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US Foods Holding

USFD
44
Food Distribution · Consumer Defensive
Price
$97.27
-1.86 (-1.88%)
Market Cap
$21.42B
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+2.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 225.0M (2021) → 230.0M (2025)

US Foods is one of the largest food distributors in the United States. It buys food and kitchen supplies from thousands of producers and delivers them to restaurants, hospitals, schools, hotels, and other businesses that need to feed large numbers of people. The company does not sell to regular grocery shoppers — its customers are professional kitchens.

US Foods makes money by buying food in bulk at wholesale prices and selling it to customers at a slightly higher price, keeping the difference as revenue. It operates across the continental United States, serving roughly 250,000 customer locations and generating about $37 billion in annual sales. Its scale and nationwide delivery network make it hard for smaller distributors to compete on price and reliability. The biggest risk the business faces is thin profit margins — operating margin sits around 3%, meaning rising fuel costs, food inflation, or losing large restaurant chain contracts can quickly squeeze earnings.

Winston Score History

Politician Trades

2 trades / 12mo

0 Congressional buys and 2 sells on USFD in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+6.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$49M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

US Foods Holding is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
17.2%
Thin — 17.2% gross margin
Operating Margin
2.2%
Thin — 2.2% operating margin
ROCE
2.3%
Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+3.7%
Slow sales growth (3.7% YoY)
EPS YoY
+37.4%
Earnings growing fast (37.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
188%
Turns 188% of profit into real cash
FCF Margin
2.1%
Thin free cash flow (2.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
1.19
Elevated debt (1.19)
Interest Cover
4.02x
Adequate interest coverage (4.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
32.3x
Pricey — P/E 32.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+16.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (32.3 → 16.0)

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Dividends

Not applicable for this business.
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