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Second Quarter Fiscal Year 2026 Results August 6 , 2026 US . WE HELP YOU FOODS MAKE IT
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2 Disclaimer Page Cautionary Statements Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, forecasted financial performance or guidance, statements about future results of operations and other statements which are not purely historical facts or that necessarily depend upon future events. 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). These statements are not guarantees of future performance or results and are subject to risks, uncertainties and other important factors, many of which are beyond our control, that could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: changes in consumer eating habits, including economic factors affecting consumer confidence and discretionary spending and the impact of advancements in pharmaceutical therapies, which may reduce the consumption of food prepared away from home; cost inflation/deflation and commodity volatility, including increases in fuel costs; geopolitical developments and supply chain disruptions; 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 and achieve the expected benefits from cost savings initiatives; the impact of climate change or related regulatory or market measures; the impact of governmental regulations related to our operations, including product safety; product recalls and product liability claims; our reputation in the industry; labor relations, increased labor costs and continued access to qualified labor; the level of interest rates and availability of indebtedness and restrictions under agreements governing our indebtedness; disruption of existing technologies and implementation of new technologies, including artificial intelligence; cybersecurity incidents and other technology disruptions; effective execution on the Company’s growth strategy, including acquisitions and the integration of acquired businesses; risks to the health and safety of our associates and others; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and the timing and scope of future repurchases by US Foods of its common stock. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the Securities and Exchange Commission. All forward-looking statements included in this press release are based on information available to us on the date hereof. For these statements, the Company claims the protection of the safe harbor for forward-looking statements in the Private Securities Litigation Reform Act. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Except to the extent required by law, the Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement. Non-GAAP Financial Measures We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, this presentation includes non-GAAP financial measures, including 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 definitions of these non-GAAP financial measures, set forth in the Appendix to this presentation, may not be the same as similar measures used by other companies. Management uses these non-GAAP measures in evaluating operational and financial performance and we believe they provide investors with useful information. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results. 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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1 Accelerated Independent Restaurant case growth to 5.1%; in line with our long-range plan; fifth consecutive quarter of acceleration 2 Grew Adjusted EBITDA 10.2% to a record $604 million and delivered record Adjusted EBITDA margin of 5.7%, with 21% Adjusted EPS growth 3 Generated strong cash flow to support growth initiatives while repurchasing $374 million of shares during the quarter and maintaining a strong leverage profile 4 Leveraging investments in technology, including AI, to raise customer service levels, improve productivity and create a stronger foundation for sustainable long-term growth Driving Profitable Growth Through Consistent Execution, Disciplined Capital Allocation and Innovation 3 Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included 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 4 Embrace the US Foods Culture • Deployed ~2,500 safer center-ride pallet jacks to date; rollout is 87% complete • Launched VALOR campaign, supporting our Mission 2030 commitment to proudly support and employ those who serve • Published our 2025 Sustainability Report , highlighting our progress in three focus areas: > Products: Serve Good® portfolio of Exclusive Brand products, curated to meet our sustainability standards, surpassed $1 billion in annual sales for the second consecutive year > People: Invested in 1.2 million hours of training to support our associates’ professional development > Planet: Strengthened transportation efficiency through routing optimization, resulting in 470,000 fewer miles driven in 2025 compared to 2022 despite delivering 8% more cases 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 • Drove 13% improvement in Operations Quality Composite (Ops QC) compared to prior year and 37% over the past two years • Piloted autonomous inventory scanning robotics to improve inventory accuracy and increase warehouse efficiency; expanding pilot to six additional locations in H2 • US Foods Market Operating System (UMOS) deployment largely complete across all locations, standardizing operations and improving productivity across markets 5 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 • Strong growth in all three target customer types: Independent Restaurants, Healthcare and Hospitality • Expanded Pronto to 52 markets; Pronto Next Day now live in 35 markets with plans to add 8 more this year • Pronto program on track for $1.3B in sales this year; we now believe it can generate $1.7B+ in sales in 2027, up from prior estimate of $1.5B • Launched new sales compensation plan in June to create better alignment with business strategy, enhance the earning potential of our sellers, and fuel future case growth; seeing encouraging early results 6 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 • Grew Adjusted Gross Profit 140 basis points faster than Adjusted Operating Expenses • Expanded Adjusted EBITDA margin by 29 basis points to a record 5.7% • Generated $50M+ in year-to-date cost of goods savings through strategic vendor management; highly confident in our ability to deliver $300M+ in savings over our three-year long-range plan • Expect to generate additional $10M of Gross Profit benefit from Inventory Management in 2026, building on the $35M realized last year • Generated $20M+ of incremental indirect spend savings year-to-date; expect this initiative to deliver $75M+ of benefit this year and $100M+ in 2027 7 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 Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.
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Leveraging AI to Widen Our Competitive Moat Our Approach to AI Proprietary data at scale: Years of rich foodservice transaction data A compounding flywheel: Every order, delivery, and customer interaction improves our models Production-grade AI at scale: Solutions fully deployed and integrated into daily operations Measurable ROI: AI initiative KPIs directly tied to our financial goals US FOODS’ AI CAPABILITY EXAMPLES Supply Chain Excellence Profitable Sales Growth Customer Experience Enterprise Productivity 8 Visit Assistant AI-generated insights to maximize growth opportunities during sales visits AI-Powered Search Significantly faster and more intuitive results Menu IQTM Intelligent menu profitability platform Where’s My Truck AI-enhanced delivery ETA Automated Order Guide AI-powered customer quotes AI Sales Assistant AI-powered chatbot for sellers Item Forecasting AI-driven forecast for enhanced service levels and working capital Descartes Route optimization driving productivity and improved on-time Labor Planning Volume and workforce forecasting for precise, efficient staffing Coding Agents AI-powered code development and testing Content Generation Marketing and product content creation Sales Support Agentic workflow for rapid issue resolution
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Second Quarter Fiscal Year 2026 Financial Review
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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 Drove Margin Expansion 10 YTD 2026 B/(W) vs. YTD 2025 +1.6% +4.8% +3.6% +4.8% $20,142 +3.6% $1,017 +8.5% 5.0% +23 bps $2.21 +18.2% Q2 2026 B/(W) vs. Q2 2025 +1.9% +5.1% +3.5% +4.4% $10,532 +4.5% $604 +10.2% 5.7% +29 bps $1.44 +21.0% (1) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.
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Drove Operating Leverage Gains Through Execution of Operational Excellence and Self-help Initiatives 11 Adjusted Gross Profit Per Case (1) $5.72 $5.93 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 Q2 2025 Q2 2026 Adjusted Operating Expense Per Case (1) $8.23 $8.64 $6.00 $6.50 $7.00 $7.50 $8.00 $8.50 $9.00 Q2 2025 Q2 2026 Adjusted EBITDA Per Case (1) +$0.41 +$0.21 $2.52 $2.73 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 Q2 2025 Q2 2026 $2.22 $2.37 $- $0.50 $1.00 $1.50 $2.00 YTD 2025 YTD 2026 +$0.21 +$0.15 (1) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.
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Solid Cash Flow and Strong Balance Sheet Support Capital Allocation Priorities (1) Net Working Capital (NWC) defined as changes in operating assets and liabilities as shown in the Consolidated Statements of Cash Flows. Operating Cash Flow ($M) $621 $725 $725 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 YTD 2024 YTD 2025 YTD 2026 YTD 2024 YTD 2025 YTD 2026 Operating Cash Flow (OCF) $621 $725 $725 Change in Net Working Capital (NWC)(1) $90 $81 $7 OCF less change in NWC(1) $531 $644 $718 12 Capital Allocation Priorities 1 Invest in the business > Funding strong capital investment to maintain our business, support growth and drive attractive returns 2 Return capital to shareholders > Repurchased ~$500 million of shares YTD 2026 3 Maintain net leverage range > Net leverage at 2.6x; within target range of 2.0x - 3.0x > Extended maturity of ABL facility due 2027 to 2031 > No long-term debt maturities until 2028 4 Pursue accretive tuck-in M&A
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Fiscal Year 2026 Guidance (1) Net Sales Growth 4% to 6% Adjusted EBITDA Growth (2) 9% to 13% Adjusted Diluted EPS Growth (2) 18% to 24% Modeling Assumptions (1) Total Case Growth 2.5% to 4.5% Sales Inflation & Mix ~1.5% Depreciation $420M to $450M Interest Expense $300M to $315M Tax Rate ~26% Cash CapEx $400M to $440M Reiterating Fiscal Year 2026 Guidance 13 (1) Includes the impact of a 53rd week in fiscal year 2026, which is expected to add ~1% to Total Case Growth and Adjusted EBITDA Growth. (2) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.
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22% 7% 6% 4% USFD Peer Foodservice Distributors Industrial Distributors Consumer Staples Consistently Compounding Earnings Growth Over Time Adj. EPS CAGR 2023 – 2026E 2027 P/E Consistent earnings and volume compounder with accretive capital allocation Delivering earnings growth ahead of peers, industrial distributors and consumer staples Compelling valuation relative to earnings growth and margin expansion Source: FactSet. Data as of 7/31/26 using consensus estimates for calendar 2026 and 2027. Peer Foodservice Distributors includes SYY and PFGC; Industrial Distributors includes FAST, GWW, and MSM; Consumer Staples includes average of companies in XLP 18.3x 17.3x 27.4x 18.4x USFD Peer Foodservice Distributors Industrial Distributors Consumer Staples
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Appendix
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2025 to 2027 Financial Targets Invest with US Foods 16 1 Differentiated value proposition and meaningful scale with most profitable customer types 2 Industry-leading digital ecosystem embedded with AI-powered features which enhances customer engagement, drives efficiency and strengthens loyalty 3 Early innings of our operational excellence journey with substantial opportunities ahead 4 Industry-leading Adjusted EPS growth supporting our confidence to compound double-digit earnings growth through 2027 and beyond 5 Strong cash flow generation, enabling consistent and effective capital deployment Deployable Capital of $4B+ from 2025 to 2027 20bps+ Annual Adj. EBITDA Margin Expansion ~5% Net Sales CAGR ~10% Adj. EBITDA CAGR ~20% Adj. Diluted EPS CAGR Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix.
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1.3% 2.3% 3.5% 3.7% 4.4% 5.0%2.5% 2.7% 3.9% 4.1% 4.6% 5.1% 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 17 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 2025 2025 2026 2026 2025 2026 0.1% 0.5% 0.8% 0.3% 1.1% 1.7% 1.1% 0.9% 1.1% 0.8% 1.4% 1.9% Q1 Q2 Q3 Q4 Q1 Q2
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Debt Summary 18 (1) Includes $13 million and $18 million of floating rate debt related to synthetic leases as of June 27, 2026 and December 27, 2025, respectively. (2) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the Appendix. (3) Floating Rate % includes the impact of interest rate caps. • Funding strong capital investment to maintain our business, support growth and drive attractive returns • Repurchased ~$500 million of shares YTD 2026 • Maintained net leverage at 2.6x; within target range of 2.0x – 3.0x • Extended maturity of ABL facility due 2027 to 2031 • No long-term debt maturities until 2028 ($ in millions) Maturity Interest Terms Interest Rates as of June 27, 2026 Carrying Value as of June 27, 2026 Carrying Value as of December 27, 2025 ABL Facility May 28, 2031 5.16% $433 $429 2021 Incremental Term Loan Facility (net of $1 and $1 of unamortized deferred financing costs, respectively) November 22, 2028 1M Term SOFR + 1.75% 5.37% $609 $609 2024 Incremental Term Loan Facility (net of $7 and $7 of unamortized deferred financing costs, respectively) October 3, 2031 1M Term SOFR + 1.75% 5.37% $709 $712 Total Floating Rate Debt $1,751 $1,750 Senior Notes due 2028 (net of $2 and $3 of unamortized deferred financing costs, respectively) September 15, 2028 6.88% $498 $497 Senior Notes due 2029 (net of $3 and $4 of unamortized deferred financing costs, respectively) February 15, 2029 4.75% $897 $896 Senior Notes due 2030 (net of $2 and $2 of unamortized deferred financing costs, respectively) June 1, 2030 4.63% $498 $498 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 $2 and $2 of unamortized deferred financing costs, respectively) April 15, 2033 5.75% $498 $498 Obligations under financing leases (1) 2026 – 2033 1.26%-8.31% $591 $557 Other Debt January 1, 2031 5.75% $8 $8 Total Fixed Rate(1) $3,486 $3,450 Total Debt $5,237 $5,200 Less: Cash ($56) ($41) Net Debt(2) $5,181 $5,159 Net Debt Leverage Ratio(2) 2.6x 2.7x % Floating Rate(3) ~34% ~34%
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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 27, 2026 June 28, 2025 Change June 27, 2026 June 28, 2025 Change Case Volume 222 218 1.9% Net Sales $10,532 $10,082 4.5% Gross Profit $1,919 $1,777 8.0% $1,914 $1,791 6.9% % of Net Sales 18.2% 17.6% 59 bps 18.2% 17.8% 41 bps Operating Expenses $1,476 $1,405 5.1% $1,313 $1,245 5.5% % of Net Sales 14.0% 13.9% 7 bps 12.5% 12.3% 12 bps Net Income $275 $224 22.8% $317 $277 14.4% Diluted EPS(2) $1.24 $0.96 29.2% $1.44 $1.19 21.0% Adjusted EBITDA(1) $604 $548 10.2% Adjusted EBITDA Margin(3) 5.7% 5.4% 29 bps Second Quarter Financial Performance 19 (1) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the 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 27, 2026 June 28, 2025 Change June 27, 2026 June 28, 2025 Change Case Volume 430 423 1.6% Net Sales $20,142 $19,433 3.6% Gross Profit $3,572 $3,391 5.3% $3,605 $3,410 5.7% % of Net Sales 17.7% 17.4% 33 bps 17.9% 17.5% 35 bps Operating Expenses $2,913 $2,795 4.2% $2,592 $2,476 4.7% % of Net Sales 14.5% 14.4% 8 bps 12.9% 12.7% 13 bps Net Income $391 $339 15.3% $491 $436 12.6% Diluted EPS(2) $1.76 $1.45 21.4% $2.21 $1.87 18.2% Adjusted EBITDA(1) $1,017 $937 8.5% Adjusted EBITDA Margin(3) 5.0% 4.8% 23 bps Year to Date Financial Performance 20 (1) Non-GAAP financial measures. Refer to the Disclaimer Page on slide 2 for information about non-GAAP financial measures. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures are included in the 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 21 Adjusted(1) (unaudited) 13 Weeks Ended 26 Weeks Ended (Total cases and $ in millions, except per case data) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Total Cases 222 218 430 423 Adjusted GP $1,914 $1,791 $3,605 $3,410 Adjusted GP / Case $8.64 $8.23 $8.39 $8.07 Adjusted OPEX $1,313 $1,245 $2,592 $2,476 Adjusted OPEX / Case $5.93 $5.72 $6.03 $5.86 Adjusted EBITDA $604 $548 $1,017 $937 Adjusted EBITDA / Case $2.73 $2.52 $2.37 $2.22 (1) Management uses these non-GAAP measures in evaluating operational and financial performance and we believe they provide investors with useful information. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results.
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Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 22 (1) – (5) footnotes located on next slide 13 Weeks Ended (unaudited) 26 Weeks Ended (unaudited) ($ in millions) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Gross profit (GAAP) $1,919 $1,777 $3,572 $3,391 LIFO reserve adjustment(1) (5) 14 33 19 Adjusted Gross Profit (Non-GAAP) $1,914 $1,791 $3,605 $3,410 Operating Expenses (GAAP) $1,476 $1,405 $2,913 $2,795 Adjustments: Depreciation expense (104) (102) (209) (200) Amortization expense (14) (13) (28) (27) Restructuring activity and asset impairment charges(2) - (2) (8) (7) Share-based compensation expense(3) (32) (23) (54) (45) Business transformation costs(4) (10) (13) (17) (20) Business acquisition, integration related costs, divestitures and other(5) (3) (7) (5) (20) Adjusted Operating expenses (Non-GAAP) $1,313 $1,245 $2,592 $2,476
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Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 23 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 27, 2026 and June 28, 2025, 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 $1 million and $7 million for the 13 weeks ended June 27, 2026 and June 28, 2025, respectively and $2 million and $20 million for the 26 weeks ended June 27, 2026 and June 28, 2025, respectively and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness.
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13 Weeks Ended (unaudited) 26 Weeks Ended (unaudited) ($ in millions) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Net income and net income margin (GAAP) 275 2.6% 224 2.2% 391 1.9% 339 1.7% Interest expense—net 77 74 152 151 Income tax provision 91 76 120 109 Depreciation expense 104 102 209 200 Amortization expense 14 13 28 27 EBITDA and EBITDA margin (Non-GAAP) $564 5.4% $489 4.9% $900 4.5% $826 4.3% Adjustments: Restructuring activity and asset impairment charges(1) - 2 8 7 Share-based compensation expense(2) 32 23 54 45 LIFO reserve adjustment(3) (5) 14 33 19 Business transformation costs(4) 10 13 17 20 Business acquisition, integration related costs, divestitures and other(5) 3 7 5 20 Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP) $604 5.7% $548 5.4% $1,017 5.0% $937 4.8% Depreciation expense (104) (102) (209) (200) Interest expense—net (77) (74) (152) (151) Income tax impact, as adjusted(6) (106) (95) (165) (150) Adjusted Net Income (Non-GAAP) $317 $277 $491 $436 Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 24 (1) – (6) footnotes located on next slide
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Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 25 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 27, 2026 and June 28, 2025, 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 $1 million and $7 million for the 13 weeks ended June 27, 2026 and June 28, 2025, and $2 million and $20 million for the 26 weeks ended June 27, 2026 and June 28, 2025, 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 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Diluted EPS (GAAP) $1.24 $0.96 $1.76 $1.45 Restructuring activity and asset impairment charges(1) - 0.01 0.04 0.03 Share-based compensation expense(2) 0.15 0.10 0.24 0.19 LIFO reserve adjustment(3) (0.02) 0.06 0.15 0.08 Business transformation costs(4) 0.05 0.06 0.08 0.09 Business acquisition, integration related costs, divestitures and other(5) 0.01 0.03 0.02 0.09 Income tax provision, as adjusted(6) 0.01 (0.03) (0.08) (0.06) Adjusted Diluted EPS (Non-GAAP)(7) $1.44 $1.19 $2.21 $1.87 Weighted-average diluted shares outstanding 220.5 233.0 222.0 233.6 Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 26 (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 27, 2026 and June 28, 2025, 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 $1 million and $7 million for the 13 weeks ended June 27, 2026 and June 28, 2025, and $2 million and $20 million for the 26 weeks ended June 27, 2026 and June 28, 2025 respectively and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness. 6. Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net income and the removal of applicable discrete tax items. Applicable discrete tax items include changes in tax laws or rates, changes related to prior year unrecognized tax benefits, discrete changes in valuation allowances, and excess tax benefits associated with share-based compensation. The tax effect of pre-tax items excluded from Adjusted Net income is computed using a statutory tax rate after taking into account the impact of permanent differences and valuation allowances. 7. Adjusted Diluted EPS is calculated as Adjusted Net income divided by weighted average diluted shares outstanding. Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 27
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(unaudited) ($ in millions, except ratios) June 27, 2026 December 27, 2025 June 28, 2025 Total Debt (GAAP) $5,237 $5,200 $4,831 Cash, cash equivalents and restricted cash (56) (41) (61) Net Debt (non-GAAP) $5,181 $5,159 $4,770 Adjusted EBITDA(1) $2,012 $1,932 $1,833 Net Leverage Ratio(2) 2.6 2.7 2.6 Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios 28 (1) Trailing Twelve Months (TTM) Adjusted EBITDA. (2) Net Debt / TTM Adjusted EBITDA.