Financial Data and Key Metrics Changes - In 2025, adjusted EBITDA grew 11% to over $1.9 billion, with an adjusted EBITDA margin expansion of 30 basis points to a record 4.9% [5][24] - Adjusted earnings per share (EPS) reached a record of $3.98, reflecting a 26% growth, which was more than double the adjusted EBITDA growth rate [5][24] - Fourth quarter net sales increased 3.3% to $9.8 billion, driven by total case volume growth of 0.8% and food cost inflation and mix impact of 2.5% [21][22] Business Line Data and Key Metrics Changes - Independent restaurant case volume grew 4.1%, marking the strongest net new independent account growth of the year at approximately 4.7% [9][22] - Healthcare and hospitality segments grew 2.9% and 3.1%, respectively, in the fourth quarter, with healthcare achieving 21 consecutive quarters of share gains [9][22] - Chain restaurant volume decreased by 3.4%, primarily due to slower industry traffic and strategic exits [22] Market Data and Key Metrics Changes - Chain restaurant foot traffic was down 2.8% in the fourth quarter, reflecting a deceleration of 230 basis points from the third quarter [7] - Despite industry headwinds, the company remains confident in capturing profitable market share in a highly fragmented industry [8] Company Strategy and Development Direction - The company is focused on executing its long-range plan from 2025 to 2027, emphasizing operational excellence and productivity initiatives [4][5] - The introduction of a 100% variable compensation structure for the sales force is expected to drive long-term growth and higher earnings potential [15][32] - The company aims to enhance its technology leadership through new AI capabilities and improve customer service experiences [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 financial targets despite weather-related disruptions in early 2026 [30][31] - The company anticipates a lower inflationary environment compared to 2025, projecting adjusted EBITDA growth of 9%-13% and adjusted diluted EPS growth of 18%-24% for 2026 [29] - Management remains optimistic about the underlying momentum of the business, particularly in independent case growth [41][74] Other Important Information - The company repurchased approximately $930 million of its shares and completed two tuck-in acquisitions for over $130 million in 2025 [6][27] - The corporate credit rating was upgraded by Moody's to Ba1, reflecting solid operating performance and improved credit metrics [28] Q&A Session Summary Question: Can you provide more color on quarter-to-date volumes and underlying momentum? - Management noted strong momentum in early January, rebounding from weather-related disruptions, and highlighted the strongest organic independent case growth in two years [41] Question: What are your expectations regarding inflation and its impact on gross profit per case? - Management indicated that self-help initiatives remain the primary drivers of gross profits, and while disinflation had a slight negative impact, strong results were still achieved [44] Question: How do you view the sales force expansion and its impact on case growth? - Management clarified that the 7% sales force expansion included internal transfers, and productivity is expected to ramp up significantly in the latter half of 2026 [50] Question: Is the net new business growth driven by headcount growth or existing salespeople? - Management stated that net new business growth is driven by both increased productivity from existing sales force and consistent hiring over the past three years [60] Question: What is the expected impact of the new compensation structure on seller productivity? - Management expects seller productivity to remain neutral to positive during the transition to the new compensation structure, emphasizing a thoughtful approach to individual transitions [82]

First Quarter Fiscal Year 2025 Results May 8, 2025 Disclaimer Page Cautionary Statements Regarding Forward-Looking Information Statements in this presentation which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive," "more," ...