Foodservice

US Foods lifts Q3 2023 sales, earnings decline

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November 9, 2023

US Foods Corp. reported an earnings loss against higher sales for Q3 2023 compared to the prior year period, according to an earnings release.

Highlights include:

• Net sales rose 2.1% from $8.9 billion in Q3 2022 to $9.1 billion in the quarter ending Sept. 30, 2023, driven by case volume growth, partially offset by food cost deflation of 1.3%.
• Total case volume increased 4% from the prior year driven by a 5.8% increase in independent restaurant case volume, a 7.7% increase in healthcare volume and a 5.8% increase in hospitality volume, offset by a 3.6% decrease in chain volume.
• Net income fell from $109 million to $95 million, driven by an increase in operating income that was more than offset by a loss on extinguishment of debt and an increase in interest expense.
• Net income per share fell from 44 cents to 38 cents on a basic basis and from 43 cents to 38 cents on a diluted basis.
• Adjusted diluted EPS was 70 cents.

Shares traded Thursday at $40.69 against a 52-week range of $31.03 to $44.52.

The quarterly revenue of approximately $9.1 billion missed analyst expectations by $10 million while the non-GAAP EPS of 70 cents surpassed expectations by one cent, according to Seeking Alpha.

"We drove strong case volume growth in our target customer types again this quarter, with volume increasing nearly 6% for independent restaurants, 8% for healthcare and 6% for hospitality," Dave Flitman, CEO, said in the a press release. "Building on our differentiated team-based selling model, industry-leading technology suite and strong momentum, our team delivered the tenth consecutive quarter of market share gains with independent restaurants. Importantly, we accelerated our market share gains in the third quarter with independent restaurants despite a slowing macro environment."