US Foods Holding Corp. (NYSE: USFD) shares are trading lower after reporting Q2 results. The company recorded adjusted EPS of $1.19, surpassing the consensus of $1.13. Sales of $10.082 billion missed expectations of $10.166 billion. CFO Dirk Locascio noted a 28% growth in Adjusted EPS. Sales growth was driven by case volume growth and food cost inflation.

Total case volume increased by 0.9%, with independent restaurant case volume up by 2.7%. Adjusted gross profit increased by 5.0% to $1.8 billion, representing 17.8% of net sales. Adjusted EBITDA of $548 million increased by 12.1%, with a margin increase to 5.4%. The company has secured over $50 million in cost-of-goods savings year-to-date.

Private-label penetration increased over 80 basis points to 53% in core independent restaurants, boosting margins. Enhanced inventory controls are expected to bring a $30 million gross profit benefit in 2025. Indirect-spend savings of $45 million will further reduce operating expenses. The company ended the quarter with $61 million in cash and equivalents.

US Foods Holding affirmed its FY 2025 sales guidance at $39.392 billion to $40.150 billion. Adjusted EPS guidance for FY 2025 was narrowed to $3.76–$3.87, compared to the street estimate of $3.81.

Read more at Yahoo Finance: Chef’s Line, Glenview Farms Parent US Foods Maintains Revenue Outlook Despite Q2 Miss