Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
US Foods: Market Share Leadership Anchored by Strategic Execution – Will Independent Growth and Cost Initiatives Drive the Next Leg of Outperformance?
US Foods delivered strong Q3 FY24 results with revenue of $9.73 billion, surpassing estimates by $7.63 million. Adjusted EPS of $0.85 and adjusted EBITDA growth of 13.2% YoY underscore the company’s efficient execution and market resilience. Despite the GAAP EPS miss, the company’s profitability profile, driven by cost controls and operational efficiency, supports its growth trajectory, with an ambitious goal of a 10% adjusted EBITDA CAGR and 20% adjusted EPS CAGR through FY27. Key growth drivers include continued strength in independent restaurant case growth (+4.1% YoY), healthcare (+5.7%), and hospitality (+3%), all reflecting US Foods’ effective market share capture. Strategic initiatives like private-label penetration (now 52% of volume) and vendor management savings continue to drive margin expansion, while the rollout of Descartes routing technology supports warehouse productivity gains. The company’s disciplined capital allocation, including $1.1 billion in share repurchases since 2022, reinforces confidence in its intrinsic value. As US Foods navigates macroeconomic uncertainty, can its continued focus on independent restaurant growth and cost-saving initiatives lead to sustained outperformance and help the company meet its long-term financial targets?
