Foodservice products distributor US Foods reported its 2025 first quarter financial results on May 8, as well as its acquisition of Texas-based Jake’s Finer Foods.

1Q Results

The company posted 1Q total sales of $9.4 billion, up 4.5% year-over-year, primarily driven by case volume growth and food cost inflation of 3.0%.

Operating profit of $224 million rose from the $165 million of a year earlier. Meanwhile, 1Q gross margin of 17.2% increased 50 basis points year-over-year.

MDM’s 1Q25 MarketPulse Report (store link) 

The company’s net profit of $1.6 billion likewise increased 8.0% from 1Q24’s $1.4 billion. US Foods said the increase was a result of a gain in total case volume, improved cost of goods sold, pricing optimization and a favorable year-over-year LIFO adjustment.

US Foods’ adjusted EBITDA of $389 million increased by 9.3% year-over-year.

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“Our focused strategy, combined with our ability to drive improved profitability through controlling what we can control, highlight the resilience of our business model and our ability to adjust to any macro environment,” US Foods CEO Dave Fitman said in the company’s financial release. “I thank our associates for their hard work and dedication supporting our customers and executing our strategy. Despite near-term macro uncertainty, I remain confident that we will deliver on our 2025 guidance of 8% to 12% Adjusted EBITDA growth and 17% to 23% Adjusted Diluted EPS growth.”

Jake’s Finer Foods

Alongside its first quarter financial results, US Foods also announced its acquisition of broadline distributor Jake’s Finer Foods for $92 million.

MDM’s 1Q25 M&A Report (store link) 

Established in 1946, Jake’s Finer Foods is a supplier of food products, such as fresh-cut meats from Gourmet Ranch and more, to customers across Texas and Louisiana. The company serves a range of industries, such as multi-unit chains, grocery stores, daycares, caterers and corporate cafeterias.

US Foods said the acquisition was completed on Jan. 10 and funded using existing cash reserves.