US Foods (USFD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual in ...

Core Insights - US Foods Holding Corp. has launched Menu IQ, an AI-powered profitability solution aimed at helping food service operators manage food costs more effectively [1] - Menu IQ shifts menu management from intuition-based decisions to a data-driven strategy focused on optimizing menu profitability, enhancing operational efficiency [1] - The solution is provided at no additional cost to US Foods customers, reinforcing the company's commitment to delivering innovative tools for its clients [1]

Core Insights - US Foods is a market leader with a market cap exceeding $20 billion and reported over $39 billion in sales, achieving an adjusted EPS growth of over 26% in fiscal '25 [1] - The company is the only pure-play U.S.-focused broadline foodservice distributor with national scale, highlighting its unique position in the industry [1] - US Foods targets the three fastest-growing and most profitable customer segments: independent restaurants, health care, and hospitality [1] - The company is recognized for its leadership in digital and food innovation, providing essential tools, resources, and products to its customers in a timely manner [1]

US Foods Conference Call Summary Company Overview - **Company**: US Foods (NYSE: USFD) - **Market Cap**: Over $20 billion - **Sales**: More than $39 billion in fiscal 2025 - **Adjusted EPS Growth**: Increased over 26% in fiscal 2025 - **Industry Position**: Only pure-play, US-focused, broadline food service distributor with national scale [1][2] Core Industry Focus - **Target Segments**: - Independent restaurants - Healthcare - Hospitality - **Revenue Contribution**: - Restaurants: 56% - Healthcare and Hospitality: 27% - Combined, these segments represent 83% of total revenue [3][6] Strategic Pillars - **Four-Pillar Strategy**: Culture, Service, Growth, and Profit [4] - **Execution Focus**: Emphasis on operational rigor and consistent execution to drive top and bottom line growth [23] Financial Performance - **Revenue Growth**: Compounded annual growth rate (CAGR) of 5% over the last three years [21] - **Adjusted EBITDA**: Achieved record-adjusted EBITDA of $1.93 billion with a margin expansion of 30 basis points [20] - **Cash Flow**: Generated $1.4 billion in operating cash flow in 2025, with significant capital returns to shareholders [22][26] - **Market Share**: Gained 600 basis points of market share since 2019, now at 38% for the big three players in the industry [8][35] Growth Drivers - **Digital Innovation**: - Industry-leading digital ecosystem with platforms like MOX and Vitals, enhancing customer service and operational efficiency [10][11] - MOX platform has an 86% customer satisfaction rate and has reduced sales workload by 30% [15] - **Exclusive Brand Portfolio**: Represents 35% of revenue, with a penetration rate of 54% in independent restaurants [14][51] - **Pronto Platform**: Achieved $1 billion in revenue, tripling in the last three years, targeting smaller, more frequent deliveries [17][18] Market Trends - **Food Service Growth**: The food service distribution market grew from $306 billion in 2019 to $377 billion in 2025, a 23% increase [7] - **Consumer Behavior**: Despite economic pressures, consumers continue to dine out, indicating resilience in the food service industry [55][56] Future Outlook - **2026 Guidance**: - Sales growth of 4%-6% - Adjusted EBITDA growth of 9%-13% - Adjusted diluted EPS growth of 18%-24% [28][29] - **Long-Term Strategy**: Committed to generating over $4 billion in deployable capital from 2025 to 2027, with significant investments in business reinvestment and shareholder returns [31] Key Differentiators - **Scale and Focus**: Unique position as the only national scale distributor focused solely on the US market [9] - **Service Excellence**: Continuous improvement in service levels, aiming to maintain customer loyalty and satisfaction [41] Additional Insights - **Operational Efficiency**: Use of AI and automation to enhance service delivery and inventory management [43][44] - **Market Fragmentation**: The food service distribution industry remains highly fragmented, providing opportunities for continued share growth [9] This summary encapsulates the key points from the US Foods conference call, highlighting the company's strategic focus, financial performance, growth drivers, and future outlook.

Consumer Analyst Group of New York (CAGNY) Conference February 19, 2026 Disclaimer Page Cautionary Statements Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, forecasted financial performance or guidance, statements about future results of operations and other statements which are not purely historical facts or that necessarily d ...

Core Insights - The article discusses the concept of momentum investing, emphasizing the strategy of buying stocks that are trending upwards with the hope of selling them at even higher prices [1] - US Foods (USFD) is highlighted as a company with a strong Momentum Style Score of A, indicating its potential as a promising investment [3][12] Company Performance - USFD shares have increased by 10.63% over the past week, while the Zacks Food - Miscellaneous industry has remained flat during the same period [6] - Over the past quarter, USFD shares have risen by 22.75%, and they are up 34.87% over the last year, significantly outperforming the S&P 500, which has moved 4.27% and 13.49% respectively [7] - The average 20-day trading volume for USFD is 3,384,302 shares, indicating strong market interest [8] Earnings Outlook - In the last two months, four earnings estimates for USFD have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.61 to $4.81 [10] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [10] Investment Recommendation - Based on the strong performance metrics and positive earnings outlook, USFD is rated as a 2 (Buy) stock with a Momentum Score of A, making it a recommended pick for investors seeking short-term gains [12]

Core Insights - The Vanguard Small-Cap Value ETF (VBR) and the iShares SP Mid-Cap 400 Value ETF (IJJ) provide diversified access to U.S. value stocks but differ in their targeted company sizes [1][7]. Cost & Size Comparison - VBR has a lower expense ratio of 0.05% compared to IJJ's 0.18%, making it more appealing for cost-conscious investors [3]. - VBR's one-year return is 13.67%, while IJJ's is 11.20%, indicating better short-term performance for VBR [3]. - VBR has a higher dividend yield of 1.85% compared to IJJ's 1.72% [3]. - VBR's assets under management (AUM) stand at $62 billion, significantly higher than IJJ's $8 billion [3]. Performance & Risk Comparison - Over the past five years, VBR experienced a maximum drawdown of -24.19%, while IJJ had a slightly lower drawdown of -22.67% [4]. - The growth of a $1,000 investment over five years is $1,464 for VBR and $1,497 for IJJ, showing IJJ's slight edge in long-term growth [4]. Portfolio Composition - IJJ tracks 305 mid-cap U.S. companies with a significant focus on financial services (23% of assets), industrials, and consumer cyclicals [5]. - VBR includes a broader selection of 845 small-cap value stocks, with the highest allocations in financial services (19%), industrials (18%), and consumer cyclicals (13%) [6]. - The largest holdings in IJJ are US Foods, Reliance, and Toll Brothers, each around 1% of assets, while VBR's top names (NRG Energy, EMCOR Group, Atmos Energy) account for less than 0.75% of assets, indicating greater diversification [6]. Investment Implications - VBR targets small-cap stocks, which generally carry higher risk but offer greater growth potential, while IJJ focuses on mid-cap stocks, providing slightly more stability [7][10]. - VBR's broader portfolio with nearly three times as many stocks as IJJ helps reduce single-stock risk and mitigate volatility [9].

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - US Foods Holding Corp. reported fourth-quarter adjusted earnings that exceeded analyst expectations, with adjusted EPS of $1.04 compared to the consensus of $1.01, although revenue was slightly below forecasts [1] - The company's shares rose more than 9% intra-day following the earnings announcement [1] Financial Performance - Quarterly revenue reached $9.8 billion, a 3.3% increase year over year, but fell short of the projected $9.94 billion [2] - Total case volume grew by 0.8% in the quarter, with independent restaurant case volume showing stronger growth of 4.1% [2] - Net income surged by 178.8% to $184 million, while adjusted EBITDA rose by 11.1% to $490 million [2] - Adjusted EBITDA margin expanded by 35 basis points to 5.0% compared to the prior-year quarter [2] Future Projections - For full-year 2025, US Foods generated net sales of $39.4 billion, up 4.1% year over year, with net income rising by 36.8% to $676 million [3] - Looking ahead to fiscal 2026, the company projected net sales growth of 4% to 6%, adjusted EBITDA growth of 9% to 13%, and adjusted diluted EPS growth of 18% to 24% [3] - Fiscal 2026 will include a 53rd week, expected to contribute approximately 1% to total case growth and adjusted EBITDA growth [3]

Financial Performance - Total net sales for fiscal year 2025 reached $39.424 billion, an increase of 6.5% from $37.877 billion in fiscal year 2024[28]. - The sales mix for meats and seafood in fiscal year 2025 was $13.974 billion, up from $12.930 billion in fiscal year 2024[28]. - Net sales rose by $1,547 million, or 4.1%, to $39,424 million in fiscal year 2025, primarily due to case volume growth and food cost inflation of 2.6%[160]. - Gross profit increased by $330 million, or 5.1%, to $6,864 million, with a gross profit margin of 17.4%[161]. - Operating income for fiscal year 2025 was $1,199 million, up from $1,099 million in fiscal year 2024[163]. - Net income available to common shareholders was $676 million, or $2.98 per share, compared to $494 million, or $2.05 per share in the previous year[163]. - Free Cash Flow for fiscal year 2025 was $965 million, compared to $836 million in fiscal year 2024[163]. - Adjusted EBITDA for fiscal year 2025 was $1,932 million, reflecting an adjusted EBITDA margin of 4.9%[163]. Customer and Market Dynamics - Sales to the top 50 customers accounted for approximately 42% of net sales in fiscal year 2025, with no single customer representing more than 2%[16]. - Group purchasing organizations (GPOs) contributed approximately 27% of net sales in fiscal year 2025[17]. - The U.S. foodservice distribution industry is sensitive to economic conditions, with potential adverse impacts from inflation, supply chain disruptions, and consumer confidence affecting food prepared away from home[60]. - Competition is intense, with various distributors and specialty competitors, which may lead to pricing pressures and affect the company's ability to maintain market share[62]. Operational Efficiency and Technology - The MOXē platform enhances customer transactions and operational efficiency, featuring AI-powered tools for order management and delivery alerts[24]. - The company operates over 70 distribution facilities and a fleet of over 6,500 trucks, enabling efficient service delivery[14]. - The company relies heavily on technology for operations, and disruptions could negatively affect customer service and profits[105]. - The company has implemented cybersecurity measures, but risks of breaches and system failures remain significant[109]. Workforce and Labor Relations - As of December 27, 2025, the company employed approximately 30,000 associates, with about 70% being non-exempt hourly workers[42]. - The company is party to 58 collective bargaining agreements covering approximately 6,600 associates, which is about 22% of the workforce[42]. - During fiscal year 2025, 17 collective bargaining agreements covering approximately 1,900 union associates were renegotiated, with 11 agreements covering about 2,100 associates set for renegotiation in fiscal year 2026[42]. - The company is committed to building a diverse and inclusive workforce, sponsoring ten Employee Business Resource Groups to strengthen networking and professional development[46]. Financial Position and Debt - As of December 27, 2025, the company had $5.2 billion of outstanding indebtedness[95]. - Approximately 34% of the net principal amount of the company's indebtedness accrued interest at variable rates as of December 27, 2025[103]. - The company’s ability to meet debt service obligations may be affected by its financial performance and economic conditions[98]. - The company had approximately $2.8 billion of restricted payment capacity under debt covenants, with $1.6 billion of net assets restricted as of December 27, 2025[195]. Strategic Initiatives and Acquisitions - The acquisition of Jake's Finer Foods and Gourmet Ranch for $92 million and Shetakis for $46 million aims to expand distribution channels in South Texas and Nevada, respectively[24]. - The company completed two acquisitions in 2025: Jake's Finer Foods and Shetakis[117]. Risks and Challenges - Inflation and rising input costs are impacting profitability, prompting operators to streamline menus and focus on domestic sourcing[23]. - The company faces risks from climate change and related regulations, which could increase operational costs and disrupt business operations[75]. - The company may experience product liability claims that could adversely affect its financial condition and results of operations[86]. - Negative publicity regarding product safety or quality could significantly impact the company's reputation and business[87]. Shareholder Actions and Stock Performance - The company has repurchased 11,881,693 shares of its common stock for approximately $934 million in the year ended December 27, 2025[149]. - The Board of Directors approved a share repurchase program allowing for the repurchase of up to $1 billion of common stock, with $90 million remaining under the May 2025 program and $1 billion under the November 2025 program[148][149]. - The company has not paid any dividends on its common stock since it began trading publicly in 2016 and has no plans to do so in the foreseeable future[145][146].