US Foods Holding Corp.
US Foods Holding Corp., together with its subsidiaries, markets, sells, and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company also provides MOXe, an all-in-one foodservice business application. Its customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
What does it do?
US Foods is essentially the behind-the-scenes supplier that keeps restaurants, hospitals, hotels, and school cafeterias stocked with everything they need. Think about your favorite local restaurant — someone has to deliver the chicken, the lettuce, the cooking oil, and even the paper napkins. That's US Foods. They serve over 250,000 customers across the United States, from small family-owned diners to large hospital networks, delivering fresh, frozen, and dry goods directly to their doors.
Food distribution is a massive, unglamorous business that quietly underpins the entire US restaurant and hospitality industry — a sector worth hundreds of billions of dollars annually. US Foods is one of only two dominant players alongside Sysco, meaning it controls a huge share of a market that is very hard to break into. With restaurant foot traffic recovering post-pandemic and inflation starting to cool, the economics for distributors like US Foods are improving at just the right time.
How does it make money?
US Foods makes money by buying food and supplies in bulk from thousands of manufacturers, then reselling and delivering them to customers at a markup. They generated $39.4 billion in revenue last year, up from $37.9 billion the year before — a healthy 4% growth. Their profits come from that margin between what they pay suppliers and what they charge customers, plus fees for value-added services. They also offer a business management app called MOXe, which helps restaurant owners run their operations and deepens loyalty to US Foods.
Why do investors care?
Investors like US Foods because it operates in a stable, essential industry — people always need to eat, and restaurants always need supplies. The growth story is about gaining market share from smaller, regional distributors who can't match US Foods' scale, technology, or delivery network. For the thesis to work, US Foods needs to keep winning independent restaurant customers, manage fuel and labor costs tightly, and slowly expand its profit margins. The MOXe platform is a quiet but important bet on becoming stickier with customers beyond just delivering boxes.
Deep Dive
MemberA full investor briefing on US Foods Holding Corp. — history, leadership, risks, and outlook.