Following my coverage on US Foods Holding (NYSE: USFD ) in Mar'24, for which I recommended a buy rating due to my expectation that USFD is in a good position to continue growing EBITDA faster than revenue becauseI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn t ...

US Foods Holding Corp. (USFD) reported solid fourth-quarter fiscal 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.Management highlighted that the current momentum gives confidence in achieving a 5% sales CAGR, 10% adjusted EBITDA CAGR and 20% adjusted EPS CAGR through 2027. The company remains focused on long-term value creation and margin expansion through strategic initiatives.USFD’s Quarterly Performance: Key Metrics and InsightsUS Foods adj ...

Financial Performance - Total net sales for fiscal year 2024 reached $37.877 billion, an increase of 6.4% from $35.597 billion in fiscal year 2023[33]. - Net sales increased by $2,280 million, or 6.4%, in fiscal year 2024, primarily driven by case volume growth and food cost inflation of 2.6%[166]. - Gross profit rose by $386 million, or 6.3%, to $6,534 million, maintaining a gross profit margin of 17.3%[167]. - Operating income for fiscal year 2024 was $1,099 million, representing an increase from $1,017 million in fiscal year 2023[169]. - Net income available to common shareholders was $494 million, with a diluted net income per share of $2.02[169]. - Adjusted EBITDA increased by $182 million, or 11.7%, to $1,741 million in fiscal year 2024, with an Adjusted EBITDA margin of 4.6%[186]. - Free Cash Flow was $836 million in fiscal year 2024, compared to $841 million in fiscal year 2023[182]. - The effective income tax rate for fiscal year 2024 was 23%, compared to 25% in fiscal year 2023[191][192]. Sales and Customer Base - Sales to the top 50 customers accounted for approximately 47% of net sales in fiscal year 2024, with no single customer representing more than 2% of total sales[21]. - Group purchasing organizations (GPOs) contributed approximately 25% of net sales in fiscal year 2024[22]. - The product category of meats and seafood generated $12.93 billion in sales for fiscal year 2024, representing a 8.1% increase from $11.953 billion in fiscal year 2023[33]. - Total case volume increased by 4.2%, with independent restaurant case volume growing by 4.4% in fiscal year 2024[166]. Operations and Infrastructure - The company operates over 70 distribution facilities and a fleet of over 6,500 trucks, enabling efficient service delivery[18]. - The company operates 180 facilities totaling approximately 23.26 million square feet, with 72% owned and 28% leased[145]. - The company operates 74 distribution facilities, 93 cash and carry locations, and 13 broadline support business production facilities[145]. Acquisitions and Investments - The company completed the acquisition of IWC Food Service for a net purchase price of $214 million, enhancing its distribution channels in the southeast United States[30]. - Cash flows used in investing activities included $341 million in fiscal year 2024 for investments in information technology and $214 million for the acquisition of IWC Food Service[210]. Workforce and Labor Relations - As of December 28, 2024, the company employed approximately 30,000 associates, with 22% (6,600 associates) covered by collective bargaining agreements[47]. - In fiscal year 2024, 14 collective bargaining agreements covering about 1,100 union associates were renegotiated, while 16 agreements covering approximately 1,750 union associates are set for renegotiation in fiscal year 2025[47]. - Approximately 70% of associates are non-exempt, paid on an hourly basis, and 88% work in field-based roles within distribution and retail operations[49]. - The company is committed to a comprehensive health and welfare benefits program, including medical, dental, and wellness programs, as well as a 401(k) savings plan[48]. - The diversity and inclusion strategy focuses on increasing workforce diversity, creating an inclusive environment, and supporting diverse communities[51]. Regulatory and Compliance - The company is subject to various federal, state, and local regulations, including environmental laws and safety standards[45][52]. - The company is subject to significant governmental regulation, which may lead to increased compliance costs and financial obligations[84]. - The company is committed to monitoring and responding to evolving legal and regulatory requirements impacting its operations[87]. Financial Position and Debt - As of December 28, 2024, the company had $4.9 billion of outstanding indebtedness[102]. - Approximately 32% of the net principal amount of the company's indebtedness accrued interest at variable rates as of December 28, 2024[108]. - The company’s ability to make scheduled payments on its debt depends on ongoing financial and operating performance[103]. - A material portion of cash flows from operations may be dedicated to the payment of principal and interest on indebtedness, reducing funds available for other purposes[108]. - The company may face increased vulnerability to adverse economic and industry conditions due to its debt levels[108]. Market Conditions and Competition - The U.S. foodservice distribution industry is sensitive to economic conditions, with potential adverse impacts from inflation and supply chain disruptions affecting consumer confidence and discretionary spending[64]. - Competition is intense in the foodservice distribution industry, with low switching costs for customers, which may lead to pressure on profit margins[66]. - Changes in consumer eating habits, including a shift towards sustainable and locally grown products, may reduce demand for the company's offerings[77]. - Competitors adopting lower cost structures may force the company to adjust its pricing and cost structure to remain competitive[78]. Sustainability and Environmental Initiatives - The Serve Good program features over 900 sustainably-sourced products, contributing to waste reduction and aligning with consumer preferences for sustainability[25]. - The company aims to reduce absolute Scope 1 and 2 GHG emissions by 32.5% by 2032 from a 2019 base year[82]. - Climate change and related regulatory measures may create financial and operational risks, increasing compliance costs and affecting supply chain operations[79]. Technology and Cybersecurity - Digital solutions are utilized in over 80% of sales transactions, enhancing customer relationships and increasing purchase volumes[27]. - The company relies heavily on technology for operations, and disruptions could negatively affect customer service and profits[111]. - The company has implemented cybersecurity measures, but risks remain, including potential significant costs from cyberattacks[116]. - The company has invested in a comprehensive cybersecurity program aligned with the NIST Cyber Security Framework to protect critical assets and information[136][137]. Shareholder Returns and Stock Performance - For the year ended December 28, 2024, the company repurchased 16,400,895 shares at an aggregate purchase price of approximately $958 million under the Amended Share Repurchase Program[156]. - The company has not paid any dividends on its common stock since it began trading publicly in 2016 and has no plans to do so in the foreseeable future[152][153]. - The company has approximately $75 million remaining in its Amended Share Repurchase Program as of December 28, 2024[156].

Fourth Quarter and Fiscal Year 2024 Results February 13, 2025 Disclaimer Page Cautionary Statements Regarding Forward-Looking Information Statements in this presentation which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive ...

Financial Data and Key Metrics Changes - The company achieved record full-year adjusted EBITDA of $1.74 billion, with a 22 basis point expansion in adjusted EBITDA margin to 4.6% [12][15][45] - Adjusted diluted EPS increased by 19.8% to $3.15, reflecting strong earnings growth [45][56] - Fourth quarter net sales rose by 6.2% to $9.5 billion, driven by total case volume growth of 3.5% and food cost inflation [41][45] Business Line Data and Key Metrics Changes - Independent restaurant volume grew by 3.2%, while healthcare and hospitality case volumes increased by 4.7% and 2.4%, respectively [17][41] - Adjusted gross profit grew by 7.3% to $6.6 billion, with significant savings achieved through strategic vendor management [35][45] - The company reported a 240 basis point faster growth in adjusted gross profit dollars compared to adjusted operating expense dollars in Q4 [44][47] Market Data and Key Metrics Changes - Chain restaurant foot traffic was down less than 2% in Q4, showing sequential improvement from Q3 [16] - Independent restaurant industry volume was down less than 1%, consistent with the previous quarter [16] - The company outperformed the market with a 3.2% increase in total independent case volume, marking the 15th consecutive quarter of share gains [17][20] Company Strategy and Development Direction - The company aims for a 5% sales CAGR and a 10% adjusted EBITDA CAGR through 2027, focusing on sustained growth and capital return to shareholders [13][61] - The strategic pillars include culture, service, growth, and profit, with a strong emphasis on safety, delivery efficiency, and private label brand expansion [22][25][30] - The company is committed to M&A activities, having completed the acquisition of IWC and Jake's Finer Foods, enhancing local capacity and market presence [33][34][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stronger macro backdrop for 2025 compared to 2024, with expectations for improved foot traffic and case growth [43][89] - The company remains focused on controlling costs and driving share gains across its target customer types, despite external challenges [92][93] - Management highlighted the importance of self-help initiatives and operational discipline in achieving future growth [56][61] Other Important Information - The company donated over $14.5 million to support hunger relief and disaster efforts in 2024 [25] - The rollout of Descartes routing technology is expected to enhance delivery efficiency and customer experience [26][28] - The company is nearing the conclusion of exploring the sale of CHEF'STORE, with plans to use proceeds for share repurchases [37] Q&A Session Summary Question: What percentage of your offering do you import overall? - The majority of products are produced in the U.S., with low to mid-single-digit imports from affected countries [65] Question: How do you think about independent case growth assumptions? - Most growth comes from new account generation, with strong performance in December positioning for future growth [70] Question: Can you discuss independent case growth expectations for the year? - The company expects to bridge back to the 5% to 8% target as foot traffic improves [76] Question: What metrics give you confidence in a stronger macro backdrop for 2025? - Sources like Technomic predict healthy improvement, and the company expects stability post-election [90] Question: How is the private label brand expansion expected to ramp further in 2025? - The company has regained supply capability and launched innovative products, supporting private label growth [135] Question: What is the CapEx guidance for this year? - The guidance is set at $375 million to $425 million, reflecting a step-up from the previous year [123]

US Foods (USFD) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5%. A quarter ago, it was expected that this company would post earnings of $0.82 per share when it actually produced earnings of $0.85, delivering a surprise of 3.66%.Over the last four quarters, the company has surpasse ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 8-K _____________________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): January 13, 2025 _____________________________ 9399 W. Higgins Road, Suite 100 Rosemont, IL 60018 (Address of principal executive offices) (Zip code) (847) 720-8000 (Registrant's telephone number, including area code) Not Applicable US ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of US Foods (USFD) and Lamb Weston (LW) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, an ...

The market expects US Foods (USFD) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 13, 2025, might help the stock move higher if these key numbers ar ...