US Foods Holding Corp. (USFD) Bundle
A Brief History of US Foods
Company Overview
Company Overview
US Foods Holding Corp. is one of the largest foodservice distributors in the United States. As of 2024, the company serves approximately 250,000 customer locations nationwide, including independent restaurants, chain restaurants, healthcare, hospitality, and educational institutions.
Financial Performance
For the 39 weeks ended September 28, 2024, US Foods reported net sales of $28.386 billion, representing a 6.5% increase from $26.661 billion in 2023. The growth was driven by a 4.4% increase in total case volume, with independent restaurant case volume increasing by 4.8%.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales (in billions) | $28.386 | $26.661 |
| Net Income (in millions) | $428 | $359 |
| Operating Income (in millions) | $797 | $739 |
| Adjusted EBITDA (in millions) | $1,300 | $1,171 |
| Gross Profit (in millions) | $4,868 | $4,558 |
Operating Metrics
US Foods experienced a 6.5% increase in net sales for the first 39 weeks of 2024, with total case volume rising 4.4%. This increase was attributed to organic case volume growth and acquisitions.
| Operating Metric | 2024 | 2023 |
|---|---|---|
| Total Case Volume Increase | 4.4% | — |
| Independent Restaurant Case Volume Increase | 4.8% | — |
| Healthcare Volume Increase | 6.1% | — |
| Hospitality Volume Increase | 2.0% | — |
| Chain Volume Increase | 3.5% | — |
Acquisitions
In 2024, US Foods acquired IWC Food Service for a net purchase price of $214 million. This acquisition enhances the company's distribution capabilities in Tennessee.
Debt and Liquidity
As of September 28, 2024, US Foods had total outstanding debt of $4.789 billion, with a net cash and available liquidity of approximately $1.7 billion.
| Debt Description | Carrying Value (in millions) |
|---|---|
| ABL Facility | $75 |
| Senior Notes due 2028 | $496 |
| Senior Notes due 2029 | $895 |
| Senior Notes due 2030 | $497 |
| Senior Notes due 2032 | $496 |
Stock Performance and Share Repurchases
Under the Amended Share Repurchase Program, US Foods repurchased 11,433,047 shares at an aggregate purchase price of approximately $634 million for the 39 weeks ended September 28, 2024.
| Repurchase Program | Shares Repurchased | Total Cost (in millions) |
|---|---|---|
| Amended Share Repurchase Program | 11,433,047 | $634 |
Tax and Effective Rate
For the 39 weeks ended September 28, 2024, the effective income tax rate was 23%, compared to 25% in the previous year.
A Who Owns US Foods Holding Corp. (USFD)
Major Shareholders
As of 2024, the ownership structure of US Foods Holding Corp. (USFD) includes various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership (%) | Number of Shares Held (Millions) |
|---|---|---|
| Vanguard Group Inc. | 10.5% | 26.7 |
| BlackRock Inc. | 9.8% | 24.6 |
| Wellington Management Group LLP | 7.3% | 18.2 |
| State Street Corporation | 6.1% | 15.2 |
| FMR LLC (Fidelity) | 5.0% | 12.4 |
| Other Institutional Investors | 25.3% | 62.5 |
| Individual Shareholders | 30.0% | 74.3 |
Recent Stock Performance
As of September 28, 2024, US Foods Holding Corp. reported a stock price of $40.25, reflecting a year-to-date increase of approximately 12%. The market capitalization was approximately $10.2 billion, based on the number of shares outstanding, which totaled approximately 253 million shares.
Financial Overview
In the fiscal year ending September 28, 2024, US Foods reported the following key financial metrics:
| Metric | Value (in Millions) |
|---|---|
| Net Sales | $28,386 |
| Gross Profit | $4,868 |
| Operating Income | $797 |
| Net Income | $428 |
| Adjusted EBITDA | $1,300 |
| Operating Expenses | $4,071 |
Debt and Liquidity Position
As of September 28, 2024, US Foods had total debt of approximately $4.79 billion, with an effective interest expense of $235 million for the year. The company reported cash and cash equivalents of $81 million and total liquidity of approximately $1.7 billion.
Acquisitions and Growth Strategy
In 2024, US Foods acquired IWC Food Service for a net purchase price of $214 million, enhancing its distribution reach in Tennessee. This acquisition is expected to contribute positively to the company's growth strategy and market presence in the southeastern United States.
Conclusion
US Foods Holding Corp. continues to maintain a diverse ownership structure with significant institutional backing, robust financial performance, and strategic growth initiatives through acquisitions.
US Foods Holding Corp. (USFD) Mission Statement
At US Foods, we strive to inspire and empower chefs and foodservice operators to bring great food experiences to consumers. This mission is supported by our brand promise of WE HELP YOU MAKE IT.™, which emphasizes four key elements for our customers:
- Quality Products: A large portfolio of exclusive brands.
- More Tools: Centering on the MOXē business platform.
- Support: From our sellers and a team of experts.
- More Deliveries: Enabled by traditional broadline services and the Pronto™ program.
US Foods operates as one business with standardized processes, shared systems infrastructure, and an organizational model that optimizes national scale with local execution. This allows the company to manage its operations as a single segment while focusing on customer-facing activities.
Financial Overview as of 2024
For the fiscal year ending September 28, 2024, US Foods reported significant financial metrics:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $28,386 million | $26,661 million | 6.5% |
| Gross Profit | $4,868 million | $4,558 million | 6.8% |
| Operating Income | $797 million | $739 million | 7.8% |
| Net Income | $428 million | $359 million | 19.2% |
| Adjusted EBITDA | $1,300 million | $1,171 million | 11.0% |
| Effective Income Tax Rate | 23% | 25% | -8.0% |
Operational Highlights
US Foods has a diverse customer base, serving approximately 250,000 customer locations nationwide. The company provides a wide range of products including fresh, frozen, and dry food items sourced from thousands of suppliers. The operational structure includes:
- Over 70 distribution facilities.
- A fleet of over 6,500 trucks.
- More than 90 cash and carry locations.
In the 39 weeks ended September 28, 2024, key performance indicators included:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Case Volume Growth | 4.4% | 3.5% |
| Independent Restaurant Case Volume Growth | 4.8% | 3.9% |
| Healthcare Volume Growth | 6.1% | 5.0% |
| Food Cost Inflation | 2.5% | 3.0% |
Additionally, the company reported strong organic growth metrics:
- Total organic case volume increased by 1.5%.
- Organic independent restaurant case volume increased by 2.8%.
Liquidity and Capital Resources
As of September 28, 2024, US Foods maintained a strong liquidity position with:
- Approximately $1.7 billion in cash and available liquidity.
- Total outstanding debt of $4,789 million, net of unamortized deferred financing costs.
The company also had significant borrowing capacity under its ABL Facility, with remaining capacity of $1,647 million.
Stock Performance and Shareholder Value
In terms of shareholder returns, US Foods has been active in share repurchases, having repurchased 2,592,612 shares for approximately $160 million in the fiscal fourth quarter through November 4, 2024. The company had approximately $238 million remaining under its Amended Share Repurchase Program as of the same date.
The performance metrics indicate a solid growth trajectory, with a focus on enhancing shareholder value through strategic operations and customer engagement initiatives. The latest figures demonstrate US Foods' commitment to its mission of serving its customers effectively while maintaining robust financial health.
How US Foods Holding Corp. (USFD) Works
Business Overview
US Foods Holding Corp. is a leading foodservice distributor in the United States, delivering a wide variety of food products and supplies to restaurants, healthcare, and hospitality sectors. The company operates through a network of distribution centers and maintains a diverse portfolio of products, including meats, seafood, dry groceries, dairy, and produce.
Financial Performance
For the 39 weeks ended September 28, 2024, US Foods reported the following financial highlights:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $28,386 million | $26,661 million |
| Gross Profit | $4,868 million | $4,558 million |
| Operating Income | $797 million | $739 million |
| Net Income | $428 million | $359 million |
| Adjusted EBITDA | $1,300 million | $1,171 million |
Revenue Breakdown
The revenue from various product categories for the 39 weeks ended September 28, 2024, is as follows:
| Product Category | Net Sales (2024) | Net Sales (2023) |
|---|---|---|
| Meats and Seafood | $9,661 million | $8,924 million |
| Dry Grocery Products | $4,976 million | $4,796 million |
| Refrigerated and Frozen Grocery Products | $4,807 million | $4,505 million |
| Dairy | $2,997 million | $2,802 million |
| Equipment, Disposables, and Supplies | $2,696 million | $2,704 million |
| Beverage Products | $1,627 million | $1,479 million |
| Produce | $1,622 million | $1,451 million |
Operating Metrics
For the 39 weeks ended September 28, 2024, US Foods experienced growth in case volume:
- Total Case Volume: Increased by 4.4%
- Independent Restaurant Case Volume: Increased by 4.8%
- Healthcare Volume: Increased by 6.1%
- Hospitality Volume: Increased by 2.0%
- Chain Volume: Increased by 3.5%
Cost Structure
Operating expenses for the 39 weeks ended September 28, 2024, totaled $4,071 million, an increase of $252 million compared to 2023. The breakdown of operating expenses is as follows:
| Expense Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Distribution Costs | $1,379 million | $1,312 million |
| Selling and Administrative Costs | $4,050 million | $3,819 million |
| Restructuring Activity and Asset Impairment | $21 million | $0 million |
Debt and Liquidity
As of September 28, 2024, US Foods had total indebtedness of $4,789 million, net of unamortized deferred financing costs. The company also had available liquidity of approximately $1.7 billion. The breakdown of outstanding debt is as follows:
| Debt Description | Outstanding Balance | Maturity |
|---|---|---|
| ABL Facility | $75 million | 2027 |
| 2019 Incremental Term Loan Facility | $1,101 million | 2026 |
| 2021 Incremental Term Loan Facility | $719 million | 2028 |
| Senior Notes due 2028 | $496 million | 2028 |
| Senior Notes due 2029 | $895 million | 2029 |
| Senior Notes due 2030 | $497 million | 2030 |
| Senior Notes due 2032 | $496 million | 2032 |
Tax and Net Income
The effective income tax rate for the 39 weeks ended September 28, 2024, was 23%. The net income for the period was $428 million, representing an increase from $359 million in 2023. The basic and diluted net income per share for the 39 weeks ended September 28, 2024, was $1.75 and $1.74, respectively.
Cash Flow Analysis
Cash flows from operating activities for the 39 weeks ended September 28, 2024, were $891 million. The cash flow from investing activities was $(447) million, and cash flows from financing activities were $(632) million.
How US Foods Holding Corp. (USFD) Makes Money
Revenue Streams
US Foods generates revenue primarily through the distribution of food and related products to restaurants, healthcare facilities, and hospitality businesses. In 2024, the company reported net sales of $28,386 million, an increase of 6.5% from $26,661 million in 2023.
Case Volume Growth
Total case volume increased by 4.4% in 2024, with independent restaurant case volume rising 4.8%. This growth is crucial as it directly impacts revenue, reflecting increased demand for their products across various customer segments.
Product Categories
The following table details the disaggregation of net sales by product categories for the 39 weeks ended September 28, 2024:
| Product Category | Net Sales (in millions) |
|---|---|
| Meats and Seafood | $9,661 |
| Dry Grocery Products | $4,976 |
| Refrigerated and Frozen Grocery Products | $4,807 |
| Dairy | $2,997 |
| Equipment, Disposables and Supplies | $2,696 |
| Beverage Products | $1,627 |
| Produce | $1,622 |
| Total Net Sales | $28,386 |
Gross Profit and Margins
US Foods achieved a gross profit of $4,868 million for the 39 weeks ended September 28, 2024, reflecting a 6.8% increase over $4,558 million in 2023. The gross profit margin remained stable at 17.1%.
Operating Expenses
Operating expenses, which include distribution, selling, and administrative costs, totaled $4,071 million in 2024, up 6.6% from $3,819 million in 2023. This resulted in operating expenses as a percentage of net sales being 14.3%.
Operating Income
Operating income for the 39 weeks ended September 28, 2024, was reported at $797 million, an increase of $58 million from $739 million in the previous year.
Net Income
Net income rose to $428 million in 2024, compared to $359 million in 2023, marking an increase of $69 million.
Adjusted EBITDA
Adjusted EBITDA increased to $1,300 million in 2024, up 11.0% from $1,171 million in 2023, representing 4.6% of net sales.
Debt and Interest Expense
As of September 28, 2024, US Foods had total indebtedness of $4,789 million. Interest expense decreased to $235 million from $244 million due to lower outstanding debt.
Liquidity
US Foods reported approximately $1.7 billion in cash and available liquidity as of September 28, 2024.
Acquisitions
In fiscal 2024, US Foods acquired IWC Food Service for $220 million, enhancing its distribution reach.
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Resources:
- US Foods Holding Corp. (USFD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of US Foods Holding Corp. (USFD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View US Foods Holding Corp. (USFD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.