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US Foods Fiscal First-Quarter Earnings, Sales Slide, Still Top Street Views as Restaurant Business Recovers

05/10/2021 04:02

08:00 AM EDT, 05/10/2021 (MT Newswires) -- US Foods (USFD) reported better-than-expected results for the fiscal first quarter as the provider of food and products to restaurants benefitted from the reopening of parts of the world's biggest economy from COVID-19 restrictions.

In the three months through April 3, the Rosemont, Illinois-based firm saw adjusted earnings of $0.12 a share, down from the $0.15 reported a year earlier but ahead of the consensus on Capital IQ for $0.04 a share. Revenue dipped to $6.3 billion from $6.34 billion previously, while analysts were looking for $5.96 billion.

"During the first quarter, we saw a meaningful recovery in case volume with our restaurant and hospitality customers," said Chief Executive Pietro Satriano. "This momentum has continued into the early part of the second quarter as restrictions on in-person dining continue to be lifted in markets across the country."

Total case volume for the company that stocks restaurants decreased 0.9%, though volume for independent restaurants was up 8.1% in the quarter. The improvement through the three-month period came as the US saw more vaccinations against COVID-19, leading to an easing of restrictions on in-person dining, the company said.

More than 34% of the US population have been fully vaccinated against the disease that's killed almost 580,000 Americans, according to the Centers for Disease Control and Prevention.

Even with the improvement, US Foods said it's still not providing guidance for the full year because of uncertainty around COVID-19.

Organic case volume, which excludes the acquisition in April 2020 of Smart Foodservice, fell 6.4%, although independent restaurant volume was up 0.2% on an organic basis. The company's Smart Foodservice segment added $261 million to net sales in the fiscal first quarter, US Foods said.

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