US Foods Holding Corp
NYSE:USFD
US Foods Holding Corp
In the bustling landscape of the American foodservice industry, US Foods Holding Corp. stands out as a pivotal player with a rich legacy and a modern entrepreneurial spirit. Originally tracing its roots back to the early 20th century, the company has evolved into one of the largest foodservice distributors in the United States. With a sprawling network and an extensive product portfolio, US Foods serves an array of clients, from independent restaurants and national chains to healthcare facilities and educational institutions. The company operates through a comprehensive logistics framework, efficiently delivering fresh, frozen, and dry food offerings, encompassing both private label and national brands.
The heart of US Foods' business model lies in its ability to cater to diverse customer needs through innovative solutions and value-added services. Embracing technology, the company has invested in digital platforms and data-driven insights that enable clients to optimize their inventory, forecast demand, and streamline operations. Moreover, US Foods' culinary and business expertise offers tailored support, helping customers refine their menus and enhance operational efficiency. This deep integration into the fabric of its clients' businesses not only strengthens long-term partnerships but also drives steady revenue growth in a competitive market. As a result, US Foods transforms everyday food delivery into a vital, customer-centric endeavor, marrying tradition with modernity to maintain its industry leadership.
In the bustling landscape of the American foodservice industry, US Foods Holding Corp. stands out as a pivotal player with a rich legacy and a modern entrepreneurial spirit. Originally tracing its roots back to the early 20th century, the company has evolved into one of the largest foodservice distributors in the United States. With a sprawling network and an extensive product portfolio, US Foods serves an array of clients, from independent restaurants and national chains to healthcare facilities and educational institutions. The company operates through a comprehensive logistics framework, efficiently delivering fresh, frozen, and dry food offerings, encompassing both private label and national brands.
The heart of US Foods' business model lies in its ability to cater to diverse customer needs through innovative solutions and value-added services. Embracing technology, the company has invested in digital platforms and data-driven insights that enable clients to optimize their inventory, forecast demand, and streamline operations. Moreover, US Foods' culinary and business expertise offers tailored support, helping customers refine their menus and enhance operational efficiency. This deep integration into the fabric of its clients' businesses not only strengthens long-term partnerships but also drives steady revenue growth in a competitive market. As a result, US Foods transforms everyday food delivery into a vital, customer-centric endeavor, marrying tradition with modernity to maintain its industry leadership.
Strong Earnings Growth: US Foods delivered record adjusted EBITDA of over $1.9 billion (up 11%) and record adjusted EPS of $3.98 (up 26%), surpassing its long-range plan targets despite a challenging macro environment.
Margin Expansion: Adjusted EBITDA margin increased by 30 basis points for the year to 4.9%, and Q4 margin reached a record 5%.
Market Share Gains: The company achieved its 19th consecutive quarter of share gains in independent restaurants, with case volume up 4.1% in Q4 and strong growth in healthcare and hospitality segments.
Operational Improvements: Over $150 million in cost of goods savings and significant advancements in productivity initiatives, including technology rollouts (MOXe, Descartes), boosted efficiency and profitability.
Capital Allocation: Nearly $1.4 billion in operating cash flow funded $934 million in share repurchases, $131 million in tuck-in M&A, and $410 million in CapEx.
Positive 2026 Outlook: Guidance for 2026 includes 4%–6% net sales growth, 9%–13% adjusted EBITDA growth, and 18%–24% adjusted EPS growth, with confidence in achieving targets despite early-year weather disruptions.
Sales Force Changes: Transition to a 100% variable compensation model for the sales force is underway, expected to further boost productivity and topline growth over the next 2–3 years.
AI & Tech Investments: Continued investment in AI and digital platforms is enhancing customer engagement and sales force productivity, supporting both revenue and cost efficiency.
