US Foods is stepping up its digital strategy, expanding in high-growth markets, and posting stronger-than-expected results that prompted a full-year outlook upgrade.
The foodservice distributor supplies more than 300,000 restaurants, hospitals, and hospitality customers nationwide. US Foods reported $10.082 billion in net sales for Q2 2025. That’s a 3.8% increase year over year from sales of $9.709 billion in Q2 2024. Net income rose 13.1% to $224 million from $198 million in the prior year.
For the first half of the year, US Foods sales totaled $19.433 billion. That’s up 4.2% from $18.658 billion in the prior year. Net income climbed 18.5% to $339 million from $280 million in the first six months of 2024.
“We delivered record results this quarter,” CEO Dave Flitman told analysts during the company’s second-quarter earnings call. “That momentum is helping us take more market share with our most important customer types.”
US Foods grows ecommerce sales in Q2
Digital adoption continues to be a major growth driver. US Foods said 90% of its customers now use its MOXe ecommerce platform. Among independent restaurants, their largest and fastest-growing segment, 78% of orders were placed online last quarter, an all-time high. The company expects that number to rise to 95% within two years.
“More of our customers are using MOXe for everything — from placing orders and tracking deliveries to managing billing,” Flitman said. “It’s giving us a clear edge in the market.”
Efficiency gains have followed on the logistics side. US Foods has rolled out a proprietary routing system that Flitman called “the best delivery efficiency in our company’s history.” The software, now active in all the company’s distribution markets, is designed to speed up deliveries and reduce errors.
The company is also investing heavily in automation. In June, it began shipping from a newly built, semi-automated distribution center near Chicago. It is currently constructing a second facility in Austin, Texas. It also expects these hubs to increase throughput while reducing injuries, mistakes, and labor costs.
One of US Foods’ fastest-growing programs is Pronto, a service that uses smaller trucks to make more frequent deliveries to small, independent operators. The offering, now available in 44 markets, is on track to generate $1 billion in revenue this year. US Foods has raised its long-term Pronto sales target from $1 billion to $1.5 billion.
At the same time, the company is streamlining its portfolio. It recently exited a low-margin produce business and is refocusing its chain restaurant strategy on profit rather than volume. As a result, chain sales declined in Q2 — but by design.
“We’re making deliberate choices about where to grow and where to optimize,” said chief financial officer Dirk Locascio. “That balance is allowing us to drive efficiencies and reinvest in the business while returning capital to shareholders.”
Potential US Foods merger
In Q2 alone, US Foods repurchased $250 million of its own stock. The company said it plans to continue repurchasing shares through the end of the year.
Flitman also confirmed recent reports that US Foods had approached rival Performance Food Group about a potential merger.
“We believe a combination would create meaningful value and bring together complementary strengths,” he said. “But so far, PFG has declined to engage.”
Even without a deal, Flitman said US Foods is positioned as the digital leader in food distribution, thanks to strong customer adoption of its platform, logistics automation, and a focus on high-growth, high-margin opportunities.
“There’s still so much opportunity in front of us,” he said. “We’re just getting started.”
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