NYSE:USFD
US Foods Holding Corp.
US Foods is a premier wholesale food distributor generating $39.42B in 2025 revenue with strong operating cash flow of $1.37B.
Key Metrics
Investment Thesis
Bull Case
US Foods offers an attractive investment case due to its dominant market position and consistent revenue growth trend from $34.06B in 2022 to $39.42B in 2025. Strong free cash flow generation relative to net income suggests operational efficiency, while the recent stock repurchases of $926M indicate confidence in shareholder value creation.
Bear Case
Bearish concerns center on the heavy debt load implied by total liabilities of $9.64B against shareholders' equity of $4.31B, which limits financial flexibility during downturns. The large non-operating loss of $-301M and negative cash flow from financing activities of $-890M in the latest period highlight significant capital outflows that could pressure liquidity.
About US Foods Holding Corp.
US Foods Holding Corp. operates as a leading wholesale food distributor serving restaurants, hotels, and institutions across North America with a vast network of distribution centers. The company provides fresh produce, packaged goods, and protein products through its extensive supply chain to diverse market segments including independent operators and large national chains. With annual revenue reaching $39.42B in 2025, the firm leverages scale and logistics efficiency to deliver consistent value to its B2B customer base.
Analysis
Management Discussion
Management has demonstrated resilience with net income growing from $265M in 2022 to $676M in 2025, despite a slight dip in operating profit year-over-year to $1.20B. The company successfully navigated cash flow challenges, maintaining strong operating cash flow of $1.37B while managing substantial capital expenditures of $410M to upgrade its infrastructure.
Industry Overview
The wholesale food distribution industry is highly competitive but consolidating, favoring players with the scale to negotiate better terms with suppliers and retailers. Success in this sector depends on supply chain optimization and the ability to adapt quickly to changing consumer preferences for healthier and sustainable food options.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $34.06B | $35.60B | $37.88B | $39.42B |
| Cost of Revenue | $28.57B | $29.45B | $31.34B | $32.56B |
| Gross Profit | $5.49B | $6.15B | $6.53B | $6.86B |
| Operating Expenses | $4.90B | $5.13B | $5.43B | $5.67B |
| Operating Income | $594.0M | $1.02B | $1.10B | $1.20B |
| G&A | $4.89B | $5.12B | $5.41B | $5.63B |
| Stock-Based Comp | $45.0M | — | $63.0M | $83.0M |
| D&A | $372.0M | — | $438.0M | $462.0M |
| Amortization | $45.0M | — | $54.0M | $56.0M |
| Other OpEx | $12.0M | $14.0M | $23.0M | $33.0M |
| Non-Operating Income | $-233.0M | $-339.0M | $-455.0M | $-301.0M |
| Interest Expense | $255.0M | $324.0M | — | — |
| Pre-Tax Income | $361.0M | $678.0M | $644.0M | $898.0M |
| Income Tax | $96.0M | $172.0M | $150.0M | $222.0M |
| Continuing Ops | $265.0M | $506.0M | $494.0M | $676.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $265.0M | $506.0M | $494.0M | $676.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $265.0M | $506.0M | $494.0M | $676.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.82B | $4.03B | $3.97B | $4.16B |
| Cash & Equivalents | $211.0M | $269.0M | $59.0M | $41.0M |
| Accounts Receivable | $1.71B | $1.85B | $1.96B | $2.03B |
| Inventory | $1.62B | $1.60B | $1.63B | $1.71B |
| Other Current Assets | $288.0M | $308.0M | $332.0M | $386.0M |
| Long-Term Assets | $8.95B | $9.16B | $9.46B | $9.78B |
| PP&E (Net) | $2.17B | $2.28B | $2.40B | $2.68B |
| Intangibles | $785.0M | $803.0M | $836.0M | $781.0M |
| Goodwill | $5.62B | $5.70B | $5.77B | $5.79B |
| Operating Leases | $265.0M | $290.0M | $271.0M | $332.0M |
| Other LT Assets | $107.0M | $86.0M | $191.0M | $191.0M |
| Total Assets | $12.77B | $13.19B | $13.44B | $13.94B |
| Current Liabilities | $2.80B | $3.11B | $3.30B | $3.59B |
| Accounts Payable | $1.85B | $2.05B | $2.23B | $2.45B |
| Current Leases | $36.0M | $43.0M | $42.0M | $48.0M |
| Taxes Payable | — | — | — | $38.0M |
| Other Current Liab | $255.0M | $287.0M | $291.0M | $219.0M |
| Long-Term Liabilities | $5.48B | $5.33B | $5.61B | $6.04B |
| LT Operating Leases | $246.0M | $265.0M | $248.0M | $307.0M |
| Other LT Liab | $5.24B | $5.06B | $5.36B | $5.74B |
| Total Liabilities | $8.28B | $8.44B | $8.91B | $9.64B |
| Shareholders' Equity | $4.50B | $4.75B | $4.53B | $4.31B |
| Retained Earnings | $1.01B | $1.51B | $2.00B | $2.68B |
| AOCI | $-73.0M | $-115.0M | $43.0M | $48.0M |
| Treasury Stock | $14.0M | $311.0M | $1.27B | — |
| Total L&E | $12.77B | $13.19B | $13.44B | $13.94B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $265.0M | — | $494.0M | $676.0M |
| Non-Cash Adjustments | $262.0M | — | $596.0M | $441.0M |
| Working Capital Changes | $238.0M | — | $84.0M | $252.0M |
| Cash from Operations | $765.0M | — | $1.17B | $1.37B |
| Capital Expenditures | $265.0M | — | $341.0M | $410.0M |
| Cash from Investing | $-255.0M | — | $-552.0M | $-497.0M |
| Share Buybacks | $14.0M | — | $948.0M | $926.0M |
| Cash from Financing | $-447.0M | — | $-831.0M | $-890.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $63.0M | — | $-209.0M | $-18.0M |
| Beginning Cash | $148.0M | — | $269.0M | $59.0M |
| Ending Cash | $211.0M | — | $60.0M | $41.0M |
Frequently Asked Questions
How does US Foods Holding Corp. make money?
The company's revenue streams are driven by direct sales to restaurant and hospitality clients, procurement of fresh and dry grocery goods, and specialized services for institutional customers such as schools and healthcare facilities. Key product categories include fresh produce, meat and poultry, dairy, frozen foods, and packaged pantry items sourced from global suppliers.
What are the main risks for USFD?
Investors should monitor margin compression from rising input costs and inflationary pressures affecting the cost of revenue, which stood at $32.56B in the latest period. The company faces potential regulatory scrutiny regarding its market dominance and must manage significant accounts payable obligations totaling $2.45B to maintain liquidity. Operational risks include supply chain disruptions that could impact inventory levels valued at $1.71B and service interruptions for clients.
What is USFD's competitive advantage?
US Foods maintains a robust competitive moat through its massive scale in distribution, which grants it superior purchasing power and direct access to premium suppliers. Its highly efficient logistics network minimizes waste and delivery times, while significant goodwill and intangible assets reflect strong brand recognition among foodservice operators.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.