Us Foods Holding Corp. · NYSE:USFD
Us Foods — Consumer Analyst Group of New York (CAGNY) Conference 2025
54 slides from Us Foods's conference presentation, Feb 20, 2025
Slide 1: Consumer Analyst Group of New York (CAGNY) Conference
Consumer Analyst Group of New York (CAGNY) Conference February 20, 2025
Slide 2: Disclaimer Page
Disclaimer Page Cautionary Statements Regarding Forward-Looking Information Statements in this presentation which are not historical in nature are “forward-looking statements” within the meaning of the federal securities laws. These statements often include words such as “believe,” “expect,” “projec
Slide 3: Leading the Foodservice Industry with Excellence
Leading the Foodservice Industry with Excellence Dave Flitman | Chief Executive Officer 3
Slide 4: Key Messages
Key Messages Transforming US Foods with seasoned leadership 1 focused on customer-centric solutions, operational excellence, and strong execution Leading in a highly fragmented and resilient 2 industry with national scale, targeted customer growth, and digital innovation Driving balanced, profitable
Slide 5: US Foods Sizzle Reel
US Foods Sizzle Reel am
Slide 6: US Foods at a Glance (NYSE: USFD)
US Foods at a Glance (NYSE: USFD) ROSEMONT, IL 150+ $16.5B(1) $37.9B(2) HEADQUARTERS YEARS IN BUSINESS MARKET CAP IN REVENUE ~30,000 ~3,400 ~6,500 ~250,000 ASSOCIATES BROADLINE SALES ASSOCIATES TRUCKS IN OUR FLEET CUSTOMER LOCATIONS Revenue Breakdown(2) ~10% 6% 18% 6% ~65% 9% 34% 33% ~25% Industry O
Slide 7: Over the Last Two Years, We Have Been Executing a Transformation Focused on Accelerating Excellence
Over the Last Two Years, We Have Been Executing a Transformation Focused on Accelerating Excellence 2024 2023 Building on Clear Competitive Advantages Leveraging team-based selling approach led by specialized teams Bolstered Management Team Accelerating industry-leading digital technologies (e.g
Slide 8: Capturing Upside from Favorable Consumer Trend
Capturing Upside from Favorable Consumer Trend Consumer Spending on Food(1) (% Total U.S. Spend by Type) 60% Food Away from Home 55% 50% Food at Home 45% 40% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Growing Consumer Spend on Food Away from Home Presents Significant Opportunity (1) Sour
Slide 9: Significant Market Opportunity in Large, Resilient, and Growing Industry
Significant Market Opportunity in Large, Resilient, and Growing Industry USFD 2025E to 2027E $ Share Case Volume CAGR 2024 Market(2) USFD(2) Total Addressable Market $430B Total ~10% ~2% 3% to 5% Total Addressable Market $371B Restaurants $250B Independent ~18% ~2% 5% to 8% Restaurants Restaurants $
Slide 10: Our Strategic and Targeted Customer Types
Our Strategic and Targeted Customer Types Targeted Customer Types with Higher Profitability Relative Contribution Margin(1) • Strong market growth opportunity with a highly INDEPENDENT profitable, diverse, and resilient customer base • Leverage our team-based selling model, innovative RESTAURANTS Ex
Slide 11: What Differentiates US Foods?
What Differentiates US Foods? Proven strategy-driven operational playbook to 1 Only pure-play, U.S. focused foodservice distributor with national scale 5 advance Culture, Service, Growth and Profit strategy pillars Differentiated value proposition and scale with 2 the three most profitable customer
Slide 12: US Foods MORE Campaign
US Foods MORE Campaign 12 am
Slide 13: Our Customer Value Proposition – Creating a Recipe for Success
Our Customer Value Proposition – Creating a Recipe for Success MORE MORE MORE MORE QUALITY SUPPORT TOOLS DELIVERIES • National leader and one-stop • Help customers succeed • Best-in-industry MOXē® • Building best-in-class supply shop for breadth of quality through team-based selling platform enables
Slide 14: Industry-leading Exclusive Brands (Private Label) Aligned to Customer Needs
Industry-leading Exclusive Brands (Private Label) Aligned to Customer Needs BREADTH OF PRODUCTS QUALITY PRODUCTS INCREASED VALUE Extensive portfolio that aligns with As good or better than the leading Lower price for customers and higher customer needs equivalent at a competitive price profit for US
Slide 15: MOXē – Best-in-class Digital Commerce Platform
MOXē® – Best-in-class Digital Commerce Platform Independent Restaurant US Foods 53% Operators Identify Best-in-class Peer #1 36% Foodservice Platforms(1) Peer #2 16% 73 8x MOXē® NPS >5 pp Better More Customer Interactions than Nearest Competitor than Non-digital Customers 87% 125M eCommerce Penetrat
Slide 16: Significant Achievements Against our Strategy in 2024
Significant Achievements Against our Strategy in 2024 CULTURE SAFE SUPPORTIVE RESPONSIBLE Improved safety performance by Donated more than $14.5 million to Completed delivery of nearly 50 Embrace the 19% across the organization support hunger relief, culinary electric vehicles US Foods® culture educ
Slide 17: Accretive Tuck-in M&A Accelerates Our Strategy
Accretive Tuck-in M&A Accelerates Our Strategy Aligns with Expands overall capabilities Opportunistic POTENTIAL TARGETS growth plan and footprint Investment Criteria 100+ One or a few locations in a Strong cultural fit including US Foodservice 1 geography that increases density 4 similar go-to-marke
Slide 18: Strong Track Record of Top- and Bottom-line Growth
Strong Track Record of Top- and Bottom-line Growth Net Sales ($B) Adj. EBITDA(1) ($M) & Adj. Diluted EPS(1) $37.9 $2,000 $5.00 $35.6 $1,800 $1,741 $4.50 $34.1 $1,600 $1,559 $4.00 $29.5 $1,400 $1,310 $3.15 $3.50 $1,200 $1,057 $2.63 $3.00 $1,000 $2.14 $2.50 $1.55 $800 $2.00 $600 $1.50 $400 $1.00 $200
Slide 19: 2025E to 2027E Financial Targets
2025E to 2027E Financial Targets ~5% ~10% 20bps+ ~20% Net Sales Adj. EBITDA Annual Adj. EBITDA Adj. Diluted EPS CAGR CAGR Margin Expansion CAGR Deployable Capital of $4B+ from 2025E to 2027E 19
Slide 20: Financial Excellence and Long-term Outlook
Financial Excellence and Long-term Outlook Dirk Locascio | EVP & CFO 20
Slide 21: Key Messages
Key Messages Driving superior financial performance with 1 differentiated strategy, greater operational rigor, and improved execution Growing market share, accelerating 2 productivity, and expanding EBITDA margin to drive strong earnings growth Increasing Cash Flow generation with 3 disciplined capi
Slide 22: Delivered Continued Sales and Earnings Growth
Delivered Continued Sales and Earnings Growth B/(W) vs. B/(W) vs. Q4 2024 FY 2024 Q4 2023 FY 2023 Total Case Volume +3.5% +4.2% Independent Restaurant Case Volume +3.2% +4.4% Healthcare Case Volume +4.7% +5.7% Hospitality Case Volume +2.4% +2.1% Net Sales ($millions) $9,491 +6.2% $37,877 +6.4% Adjus
Slide 23: Strong Execution Drove Continued Adjusted EBITDA Rate Improvement
Strong Execution Drove Continued Adjusted EBITDA Rate Improvement $10.00 Adj. Gross Profit Per Case(1) Adj. EBITDA Per Case(1) $9.00 $7.71 $7.99 +10.6% $8.00 $7.00 CAGR $6.00 $2.50 $2.50 $5.00 +$0.28 $2.12 $2.07 $4.00 $1.93 $1.93 $3.00 $2.00 $2.00 $2.00 $1.69 $1.00 $- Q4 2023 Q4 2024 $1.50 $1.50 $10
Slide 24: Achieved Our 2022 to 2024 Long-range Plan
Achieved Our 2022 to 2024 Long-range Plan Adj. EBITDA ($M) & Adj. EBITDA Margin (%)(1) $2,000 • Delivering consistent share gains with our $1,800 $1,741 Exceeded three target customer types $1,600 previous $1,400 LRP target: $1.7B • Driving cost of goods savings $1,057 $1,200 $1,000 • Extending our
Slide 25: Drove Strong Profitable Growth and Significantly Increased Return on Invested Capital
Drove Strong Profitable Growth and Significantly Increased Return on Invested Capital Adj EBITDA(1) ($M) Adj. Diluted EPS(1) Adj. ROIC(1) (%) $2,000 $1,741 $3.15 31% $1,800 $1,559 28% $1,600 $2.63 $1,310 23% $2.14 $1,400 $1,057 18% $1,200 $1,000 $1.55 $800 $600 $400 $200 3.6% 3.8% 4.4% 4.6% $- 2021
Slide 26: Strong Cash Flow Generation Combined With Healthy Leverage Profile
Strong Cash Flow Generation Combined With Healthy Leverage Profile Operating Cash Flow ($M) Net Debt ($M) and Net Leverage(1) ($M) $4,863 $4,869 $1,140 $1,174 $4,643 $4,405 4.6x $765 3.5x 2.8x 2.8x $419 2021 2022 2023 2024 2021 2022 2023 2024 (1) Reconciliations of these non-GAAP measures are provid
Slide 27: Balance of Volume Growth and Margin Expansion Drive Adj. EBITDA Growth
Balance of Volume Growth and Margin Expansion Drive Adj. EBITDA Growth ($B) Expect GP Growth to Outpace OpEx by 100 to 150bps ~$2.2 to ~$2.3 Gross Profit • COGS improvement • Next-generation pricing $1.74 • Stock Yards® growth • Exclusive Brands (Private Label) mix OpEx • 3% to 5% productivity impro
Slide 28: Adj. Diluted EPS Growth Driven by Continued Strong Adj. EBITDA Growth and Share Repurchases
Adj. Diluted EPS Growth Driven by Continued Strong Adj. EBITDA Growth and Share Repurchases $5.20 to $5.70 Key Drivers • Primarily driven by Adj. EBITDA growth through our key initiatives • Expect to repurchase ~$2 billion $3.15 shares • Pursue accretive tuck-in acquisitions within our investment cr
Slide 29: Future Capital Deployment
Future Capital Deployment Go-forward Priorities ~20% Continue to invest in the business ~30% 1 to drive organic growth $4B+ 2 $958 million of shares repurchased in 2024 Deployable Capital (2025E to 2027E) Maintain net leverage in 3 target range of 2.0x to 3.0x Cash CapEx Share Buybacks Opportunistic
Slide 30: Fiscal Year 2025 Guidance and Modeling Assumptions
Fiscal Year 2025 Guidance and Modeling Assumptions Fiscal Year 2025 Guidance Modeling Assumptions Total Case Growth 2% to 4% Net Sales Growth 4% to 6% Sales Inflation & Mix ~2% Depreciation $410M to $450M Adjusted EBITDA Growth 8% to 12% (1) Interest Expense $310M to $325M Tax Rate ~26% Adjusted Dil
Slide 31: Building Blocks to 2025 Growth
Building Blocks to 2025 Growth 1 Driving balanced, profitable growth through our four-pillar strategy to 2025E to 2027E further expand our market position Financial Targets Harnessing focus on operational 2 excellence and delivering continued strong execution ~5% ~10% Net Sales Adj. EBITDA CAGR CAGR
Slide 32: Appendix
Appendix Summary Non-GAAP Reconciliations
Slide 33: Quarterly Case Volume Trend vs. Prior Year
Quarterly Case Volume Trend vs. Prior Year Organic Case Growth by Quarter Independent Restaurant Case Growth (1) (1) YOY percent change YOY percent change for total and organic cases 20% Independent Restaurants Organic Acquisitions Healthcare/Hospitality 7.3% All Other 6.6% 5.7% 4.6% 4.1% 8.9% 3.2%
Slide 34: Strong Operating Cash Flow Yields Financial Flexibility
Strong Operating Cash Flow Yields Financial Flexibility Operating Cash Flow ($M) $1,400 $1,174 Capital Allocation Priorities $1,200 $1,140 $1,000 $765 1 Invest in the business $800 2 $600 $400 Return capital to shareholders $200 Maintain net leverage within $- 2022 2023 2024 3 target range of 2.0 to
Slide 35: Debt Summary
Debt Summary Interest Rates as of Carrying Value as of Carrying Value as of Maturity Interest Terms ($ in millions) December 28, 2024 December 28, 2024 December 30, 2023 ABL Facility December 7, 2027 Term SOFR + CSA 6.11% $223 - 2019 Incremental Term Loan Facility (net of $0 • Maintained net leverag
Slide 36: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Reported (unaudited) Adjusted(1) (unaudited) 13 Weeks Ended 13 Weeks Ended (Case volume and $ in millions, December 28, 2024 December 30, 2023 Change December 28, 2024 December 30, 2023 Change except per share data) Case Volume 208 201 3.5% Net Sales $9,491 $8,93
Slide 37: Full Year 2024 Financial Performance
Full Year 2024 Financial Performance Reported (unaudited) Adjusted(1) (unaudited) Year Ended Year Ended (Case volume and $ in millions, December 28, 2024 December 30, 2023 Change December 28, 2024 December 30, 2023 Change except per share data) Case Volume 841 807 4.2% Net Sales $37,877 $35,597 6.4%
Slide 38: Non-GAAP Reconciliation – Adjusted Gross Profit per Case, Operating Expense per Case, EBITDA per Case
Non-GAAP Reconciliation – Adjusted Gross Profit per Case, Adjusted Operating Expense per Case, Adjusted EBITDA per Case Adjusted(1) (unaudited) 13 Weeks Ended Year Ended December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 (Total cases and $ in millions, except per case data) Tota
Slide 39: Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended (unaudited) Year Ended (unaudited) ($ in millions) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Gross Profit (GAAP) $1,666 $1,590 $6,534 $6,148 LIFO reserve adjustment(1) (7) (43
Slide 40: Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for expected
Slide 41: Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) Year Ended (unaudited) ($ in millions) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Net income available to common shareholders and net income margin (GAAP) $66 0.7% $147 1.6% $494
Slide 42: Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Represe
Slide 43: Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) Year Ended (unaudited) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Diluted EPS (GAAP) $0.28 $0.59 $2.02 $2.02 Restructuring activity and asset impairment charges(1) 0.01 0.05 0.
Slide 44: Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Repre
Slide 45: Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) December 28, 2024 December 30, 2023 December 31, 2022 Total Debt (GAAP) $4,928 $4,674 $4,854 Cash, cash equivalents and restricted cash (59) (269) (211) Net Debt (non-GAAP) $4,869 $4,405 $4,643 Adju
Slide 46: Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted EBITDA and Adjusted Net Income
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted EBITDA and Adjusted Net Income Year Ended (unaudited) ($ in millions) December 30, 2023 December 31, 2022 January 1, 2022 Net income available to common shareholders and net income margin (GAAP) $499 1.4% $228 0.7% $121 0.4% Series A Preferred
Slide 47: Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted EBITDA and Adjusted Net Income
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted EBITDA and Adjusted Net Income 1. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. For fiscal year 2022, also consists of the write-off of old leases ROU asset an
Slide 48: Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted Diluted EPS
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted Diluted EPS Year Ended (unaudited) December 30, 2023 December 31, 2022 January 1, 2022 Diluted EPS (GAAP) $2.02 $1.01 $0.54 Restructuring costs and asset impairment charges(1) 0.06 0.05 0.04 Share-based compensation expense(2) 0.22 0.18 0.19 LI
Slide 49: Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted Diluted EPS
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted Diluted EPS 1. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. For fiscal year 2022, also consists of the write-off of old leases ROU asset and lease liability o
Slide 50: Non-GAAP to GAAP Reconciliation – 2021 to 2023 Net Leverage and Adjusted EBITDA per Case & Margin
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Net Leverage and Adjusted EBITDA per Case & Margin For the Year Ended (unaudited) ($ in millions, except ratios) December 30, 2023 December 31, 2022 January 1, 2022 Total Debt (GAAP) $4,674 $4,854 $5,011 Cash, cash equivalents and restricted cash (269)
Slide 51: Non-GAAP to GAAP Reconciliation – 2021 to 2023 Net Leverage and Adjusted EBITDA per Case & Margin
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Net Leverage and Adjusted EBITDA per Case & Margin 1. EBITDA is defined as net income, plus interest expense—net, income tax provision, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for: (1) restructuring costs and ass
Slide 52: Non-GAAP to GAAP Reconciliation – 2021 to 2024 ROIC
Non-GAAP to GAAP Reconciliation – 2021 to 2024 ROIC For the Year Ended (unaudited) ($ in millions) December 28, 2024 December 30, 2023 December 31, 2022 January 1, 2022 Operating Income (GAAP) $1,099 $1,017 $594 $424 Other income (6) 6 22 26 Loss on extinguishment of debt(1) (10) (21) - (23) Recogni
Slide 53: Non-GAAP to GAAP Reconciliation – 2021 to 2024 ROIC
Non-GAAP to GAAP Reconciliation – 2021 to 2024 ROIC 1. Includes early redemption premium and the write-off of certain pre-existing debt issuance costs. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation exp
Slide 54: WE HELP YOU MAKE IT
WE HELP YOU US. MAKE IT"
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