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1. Company Snapshot

1.a. Company Description

US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States.The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations.As of July 06, 2022, it operated 70 broadline facilities; and 80 cash and carry locations.


The company was formerly known as USF Holding Corp.and changed its name to US Foods Holding Corp.in February 2016.


US Foods Holding Corp.was incorporated in 2007 and is headquartered in Rosemont, Illinois.

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1.b. Last Insights on USFD

US Foods Holding Corp.'s recent performance was positively driven by solid operational efficiency and margin gains, as evident in its Q3 results. The company's aggressive share buybacks have boosted EPS, with a planned $250 million accelerated share repurchase agreement. Additionally, institutional investors have shown confidence, with Creative Planning growing its holdings by 9.5% and Artisan Partners Limited Partnership acquiring 354,747 shares. The company's reaffirmation of its Fiscal 2025 Outlook and 2025 to 2027 Long-range Plan also supports its growth prospects (Source: US Foods Holding Corp. earnings release, Bloomberg).

1.c. Company Highlights

2. US Foods' Strong Q3 Earnings Reflects Sustainable Growth

US Foods reported a 4.4% increase in net sales, with adjusted EBITDA growing 10.9% to $505 million, resulting in a 28 basis point expansion in adjusted EBITDA margin. The company's adjusted EPS came in at $1.07, beating estimates of $1.05. Revenue growth was driven by a 1.1% increase in case volume and 3.7% food cost inflation and mix impact, resulting in net sales of $10.2 billion, a 4.8% increase from the previous year.

Publication Date: Nov -10

📋 Highlights
  • Net Sales Growth:: Achieved 4.4% net sales growth with $10.2 billion in Q3, driven by 1.1% case volume growth and 3.7% food cost inflation/mix impact.
  • Adjusted EBITDA Expansion:: Delivered 10.9% adjusted EBITDA growth ($505 million) and 28 bps margin expansion, reflecting operational leverage and productivity gains.
  • Pronto Sales Momentum:: Pronto small truck delivery service projected to generate $950 million in sales 2025, expanding to over 20 markets and boosting share of wallet with customers.
  • Independent Case Growth:: Independent restaurant case volume grew 3.9% YoY (accelerating 120 bps from Q2) and outperformed broader market trends.
  • EPS Acceleration:: Adjusted EPS surged 26.7% YoY, supported by earnings growth and $467 million remaining in share repurchase authorization to drive EPS outperformance over EBITDA.

Segment Performance

The company's independent restaurant segment saw a 3.9% increase in case volume, accelerating 120 basis points from Q2 to Q3. The healthcare and hospitality segments also experienced growth, with 3.9% and 2.4% case growth, respectively. The Chain business volume declined by 2.4% but improved 160 basis points sequentially. As Dave Flitman, CEO, noted, "We're gaining share with independent restaurants, with case volume growing 3.9% and accelerating 120 basis points from Q2 to Q3."

Pronto Small Truck Delivery Service

The company's Pronto small truck delivery service is expected to deliver approximately $950 million in sales this year, with penetration expanding to more than 20 markets. This initiative is driving profitable growth and expanding market share. The investment in Pronto is focused on trucks and people to drive those trucks, with a proven model that is expected to continue growing, especially in 2026.

Valuation and Outlook

With a P/E Ratio of 29.69 and an EV/EBITDA of 15.5, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 6.2%. The company's guidance for fiscal year 2025 has been updated, with total case volume growth tightened to 1% to 2% and net sales growth expected to be in the range of 4% to 5%. Adjusted EBITDA growth is projected to be 10% to 12%, and adjusted diluted EPS growth is expected to be 24% to 26%. With a strong track record of execution and a focus on driving continuous improvement, US Foods is well-positioned for future growth.

3. NewsRoom

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Blueshift Asset Management LLC Has $336,000 Stock Holdings in US Foods Holding Corp. $USFD

Dec -04

Source: defenseworld.net

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US Foods Holding Corp. (USFD) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Cetera Investment Advisers Sells 5,506 Shares of US Foods Holding Corp. $USFD

Dec -02

Source: defenseworld.net

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US Foods Holding Corp. $USFD Shares Bought by Creative Planning

Nov -27

Source: defenseworld.net

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First Look: Alphabet nears $4T as Google chip talks jolt Nvidia

Nov -25

Source: gurufocus.com

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Dow Jones Today: Stock Indexes Jump to Begin Holiday-Shortened Trading Week; Nasdaq, S&P 500 Soar

Nov -24

Source: investopedia.com

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US Foods and Performance Food Group Terminate Information Sharing Process

Nov -24

Source: businesswire.com

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Artisan Partners Limited Partnership Acquires 354,747 Shares of US Foods Holding Corp. $USFD

Nov -20

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.37%)

6. Segments

Meats and Seafood

Expected Growth: 4.5%

The 4.5% growth in Meats and Seafood from US Foods Holding Corp. is driven by increasing demand for premium and organic products, rising popularity of online food delivery, and strategic acquisitions expanding the company's customer base and product offerings.

Dry Grocery

Expected Growth: 4.2%

The 4.2% growth in Dry Grocery from US Foods Holding Corp. is driven by increasing demand for convenient and healthy food options, rising e-commerce adoption, and strategic partnerships with foodservice providers. Additionally, the company's focus on private label products and efficient supply chain management has contributed to the growth.

Refrigerated and Frozen Grocery

Expected Growth: 4.8%

The 4.8% growth in Refrigerated and Frozen Grocery from US Foods Holding Corp. is driven by increasing demand for convenient and healthy meal options, rising popularity of online grocery shopping, and strategic acquisitions expanding product offerings and distribution channels.

Dairy

Expected Growth: 4.0%

Strong demand for dairy products, driven by increasing consumer preference for healthy and organic food options, contributes to 4.0% growth. Additionally, US Foods Holding Corp.'s strategic acquisitions and investments in digital platforms enhance operational efficiency, leading to increased sales and market share gains.

Equipment, Disposables and Supplies

Expected Growth: 3.8%

US Foods Holding Corp's Equipment, Disposables and Supplies segment growth of 3.8% is driven by increasing demand for food-away-from-home, rising need for convenient and portable food solutions, and growing adoption of digital technologies in the foodservice industry. Additionally, the company's strategic initiatives, such as its 'Great Food. Made Easy.' platform, are also contributing to the segment's growth.

Beverage

Expected Growth: 4.6%

The 4.6% growth in Beverage segment of US Foods Holding Corp. is driven by increasing demand for premium and specialty beverages, expansion of online food delivery platforms, and rising consumer preference for convenient and healthy beverages. Additionally, the company's strategic acquisitions and investments in digital capabilities have enhanced its market presence and operational efficiency.

Produce

Expected Growth: 4.4%

US Foods Holding Corp's 4.4% growth is driven by increasing demand for convenient and online food ordering, expansion of its e-commerce platform, and strategic acquisitions. Additionally, the company's focus on providing unique and innovative products, as well as its efforts to improve operational efficiency, have contributed to its growth.

7. Detailed Products

Meat, Poultry and Seafood

US Foods offers a wide range of high-quality meat, poultry, and seafood products, including beef, pork, chicken, turkey, fish, and shellfish.

Produce

US Foods provides a diverse selection of fresh fruits and vegetables, including organic and locally sourced options.

Dairy and Eggs

US Foods offers a range of dairy products, including milk, cheese, and eggs, as well as dairy alternatives.

Bakery and Pastry

US Foods provides a variety of baked goods, including bread, pastries, and desserts.

Pantry and Dry Goods

US Foods offers a range of pantry staples, including canned goods, pasta, rice, and snacks.

Beverages

US Foods provides a range of beverages, including juices, sodas, and coffee.

Non-Food Products

US Foods offers a range of non-food products, including paper products, cleaning supplies, and equipment.

Private Label Products

US Foods offers a range of private label products, including Chef's Line, Rykoff Sexton, and Stock Yards.

Sustainability and Eco-Friendly Products

US Foods offers a range of sustainable and eco-friendly products, including compostable and biodegradable options.

8. US Foods Holding Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

US Foods Holding Corp. faces moderate threat from substitutes, as customers have limited alternatives for food distribution services. However, the company's focus on providing high-quality products and services helps to mitigate this threat.

Bargaining Power Of Customers

US Foods Holding Corp. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with customers and its ability to provide customized solutions help to minimize customer bargaining power.

Bargaining Power Of Suppliers

US Foods Holding Corp. faces moderate bargaining power from suppliers, as it relies on a network of suppliers for its products. However, the company's scale and purchasing power help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for US Foods Holding Corp., as the food distribution industry has high barriers to entry, including significant capital requirements and complex logistics.

Intensity Of Rivalry

The food distribution industry is highly competitive, with several large players competing for market share. US Foods Holding Corp. faces intense rivalry from competitors such as Sysco and Gordon Food Service.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.28%
Debt Cost 8.35%
Equity Weight 47.72%
Equity Cost 11.81%
WACC 10.00%
Leverage 109.54%

11. Quality Control: US Foods Holding Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cal-Maine Foods

A-Score: 7.9/10

Value: 8.1

Growth: 9.4

Quality: 8.1

Yield: 10.0

Momentum: 6.5

Volatility: 5.3

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Laureate Education

A-Score: 6.5/10

Value: 3.9

Growth: 5.6

Quality: 7.1

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

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Ingredion

A-Score: 6.5/10

Value: 6.8

Growth: 6.6

Quality: 5.9

Yield: 6.0

Momentum: 3.5

Volatility: 10.0

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Bunge

A-Score: 5.4/10

Value: 8.0

Growth: 5.6

Quality: 3.8

Yield: 6.0

Momentum: 2.5

Volatility: 6.7

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US Foods

A-Score: 5.3/10

Value: 4.4

Growth: 6.2

Quality: 4.1

Yield: 0.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

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Andersons

A-Score: 4.7/10

Value: 6.4

Growth: 5.9

Quality: 4.1

Yield: 4.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

75.45$

Current Price

75.45$

Potential

-0.00%

Expected Cash-Flows