US Foods Holding Corp.

Previous wording

The following discussion and analysis should be read together with the accompanying unaudited consolidated financial statements and the notes thereto included in this Quarterly Report and the audited consolidated financial statements and the notes thereto in the 2024 Annual Report. The following discussion and analysis contain certain financial measures that are not required by or presented in accordance with GAAP. We believe these non-GAAP measures provide meaningful supplemental information about our operating performance and liquidity. Information regarding reconciliations of and the rationale for these measures is discussed under “Non-GAAP Reconciliations” below. Results of operations for the 13 weeks and 26 weeks ended June 28, 2025 are compared to the 13 weeks and 26 weeks ended June 29, 2024, unless specifically noted otherwise.

Current wording

The following discussion and analysis should be read together with the accompanying unaudited consolidated financial statements and the notes thereto included in this Quarterly Report and the audited consolidated financial statements and the notes thereto in the 2024 Annual Report. The following discussion and analysis contain certain financial measures that are not required by or presented in accordance with GAAP. We believe these non-GAAP measures provide meaningful supplemental information about our operating performance and liquidity. Information regarding reconciliations of and the rationale for these measures is discussed under “Non-GAAP Reconciliations” below. Results of operations for the 13 weeks and 39 weeks ended September 27, 2025 are compared to the 13 weeks and 39 weeks ended September 28, 2024, unless specifically noted otherwise.

Previous wording

At US Foods, we strive to inspire and empower chefs and foodservice operators to bring great food experiences to consumers. This mission is supported by our strategy of WE HELP YOU MAKE IT™, which is centered on bringing four key elements to the forefront for our customers; (1) more quality products, including our large portfolio of exclusive brands, (2) more tools, centering on our MOXē business platform, (3) more support from our sellers and our team of experts and lastly, (4) more deliveries, enabled by our traditional broadline services and Pronto™ program. We operate as one business with standardized business processes, shared systems infrastructure, and an organizational model that optimizes national scale with local execution, allowing us to manage our business as a single operating segment. We have centralized activities where scale matters and our local field structure focuses on customer-facing activities.

Current wording

At US Foods, we strive to inspire and empower chefs and foodservice operators to bring great food experiences to consumers. This mission is supported by our brand promise of WE HELP YOU MAKE IT™. Our promise brings three key elements to the forefront for our customers; (1) more quality products, like our large and diverse Exclusive Brand portfolio that is based on consistency, freshness and innovation, (2) more tools, centering on our best-in-industry ecommerce platform, MOXē, and (3) more deliveries, with expanded options for on-time delivery enabled by our traditional broadline services and our convenient and flexible Pronto™ program. We operate as one business with standardized business processes, shared systems infrastructure, and an organizational model that optimizes national scale with local execution, allowing us to manage our business as a single operating segment. We have centralized activities where scale matters and our local field structure focuses on customer-facing activities.

Previous wording

We supply approximately 250,000 customer locations nationwide. These customer locations include independent restaurants, chain restaurants, healthcare, hospitality, education and other customers. We provide fresh, frozen, and dry food products, as well as non-food items, sourced from thousands of suppliers. Approximately 4,000 sales associates manage customer relationships at local, regional, and national levels. Our sales associates are supported by sophisticated marketing and category management capabilities, as well as a sales support team that includes world-class chefs and restaurant operations consultants, new business development managers and others that help us provide more comprehensive service to our customers. Our extensive network of over 70 distribution facilities and fleet of over 6,500 trucks, along with over 90 cash and carry locations, allow us to operate efficiently and provide high levels of customer service. This operating model allows us to leverage our nationwide scale and footprint while executing locally.

Current wording

We supply approximately 250,000 customer locations nationwide. These customer locations include independent restaurants, chain restaurants, healthcare, hospitality, education and other customers. We provide fresh, frozen, and dry food products, as well as non-food items, sourced from thousands of suppliers. Approximately 4,000 sales associates manage customer relationships at local, regional, and national levels. Our sales associates are supported by sophisticated marketing and category management capabilities, as well as world-class chefs, new business development managers and others that help us provide more comprehensive service to our customers. Our extensive network of over 70 distribution facilities and fleet of over 6,500 trucks, along with over 90 cash and carry locations, allow us to operate efficiently and provide high levels of customer service. This operating model allows us to leverage our nationwide scale and footprint while executing locally.

Previous wording

For the 13 weeks ended June 28, 2025, compared to the same period a year ago, total case volume increased 0.9%, driven by a 2.7% increase in independent restaurant case volume, a 4.9% increase in healthcare volume and a 2.4% increase in hospitality volume, partially offset by a 4.0% decrease in chain volume.

Current wording

For the 13 weeks ended September 27, 2025, compared to the same period a year ago, total case volume increased 1.1%, driven by a 3.9% increase in independent restaurant case volume, a 3.9% increase in healthcare volume and a 2.4% increase in hospitality volume, partially offset by a 2.4% decrease in chain volume.

Previous wording

For the 26 weeks ended June 28, 2025, compared to the same period a year ago, total case volume increased 1.0%, driven by a 2.6% increase in independent restaurant case volume, a 5.5% increase in healthcare volume and a 3.0% increase in hospitality volume, partially offset by a 4.2% decrease in chain volume.

Current wording

For the 39 weeks ended September 27, 2025, compared to the same period a year ago, total case volume increased 1.0%, driven by a 3.0% increase in independent restaurant case volume, a 4.9% increase in healthcare volume and a 2.8% increase in hospitality volume, partially offset by a 3.6% decrease in chain volume.

Previous wording

For the 13 weeks and 26 weeks ended June 28, 2025, compared to the same period a year ago, total organic case volume increased 0.5% and 0.3%, respectively, which includes 2.3% and 1.8% organic independent restaurant case volume growth for the 13 weeks and 26 weeks ended June 28, 2025, respectively.

Current wording

For the 13 weeks and 39 weeks ended September 27, 2025, compared to the same period a year ago, total organic case volume increased 0.8% and 0.5%, respectively, which includes 3.5% and 2.4% organic independent restaurant case volume growth for the 13 weeks and 39 weeks ended September 27, 2025, respectively.

Previous wording

Net sales increased $373 million, or 3.8%, and $775 million, or 4.2%, for the 13 weeks and 26 weeks ended June 28, 2025, respectively, driven by case volume growth and food cost inflation of 2.5% and 2.7% for the 13 weeks and 26 weeks ended June 28, 2025, respectively.

Current wording

Net sales increased $463 million, or 4.8%, and $1,238 million, or 4.4%, for the 13 weeks and 39 weeks ended September 27, 2025, respectively, driven by case volume growth and food cost inflation of 3.0% and 2.8% for the 13 weeks and 39 weeks ended September 27, 2025, respectively.

Previous wording

Gross profit increased $71 million, or 4.2%, to $1,777 million for the 13 weeks ended June 28, 2025, and increased $190 million or 5.9%, to $3,391 million for the 26 weeks ended June 28, 2025. For the 13 weeks ended June 28, 2025 the increase was primarily a result of an increase in total case volume, improved cost of goods sold and inventory management, partially offset by an unfavorable year-over-year LIFO adjustment. For the 26 weeks ended June 28, 2025, the increase was primarily a result of an increase in total case volume, improved cost of goods sold, inventory management and a favorable year-over-year LIFO adjustment. Gross profit was negatively impacted by LIFO expense of $14 million and $19 million, for the 13 weeks and 26 weeks ended June 28, 2025, respectively. Gross profit was not impacted by LIFO benefit or expense for the 13 weeks ended June 29, 2024. Gross profit was negatively impacted by LIFO expense of $45 million for the 26 weeks ended June 29, 2024. As a percentage of net sales, gross profit was 17.6% for both the 13 weeks ended June 28, 2025, and June 29, 2024, and 17.4% and 17.2% for the 26 weeks ended June 28, 2025, and June 29, 2024, respectively.

Current wording

Gross profit increased $86 million, or 5.2%, to $1,753 million for the 13 weeks ended September 27, 2025, and increased $276 million or 5.7%, to $5,144 million for the 39 weeks ended September 27, 2025. For the 13 weeks ended September 27, 2025 the increase was primarily a result of an increase in total case volume, improved cost of goods sold and inventory management, partially offset by an unfavorable year-over-year LIFO adjustment. For the 39 weeks ended September 27, 2025, the increase was primarily a result of an increase in total case volume, improved cost of goods sold, inventory management and a favorable year-over-year LIFO adjustment. Gross profit was negatively impacted by LIFO expense of $46 million and $65 million for the 13 weeks and 39 weeks ended September 27, 2025, respectively. Gross profit was negatively impacted by LIFO expense of $23 million and $68 million for the 13 weeks and 39 weeks ended September 28, 2024. As a percentage of net sales, gross profit was 17.2% and 17.1% for the 13 weeks ended September 27, 2025, and September 28, 2024, and 17.4% and 17.1% for the 39 weeks ended September 27, 2025, and September 28, 2024, respectively.

Previous wording

Total operating expenses increased $52 million, or 3.8%, to $1,405 million for the 13 weeks ended June 28, 2025, and increased $112 million, or 4.2%, to $2,795 million for the 26 weeks ended June 28, 2025. For the 13 weeks and 26 weeks ended June 28, 2025, the increase was primarily a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. As a percentage of net sales, operating expenses were 13.9% for both the 13 weeks ended June 28, 2025 and June 29, 2024, and 14.4% for both the 26 weeks ended June 28, 2025 and June 29, 2024.

Current wording

Total operating expenses increased $83 million, or 6.0%, to $1,471 million for the 13 weeks ended September 27, 2025, and increased $195 million, or 4.8%, to $4,266 million for the 39 weeks ended September 27, 2025. For the 13 weeks and 39 weeks ended September 27, 2025, the increase was primarily a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. As a percentage of net sales, operating expenses were 14.4% and 14.3% for the 13 weeks ended September 27, 2025 and September 28, 2024, respectively, and 14.4% and 14.3% for the 39 weeks ended September 27, 2025 and September 28, 2024, respectively.

Previous wording

(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 workforce efficiencies.

Current wording

(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 39 weeks ended September 27, 2025 and September 28, 2024, business transformation costs related to projects associated with information technology infrastructure initiatives and workforce efficiencies.

Previous wording

(5) Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $7 million and $8 million for the 13 weeks and 26 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.

Current wording

(5) Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $6 million and $6 million for the 13 weeks and 39 weeks ended September 27, 2025 and September 28, 2024, respectively, and $24 million and $17 million for the 39 weeks ended September 27, 2025 and September 28, 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.

Previous wording

•Adjusted EBITDA as a percentage of net sales was 5.4% in 2025, compared to 5.0% in 2024.

Current wording

•Adjusted EBITDA as a percentage of net sales was 5.0% in 2025, compared to 4.7% in 2024.

Previous wording

Net sales increased $775 million, or 4.2%, to $19,433 million in 2025, driven by case volume growth and food cost inflation of 2.7%. Total case volume increased 1.0% driven by a 2.6% increase in independent restaurant case volume, a 5.5% increase in healthcare volume, a 3.0% increase in hospitality volume, partially offset by a 4.2% decrease in chain volume. Total organic case volume increased 0.3% and organic independent restaurant case volume increased 1.8%. Organic broadline cases of private brands represented approximately 35% of total cases in both 2025 and 2024.

Current wording

Net sales increased $463 million or 4.8%, to $10,191 million in 2025, driven by case volume growth and food cost inflation of 3.0%. Total case volume increased 1.1% driven by a 3.9%increase in independent restaurant case volume, a 3.9%increase in healthcare volume and a 2.4%increase in hospitality volume, partially offset by a 2.4%decrease in chain volume. Total organic case volume increased 0.8% and organic independent restaurant case volume increased 3.5%. Organic broadline cases of private brands represented approximately 35% of total cases in 2025 and 2024.

Previous wording

Gross profit increased $71 million, or 4.2%, to $1,777 million in 2025, primarily as a result of an increase in total case volume, improved cost of goods sold and pricing optimization, partially offset by an unfavorable year-over-year LIFO adjustment. Our LIFO method of inventory costing resulted in an expense of $14 million in 2025 compared tono expense in 2024, driven by inflation. Gross profit as a percentage of net sales was 17.6% in both 2025 and 2024.

Current wording

Gross profit increased $86 million, or 5.2%, to $1,753 million in 2025, primarily as a result of an increase in total case volume, improved cost of goods sold and inventory management, partially offset by an unfavorable year-over-year LIFO adjustment. Our LIFO method of inventory costing resulted in an expense of $46 million in 2025 compared to $23 million expense in 2024, driven by inflation and an increase in inventory values in multiple categories. Gross profit as a percentage of net sales was 17.2% in 2025, compared to 17.1% in 2024.

Previous wording

Operating expenses, comprised of distribution, selling and administrative costs, increased $112 million or 4.2%, to $2,795 million in 2025. Operating expenses increased primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. Operating expenses as a percentage of net sales were 14.4% in both 2025 and 2024.

Current wording

Operating expenses, comprised of distribution, selling and administrative costs, increased $83 million, or 6.0%, to $1,471 million in 2025. Operating expenses increased primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. Operating expenses as a percentage of net sales were 14.4% in 2025, compared to 14.3% in 2024.

Previous wording

Our operating income was $372 million in 2025, compared to operating income of $353 million in 2024. The increase in operating income was due to the factors discussed in the relevant sections above.

Current wording

Our operating income was $282 million in 2025, compared to operating income of $279 million in 2024. The increase in operating income was due to the factors discussed in the relevant sections above.

Previous wording

Other (income) expense—net includes components of net periodic pension benefit credits, exclusive of the service cost component associated with our defined benefit and other postretirement plans. We recognized other income—net of $2 million in 2025 and other expense—net of$3 million in 2024.

Current wording

Other expense—net includes components of net periodic pension benefit credits, exclusive of the service cost component associated with our defined benefit and other postretirement plans. We did not recognize other expense (income)—net in 2025 and recognized other expense—net of$3 million in 2024.

Previous wording

For the 13 weeks ended June 28, 2025, the Company’s effective income tax rate of 25% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit $2 million, primarily related to excess tax benefits associated with share-based compensation. For the 13 weeks ended June 29, 2024, the Company’s effective income tax rate of 26% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $1 million related to a decrease in an unrecognized tax benefit as a result of the expiration of the statute of limitations in several jurisdictions and a tax benefit of $1 million, primarily related to excess tax benefits associated with share-based compensation.

Current wording

For the 13 weeks ended September 27, 2025, the Company’s effective income tax rate of 26% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. The discrete tax items were not material individually or in the aggregate. For the 13 weeks ended September 28, 2024, the Company’s effective income tax rate of 26% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $1 million related to a decrease in an unrecognized tax benefit as a result of the expiration of the statute of limitations in several jurisdictions and a tax benefit of $1 million, primarily related to excess tax benefits associated with share-based compensation.

Previous wording

Our net income was $224 million in 2025, compared to a net income of $198 million in 2024. The improvement in net income was due to the relevant factors discussed above.

Current wording

Our net income was $153 million in 2025, compared to a net income of $148 million in 2024. The improvement in net income was due to the relevant factors discussed above.

Previous wording

•Total case volume increased 1.0% and independent restaurant case volume increased 2.6%.

Current wording

•Total case volume increased 1.0% and independent restaurant case volume increased 3.0%.

Previous wording

•Total organic case volume increased 0.5% and organic independent restaurant case volume increased 2.3%.

Current wording

•Total organic case volume increased 0.5% and organic independent restaurant case volume increased 2.4%.

Previous wording

•Adjusted EBITDA increased $92 million, or 10.9%, to $937 million in 2025.

Current wording

•Adjusted EBITDA increased $142 million, or 10.9%, to $1,442 million in 2025.

Previous wording

•Adjusted EBITDA as a percentage of net sales was 4.8% in 2025, compared to 4.5% in 2024.

Current wording

•Adjusted EBITDA as a percentage of net sales was 4.9% in 2025, compared to 4.6% in 2024.

Previous wording

Net sales increased $373 million or 3.8%, to $10,082 million in 2025, driven by case volume growth and food cost inflation of 2.5%. Total case volume increased 0.9% driven by a 2.7% increase in independent restaurant case volume, a 4.9% increase in healthcare volume and a 2.4% increase in hospitality volume, partially offset by a 4.0% decrease in chain volume. Total organic case volume increased 0.5% and organic independent restaurant case volume increased 2.3%. Organic broadline cases of private brands represented approximately 35% of total cases in 2025 and 2024.

Current wording

Net sales increased $1,238 million, or 4.4%, to $29,624 million in 2025, driven by case volume growth and food cost inflation of 2.8%. Total case volume increased 1.0% driven by a 3.0% increase in independent restaurant case volume, a 4.9% increase in healthcare volume, a 2.8% increase in hospitality volume, partially offset by a 3.6% decrease in chain volume. Total organic case volume increased 0.5% and organic independent restaurant case volume increased 2.4%. Organic broadline cases of private brands represented approximately 35% and 34% of total cases in 2025 and 2024, respectively.

Previous wording

Gross profit increased $190 million, or 5.9%, to $3,391 million in 2025, primarily as a result of an increase in total case volume, improved cost of goods sold, pricing optimization, and a favorable year-over-year LIFO adjustment. Our LIFO method of inventory costing resulted in an expense of $19 million in 2025 compared to an expense of $45 million in 2024 driven by inflation. Gross profit as a percentage of net sales was 17.4% in 2025, compared to 17.2% in 2024.

Current wording

Gross profit increased $276 million, or 5.7%, to $5,144 million in 2025, primarily as a result of an increase in total case volume, improved cost of goods sold, pricing optimization, and a favorable year-over-year LIFO adjustment. Our LIFO method of inventory costing resulted in an expense of $65 million in 2025 compared to an expense of $68 million in 2024 driven by inflation and an increase in inventory values in multiple categories. Gross profit as a percentage of net sales was 17.4% in 2025, compared to 17.1% in 2024.

Previous wording

Operating expenses, comprised of distribution, selling and administrative costs, increased $52 million, or 3.8%, to $1,405 million in 2025. Operating expenses increased primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. Operating expenses as a percentage of net sales were 13.9% in both 2025 and 2024.

Current wording

Operating expenses, comprised of distribution, selling and administrative costs, increased $195 million or 4.8%, to $4,266 million in 2025. Operating expenses increased primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. Operating expenses as a percentage of net sales were 14.4% in 2025, compared to 14.3% in 2024.

Previous wording

Our operating income was $596 million in 2025, compared to operating income of $518 million in 2024. The increase in operating income was due to the factors discussed in the relevant sections above.

Current wording

Our operating income was $878 million in 2025, compared to operating income of $797 million in 2024. The increase in operating income was due to the factors discussed in the relevant sections above.

Previous wording

Other (income) expense—net includes components of net periodic pension benefit credits, exclusive of the service cost component associated with our defined benefit and other postretirement plans. We recognized other income—net of $3 million in 2025 and other expense—net $2 million in 2024.

Current wording

Other expense (income)—net includes components of net periodic pension benefit credits, exclusive of the service cost component associated with our defined benefit and other postretirement plans. We recognized other income—net of $3 million in 2025 and other expense—net $5 million in 2024.

Previous wording

Interest expense—net decreased $7 million to $74 million in 2025 primarily due to lower interest rates and a favorable refinancing in the third quarter of fiscal 2024.

Current wording

Interest expense—net decreased $8 million to $227 million in 2025 primarily due to lower interest rates and a favorable refinancing in the third quarter of fiscal 2024.

Previous wording

For the 26 weeks ended June 28, 2025, the Company’s effective income tax rate of 24% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $8 million primarily related to excess tax benefits associated with share-based compensation. For the 26 weeks ended June 29, 2024, our effective income tax rate of 21% was equivalent to the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $16 million, primarily related to a decrease in an unrecognized tax benefit as a result of the expiration of the statute of limitations in several jurisdictions, a tax benefit of $7 million, primarily related to excess tax benefits associated with share-based compensation and a tax expense of $3 million, primarily related to adjustments to prior year tax provision estimates.

Current wording

For the 39 weeks ended September 27, 2025, the Company’s effective income tax rate of 25% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $8 million primarily related to excess tax benefits associated with share-based compensation. For the 39 weeks ended September 28, 2024, our effective income tax rate of 23% was equivalent to the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $17 million, primarily related to a decrease in an unrecognized tax benefit as a result of the expiration of the statute of limitations in several jurisdictions, a tax benefit of $8 million, primarily related to excess tax benefits associated with share-based compensation and a tax expense of $3 million, primarily related to adjustments to prior year tax provision estimates.

Previous wording

Our net income was $339 million in 2025, compared to net income of $280 million in 2024. The improvement in net income was due to the relevant factors discussed above.

Current wording

Our net income was $492 million in 2025, compared to net income of $428 million in 2024. The improvement in net income was due to the relevant factors discussed above.

Previous wording

Our ongoing operations and strategic objectives require working capital and continuing capital investment. Our primary sources of liquidity include cash provided by operations, as well as access to capital from bank borrowings and other types of debt and financing arrangements. As of June 28, 2025, the Company had approximately $2.0 billion in cash and available liquidity.

Current wording

Our ongoing operations and strategic objectives require working capital and continuing capital investment. Our primary sources of liquidity include cash provided by operations, as well as access to capital from bank borrowings and other types of debt and financing arrangements. As of September 27, 2025, the Company had approximately $1.9 billion in cash and available liquidity.

Previous wording

We had outstanding borrowings totaling $48 million and had issued letters of credit totaling $315 million under the ABL Facility as of June 28, 2025. There was remaining capacity of $1,937 million under the ABL Facility as of June 28, 2025. During the 26 weeks ended June 28, 2025, outstanding letters of credit were reduced by approximately $254 million after additional surety bonds were issued in the first and second quarter of fiscal year 2025 to secure the Company’s obligations with respect to its insurance program.

Current wording

We had outstanding borrowings totaling $162 million and had issued letters of credit totaling $315 million under the ABL Facility as of September 27, 2025. There was remaining capacity of $1,822 million under the ABL Facility as of September 27, 2025. During the 39 weeks ended September 27, 2025, outstanding letters of credit were reduced by approximately $254 million after additional surety bonds were issued in the first and second quarter of fiscal year 2025 to secure the Company’s obligations with respect to its insurance program.

Previous wording

The agreements governing our indebtedness contain customary covenants. These include, among other things, covenants that restrict our ability to incur certain additional indebtedness, create or permit liens on our assets, pay dividends, or engage in mergers or consolidations. The Company had approximately $2.6 billion of restricted payment capacity under these covenants and approximately $2.0 billion of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation as of June 28, 2025.

Current wording

The agreements governing our indebtedness contain customary covenants. These include, among other things, covenants that restrict our ability to incur certain additional indebtedness, create or permit liens on our assets, pay dividends, or engage in mergers or consolidations. The Company had approximately $2.7 billion of restricted payment capacity under these covenants and approximately $1.7 billion of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation as of September 27, 2025.

Previous wording

Cash flows provided by operating activities was $725 million for the 26 weeks ended June 28, 2025, representing an increase of $104 million as compared to cash flows provided by operating activities of $621 million for the 26 weeks ended June 29, 2024, driven by higher net income for the 26 weeks ended June 28, 2025 compared to the 26 weeks ended June 29, 2024.

Current wording

Cash flows provided by operating activities was $1,076 million for the 39 weeks ended September 27, 2025, representing an increase of $185 million as compared to cash flows provided by operating activities of $891 million for the 39 weeks ended September 28, 2024, driven by higher net income and a reduction in tax payments for the 39 weeks ended September 27, 2025 compared to the 39 weeks ended September 28, 2024.

Previous wording

During the 26 weeks ended June 28, 2025, the Company completed the asset acquisition of Jake’s Finer Foods. Cash paid for the acquisition of Jake’s Finer Foods consisted of cash of approximately $87 million. Investing activities for the 26 weeks ended June 28, 2025, also included the cash proceeds from the sale of Freshway of$38 million. In addition, cash flows used in investing activities in the 26 weeks ended June 28, 2025 and June 29, 2024 included cash expenditures of $161 million and $156 million, respectively, related to investments in information technology, property and equipment and improvement of distribution facilities.

Current wording

During the 39 weeks ended September 27, 2025, the Company completed the asset acquisition of Jake’s Finer Foods. Cash paid for the acquisition of Jake’s Finer Foods consisted of cash of approximately $87 million. Investing activities for the 39 weeks ended September 27, 2025, also included the cash proceeds from the sale of Freshway of$38 million. In addition, cash flows used in investing activities in the 39 weeks ended September 27, 2025 and September 28, 2024 included cash expenditures of $276 million and $236 million, respectively, related to investments in information technology, property and equipment and construction of and improvements to distribution facilities.

Previous wording

We expect total cash capital expenditures in fiscal year 2025 to be between $375 million and $425 million. We expect to fund our capital expenditures with available cash or cash generated from operations.

Current wording

We expect total cash capital expenditures in fiscal year 2025 to be between $395 million and $410 million. We expect to fund our capital expenditures with available cash or cash generated from operations.

Previous wording

Cash flows used in financing activities in the 26 weeks ended June 28, 2025 included $175 million in net payments under the ABL Facility and $77 million in scheduled payments under our financing leases. Financing activities in the 26 weeks ended June 28, 2025 also included $270 million common stock repurchased under the Original Share Repurchase Program and the New Share Repurchase Program, $16 million of proceeds received from stock purchases under our employee stock purchase plan, $5 million of proceeds from the exercise of employee stock options, which were offset by $34 million of employee tax withholdings paid in connection with the vesting of stock awards.

Current wording

Cash flows used in financing activities in the 39 weeks ended September 27, 2025 included $61 million in net payments under the ABL Facility and $86 million in scheduled payments under our financing leases. Financing activities in the 39 weeks ended September 27, 2025 also included $602 million common stock repurchased under the Original Share Repurchase Program and the New Share Repurchase Program, $22 million of proceeds received from stock purchases under our employee stock purchase plan, $6 million of proceeds from the exercise of employee stock options, which were offset by $35 million of employee tax withholdings paid in connection with the vesting of stock awards.

Previous wording

Cash flows used by financing activities in the 26 weeks ended June 29, 2024 included $65 million of scheduled payments under our Term Loan Facilities and financing leases, $14 million for repricing of the 2021 Incremental Term Loan Facility, $1 million of financing fees related to the 2021 Incremental Term Loan Facility repricing and no net payments under the ABL Facility. Financing activities in the 26 weeks ended June 29, 2024 also included $54 million common stock repurchased under the Amended Share Repurchase Program, $14 million of proceeds received from stock purchases under our employee stock purchase plan, $9 million of proceeds from the exercise of employee stock options and $20 million of employee tax withholdings paid in connection with the vesting of stock awards.

Current wording

Cash flows used by financing activities in the 39 weeks ended September 28, 2024 included $91 million of scheduled payments under our Term Loan Facilities and financing leases, $75 million in net proceeds under the ABL Facility, $14 million for repricing of the 2021 Incremental Term Loan Facility, $1 million of financing fees related to the 2021 Incremental Term Loan Facility repricing and no net payments under the ABL Facility. Financing activities in the 39 weeks ended September 28, 2024 also included $628 million common stock repurchased under the Amended Share Repurchase Program, $19 million of proceeds received from stock purchases under our employee stock purchase plan, $14 million of proceeds from the exercise of employee stock options and $20 million of employee tax withholdings paid in connection with the vesting of stock awards.

Previous wording

We held approximately $327 million and $58 million of surety bonds, as of June 28, 2025 and year ended December 28, 2024, respectively, primarily in favor of certain commercial insurers to secure obligations with respect to our insurance programs . In certain cases, surety bonds may be used as an alternative to letters of credit. For the 26 weeks ended June 28, 2025, outstanding letters of credit were reduced by approximately $254 million after additional surety bonds were issued in the first and second quarter of 2025 to secure the Company’s obligations with respect to its insurance program.

Current wording

We held approximately $327 million and $58 million of surety bonds, as of September 27, 2025 and year ended December 28, 2024, respectively, primarily in favor of certain commercial insurers to secure obligations with respect to our insurance programs . In certain cases, surety bonds may be used as an alternative to letters of credit. For the 39 weeks ended September 27, 2025, outstanding letters of credit were reduced by approximately $254 million after additional surety bonds were issued in the first and second quarter of 2025 to secure the Company’s obligations with respect to its insurance program.