Image Source: Zacks Investment ResearchThree Other Food Stocks to ConsiderUnited Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for United Natural Foods’ current financial-year sales and earnings implies growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average.Freshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently has a Zacks Rank #2. FRPT delivered a trailing four-quarter earnings surprise of 144.5%, on average.The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.2% and 227.1%, respectively, from the prior-year reported levels. Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freshpet, Inc. (FRPT): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report US Foods Holding Corp. (USFD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks