US Foods Secures $167M Food Supply Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Contract Value: US Foods has secured a maximum firm-fixed-price contract worth approximately $167 million for full-line food and beverage supply, highlighting its significant role in the defense supply chain.
- Contract Duration: This is a 329-day bridge contract with no option periods, with the ordering period extending until May 8, 2027, ensuring a stable revenue stream for the company in the coming years.
- Funding Source: The contract will be funded through the FY2026–FY2027 Defense Working Capital Funds, indicating US Foods' financial stability and reliability in government contracts.
- Market Outlook: Despite US Foods reporting a non-GAAP EPS of $0.78, missing estimates by $0.03, and revenue of $9.6 billion, falling short by $60 million in Q1 2026, the company reaffirmed its outlook for 9%-13% adjusted EBITDA growth in 2026, demonstrating confidence in future market conditions.
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Analyst Views on USFD
Wall Street analysts forecast USFD stock price to rise
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 90.180
Low
85.00
Averages
91.00
High
95.00
Current: 90.180
Low
85.00
Averages
91.00
High
95.00
About USFD
US Foods Holding Corp. is a foodservice distributor. The Company provides its customers with a range of food offering and a comprehensive suite of e-commerce, technology and business solutions. The Company is primarily engaged in marketing, selling and distributing fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. Its products include meat and seafood, dry grocery products, refrigerated and frozen grocery products, dairy, equipment disposables and supplies and beverage products. It serves customers including independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities and retail locations. The Company operates a network of over 70 distribution facilities and a fleet of over 6,500 trucks, along with approximately 90 cash and carry locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Foods Secures $167M Food Supply Contract
- Contract Value: US Foods has secured a maximum firm-fixed-price contract worth approximately $167 million for full-line food and beverage supply, highlighting its significant role in the defense supply chain.
- Contract Duration: This is a 329-day bridge contract with no option periods, with the ordering period extending until May 8, 2027, ensuring a stable revenue stream for the company in the coming years.
- Funding Source: The contract will be funded through the FY2026–FY2027 Defense Working Capital Funds, indicating US Foods' financial stability and reliability in government contracts.
- Market Outlook: Despite US Foods reporting a non-GAAP EPS of $0.78, missing estimates by $0.03, and revenue of $9.6 billion, falling short by $60 million in Q1 2026, the company reaffirmed its outlook for 9%-13% adjusted EBITDA growth in 2026, demonstrating confidence in future market conditions.
See More
US Foods Secures $167 Million Contract
- Contract Value: US Foods has been awarded a maximum firm-fixed-price contract worth $167 million, which includes economic price adjustment terms, indicating the company's strong competitive position and stable revenue stream in the market.
- Market Impact: This contract will provide US Foods with significant cash flow, enhancing its position in the food supply chain while allowing the company to maintain flexibility in future business expansions.
- Strategic Significance: By securing this contract, US Foods not only strengthens its partnerships with clients but may also attract more potential customers, thereby increasing market share and brand influence.
- Economic Adjustment Clause: The inclusion of economic price adjustment terms in the contract will help US Foods manage potential future cost fluctuations, ensuring the company's profitability in an uncertain economic environment.
See More
US Foods Releases 2025 Sustainability Report Highlighting Key Innovations
- Product Innovation Progress: US Foods' 2025 Sustainability Report highlights over 5,000 differentiated Exclusive Brands products, continuously meeting customer expectations and driving business success, which is expected to enhance market competitiveness further.
- Employee Support and Training: The company provided approximately 1.2 million hours of associate training in 2025 and filled 70% of leadership roles internally, showcasing strong talent development programs aimed at enhancing employee engagement and productivity, thereby improving overall operational efficiency.
- Environmental Impact Reduction: US Foods reduced fuel and energy intensity by 7% and 4%, respectively, and achieved a reduction of 470,000 miles driven in 2025 despite an 8% growth in cases delivered, indicating the company's ongoing commitment to environmental sustainability.
- Community Contributions: The company donated over $12 million in products and volunteer time to communities in need in 2025, with volunteer hours increasing by 70% compared to 2024, which not only enhances the company's image but also strengthens community ties and promotes a sense of social responsibility.
See More
US Stocks Close Lower Amid Cautious Market Sentiment
- Market Weakness: On Thursday, the S&P 500 Index fell by 0.38%, the Dow Jones Industrial Average dropped by 0.63%, and the Nasdaq 100 Index decreased by 0.12%, reflecting investor skepticism regarding a potential US-Iran peace deal, which led to a reversal of early gains and impacted market confidence.
- Economic Data Support: Despite the market decline, initial jobless claims rose by 10,000 to 200,000, below the expected 205,000, indicating resilience in the labor market, while Q1 nonfarm productivity increased by 0.8%, surpassing the 0.6% forecast, providing some support to the market.
- Earnings Report Impact: As of Thursday, 84% of the 425 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise by 12% year-over-year, although growth outside the tech sector is only expected to be around 3%, indicating a divergence that may influence investor allocation strategies.
- Oil Price Recovery: WTI crude oil prices rebounded after a 4% decline on Thursday, as the market focused on the potential resumption of US military operations to ensure safe passage through the Strait of Hormuz, which is expected to have ongoing implications for global oil prices and related stocks.
See More
US Foods Q1 2026 Earnings Call Insights
- Sales Growth: US Foods reported a 2.8% increase in net sales to $9.6 billion in Q1 2026, demonstrating the company's focus on controlling controllables despite challenges from severe weather and rising fuel costs.
- Adjusted EPS Increase: The adjusted diluted EPS grew by 14.7% to $0.78, reflecting resilience in a deteriorating macro environment, even as chain restaurant volume declined by 2.3%, indicating strong operational management.
- Adoption of New Tools: The Menu IQ tool achieved a 15% adoption rate among independent customers within just two months of launch, doubling initial expectations and highlighting strong demand for digital solutions that could drive future sales growth.
- Outlook Reaffirmation: The company reaffirmed its 2026 adjusted EBITDA growth guidance of 9% to 13%, while acknowledging macro uncertainties and fuel costs, with expectations for Q2 EBITDA growth to be in the mid to upper single digits, reflecting cautious optimism about future performance.
See More
U.S. Stock Market Retreats as Oil Prices Surge
- Market Retreat: The S&P 500 Index fell by 0.40%, the Dow Jones Industrial Average by 0.51%, and the Nasdaq 100 by 0.28%, indicating a retreat in market sentiment as rising oil prices weigh on investor confidence and raise concerns about future economic prospects.
- Strong Employment Data: Initial jobless claims in the U.S. rose by 10,000 to 200,000, indicating a stronger labor market than the expected 205,000, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, showcasing economic resilience.
- Productivity and Costs: U.S. Q1 nonfarm productivity increased by 0.8%, surpassing expectations of 0.6%, while unit labor costs rose by 2.3%, below the anticipated 2.5%, which may influence future inflation expectations and Fed policy decisions.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at “mildly restrictive” levels, suggesting that if inflation trends worsen significantly, a reassessment of policy would be necessary, with markets pricing in only a 6% chance of a rate cut at the next FOMC meeting.
See More
US Foods Secures $167M Food Supply Contract
- Contract Value: US Foods has secured a maximum firm-fixed-price contract worth approximately $167 million for full-line food and beverage supply, highlighting its significant role in the defense supply chain.
- Contract Duration: This is a 329-day bridge contract with no option periods, with the ordering period extending until May 8, 2027, ensuring a stable revenue stream for the company in the coming years.
- Funding Source: The contract will be funded through the FY2026–FY2027 Defense Working Capital Funds, indicating US Foods' financial stability and reliability in government contracts.
- Market Outlook: Despite US Foods reporting a non-GAAP EPS of $0.78, missing estimates by $0.03, and revenue of $9.6 billion, falling short by $60 million in Q1 2026, the company reaffirmed its outlook for 9%-13% adjusted EBITDA growth in 2026, demonstrating confidence in future market conditions.
See More
US Foods Secures $167 Million Contract
- Contract Value: US Foods has been awarded a maximum firm-fixed-price contract worth $167 million, which includes economic price adjustment terms, indicating the company's strong competitive position and stable revenue stream in the market.
- Market Impact: This contract will provide US Foods with significant cash flow, enhancing its position in the food supply chain while allowing the company to maintain flexibility in future business expansions.
- Strategic Significance: By securing this contract, US Foods not only strengthens its partnerships with clients but may also attract more potential customers, thereby increasing market share and brand influence.
- Economic Adjustment Clause: The inclusion of economic price adjustment terms in the contract will help US Foods manage potential future cost fluctuations, ensuring the company's profitability in an uncertain economic environment.
See More
US Foods Releases 2025 Sustainability Report Highlighting Key Innovations
- Product Innovation Progress: US Foods' 2025 Sustainability Report highlights over 5,000 differentiated Exclusive Brands products, continuously meeting customer expectations and driving business success, which is expected to enhance market competitiveness further.
- Employee Support and Training: The company provided approximately 1.2 million hours of associate training in 2025 and filled 70% of leadership roles internally, showcasing strong talent development programs aimed at enhancing employee engagement and productivity, thereby improving overall operational efficiency.
- Environmental Impact Reduction: US Foods reduced fuel and energy intensity by 7% and 4%, respectively, and achieved a reduction of 470,000 miles driven in 2025 despite an 8% growth in cases delivered, indicating the company's ongoing commitment to environmental sustainability.
- Community Contributions: The company donated over $12 million in products and volunteer time to communities in need in 2025, with volunteer hours increasing by 70% compared to 2024, which not only enhances the company's image but also strengthens community ties and promotes a sense of social responsibility.
See More
US Stocks Close Lower Amid Cautious Market Sentiment
- Market Weakness: On Thursday, the S&P 500 Index fell by 0.38%, the Dow Jones Industrial Average dropped by 0.63%, and the Nasdaq 100 Index decreased by 0.12%, reflecting investor skepticism regarding a potential US-Iran peace deal, which led to a reversal of early gains and impacted market confidence.
- Economic Data Support: Despite the market decline, initial jobless claims rose by 10,000 to 200,000, below the expected 205,000, indicating resilience in the labor market, while Q1 nonfarm productivity increased by 0.8%, surpassing the 0.6% forecast, providing some support to the market.
- Earnings Report Impact: As of Thursday, 84% of the 425 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise by 12% year-over-year, although growth outside the tech sector is only expected to be around 3%, indicating a divergence that may influence investor allocation strategies.
- Oil Price Recovery: WTI crude oil prices rebounded after a 4% decline on Thursday, as the market focused on the potential resumption of US military operations to ensure safe passage through the Strait of Hormuz, which is expected to have ongoing implications for global oil prices and related stocks.
See More
US Foods Q1 2026 Earnings Call Insights
- Sales Growth: US Foods reported a 2.8% increase in net sales to $9.6 billion in Q1 2026, demonstrating the company's focus on controlling controllables despite challenges from severe weather and rising fuel costs.
- Adjusted EPS Increase: The adjusted diluted EPS grew by 14.7% to $0.78, reflecting resilience in a deteriorating macro environment, even as chain restaurant volume declined by 2.3%, indicating strong operational management.
- Adoption of New Tools: The Menu IQ tool achieved a 15% adoption rate among independent customers within just two months of launch, doubling initial expectations and highlighting strong demand for digital solutions that could drive future sales growth.
- Outlook Reaffirmation: The company reaffirmed its 2026 adjusted EBITDA growth guidance of 9% to 13%, while acknowledging macro uncertainties and fuel costs, with expectations for Q2 EBITDA growth to be in the mid to upper single digits, reflecting cautious optimism about future performance.
See More
U.S. Stock Market Retreats as Oil Prices Surge
- Market Retreat: The S&P 500 Index fell by 0.40%, the Dow Jones Industrial Average by 0.51%, and the Nasdaq 100 by 0.28%, indicating a retreat in market sentiment as rising oil prices weigh on investor confidence and raise concerns about future economic prospects.
- Strong Employment Data: Initial jobless claims in the U.S. rose by 10,000 to 200,000, indicating a stronger labor market than the expected 205,000, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, showcasing economic resilience.
- Productivity and Costs: U.S. Q1 nonfarm productivity increased by 0.8%, surpassing expectations of 0.6%, while unit labor costs rose by 2.3%, below the anticipated 2.5%, which may influence future inflation expectations and Fed policy decisions.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at “mildly restrictive” levels, suggesting that if inflation trends worsen significantly, a reassessment of policy would be necessary, with markets pricing in only a 6% chance of a rate cut at the next FOMC meeting.
See More
