AllAnalyst Report
logoMorningstarApril 08, 2021

US Foods Holding Corp.: Pandemic Recovery Should Lead to Robust Growth for US Foods in 2021, but Moat Remains Elusive

Symbols
USFD
Sector(s)
Consumer Defensive
Rating
Current Price
$36.84
Fair Value
Economic Moat
Stewardship
Summary

US Foods is the second-largest U.S. food-service distributor behind Sysco, holding 10% market share of the highly fragmented food-service distribution industry. US Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (each about 16.5% of sales), independent restaurants (33%), national restaurant chains (22%), education and government facilities (8%), and grocers (4%). In addition to its delivery business, the firm has nearly 80 cash and carry stores under the Chef’Store and Smart Foodservice Warehouse banners. After Sysco’s attempt to purchase US Foods failed to gain federal approval in 2015, US Foods entered the public market via an initial public offering.

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Analyst Profile

Rebecca Scheuneman

Equity Analyst
Rebecca Scheuneman is an equity analyst on the consumer team for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers food manufacturers, food distributors, and North American grocers.Before joining Morningstar in 2018, Scheuneman spent more than eight years as an analyst/portfolio manager at Forester Capital Management, covering the consumer and healthcare sectors. Prior to that, she spent nearly 11 years covering the consumer and other sectors for Allstate Investments.Scheuneman holds a bachelor’s degree in marketing from Northern Illinois University and a Master of Business Administration in finance from DePaul University. She also holds the Chartered Financial Analyst® designation.