US Foods Holding Corp. (USFD): History, Ownership, Mission, How It Works & Makes Money

US Foods Holding Corp. (USFD) is the second-largest foodservice distributor in the U.S., but how does a company with trailing twelve-month revenue of over $39.11 billion in 2025 keep growing and expanding margins in a tight, post-pandemic restaurant market? Their strategy is defintely working, given the 2.7% case volume growth from independent restaurants in the second quarter of 2025, plus a raised full-year Adjusted EBITDA guidance of 9.5% to 12% growth. That kind of performance isn't just luck; it's driven by their core mission to be First in Food, so you need to understand the historical consolidation, ownership structure, and precise mechanics of how they efficiently deliver to 250,000 customer locations to properly evaluate the stock.

US Foods Holding Corp. (USFD) History

You're looking for the foundational story of US Foods Holding Corp., and honestly, it's less a single founding moment and more a century-long series of strategic consolidations and high-stakes financial maneuvers. The company you see today, a major player in US foodservice distribution, was truly forged in the fires of a massive private equity buyout and subsequent public listing.

The core takeaway is this: the modern, publicly traded US Foods Holding Corp. was intentionally created in 2007 to stabilize and optimize a sprawling distribution network, a process that continues today with a sharp focus on digital platforms like MOXē and targeted acquisitions to drive growth.

Given Company's Founding Timeline

Year established

The corporate entity US Foods Holding Corp. traces its pivotal formation to 2007, when it was acquired from Royal Ahold in a leveraged buyout (LBO). However, its roots go back to predecessor companies like Monarch Foods, established as early as 1853. The formal corporate structure, U.S. Foodservice, Inc., was originally established in 1989 through a consolidation of regional distributors.

Original location

While its predecessors were spread across the US, the headquarters for the entity post-2007 acquisition and leading up to the IPO was established in Rosemont, Illinois.

Founding team members

The modern company wasn't started by individual entrepreneurs but by the investment funds of two major private equity firms: Clayton, Dubilier & Rice (CD&R) and Kohlberg Kravis Roberts & Co. (KKR). They were the architects of the 2007 restructuring.

Initial capital/funding

The acquisition of U.S. Foodservice from Royal Ahold by KKR and CD&R in 2007 was valued at approximately $7.1 billion, which served as the initial capital base for the current corporate structure. Here's the quick math: that massive LBO provided the capital and mandate for the operational overhaul that defined the next decade.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory is defined by three major shifts that fundamentally changed its operational and financial structure. The first was the 2007 LBO, which was a necessary, defintely painful, restructuring after the accounting scandal under Royal Ahold's ownership.

The second major moment was the failed merger with Sysco in 2015. That regulatory roadblock forced the private equity owners to pivot from a sale to an IPO, which unlocked capital and created the publicly-traded US Foods Holding Corp. (USFD) we analyze today.

The third, and most recent, transformation is the strategic shift toward digital and independent restaurant growth, which is driving current financial performance. This is where the near-term opportunity sits for investors.

• Digital Platform Dominance: The MOXē e-commerce platform is now a critical revenue engine, with a 78% penetration rate for independent restaurant orders in Q2 2025. That's a huge number, meaning most of their key customers are locked into their digital ecosystem.
• Targeted M&A: Post-IPO, the strategy has been to acquire smaller, specialized distributors to fill geographic gaps and expand product lines, like the $1.8 billion acquisition of SGA Food Group.
• Financial Strength and Guidance: The focus on efficiency and profitable growth is clear in the Fiscal Year 2025 guidance, updated in November 2025, projecting Adjusted EBITDA growth between 10% to 12%. This operational discipline is what you want to see.

For a deeper dive into the company's current financial position, you should check out Breaking Down US Foods Holding Corp. (USFD) Financial Health: Key Insights for Investors.

US Foods Holding Corp. (USFD) Ownership Structure

US Foods Holding Corp. (USFD) is a publicly traded company, listed on the New York Stock Exchange (NYSE), which means its ownership is widely distributed among institutional investors, company insiders, and the general public. As of late 2025, the company's market capitalization stood at approximately $16.4 billion, with about 223 million shares outstanding.

The company's governance is heavily influenced by large institutional holders, which is typical for a business of this scale, while the executive leadership team steers the day-to-day operations and long-term strategy. If you want to dive deeper into the financial metrics that drive this valuation, check out Breaking Down US Foods Holding Corp. (USFD) Financial Health: Key Insights for Investors.

US Foods Holding Corp.'s Current Status

US Foods Holding Corp. is a Publicly Held company. It completed its Initial Public Offering (IPO) in May 2016, transitioning from its former private equity-backed status. Being a public entity requires strict adherence to U.S. Securities and Exchange Commission (SEC) regulations, ensuring transparency in its financial reporting and ownership structure.

This public status means decision-making is subject to shareholder votes and the influence of large institutional blocks. That's why institutional holdings are a defintely critical factor in understanding the company's trajectory.

US Foods Holding Corp.'s Ownership Breakdown

The ownership structure is overwhelmingly dominated by institutional investors, which include mutual funds, exchange-traded funds (ETFs), and other financial institutions. This concentration of ownership means that the strategic decisions and stock price are highly sensitive to the actions of a few major asset managers like Vanguard Group and BlackRock, Inc.

Here's the quick math on who holds the equity, based on data reported through late 2025:

US Foods Holding Corp.'s Leadership

The Executive Leadership Team is responsible for executing the company's long-range plan, which, as of late 2025, includes a focus on a 5% Net Sales Compound Annual Growth Rate (CAGR) and a 10% Adjusted EBITDA CAGR. This team brings decades of experience from major corporations, ensuring a seasoned approach to the complex food distribution industry.

• David E. Flitman: Chief Executive Officer and Director, serving since January 2023. His prior experience includes leadership roles at Builders FirstSource and Performance Food Group Company.
• Dirk J. Locascio: Executive Vice President and Chief Financial Officer (CFO).
• Steven M. Guberman: Executive Vice President, Nationally Managed Business and Chief Transformation Officer.
• William Spencer Hancock: Executive Vice President and Chief Supply Chain Officer.
• John A. Tonnison: Executive Vice President, Chief Information and Digital Officer.
• Martha Ha: Executive Vice President, General Counsel and Corporate Secretary.

The CEO, Dave Flitman, directly owns about 0.085% of the company's shares, a stake valued at approximately $13.54 million, which helps align his personal financial interests with shareholder returns. The average tenure for the management team is a solid 4.7 years, suggesting a stable leadership core.

US Foods Holding Corp. (USFD) Mission and Values

US Foods Holding Corp.'s core purpose extends beyond logistics; it's about inspiring the food industry by being a true partner to chefs and operators, helping them succeed in a tough business. This commitment is the cultural backbone that supports their ambitious financial targets, like the projected 20% Adjusted Diluted EPS Compound Annual Growth Rate (CAGR) through 2027.

US Foods Holding Corp.'s Core Purpose

Official mission statement

The company's mission is a clear, three-part directive focused on market leadership and customer enablement, which is a smart way to frame their value proposition. They aim to be the leader that makes their customers better. You can read more about their guiding principles here: Mission Statement, Vision, & Core Values of US Foods Holding Corp. (USFD).

• Be First in Food.
• Inspire chefs and foodservice operators.
• Bring great food experiences to consumers.

This mission is defintely a customer-centric one, pushing them to innovate so their clients can deliver memorable dining experiences. It's a simple, but powerful, mandate.

Vision statement

US Foods Holding Corp.'s vision is less about a lofty ideal and more about a concrete ambition to dominate the industry across several key metrics. This is a realist's vision-it maps directly to actionable business pillars like digital leadership and operational safety.

Their ambition is to be the undisputed best in the industry, specifically aiming to be:

• The safest, fastest-growing, most profitable leader in digital.
• The best place to work.

Here's the quick math on their growth ambition: for fiscal year 2025, the company reaffirmed an outlook projecting Adjusted EBITDA growth of 10% to 12%, which shows they are serious about that profitability goal.

US Foods Holding Corp. slogan/tagline

The company's core promise is encapsulated in a simple, direct tagline that speaks to the daily grind of a restaurant operator, which is why it resonates so well. It's a promise of partnership, not just a transaction.

• We Help You Make It.

This tagline is their promise to the nearly 250,000 customer locations they serve, providing innovative products and business support to help them operate profitably. They also use the phrase, GREAT FOOD. MADE EASY., which emphasizes their value of simplifying the complex foodservice process.

US Foods Holding Corp. (USFD) How It Works

US Foods Holding Corp. operates as a critical, high-volume link between over 6,000 suppliers and more than 300,000 customer locations across the United States, primarily by managing a complex, national supply chain to deliver food and business solutions. The company generates revenue by efficiently sourcing, stocking, and distributing over 400,000 products, focusing on high-margin growth in the independent restaurant segment.

Given Company's Product/Service Portfolio

The company's offerings span a vast array of food and non-food items, but its higher-margin Exclusive Brands and digital tools are what truly differentiate its value proposition for operators. For a deeper dive into the company's market position, you can read Exploring US Foods Holding Corp. (USFD) Investor Profile: Who's Buying and Why?.

Given Company's Operational Framework

The operational framework is built on a hub-and-spoke model, relying on a massive distribution network and increasing digital integration to drive efficiency. They are defintely moving toward a more automated, data-driven supply chain.

• National Distribution Network: Operates over 70 distribution facilities across the U.S., allowing for broad geographic reach and next-day delivery capabilities to over 300,000 customer locations.
• Infrastructure Investment: Opened a large, semi-automated distribution center near Chicago in June 2025, with another facility under construction in Austin, Texas, to boost throughput and reduce labor costs.
• Proprietary Logistics Systems: Rolling out a proprietary routing system across all distribution markets to optimize delivery routes, which the company expects will lead to the best delivery efficiency in its history.
• Sourcing and Cost Management: Aggressively executing a strategic vendor management initiative, on track to deliver over $120 million in cost of goods sold savings for the full fiscal year 2025.

Given Company's Strategic Advantages

The company's market success is rooted in leveraging its sheer scale alongside targeted digital and product innovation, which creates a sticky ecosystem for independent restaurant owners. They are not just a delivery service; they are a business partner.

• Digital Leadership: The MOXe® platform drives a competitive moat, with a record 78% of independent restaurant orders placed digitally in Q2 2025, lowering the cost-to-serve and improving order accuracy.
• AI-Powered Efficiency: Utilizing Artificial Intelligence (AI) in pilot markets to enhance delivery accuracy by 40%, translating directly into better customer service and lower operational expense.
• High-Margin Product Mix: Private label penetration exceeding 53% with core independent customers provides a significant margin advantage over national brand sales and strengthens customer loyalty.
• Targeted Market Penetration: The Pronto small truck delivery service, expanded to 44 markets, targets high-density urban areas and is projected to generate $1.5 billion in sales by 2027 by serving smaller, harder-to-reach customers more profitably.
• Financial Strength for Growth: Strong cash flow from operating activities, reaching $1,076 million in the first nine months of fiscal year 2025, provides capital for strategic acquisitions like the recently announced Shetakis deal.

US Foods Holding Corp. (USFD) How It Makes Money

US Foods Holding Corp. makes money by acting as the critical link between food producers and approximately 250,000 foodservice operators across the United States, primarily through the distribution of a vast product portfolio. The company generates revenue by applying a markup to the cost of goods sold (COGS) and leveraging its complex, high-volume logistics network to service a diverse customer base, with a strategic focus on high-margin independent restaurants.

US Foods Holding Corp.'s Revenue Breakdown

The company's revenue structure is diversified, but its profitability engine is increasingly centered on the Independent Restaurant segment, which typically commands higher margins than the Chain segment. The most recent data shows a clear shift toward this higher-value customer base, which is driving case volume growth.

Business Economics

The core economics of US Foods Holding Corp.'s business revolve around managing a massive, low-margin, high-volume operation while aggressively driving efficiencies and shifting the sales mix toward higher-profit customers. This is a classic distribution model, but the company is using technology and self-help initiatives to expand its thin margins.

• Pricing and Margin Strategy: The company uses a cost-plus pricing model, but its profit is made in the spread-the difference between the cost of goods and the sales price-which is significantly wider for independent restaurants than for large chains. The goal is to grow gross profit faster than operating expenses.
• Self-Help Initiatives: Management is focused on internal productivity gains, including a target of approximately $260 million in vendor management savings by the end of fiscal year 2025. That's a huge number, and it directly drops to the bottom line.
• Private Label Penetration: Selling its own exclusive brands, like the 'Chef'Store' private label, is a key margin driver. Penetration in the core independent segment is rising, projected to hit around 53%, which offers better control over cost and pricing.
• Digital and Logistics Efficiency: Technology is defintely a lever. Tools like the AI-enabled MOXē e-commerce platform boost conversion, and the Descartes routing platform improves delivery efficiency, leading to a better cases-per-mile metric and lower distribution costs.

Here's the quick math: With a Gross Profit margin around 17.6% (Q2 2025) and an Adjusted EBITDA margin of only 5.0% (Q3 2025), even a small improvement in efficiency or a shift to higher-margin customers has an outsized impact on profitability.

US Foods Holding Corp.'s Financial Performance

As of November 2025, the company is demonstrating strong financial momentum, largely driven by its strategic focus on independent restaurants and operational efficiency. The full-year guidance was recently raised, reflecting confidence in their ability to execute.

• Net Sales: Net Sales for the last twelve months (LTM) ending Q3 2025 reached approximately $39.12 billion, representing a 4.8% year-over-year increase. For the full fiscal year 2025, the company expects Net Sales growth between 4% and 5%.
• Adjusted EBITDA: The company continues to expand its operating profit (Adjusted EBITDA), which grew 11.0% to $505 million in Q3 2025. Full-year 2025 guidance projects growth in Adjusted EBITDA of 10% to 12%.
• Adjusted Diluted EPS: Earnings per share growth is accelerating due to margin expansion and share repurchases. Adjusted Diluted EPS for Q3 2025 was $1.07, a 25.9% increase. The full-year 2025 guidance for Adjusted Diluted EPS growth is a robust 24% to 26%.
• Balance Sheet Health: Net Debt stood at approximately $4.9 billion at the end of Q3 2025, with a Net Debt to Adjusted EBITDA ratio of 2.6x, which is an improvement from 2.8x at the end of fiscal year 2024. This leverage reduction demonstrates strong operating cash flow generation.

The strong EPS growth, which is outpacing Net Sales growth, tells you the self-help initiatives are working. You can dive deeper into the sustainability of these metrics in Breaking Down US Foods Holding Corp. (USFD) Financial Health: Key Insights for Investors.

US Foods Holding Corp. (USFD) Market Position & Future Outlook

US Foods Holding Corp. is positioned as a strong number-two in a highly fragmented industry, aggressively gaining share in the profitable independent restaurant segment while driving significant operational improvements. The company's future outlook is tied to its digital transformation, margin expansion initiatives, and the potential for a transformative merger that could redefine the competitive landscape.

Competitive Landscape

The U.S. foodservice distribution market is dominated by three main public companies, but it remains highly fragmented, with the top players accounting for only a fraction of the total market. US Foods is in a fierce battle for the most profitable customers-independent restaurants-where it has demonstrated consistent case volume growth.

Here's the quick math: Sysco Corporation holds roughly 17% of the market, but a potential merger between US Foods and Performance Food Group would create a new industry leader with approximately 18% market share, which is why the deal is such a big conversation right now.

Opportunities & Challenges

Management's focus on self-help initiatives is defintely paying off, allowing the company to raise its fiscal year 2025 Adjusted Diluted Earnings Per Share (EPS) growth guidance to a range of 24% to 26%. But still, the company has to navigate a tough macroeconomic environment.

Industry Position

US Foods is firmly entrenched as the second-largest broadline foodservice distributor in the United States, leveraging its scale and technology to drive profitable growth. Its strategy is clear: focus on the most profitable customer segments and use technology to create a competitive moat (economic barrier to entry). The company's consistent operational execution is visible in its updated full-year 2025 guidance, which projects Net Sales growth of 4% to 5% and Adjusted EBITDA growth of 10% to 12%. They are not just growing; they are improving margins.

• Gain market share: The company has achieved 18 consecutive quarters of market share gains with independent restaurants.
• Strategic M&A: The recent definitive agreement to acquire Shetakis, an independent distributor in Las Vegas, is a classic tuck-in acquisition to strengthen regional density.
• Capital Allocation: Management confidence is underscored by a robust share repurchase program, with approximately $335 million of shares bought back in Q3 2025 alone.

To understand the financial underpinnings of this performance, you should read Breaking Down US Foods Holding Corp. (USFD) Financial Health: Key Insights for Investors.