Slides
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Second Quarter Fiscal Year 2025 Results August 7, 2025
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Disclaimer Page 2 Cautionary Statements Regarding Forward-Looking Information Statements in this presentation which are not historical in nature are “forward-looking statements” within the meaning of the federal securities laws. These statements often include words such as “believe,” “expect,” “project,” “anticipate,” “intend,” “plan,” “outlook,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecast,” “mission,” “strive,” “more,” “goal,” or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures; the impact of climate change or related legal, regulatory or market measures; impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets; the impact of governmental regulations; product recalls and product liability claims; our reputation in the industry; labor relations and increased labor costs and continued access to qualified and diverse labor; indebtedness and restrictions under agreements governing our indebtedness; interest rate increases; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; risks associated with intellectual property, including potential infringement; effective consummation of pending acquisitions and effective integration of acquired businesses; potential costs associated with shareholder activism; changes in tax laws and regulations and resolution of tax disputes; certain provisions in our governing documents; health and safety risks to our associates and related losses; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and management of retirement benefits and pension obligations. For a detailed discussion of these risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in US Foods' Annual Report on Form 10-K for the fiscal year ended December 28, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 13, 2025, as such factors may be updated from time to time in our periodic filings with the SEC. Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC’s website at www.sec.gov. Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this presentation speak only as of the date of this presentation and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law. Non-GAAP Financial Measures We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, this presentation includes the following non-GAAP financial measures: Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income, Adjusted Diluted Earnings Per Share (EPS), Net Debt and Net Leverage Ratio. These non- GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. We caution readers that our definition of these non-GAAP financial measures may not be calculated in the same manner as similar measures used by other companies. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures are included in the Appendix to this presentation. Please note that the Company is not providing a reconciliation of certain forward-looking non-GAAP financial measures, including Adjusted EBITDA and Adjusted Diluted EPS, because the Company is unable to predict with reasonable certainty the financial impact of certain significant items, including restructuring costs and asset impairment charges, share-based compensation expenses, non-cash impacts of LIFO reserve adjustments, losses on extinguishments of debt, business transformation costs, other gains and losses, business acquisitions and integration related costs, and diluted earnings per share. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the Company is unable to address the significance of the unavailable information, which could be material to future results.
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3 Delivering Strong Financial Results GROWING Volume GROWING Net Sales GROWING Adjusted EBITDA (1) GROWING Adjusted EBITDA Margin (1) GROWING Adjusted Diluted EPS (1) Note: Represents change versus the same period in the prior year (1) Reconciliations of these non-GAAP measures are provided in the Appendix +1.0% +4.2% +10.9% +29 bps +27.2% YTD 2025 +0.9% +3.8% +12.1% +40 bps +28.0% Q2 2025
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1 Delivered record Adjusted EBITDA and Adjusted EBITDA margin through a combination of topline growth, strong gross profit gains and disciplined cost management 2 Continued market share gains with our target customer types of Independent Restaurants, Healthcare and Hospitality 3 Deployed strong cash flow to repurchase $250 million of shares during the second quarter Driving Strong Performance Through Consistent Execution of Our Strategy 4 Reconciliations of these non-GAAP measures are provided in the Appendix.
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CULTURE EMBRACE THE US FOODS® CULTURE SAFE: Always keep our people safe and embrace a path to zero accidents and injuries SUPPORTIVE: Champion a diverse and inclusive work environment for all; foster employee engagement; attract world-class talent RESPONSIBLE: Be environmentally and socially conscious 5 Embrace the US Foods Culture • Building a strong safety culture; safety performance improved by 21% over prior year • Published our 2024 Sustainability Report, highlighting our progress in three focus areas: Products, People and Planet > Products: Serve Good® portfolio of Exclusive Brand products, curated to meet our sustainability standards, surpassed $1 billion in annual sales for the first time > People: US Foods associates participated in nearly 70,000 unique professional development opportunities and completed more than 1 million hours of training > Planet: Reduced Scopes 1 and 2 GHG emissions by 16% since 2019 • Launched Mission 2030, our commitment to hire 3,000 military veterans by 2030 CULTURE EMBRACE THE US FOODS® CULTURE SERVICE DELIVER WORLD-CLASS SERVICE GROWTH GROW MARKET SHARE PROFIT EXPAND EBITDA MARGIN
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Deliver Service Excellence • Continued rollout of Descartes routing platform; now live or in active deployment in 65 markets, representing ~90% of routed miles; remain on track to be fully deployed by year-end • Delivered more than a 2% improvement in cases per mile over prior year and nearly 6% over two years via routing initiatives; best performance in company history • Continued progress on Operations Quality Composite (Ops QC), resulting in ~28% improvement over prior year • Drove record Independent e-commerce penetration of 78% and total company of 89% 6 SERVICE DELIVER WORLD-CLASS SERVICE RELIABLE: Ensure best-in-class delivery: on-time and in full EFFICIENT: Drive routing transformation and logistics management; increase replenishment effectiveness EASY-TO-USE: Create best- in-class experiences for the customer powered by digital and omni-channel capabilities CULTURE EMBRACE THE US FOODS® CULTURE SERVICE DELIVER WORLD-CLASS SERVICE GROWTH GROW MARKET SHARE PROFIT EXPAND EBITDA MARGIN
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Grow Profitable Market Share • Grew Pronto business; Legacy now live in 44 markets; Penetration expanded to 15 markets and plan to be in a total of 20 by year-end • Pronto program on track to deliver over $900M in sales this year; we now believe it will reach $1.5B in sales by 2027, up from $1B previously • Continued market share gains with our three target customer types; 17 consecutive quarters with Independent Restaurants, 19 with Healthcare • Continued progress on expanding building capacity and leveraging technology > Began shipping out of our first new semi-automated 310K sq ft facility in Aurora, Illinois in July > Broke ground on a semi-automated 170K sq ft facility expansion near Austin, Texas 7 GROWTH GROW MARKET SHARE TARGET: Grow market share with independent restaurants, healthcare, hospitality and targeted tuck-in acquisitions DIFFERENTIATE: Capitalize on our food innovations, team-based selling and value added services BE FRESH: Improve our capabilities and drive share in produce and COP CULTURE EMBRACE THE US FOODS® CULTURE SERVICE DELIVER WORLD-CLASS SERVICE GROWTH GROW MARKET SHARE PROFIT EXPAND EBITDA MARGIN
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Further Optimize EBITDA Margin • Delivered more than $50M in year-to-date cost of goods savings through strategic vendor management, line of sight to exceed our 2027 plan commitment of $260M • Grew private label penetration by more than 80 basis points to over 53% with our core independent restaurants • Enhanced inventory management processes to eliminate waste and reduce write-offs; expect to deliver $30M gross profit benefit in 2025 • On track to generate $45M in total indirect spend savings this year, favorably impacting operating expenses 8 PROFIT EXPAND EBITDA MARGIN MARGIN: Expand through EB growth, strategic vendor management and pricing initiatives PRODUCTIVITY: Embrace continuous improvement and drive 3-5% annual gains OPTIMIZATION: Enhance indirect spend management CULTURE EMBRACE THE US FOODS® CULTURE SERVICE DELIVER WORLD-CLASS SERVICE GROWTH GROW MARKET SHARE PROFIT EXPAND EBITDA MARGIN
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Second Quarter Fiscal Year 2025 Financial Review Dirk Locascio Chief Financial Officer
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Total Case Volume Independent Restaurant Case Volume Healthcare Case Volume Hospitality Case Volume Net Sales ($millions) Adjusted EBITDA (1) ($millions) Adjusted EBITDA Margin (1) Adjusted Diluted EPS (1) Delivered Strong Earnings Growth and Margin Expansion 10 YTD 2025 B/(W) vs. YTD 2024 +1.0% +2.6% +5.5% +3.0% $19,433 +4.2% $937 +10.9% 4.8% +29 bps $1.87 +27.2% (1) Reconciliations of these non-GAAP measures are provided in the Appendix. Q2 2025 B/(W) vs. Q2 2024 +0.9% +2.7% +4.9% +2.4% $10,082 +3.8% $548 +12.1% 5.4% +40 bps $1.19 +28.0%
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Drove Operating Leverage Gains Through Execution of Self-help Initiatives 11 (1) Reconciliations of these non-GAAP measures are provided in the Appendix. Adj. Gross Profit Per Case (1) $5.63 $5.72 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 Q2 2024 Q2 2025 Adj. Operating Expense Per Case (1) $7.91 $8.23 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 Q2 2024 Q2 2025 Adj. EBITDA Per Case (1) +$0.32 +$0.09 $2.27 $2.52 $- $0.50 $1.00 $1.50 $2.00 $2.50 Q2 2024 Q2 2025 $2.02 $2.22 $- $0.50 $1.00 $1.50 $2.00 $2.50 YTD 2024 YTD 2025 +$0.25 +$0.20
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Healthy Cash Flow and Strong Balance Sheet Enables Business Investment and Capital Return 12 (1) Net Working Capital (NWC) defined as changes in operating assets and liabilities as shown in the Consolidated Statements of Cash Flows. $621 $725 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 YTD 2024 YTD 2025 Operating Cash Flow ($M) Capital Allocation Priorities 1 Invest in the business > Funding record capital investment to maintain our business, support growth and drive attractive returns > Began shipping from new semi-automated facility in Aurora, Illinois 2 Return capital to shareholders > Repurchased $250M of shares in Q2 3 Maintain net leverage range > Net leverage at 2.6x; remains within target range of 2.0x - 3.0x > No long-term debt maturities until 2028 4 Pursue accretive tuck-in M&A YTD 2024 YTD 2025 Operating Cash Flow (OCF) $621 $725 Change in Net Working Capital(1) $90 $81 OCF less change in NWC(1) $531 $644
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Fiscal Year 2025 Guidance Net Sales Growth 4% to 6% Adjusted EBITDA Growth (1) 9.5% to 12% Adjusted Diluted EPS Growth (1) 19.5% to 23% Modeling Assumptions Total Case Growth 1% to 3% Sales Inflation & Mix ~3% Depreciation $410M to $450M Interest Expense $300M to $315M Tax Rate ~26% Cash CapEx $375M to $425M Updating Fiscal Year 2025 Guidance and Modeling Assumptions 13 (1) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about forward-looking non-GAAP measures.
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Consistently Delivering Balanced Top-line Growth, Margin Expansion, and Double-digit Bottom-line Growth 14 1 Only pure-play, U.S. focused foodservice distributor with national scale 2 Differentiated value proposition and scale with the three most profitable customer types in the industry: independent restaurants, healthcare and hospitality 3 Proven go-to-market strategy (sellers, product innovation, digital ecosystem) 4 Industry leading digital ecosystem and continued investment to foster customer loyalty and enhance ease of doing business 5 Proven strategy-driven operational playbook to advance Culture, Service, Growth and Profit strategy pillars 6 Early innings of self-help initiatives to drive sustained profitable growth 7 Fastest P&L growth algorithm, accretive capital allocation to grow Adjusted EPS faster than Adjusted EBITDA and strong balance sheet 8 Accelerating Cash Flow generation resulting in more than $4 billion to deploy over the 2025 to 2027 time horizon What Differentiates US Foods?
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Appendix Summary Non-GAAP Reconciliations
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Outperformer in Resilient Industry with Levers to Pull if Weaker Macro Persists Food away from home continues to steadily increase year over year R E S I L I E N T I N D U S T R Y A N D B U S I N E S S M O D E L Large and growing Total Addressable Market Continued market share gains in Independents, Healthcare and Hospitality O N G O I N G S E L F- H E L P I N I T I AT I V E S Enhancing Gross Profit ▪ Strategic Vendor Management: Driving Cost of Goods savings ▪ Accelerate Private Label Mix: Leverage Customer Value Proposition to Deepen Private Label Penetration ▪ Improving Customer Mix: Faster growth with the most profitable customer types / pricing optimization Streamlining OpEx ▪ Supply Chain: Deliver 3% to 5% annual productivity improvement to offset OpEx inflation ▪ Delivery Optimization: Deployment of modern routing platform driving additional efficiency gains on top of benefit from market-led routing work ▪ Admin Costs: Actions to streamline corporate costs and operate more efficiently ▪ Optimize Indirect Spend: $1B+ addressable bucket of operating expense spend D O W N T U R N A C T I O N S Positioned to Win in Any Environment Additional Levers ▪ Flex OpEx with demand ▪ ~50% of Total OpEx is variable ▪ ~80% of Distribution OpEx is variable ▪ Reduce discretionary spending ▪ Effectively manage headcount ▪ Accelerate strategic vendor management and productivity projects ▪ Drive supply chain optimization and routing ▪ Moderate CapEx 16
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2025E to 2027E Financial Targets Positioned for Long-term Growth in a Resilient Industry 17 1 Operating in a resilient industry with a durable business model, levers to pull if weaker macro persists 2 Ongoing self-help initiatives to enhance Gross Profit and streamline Operating Expenses 3 Enhancing value proposition for our customers through digital leadership, best-in-class service, and modernized platforms 4 Leveraging robust cash flow and strong balance sheet to invest towards highest shareholder return 5 Executing to achieve new long-term financial targets and deliver shareholder value creation with long runway ahead Deployable Capital of $4B+ from 2025E to 2027E 20bps+ Annual Adj. EBITDA Margin Expansion ~5% Net Sales CAGR ~10% Adj. EBITDA CAGR ~20% Adj. Diluted EPS CAGR
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2.9% 3.2% 2.4% 1.8% 1.3% 2.3% 4.6% 5.7% 4.1% 3.2% 2.5% 2.7% Q1 Q2 Q3 Q4 Q1 Q2 0% 2% 4% 6% 8% Q1 Q2 Q3 Q4 Q1 Q2 Independent Restaurants Healthcare Hospitality Quarterly Case Volume Trend vs. Prior Year 18 Organic Case Growth by Quarter YOY percent change Independent Restaurant Case Growth YOY percent change for total and organic cases Total Case Growth YOY percent change for total and organic cases AcquisitionsOrganic AcquisitionsOrganic 2024 2024 2025 2025 1.4% 1.9% 1.1% 1.4% 0.1% 0.5% 4.2% 5.2% 3.8% 3.5% 1.1% 0.9% Q1 Q2 Q3 Q4 Q1 Q2 2024 2025
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Debt Summary 19 (1) Includes $22 million and $26 million of floating rate debt related to synthetic leases as of June 28, 2025 and December 28, 2 024, respectively (2) Reconciliations of these non-GAAP measures are provided in this Appendix (3) Floating Rate % includes the impact of interest rate caps • Funding record capital investment to maintain our business, support growth and drive attractive returns • Repurchased $250 million of shares in Q2 • Net leverage at 2.6x; remains within target range of 2.0x – 3.0x • No long-term debt maturities until 2028 ($ in millions) Maturity Interest Terms Interest Rates as of June 28, 2025 Carrying Value as of June 28, 2025 Carrying Value as of December 28, 2024 ABL Facility December 7, 2027 Prime + 0% 7.50% $48 $223 2021 Incremental Term Loan Facility (net of $1 and $0 of unamortized deferred financing costs, respectively) November 22, 2028 1M Term SOFR + 1.75% 6.08% $609 $610 2024 Incremental Term Loan Facility (net of $8 and $8 of unamortized deferred financing costs, respectively) October 3, 2031 1M Term SOFR + 1.75% 6.08% $715 $717 Total Floating Rate Debt $1,372 $1,550 Senior Notes due 2028 (net of $3 and $4 of unamortized deferred financing costs, respectively) September 15, 2028 6.88% $497 $496 Senior Notes due 2029 (net of $4 and $5 of unamortized deferred financing costs, respectively) February 15, 2029 4.75% $896 $895 Senior Notes due 2030 (net of $3 and $3 of unamortized deferred financing costs, respectively) June 1, 2030 4.63% $497 $497 Senior Notes due 2032 (net of $4 and $4 of unamortized deferred financing costs, respectively) January 15, 2032 7.25% $496 $496 Senior Notes due 2033 (net of $3 and $4 of unamortized deferred financing costs, respectively) April 15, 2033 5.75% $497 $496 Obligations under financing leases(1) 2025 – 2032 1.26%-8.31% $568 $490 Other Debt January 1, 2031 5.75% $8 $8 Total Fixed Rate(1) $3,459 $3,378 Total Debt $4,831 $4,928 Less: Cash ($61) ($59) Net Debt(2) $4,770 $4,869 Net Debt Leverage Ratio(2) 2.6x 2.8x % Floating Rate(3) ~29% ~32%
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Reported (unaudited) Adjusted(1) (unaudited) 13 Weeks Ended 13 Weeks Ended (Case volume and $ in millions, except per share data) June 28, 2025 June 29, 2024 Change June 28, 2025 June 29, 2024 Change Case Volume 218 216 0.9% Net Sales $10,082 $9,709 3.8% Gross Profit $1,777 $1,706 4.2% $1,791 $1,706 5.0% % of Net Sales 17.6% 17.6% 6 bps 17.8% 17.6% 19 bps Operating Expenses $1,405 $1,353 3.8% $1,245 $1,214 2.6% % of Net Sales 13.9% 13.9% - 12.3% 12.5% (15 bps) Net Income $224 $198 13.1% $277 $231 19.9% Diluted EPS(2) $0.96 $0.80 20.0% $1.19 $0.93 28.0% Adjusted EBITDA(1) $548 $489 12.1% Adjusted EBITDA Margin(3) 5.4% 5.0% 40 bps Second Quarter Financial Performance 20 (1) Reconciliations of these non-GAAP measures are provided in this Appendix. (2) Adjusted Diluted EPS is calculated as Adjusted net Income divided by weighted average diluted shares outstanding. (3) Represents Adjusted EBITDA as a percentage of Net Sales.
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Reported (unaudited) Adjusted(1) (unaudited) 26 Weeks Ended 26 Weeks Ended (Case volume and $ in millions, except per share data) June 28, 2025 June 29, 2024 Change June 28, 2025 June 29, 2024 Change Case Volume 423 419 1.0% Net Sales $19,433 $18,658 4.2% Gross Profit $3,391 $3,201 5.9% $3,410 $3,246 5.1% % of Net Sales 17.4% 17.2% 29 bps 17.5% 17.4% 15 bps Operating Expenses $2,795 $2,683 4.2% $2,476 $2,399 3.2% % of Net Sales 14.4% 14.4% - 12.7% 12.9% (12 bps) Net Income $339 $280 21.1% $436 $365 19.5% Diluted EPS(2) $1.45 $1.13 28.3% $1.87 $1.47 27.2% Adjusted EBITDA(1) $937 $845 10.9% Adjusted EBITDA Margin(3) 4.8% 4.5% 29 bps Year to Date Financial Performance 21 (1) Reconciliations of these non-GAAP measures are provided in this Appendix. (2) Adjusted Diluted EPS is calculated as Adjusted net Income divided by weighted average diluted shares outstanding. (3) Represents Adjusted EBITDA as a percentage of Net Sales.
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Non-GAAP Reconciliation – Adjusted Gross Profit per Case, Adjusted Operating Expense per Case, Adjusted EBITDA per Case 22 (1) Reconciliations of these non-GAAP measures are provided in this Appendix. Adjusted(1) (unaudited) 13 Weeks Ended 26 Weeks Ended (Total cases and $ in millions, except per case data) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Total Cases 218 216 423 419 Adjusted GP $1,791 $1,706 $3,410 $3,246 Adjusted GP / Case $8.23 $7.91 $8.07 $7.75 Adjusted OPEX $1,245 $1,214 $2,476 $2,399 Adjusted OPEX / Case $5.72 $5.63 $5.86 $5.73 Adjusted EBITDA $548 $489 $937 $845 Adjusted EBITDA / Case $2.52 $2.27 $2.22 $2.02
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Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 23 (1) – (5) footnotes located on next slide 13 Weeks Ended (unaudited) 26 Weeks Ended (unaudited) ($ in millions) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Gross profit (GAAP) $1,777 $1,706 $3,391 $3,201 LIFO reserve adjustment(1) 14 - 19 45 Adjusted Gross Profit (Non-GAAP) $1,791 $1,706 $3,410 $3,246 Operating Expenses (GAAP) $1,405 $1,353 $2,795 $2,683 Adjustments: Depreciation expense (102) (96) (200) (189) Amortization expense (13) (12) (27) (24) Restructuring activity and asset impairment charges(2) (2) 1 (7) (12) Share-based compensation expense(3) (23) (15) (45) (30) Business transformation costs(4) (13) (9) (20) (18) Business acquisition, integration related costs, divestitures and other(5) (7) (8) (20) (11) Adjusted Operating expenses (Non-GAAP) $1,245 $1,214 $2,476 $2,399
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Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 24 1. Represents the impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 4. Transformational costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable technology. For both the 13 weeks and 26 weeks ended June 28, 2025 and June 29, 2024, business transformation costs related to projects associated with information technology infrastructure initiatives and related workforce efficiencies. 5. Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $7 million and $8 million for the 13 weeks ended June 28, 2025 and June 29, 2024, respectively and $20 million and $10 million for the 26 weeks ended June 28, 2025 and June 29, 2024, respectively and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness.
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13 Weeks Ended (unaudited) 26 Weeks Ended (unaudited) ($ in millions) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net income and net income margin (GAAP) 224 2.2% 198 2.0% 339 1.7% 280 1.5% Interest expense—net 74 81 151 160 Income tax provision 76 71 109 76 Depreciation expense 102 96 200 189 Amortization expense 13 12 27 24 EBITDA and EBITDA margin (Non-GAAP) $489 4.9% $458 4.7% $826 4.3% $729 3.9% Adjustments: Restructuring activity and asset impairment charges(1) 2 (1) 7 12 Share-based compensation expense(2) 23 15 45 30 LIFO reserve adjustment(3) 14 - 19 45 Business transformation costs(4) 13 9 20 18 Business acquisition, integration related costs, divestitures and other(5) 7 8 20 11 Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP) $548 5.4% $489 5.0% $937 4.8% $845 4.5% Depreciation expense (102) (96) (200) (189) Interest expense—net (74) (81) (151) (160) Income tax impact, as adjusted(6) (95) (81) (150) (131) Adjusted Net Income (Non-GAAP) $277 $231 $436 $365 Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 25 (1) – (6) footnotes located on next slide
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Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 26 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Represents the impact of LIFO reserve adjustments. 4. Transformational costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable technology. For both the 13 weeks and 26 weeks ended June 28, 2025 and June 29, 2024, business transformation costs related to projects associated with information technology infrastructure initiatives and related workforce efficiencies. 5. Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $7 million and $8 million for the 13 weeks ended June 28, 2025 and June 29, 2024, and $20 million and $10 million for the 26 weeks ended June 28, 2025 and June 29, 2024, respectively and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness. 6. Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net income and the removal of applicable discrete tax items. Applicable discrete tax items include changes in tax laws or rates, changes related to prior year unrecognized tax benefits, discrete changes in valuation allowances, and excess tax benefits associated with share-based compensation. The tax effect of pre-tax items excluded from Adjusted Net income is computed using a statutory tax rate after taking into account the impact of permanent differences and valuation allowances.
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13 Weeks Ended (unaudited) 26 Weeks Ended (unaudited) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Diluted EPS (GAAP) $0.96 $0.80 $1.45 $1.13 Restructuring activity and asset impairment charges(1) 0.01 - 0.03 0.05 Share-based compensation expense(2) 0.10 0.06 0.19 0.12 LIFO reserve adjustment(3) 0.06 - 0.08 0.18 Business transformation costs(4) 0.06 0.04 0.09 0.07 Business acquisition, integration related costs, divestitures and other(5) 0.03 0.03 0.09 0.04 Income tax provision, as adjusted(6) (0.03) - (0.06) (0.12) Adjusted Diluted EPS (Non-GAAP)(7) $1.19 $0.93 $1.87 $1.47 Weighted-average diluted shares outstanding 232,971,905 248,312,117 233,576,687 248,393,517 Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 27 (1) – (7) footnotes located on next slide
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1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Represents the impact of LIFO reserve adjustments. 4. Transformational costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable technology. For both the 13 weeks and 26 weeks ended June 28, 2025 and June 29, 2024, business transformation costs related to projects associated with information technology infrastructure initiatives and related workforce efficiencies. 5. Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $7 million and $8 million for the 13 weeks ended June 28, 2025 and June 29, 2024, and $20 million and $10 million for the 26 weeks ended June 28, 2025 and June 29, 2024 respectively and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness. 6. Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net income and the removal of applicable discrete tax items. Applicable discrete tax items include changes in tax laws or rates, changes related to prior year unrecognized tax benefits, discrete changes in valuation allowances, and excess tax benefits associated with share-based compensation. The tax effect of pre-tax items excluded from Adjusted Net income is computed using a statutory tax rate after taking into account the impact of permanent differences and valuation allowances. 7. Adjusted Diluted EPS is calculated as Adjusted Net income divided by weighted average diluted shares outstanding. Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 28
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(unaudited) ($ in millions, except ratios) June 28, 2025 December 28, 2024 June 29, 2024 Total Debt (GAAP) $4,831 $4,928 $4,707 Cash, cash equivalents and restricted cash (61) (59) (405) Net Debt (non-GAAP) $4,770 $4,869 $4,302 Adjusted EBITDA(1) $1,833 $1,741 $1,635 Net Leverage Ratio(2) 2.6 2.8 2.6 Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios 29 (1) Trailing Twelve Months (TTM) Adjusted EBITDA. (2) Net Debt / TTM Adjusted EBITDA.