US Foods Holding Corp. opened 2025 with decent financial results and a new $1 billion share repurchase program, as the company capitalized on growth in independent restaurants and healthcare customers—segments where it continues to gain share despite mixed macroeconomic signals across the broader foodservice industry.
The Rosemont, Ill.-based distributor reported first-quarter net sales of $9.35 billion, up 4.5% from $8.95 billion a year ago. Net income rose 40.2% to $115 million.
“Our value proposition is clearly resonating,” CEO Dave Flitman said on Thursday’s earnings call. “This marks our 16th straight quarter of growth with independents and 18th with healthcare—proof that we’re aligned with the needs of high-potential customers.”
Analysts noted the company’s performance and strategic clarity.
RBC Capital Markets analyst Steven Shemesh said in a note, “US Foods continues to show it can control what it can control. Strong margin execution, consistent growth in independents and healthcare, and disciplined capital deployment are setting it apart in an uncertain environment.”
Case volume rose 1.1%, including a 2.5% increase in independent restaurant volume and 6.1% growth in healthcare. Hospitality rose 3.6%, while chain restaurant volume fell 4.3%. Organic volume growth was modest at 0.1%, with 1.3% growth in organic independent restaurant volume.
Gordon Haskett analyst Chuck Grom pointed to the combination of rising EBITDA and improving leverage as a positive signal: “With strong cash generation and execution, US Foods is emerging as a more efficient, earnings-focused enterprise. The share buyback underscores confidence in its trajectory.”
Cash from operating activities surged to $391 million in Q1, up from $139 million a year earlier, supported by better working capital management. Capital expenditures totaled $84 million. The company ended the quarter with $4.7 billion in net debt, down from $4.87 billion at year-end, bringing its leverage ratio to 2.7x adjusted EBITDA.
The company reaffirmed its full-year 2025 guidance, which includes 4% to 6% revenue growth.
US Foods also announced the completion of its $92 million acquisition of Jake’s Finer Foods, a regional distributor in Houston, on January 10. The deal expands its footprint in a high-growth market and adds another layer to its national network of more than 70 broadline facilities.
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