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Us Foods Holding Corp. (USFD)
:USFD
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US Foods Holding
(NYSE:USFD)
Rating:71Outperform
Price Target:
$86.00
▲(10.38% Upside)
Positive Factors
Financial Performance
USFD provided a solid Q2 beat and raise, indicating strong performance despite challenges.
Growth Potential
USFD's case growth accelerated with clear drivers for further improvement, indicating strong potential for future performance.
Market Positioning
US Foods Holding Corp is executing well on its self-help strategy and is positioned to continue gaining market share despite uncertain demand.
Negative Factors
Acquisition Challenges
Management's interest in acquiring PFGC has been rebuffed, making a transaction highly unlikely.
Deal Uncertainty
The probability of a deal with PFGC took a hit due to PFGC's unwillingness to engage.
US Foods Holding (USFD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.56B
Dividend YieldN/A
Average Volume (3M)2.31M
Price to Earnings (P/E)33.3
Beta (1Y)0.78
Revenue Growth5.32%
EPS Growth11.65%
CountryUS
Employees30,000
SectorConsumer Defensive
Sector Strength45
IndustryFood Distribution
Share Statistics
EPS (TTM)1.19
Shares Outstanding225,171,620
10 Day Avg. Volume1,609,384
30 Day Avg. Volume2,308,551
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit3.41
Enterprise Value/Ebitda15.36
Forecast
1Y Price Target
$90.45Price Target Upside16.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
US Foods Holding Business Overview & Revenue Model
Company DescriptionUS Foods Holding Corp. is one of the largest foodservice distributors in the United States, serving a diverse customer base that includes restaurants, healthcare facilities, and educational institutions. The company operates through various segments, providing a wide range of products such as fresh meat, produce, canned and frozen foods, and disposable supplies. US Foods is committed to delivering quality products and innovative solutions to its customers, enhancing their operational efficiency and culinary offerings.
How the Company Makes MoneyUS Foods generates revenue primarily through the sale of food and related products to foodservice operators. Its revenue model is based on a wholesale distribution model, where the company purchases products from manufacturers and suppliers, then sells them to customers at a markup. Key revenue streams include the sale of fresh and frozen foods, dry goods, and non-food items. Additionally, US Foods has established strategic partnerships with various food manufacturers and suppliers, allowing it to offer exclusive products and competitive pricing. The company also benefits from ancillary services, such as menu development and operational consulting, which enhance customer loyalty and drive additional revenue.
US Foods Holding Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
US Foods demonstrated strong financial performance with record-breaking adjusted EBITDA and margin expansion, alongside consistent market share gains and a successful share repurchase program. However, challenges persist with declining chain restaurant volumes and limited industry traffic growth, coupled with ongoing inflationary pressures. The company's strong execution on cost savings and strategic initiatives provides a positive outlook despite these challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
US Foods delivered record second quarter adjusted EBITDA of $548 million and a record adjusted EBITDA margin of 5.4%, a 40 basis point increase through a combination of top line growth, strong gross profit gains, and disciplined cost management.
Market Share Gains
US Foods gained market share with independent restaurants for the 17th consecutive quarter and with healthcare for the 19th consecutive quarter.
Successful Share Repurchase Program
US Foods repurchased $250 million of shares in the second quarter, with a total of $273 million repurchased year-to-date, and $800 million remaining on the $1 billion program authorized.
Pronto Program Expansion
The Pronto small truck delivery service is expected to deliver over $900 million in sales this year, with projections to reach $1.5 billion in sales by 2027, up from the previously discussed $1 billion.
Significant Cost Savings Initiatives
The strategic vendor management initiative has delivered more than $50 million in year-to-date cost of goods savings, with an expectation to drive more than $110 million for the full year.
Negative Updates
Chain Restaurant Volume Decline
Chain restaurant volume declined 4%, primarily driven by a strategic exit, negatively impacting total chain volume growth by approximately 300 basis points.
Limited Industry Traffic Growth
Restaurant foot traffic remained down 1.1% from the prior year despite sequential improvement and independent restaurant traffic saw only a modest 100 basis point acceleration.
Inflationary Pressures
Food cost inflation and mix impact was 2.9%, with certain categories like eggs and beef showing moderate sequential deflation.
Company Guidance
During the US Foods Holding Corp.'s Second Quarter 2025 Earnings Call, the company provided updated guidance for the fiscal year 2025, reflecting strong performance and strategic execution. The company reported record second quarter adjusted EBITDA of $548 million, with a margin of 5.4%, a 40 basis point increase from the previous year. Year-to-date, the adjusted EBITDA grew by 11%, and adjusted EPS rose by 27%. The company raised the low end of its guidance for adjusted EBITDA growth to 9.5% to 12% and adjusted diluted EPS growth to 19.5% to 23%. The call highlighted significant achievements including a 2.7% independent volume growth, 5% case growth in healthcare, and 2.4% in hospitality. The company also repurchased $250 million in shares during the second quarter, supporting its capital return strategy. Looking forward, US Foods expects continued market share gains, driven by strategic investments and operational efficiencies.US Foods Holding Financial Statement Overview
Summary
US Foods Holding demonstrates solid revenue growth and improving profitability, with effective leverage management. However, challenges in operational efficiency and cash flow management persist.Income Statement
US Foods Holding has shown strong revenue growth with a TTM increase of 9.74% and consistent gross profit margins around 17%. The net profit margin has improved to 1.43% in the TTM, indicating enhanced profitability. However, the EBIT margin has slightly decreased, suggesting some operational cost pressures.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 1.08 in the TTM, reflecting better leverage management. Return on equity has increased to 12.04%, showcasing effective use of equity to generate profits. However, the equity ratio remains stable, indicating moderate financial stability.72
Positive
Cash Flow
Operating cash flow has increased, but free cash flow growth is negative at -13.92% in the TTM, which could indicate higher capital expenditures or other cash outflows. The free cash flow to net income ratio remains strong at 0.75, suggesting efficient cash generation relative to net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.65B | 37.88B | 35.60B | 34.06B | 29.49B | 22.89B |
| Gross Profit | 6.72B | 6.53B | 6.15B | 5.49B | 4.66B | 3.72B |
| EBITDA | 1.49B | 1.40B | 1.40B | 988.00M | 805.00M | 366.00M |
| Net Income | 553.00M | 494.00M | 506.00M | 265.00M | 164.00M | -226.00M |
Balance Sheet | ||||||
| Total Assets | 13.79B | 13.44B | 13.19B | 12.77B | 12.52B | 12.42B |
| Cash, Cash Equivalents and Short-Term Investments | 61.00M | 59.00M | 269.00M | 211.00M | 148.00M | 828.00M |
| Total Debt | 5.01B | 5.43B | 5.20B | 5.31B | 5.47B | 6.19B |
| Total Liabilities | 9.16B | 8.91B | 8.44B | 8.28B | 8.25B | 8.37B |
| Stockholders Equity | 4.63B | 4.53B | 4.75B | 4.50B | 4.27B | 4.05B |
Cash Flow | ||||||
| Free Cash Flow | 965.00M | 833.00M | 831.00M | 500.00M | 145.00M | 224.00M |
| Operating Cash Flow | 1.28B | 1.17B | 1.14B | 765.00M | 419.00M | 413.00M |
| Investing Cash Flow | -389.00M | -552.00M | -495.00M | -255.00M | -262.00M | -1.11B |
| Financing Cash Flow | -1.23B | -831.00M | -587.00M | -447.00M | -837.00M | 1.43B |
US Foods Holding Technical Analysis
Positive
77.91
Price Trends
79.90
Negative
76.16
Positive
72.09
Positive
Market Momentum
-0.71
Negative
46.10
Neutral
64.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USFD, the sentiment is Positive. The current price of 77.91 is above the 20-day moving average (MA) of 77.80, below the 50-day MA of 79.90, and above the 200-day MA of 72.09, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USFD.
US Foods Holding Risk Analysis
US Foods Holding disclosed 32 risk factors in its most recent earnings report. US Foods Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
US Foods Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.47B | 48.47 | 7.91% | ― | 8.61% | -22.16% | |
73 Outperform | $39.46B | 21.72 | 99.08% | 2.51% | 3.21% | -4.03% | |
73 Outperform | $2.66B | 40.27 | 13.64% | ― | 7.90% | 68.05% | |
71 Outperform | $17.56B | 33.30 | 11.48% | ― | 5.32% | 11.65% | |
66 Neutral | $1.75B | ― | -4.11% | ― | 6.62% | 53.12% | |
63 Neutral | $20.50B | 14.76 | -2.72% | 3.09% | 1.90% | -4.74% | |
58 Neutral | $908.07M | 2,245.98 | -2.08% | 3.26% | 1.54% | -134.75% |
* Consumer Defensive Sector Average
Performance Comparison
USFD
US Foods Holding
77.91
20.82
36.47%
SPTN
SpartanNash Co
26.82
6.04
29.07%
SYY
Sysco
82.45
6.15
8.06%
CHEF
The Chefs' Warehouse
63.97
24.36
61.50%
UNFI
United Natural Foods
28.95
14.42
99.24%
PFGC
Performance Food Group
105.42
33.93
47.46%
US Foods Holding Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
US Foods CEO Discusses Potential Merger with PFG
Neutral
Aug 7, 2025
On August 7, 2025, US Foods Holding Corp. CEO Dave Flitman addressed speculation about a potential merger with Performance Food Group during the company’s Q2 2025 earnings call. Flitman highlighted the strategic benefits of such a merger, including economies of scale, expanded growth opportunities, and enhanced competition in the foodservice industry. Despite US Foods’ approach to PFG to explore the merger’s potential, PFG has declined the invitation. The proposed combination is seen as a way to offer a broader product range, improve market competitiveness, and generate significant synergies and shareholder returns.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.