What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-08 · 104 added, 54 removed, 204 unchanged (44% of the section changed)

5 unchanged sentences

Information regarding reconciliations of and the rationale for these measures is discussed under “Non-GAAP Reconciliations” below.

Results of operations for the 13 weeks ended March 29, 2025 are compared to the 13 weeks ended March 30, 2024, unless specifically noted otherwise.

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.

At US Foods, we strive to inspire and empower chefs and foodservice operators to bring great food experiences to consumers.

14 unchanged sentences

Organic growth —Organic growth includes growth from operating businesses that have been reflected in our results of operations for at least 12 months.

For the 13 weeks ended March 29, 2025, compared to the same period a year ago, total case volume increased 1.1%, driven by a 2.5% increase in independent restaurant case volume, a 6.1% increase in healthcare volume, a 3.6% increase in hospitality volume, partially offset by a 4.3% decrease in chain volume.

For the 13 weeks ended March 29, 2025, compared to the same period a year ago, total organic case volume increased 0.1%, which includes 1.3% organic independent restaurant case volume growth.

Net sales increased $402 million, o r 4.5% for the 13 weeks ended March 29, 2025 , driven by case volume growth and food cost inflation of 3.0% for the 13 weeks ended March 29, 2025.

Gross profit increased $119 million, or 8.0%, to $1,614 million for the 13 weeks ended March 29, 2025.

For the 13 weeks ended March 29, 2025, the increase was primarily a result of an increase in total case volume, improved cost of goods sold, pricing optimization, and a favorable year-over-year LIFO adjustment.

Gross profit was negatively impacted by LIFO expense of $5 million and $45 million for the 13 weeks ended March 29, 2025 and March 30, 2024.

As a percentage of net sales, gross profit was 17.3% for the 13 weeks ended March 29, 2025, compared to 16.7% for the prior year period.

Total operating expenses increased $60 million, or 4.5%, to $1,390 million for the 13 weeks ended March 29, 2025.

For the 13 weeks ended March 29, 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 14.9% for the 13 weeks ended March 29, 2025 and March 30, 2024.

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.

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.

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.

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.

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.

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.

Results of Operations

The following table presents selected historical results of operations for the periods indicated:

13 Weeks Ended

March 29, 2025 March 30, 2024

13 weeks ended 26 weeks ended

June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024

Consolidated Statements of Operations:

7 unchanged sentences

Operating income 372 353 596 518

Other income—net (1) (1)

Other (income) expense—net (2) 3 (3) 2

Interest expense—net 74 81 151 160

7 unchanged sentences

Operating income

3.7 % 3.6 % 3.1 % 2.8 %

2.2 % 2.0 % 1.7 % 1.5 %

Adjusted EBITDA (1)

5.4 % 5.0 % 4.8 % 4.5 %

Cash flows—operating activities

$ 334 $ 482 $ 725 $ 621

Cash flows—investing activities

(75) (282) (205) (368)

Cash flows—financing activities

(299) (62) (518) (117)

Capital expenditures

77 69 161 156

489 458 826 729

Adjusted EBITDA (1)

548 489 937 845

Adjusted Net Income (1)

277 231 436 365

Free Cash Flow (2)

261 414 569 467

(1) EBITDA is defined as net income, plus interest expense—net, income tax provision, and depreciation and amortization.

33 unchanged sentences

The following table reconciles EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Free Cash Flow to the most directly comparable GAAP financial performance and liquidity measures for the periods indicated:

13 Weeks Ended

March 29, 2025 March 30, 2024

13 weeks ended 26 weeks ended

June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024

Net income and Net income margin $ 224 2.2% $ 198 2.0% 339 1.7% 280 1.5%

13 unchanged sentences

Income tax provision, as adjusted (6)

(95) (81) (150) (131)

Adjusted Net Income $ 277 $ 231 $ 436 $ 365

8 unchanged sentences

These costs generally relate to third party consulting and non-capitalizable technology.

For the 13 weeks ended March 29, 2025, business transformation costs related to projects associated with information technology infrastructure initiatives and workforce efficiencies.

For the 13 weeks ended March 30, 2024, business transformation costs related to projects associated with information technology and workforce efficiencies.

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.

(5) Includes:

(i) aggregate acquisition, integration related costs and divestiture costs of $13 million and $3 million for the 13 weeks ended March 29, 2025 and March 30, 2024, respectively;

(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.

3 unchanged sentences

A reconciliation between the GAAP income tax provision and the income tax provision, as adjusted, is as follows:

13 Weeks Ended

March 29, 2025 March 30, 2024

13 weeks ended 26 weeks ended

June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024

GAAP income tax provision $ 76 $ 71 $ 109 $ 76

3 unchanged sentences

Comparison of Results

13 Weeks Ended March 29, 2025 and March 30, 2024

13 weeks ended June 28, 2025 and June 29, 2024

• Net sales increased $373 million, or 3.8%, to $10,082 million in 2025.

4 unchanged sentences

• Adjusted EBITDA increased $59 million, or 12.1%, to $548 million in 2025.

As a percentage of net sales, Adjusted EBITDA was 4.2% in 2025, compared to 4.0% in 2024.

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

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 1.1% driven by a 2.5% increase in independent restaurant case volume, a 6.1% increase in healthcare volume, a 3.6% increase in hospitality volume, partially offset by a 4.3% decrease in chain volume.

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.

Gros s profit increased $119 million, or 8.0%, to $1,614 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 $5 million in 2025 compared to an expense of $45 million i n 2024 , driven by inflation.

Gross profit as a percentage of net sales was 17.3% in 2025, compared to 16.7% in 2024.

Gros s 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 to no expense i n 2024 , driven by inflation.

Gross profit as a percentage of net sales was 17.6% in both 2025 and 2024.

Operating Expenses

5 unchanged sentences

The increase in operating income was due to the factors discussed in the relevant sections above.

Other Income—Net

Other 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 $1 million in 2025 and other income—net of $1 million in 2024.

Other (Income) Expense—Net

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.

Interest Expense—Net

Interest expense—net decreased $2 million to $77 million in 2025 primarily due to lower interest rates in 2025 compared to 2024.

For the 13 weeks ended March 29, 2025, the Company’s effective income tax rate of 22% 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.

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.

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 March 30, 2024, the Company’s effective income tax rate of 6% 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 $15 million 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 $6 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 provision estimates.

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.

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.

26 weeks ended June 28, 2025 and June 29, 2024

• Net sales increased $775 million, or 4.2%, to $19,433 million in 2025.

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

• Total organic case volume increased 0.3% and organic independent restaurant case volume increased 1.8%.

• Operating income increased $78 million to $596 million in 2025.

• Net income increased $59 million to $339 million in 2025.

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

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

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.

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.

Operating Expenses

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.

Operating Income

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.

Other (Income) Expense—Net

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.

Interest Expense—Net

Interest expense—net decreased $9 million to $151 million in 2025 primarily due to lower interest rates and a favorable refinancing in the third quarter of fiscal 2024.

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.

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.

Liquidity and Capital Resources

1 unchanged sentence

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 March 29, 2025, the Company had approximately $1.8 billion in cash and available liquidity.

Debt Description Maturity Interest Rate as of March 29, 2025 Carrying Value as of March 29, 2025 Carrying Value as of December 28, 2024

As of June 28, 2025, the Company had approximately $2.0 billion in cash and available liquidity.

Debt Description Maturity Interest Rate as of June 28, 2025

Carrying Value as of June 28, 2025

Carrying Value as of December 28, 2024

ABL Facility December 7, 2027 7.50% $ 48 $ 223

13 unchanged sentences

Long-term debt $ 4,713 $ 4,819

We had outstanding borrowings totaling $75 million and had issued letters of credit totaling $567 million under the ABL Facility as of March 29, 2025.

There was remaining capacity of $1,658 million under the ABL Facility as of March 29, 2025.

Subsequent to the fiscal quarter ended March 29, 2025, outstanding letters of credit were reduced by approximately $118 million after additional surety bonds were issued in the first quarter of 2025 to secure the Company’s obligations with respect to its insurance program.

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.

As economic conditions permit, we will consider opportunities to repurchase, refinance or otherwise reduce our debt obligations on favorable terms.

2 unchanged sentences

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 $2.5 billion of restricted payment capacity under these covenants and approximately $2.1 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 March 29, 2025.

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.

We believe that the combination of cash generated from operations, together with borrowing capacity under the agreements governing our indebtedness and other financing arrangements, will be adequate to permit us to meet our debt service obligations, ongoing costs of operations, working capital needs, and capital expenditure requirements for the next 12 months.

9 unchanged sentences

26 weeks ended

March 29, 2025 March 30, 2024

June 28, 2025 June 29, 2024

Net income $ 339 $ 280

8 unchanged sentences

Operating Activities

Cash flows provided by operating activities was $391 million for the 13 weeks ended March 29, 2025, representing an increase of $252 million as compared to cash flows provided by operating activities of $139 million for the 13 weeks ended March 30, 2024, due to changes in operating assets and liabilities f or the 13 weeks ended March 29, 2025 compared to the 13 weeks ended March 30, 2024.

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 f or the 26 weeks ended June 28, 2025 compared to the 26 weeks ended June 29, 2024.

Investing Activities

During the 13 weeks ended March 29, 2025, the Company completed the asset acquisition of Jake’s Finer Foods.

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 13 weeks ended March 29, 2025, also included the cash proceeds from the sale of Freshway of $38 million .

In addition, c ash flows used in investing activities in the 13 weeks ended March 29, 2025 and March 30, 2024 included cash expenditures of $84 million and $87 million, respectively, related to investments in information technology, property and equipment and maintenance of distribution facilities.

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, c ash 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.

We expect total cash capital expenditures in fisc al 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 and through fleet financing.

We expect to fund our capital expenditures with available cash or cash generated from operations.

Financing Activities

Cash flows used in financing activities in the 13 weeks ended March 29, 2025 included $147 million in net payments under the ABL Facility and $23 million in scheduled payments under our financing leases.

Financing activities in the 13 weeks ended March 29, 2025 also included $23 million common stock repurchased under the Amended Share Repurchase Program, $6 million of proceeds received from stock purchases under our employee stock purchase plan, $1 million of proceeds from the exercise of employee stock options, which were offset by $33 million of employee tax withholdings paid in connection with the vesting of stock awards.

Cash flows used by financing activities in the 13 weeks ended March 30, 2024 included $31 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 13 weeks ended March 30, 2024 also included $13 million common stock repurchased under the Amended Share Repurchase Program, $5 million of proceeds received from stock purchases under our employee stock purchase plan, $5 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.

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.

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.

Other Obligations and Commitments

4 unchanged sentences

Off-Balance Sheet Arrangements

We had $567 million of letters of credit outstanding primarily securing the Company’s obligations with respect to its insurance program and certain real estate leases, under the ABL Facility as of March 29, 2025.

For the 13 weeks ended March 29, 2025 and for the fiscal year ended December 28, 2024, we held approximately $176 million and $58 million of surety bonds, primarily in favor of certain commercial insurers to secure obligations with respect to our insurance programs.

We had $315 million of letters of credit outstanding primarily securing the Company’s obligations with respect to certain real estate leases, under the ABL Facility as of June 28, 2025.

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.

Except as disclosed above, we have no off-balance sheet arrangements that currently have or are reasonably likely to have a material effect on our consolidated financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

5 unchanged sentences

Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 Annual Report includes a summary of the critical accounting policies we believe are the most important to aid in understanding our financial results.

There have been no changes to those critical accounting policies that have had a material impact on our reported amounts of assets, liabilities, revenue, or expenses during the 13 weeks ended March 29, 2025.

There have been no changes to those critical accounting policies that have had a material impact on our reported amounts of assets, liabilities, revenue, or expenses during the 26 weeks ended June 28, 2025.

Recent Accounting Pronouncements

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis