Aug 6, 2026 earnings call — Pronto growth and margin expansion
Company reported net sales of $10.5 billion and record adjusted EBITDA of $604 million, with adjusted diluted EPS of $1.44.
Revenue $10.5B (est $10.5B) · EPS $1.44 (est $1.36)
Key quotes
"After delivering $1 billion in sales in 2025, we estimate Pronto will deliver approximately $1.3 billion in sales this year."
"AI is embedded in the way we serve our customers, enable our sales force, optimize our supply chain and manage core enterprise functions."
"During the first half of the year, we generated more than $50 million in additional cost of goods savings, and we are highly confident in our ability to deliver more than $300 million over the 3-year long-range plan ending in 2027."
Analyst Q&A 14
Independent restaurant case growth drivers
Q (Lauren Silberman · Deutsche Bank): Analyst asked about the cadence of independent case growth, what is driving the acceleration, and whether the sales compensation change will further accelerate share gains.
A: Management said growth was fairly consistent through the quarter and the strongest since second quarter of 2023. They said net new account generation is the lifeblood of growth and the sales compensation change will be a long-term growth driver, though it will take time to fully ramp and get everyone to full commission rate.
"I feel really good, to your point, the strongest since second quarter of 2023, lots of good momentum, consistent with what we've been accelerating over the past 4 or 5 quarters here." — David Flitman (CEO·CHAIR)
Early effects of new sales comp plan
Q (Samuel Barton · Melius): Analyst wanted specifics on what behaviors or results changed from the new sales compensation plan and how to separate its early impact from prior independent momentum.
A: Management said it is early to judge, but they are seeing early behaviors aligned to strategy: focus on brands, independent restaurants, growth, and incenting Pronto. They noted turnover is flat and teams are excited, with early returns visible after about a month.
"But I would just say that the early behaviors that we've seen around growth, and as you'll recall, we aligned specifically this compensation plan exactly with our strategy." — David Flitman (CEO·CHAIR)
Pronto rollout and margins
Q (Alexander Slagle · Jefferies): Analyst asked about progress on Pronto investments, which markets or customers show success, and how margins are being managed as growth accelerates.
A: Management said Pronto is a multiyear program that was piloted carefully to ensure margins and avoid cannibalizing broadline business. Having proven the model, they are accelerating penetration across existing markets and customers and expect the model to drive future growth, citing $1.3 billion this year.
"But what you've seen us do then over the past few quarters is start to accelerate that penetration across our existing markets with our existing customers because we are confident in the model." — David Flitman (CEO·CHAIR)
July momentum and AI opportunities
Q (Edward Kelly · Wells Fargo): Analyst asked what July looked like for independent volumes and how big the long-term AI opportunity could be across sales and supply chain.
A: Management said July was consistent with Q2 and momentum was maintained, and they expect that to continue with the sales comp change layered on. They described many practical AI applications already in use—from Menu IQ and Visit Assistant to routing and labor tools—and said these are early innings but could be transformational while supporting near-term performance.
"All of these applications are AI-based and very practically oriented around our customer, making it easier to do business with us." — David Flitman (CEO·CHAIR)
Penetration, drop size, and productivity
Q (John Heinbockel · Guggenheim): Analyst asked about drop size/penetration trends and whether AI and comp changes could meaningfully move penetration; also where productivity sits within the 3%–5% target and differences between transportation and warehouse.
A: Management said penetration has improved sequentially for several quarters and lines per customer are up, though cases per line remain pressured by foot traffic. They said productivity remains in the 3% to 4% range, and year-to-year either warehouse or delivery can be slightly higher or lower.
"John, so we're still in that 3% to 4% range. And depending on the year, warehouse or delivery can be a little higher, a little lower." — Dirk Locascio (CFO)
Net new accounts and comp plan early signs
Q (Kelly Bania · BMO): Analyst asked whether recent independent growth came more from new accounts or penetration and whether salesforce behavior changed ahead of the comp changes.
A: Management said net new account generation accelerated and was as strong as it's been in 3 years this quarter. They also said early green shoots are appearing from the comp plan around independent growth, Pronto, and brand penetration, but it's only been 30–40 days so more is to come; turnover has not increased.
"In fact, this quarter, Kelly, our net new account generation was as strong as it's been in 3 years." — David Flitman (CEO·CHAIR)
Sales headcount and talent pool
Q (Mark Carden · UBS): Analyst asked how sales headcount grew in 2Q, whether the company will change its approach in H2, and whether the variable comp model affected the talent pool.
A: Management said their mid-single-digit headcount growth target is unchanged but they were up 8% in seller headcount in Q2 after hiring ahead of any potential turnover; they expect that to settle back. They said it's early but the variable model may attract a different type of seller over time.
"I will tell you, in the second quarter, we're up 8% in seller headcount." — David Flitman (CEO·CHAIR)
Hospitality and health care growth drivers
Q (Brian Harbour · Morgan Stanley): Analyst asked whether health care and hospitality strength was driven by account wins or same-store penetration, and whether positive comp feedback would speed implementation.
A: Management said a lot of the strength comes from converting a robust pipeline into new business, though some same-store penetration exists; both will continue. They noted comp change is fully implemented but includes an individual click-down process and will play out as designed.
"And that team has done a really nice job of continuing to have a very robust pipeline, bring our value proposition to life with those customers and bring them on and continue to serve them." — Dirk Locascio (CFO)
EBITDA margin upside and GLP-1 impact
Q (Peter Saleh · BTIG): Analyst asked if there's a cap on EBITDA margin expansion and whether any regions act as a higher-margin benchmark; also asked about GLP-1s' effect on consumer behavior.
A: Management said they don't see a near-term cap and expect to continue delivering on their targeted year-over-year basis points, with some markets and facilities already higher margin than others. They reported nothing remarkable on GLP-1s this quarter and said about half of what they sell is fresh, so they are supporting customers as culinary desires shift.
"Because we're doing -- driving that growth through various initiatives, we really don't see a cap." — Dirk Locascio (CFO)
Tuck-in M&A contribution
Q (Karen Holthouse · Citi): Analyst asked how tuck-in M&A will contribute to independent case growth in the second half and if any commodities were outsized contributors to inflation or deflation.
A: Management said M&A will be a pretty small contribution in the second half, with one very small transaction running into early Q4 and timing-dependent deals unlikely to meaningfully impact the quarter. They said proteins and produce showed inflation in Q2, dairy had less deflation, and broad grocery was modestly inflationary.
"For the second half, we expect M&A to be a pretty small contribution." — Dirk Locascio (CFO)
Truck driver availability and labor outlook
Q (Danilo Gargiulo · Bernstein): Analyst asked about truck driver availability given regulatory tightening and for expectations on turnover and labor cost inflation in guidance.
A: Management said they have no challenges with drivers; turnover is consistent with pre-COVID levels and driver productivity is strong and improving. They also said their compensation is attractive which helps retention, and they expect cost inflation in the 3% to 5% range while productivity targets remain in the 3% to 5% band.
"I would just say we have no challenges with drivers." — David Flitman (CEO·CHAIR)
Private label and Menu IQ
Q (Margaret-May Binshtok · Wolfe): Analyst asked if operators are more willing to use private label brands today and whether Menu IQ is contributing to penetration.
A: Management said they feel very good about private label penetration and that Menu IQ helps operators optimize menu costs, which supports private label adoption. They noted private label penetration with independent restaurants is about 53% and expect that to grow over time.
"We feel really good about our private label penetration." — David Flitman (CEO·CHAIR)
Health care volume trends and selling cost outlook
Q (Andrew Charles · TD Cowen): Analyst asked why health care case volumes eased from Q1 to Q2 and how health care will trend in the back half; also whether higher sales force costs were one-time.
A: Management said quarter-to-quarter moves can reflect timing of individual customer onboards and pipeline conversion, and they remain confident in healthy growth for health care and hospitality in the back half and beyond. They said sales force costs will drive some incremental costs for the next couple quarters as planned and then ease as headcount normalizes.
"I think when you talk about still being in that 3.5% or so, that's pretty strong case volume." — Dirk Locascio (CFO)
AI reinvestment, sales productivity, robotics tests
Q (Rahul Krotthapalli · JPMorgan): Analyst asked how much productivity gains from AI will be reinvested versus kept in the bottom line, the ceiling for salesperson span of control, hiring plans, and whether robotics/automation tests could expand.
A: Management said mid-single-digit headcount growth is the right long-term target and AI is increasing seller productivity, freeing sellers to pursue new growth; they will reinvest some productivity gains back into capabilities. On robotics, tests expanding from 1 to 6 locations show good early results with better warehouse accuracy and efficiency, and they will continue evaluating other uses over time.
"Specifically, the robotics that we're testing now and moving, as you pointed out, from the 1 to 6, we're seeing good early results from those, helping with better accuracy in the warehouse and sort of much more efficiency." — Dirk Locascio (CFO)