US Foods Plans 5% Sales CAGR and 20% EPS Growth with $926M Buybacks
US Foods reported 2025 net sales up 4.1%, adjusted EBITDA up 11% and adjusted diluted EPS up 26.3% while generating $960 million in free cash flow. The distributor spent $926 million on buybacks for a 4.2% yield and guides 5% sales CAGR, 10% EBITDA growth and 20% EPS growth through 2027.
1. 2025 Financial Results
In 2025 US Foods delivered net sales growth of 4.1%, adjusted EBITDA growth of 11% and a 26.3% increase in adjusted diluted EPS. The company generated approximately $960 million in free cash flow despite raising capital expenditures by about 20%.
2. Balance Sheet and Buybacks
US Foods holds $4.16 billion in current assets against $3.59 billion in current liabilities and carries $5.06 billion in long-term debt. It deployed $926 million to repurchase shares in 2025, representing a roughly 4.2% yield on the float.
3. 2025–2027 Strategic Guidance
The distributor projects a compound annual growth rate of 5% in net sales, 10% in adjusted EBITDA and 20% in adjusted diluted EPS from 2025 through 2027. This guidance forms the core of its three-year plan to drive sustained profitability and cash generation.
4. M&A Activity and Industry Position
US Foods signed a definitive agreement to acquire Shetakis after Q3 and abandoned a merger with Performance Food Group due to regulatory and economic hurdles. The company emphasizes disciplined capital allocation and margin improvement amid a challenging foodservice environment.