US Foods is widening its national footprint and investing in supply chain improvements as it posts stronger financial results and raises expectations for the rest of the year.
The foodservice distributor, which serves more than 300,000 restaurants, hospitals, and hospitality businesses across the U.S., reported $10.1 billion in net sales for the second quarter of 2025, up 3.8% from a year earlier. Net income rose 13.1% to $224 million. For the first half of the year, sales increased 4.2% to $19.4 billion, while net income jumped 18.5% to $339 million.
“We delivered record results this quarter,” CEO Dave Flitman told analysts. “That momentum is helping us take more market share with our most important customer types.”
A key driver of that momentum: an aggressive expansion into fast-growing U.S. markets and a sharp focus on operational efficiency. In June, US Foods opened a large, semi-automated distribution center outside Chicago. A second facility, now under construction in Austin, Texas, will follow. These strategically placed hubs are designed to improve throughput while reducing labor costs, delivery errors, and workplace injuries.
“We’ve made significant investments to enhance our physical network,” Flitman said. “That gives us more capacity to serve customers quickly and reliably.”
Efficiency has also improved on the transportation side. The company is rolling out a proprietary routing system across all distribution markets, which Flitman called “the best delivery efficiency in our company’s history.”
At the same time, US Foods is taking a more targeted approach to how and where it grows. That includes pulling out of a low-margin produce business and shifting its strategy with chain restaurants—opting for profitability over volume. As a result, sales to large chain accounts declined in the second quarter, a change the company says was by design.
“We’re making deliberate choices about where to grow and where to optimize,” chief financial officer Dirk Locascio said. “That balance is allowing us to drive efficiencies and reinvest in the business while returning capital to shareholders.”
One standout growth area is Pronto; the company’s service aimed at small, independent operators. Using smaller trucks and more frequent delivery routes, Pronto has expanded to 44 markets and is on track to generate $1 billion in annual revenue, prompting US Foods to raise its long-term revenue target for the program to $1.5 billion.
In addition, Flitman confirmed recent reports that US Foods had approached rival Performance Food Group about a potential merger, though PFG has not shown interest.
“We believe a combination would create meaningful value and bring together complementary strengths,” he said.
Still, with or without a deal, Flitman said the company’s expansion and infrastructure strategy is positioning it for long-term gains.
“We’ve built a strong foundation to scale,” he said. “And there’s still a lot of runway ahead.”
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