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US Foods Holding

USFD
26
Food Distribution · Consumer Defensive
Price
$109.62
+1.16 (+1.07%)
Market Cap
$24.14B
Winston Score
26
Winston is worried
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through May 28, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Data not available
Stability
Weak
Valuation
Strong

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)

Winston Score History

The full picture

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.

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Score breakdown

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Quality

Profit per sale
Gross Margin
18.2%
Thin — 18.2% gross margin
Profit after running costs
Operating Margin
4.2%
Thin — 4.2% operating margin
Return on the money invested
ROCE
4.7%
Weak — 4.7% 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 growth
Sales YoY
N/A
Data not available
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
N/A
Data not available

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Stability

What it owes vs what it owns
Debt / Equity
1.22
Elevated debt (1.22)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
25.7x
Growth-priced — P/E 25.7

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

Cheaper or dearer next year
P/E vs Forward
+8.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (25.7 → 16.8)

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Dividends

Not applicable for this business.
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