US Foods tops profit expectations, lifts full-year outlook as volume growth offset food-cost deflation

US Foods Holding Corp. (USFD) reported Thursday a third-quarter profit that topped expectations and nudged up its full-year outlook. The $10.1 billion market-capitalization foodservice distributor's stock was still inactive in the premarket. Net income fell to $95 million, or 38 cents a share, from $100 million, or 43 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to 70 cents from 60 cents to beat the FactSet consensus of 69 cents. Sales grew 2.1% to $9.106 billion, compared with the FactSet consensus of $9.116 billion, as food cost deflation of 1.3% was offset by a 4.0% increase in case volume. For 2023, the company raised its adjusted EPS guidance range to $2.60 to $2.70 from $2.55 to $2.65. The stock has slipped 2.9% over the past three months while the S&P 500 has eased 1.9%.

-Tomi Kilgore

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11-09-23 0708ET

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