US Foods Q2 2025: Key Contradictions on Growth, Inflation, and M&A Strategy

Independent case growth expectations, inflation trends, sales force growth and market share expansion, inflation and cost management, strategic M&A and acquisition strategy are the key contradictions discussed in US Foods Holding Corp.'s latest 2025Q2 earnings call.



Revenue and Earnings Growth:
- US Foods Holding Corp. delivered strong second quarter adjusted EBITDA of $548 million and a record adjusted EBITDA margin of 5.4%, with adjusted EPS growing 27% year-to-date.
- The growth was driven by consistent execution across strategic pillars, strong case growth with independent restaurants and healthcare, and disciplined cost management.

Sales and Market Share:
- US Foods grew adjusted gross profit by 5% in Q2, driven by 2.7% independent case volume growth.
- The company gained market share, particularly with independent restaurants and healthcare, marking the 17th consecutive quarter of market share gains with independents.

Strategic Initiatives:
- US Foods implemented routing improvements, achieving a 2% improvement in cases per mile, and private label penetration increased to over 53%.
- These improvements were part of a broader strategy to enhance operational efficiency, customer experience, and cost management.

Capital Allocation and Shareholder Returns:
- The company repurchased $250 million of shares in Q2, demonstrating a commitment to shareholder value by returning capital through share buybacks while investing in business growth.
- US Foods expects to maintain strong cash flow to continue these capital allocation strategies.