stockrowWhat it does
US Foods is a broadline foodservice distributor: it buys a wide range of food and other products from suppliers and sells them to businesses and institutions that serve meals. Its customers include independent and chain restaurants, healthcare providers, hotels, schools and government facilities.
The company supplies fresh, frozen and dry foods, along with equipment, disposable products and other supplies. Its assortment includes national brands and its own Exclusive Brands. It operates as one business, with shared systems and centralized activities alongside local customer-facing teams.
US Foods delivers products through its distribution network and offers other ways to shop. Customers can buy at CHEF’STORE cash-and-carry locations or order specialty items through US Foods Direct for shipment from suppliers. Its Pronto service offers deliveries six days a week in high-volume, dense markets.
The company also provides tools to help operators run their businesses. Its MOXē application supports ordering, inventory management and food-cost calculations. Sales associates and specialists, including chefs, work with customers on their foodservice needs.
David E. Flitman is chief executive officer. US Foods conducts its operations through its wholly owned subsidiary US Foods, Inc. and that subsidiary’s businesses.
How it makes money
US Foods makes money principally by selling food and related products to foodservice operators. It manages the business as a single operating segment rather than reporting separate segments for its distribution, stores or digital services.
Net sales were $39.4 billion in fiscal 2025.
Meats and seafood generated $14.0 billion in fiscal 2025, representing 35.4% of revenue. Other categories include dry, refrigerated and frozen groceries, dairy, beverages, produce, and equipment and supplies. The company offers both national brands and private brands across different price and quality levels. Organic broadline sales of private brands represented approximately 35% of net sales in fiscal year 2025.
Customers can place orders through MOXē, work with sales associates, shop at CHEF’STORE or use US Foods Direct. Scheduled Delivery serves customers on their scheduled day and time, while Pronto and Pronto Next Day provide additional delivery options. These channels support repeat ordering as customers replenish their food and supplies; US Foods says customers using its digital solutions tend to buy more products and have stronger commercial relationships with it.
Pricing and delivery terms for some customers are negotiated by group purchasing organizations on their members’ behalf. Buying decisions across the industry also depend on product assortment, quality, price and service.
The difference between product sales and the cost of goods produces gross profit, from which US Foods pays distribution, selling and administrative expenses. Gross profit was 17.4% of net sales in fiscal year 2025, while operating income was $1,199 million.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Meats and seafood | $14.0 billion | 35.4% | 8.07% |
| Dry grocery products | $6.7 billion | 17.0% | 0.92% |
| Refrigerated and frozen grocery products | $6.6 billion | 16.8% | 3.30% |
| Dairy | $4.2 billion | 10.7% | 4.41% |
| Equipment, disposables and supplies | $3.6 billion | 9.21% | 1.79% |
| Beverage products | $2.3 billion | 5.93% | 8.19% |
| Produce | $1.9 billion | 4.94% | −8.85% |
Customers and how it sells
US Foods supplies approximately 250,000 customer locations nationwide. They include independent and chain restaurants, healthcare and hospitality operators, government customers and education providers. Its target customer types are independent restaurants, healthcare and hospitality businesses, which value broad product ranges and services that help them run their operations.
No single customer represented more than 2% of total customer sales in fiscal year 2025. The top 50 customers, including group purchasing organizations, represented approximately 42% of net sales. Group purchasing organizations negotiate pricing, delivery and other terms for their members and accounted for approximately 27% of net sales. Their members are primarily in healthcare, hospitality, education and government or military services.
The company serves customers through a network of over 70 distribution facilities, over 6,500 trucks and over 90 cash-and-carry locations. Scheduled and Pronto deliveries give customers different delivery options; CHEF’STORE offers a way to shop between deliveries. US Foods Direct expands the online assortment with specialty products shipped directly from suppliers.
Over 4,000 sales associates manage relationships at local, regional and national levels. The company’s local field structure focuses on customer-facing activities, while some functions are centralized.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment | $39.4 billion | 100.0% | 4.08% |
Suppliers and costs
US Foods purchases from thousands of suppliers. Many are large corporations providing national-brand and private-brand products; regional and local suppliers support geographic initiatives and private-label programs. No supplier accounted for more than 5% of aggregate purchases in fiscal year 2025. The company typically does not have long-term contracts with suppliers.
US Foods also operates processing facilities for certain meat, poultry, seafood and produce products. These facilities are registered with and inspected by the relevant federal authorities. Its distribution facilities must be registered with the FDA and are subject to periodic inspections.
Product costs are a major part of the business. US Foods participates in supplier rebate and promotional programs, primarily based on purchases, with consideration usually received as invoice deductions. Food cost inflation was 2.6% in fiscal year 2025.
Operating expenses include distribution, selling and administrative costs, as well as restructuring and asset impairment charges. Those expenses were $5,665 million in fiscal year 2025. The company attributed their increase partly to higher distribution, selling and administrative costs, offset in part by distribution productivity improvements and administrative streamlining.
- Revenue$39.4B
- Cost of revenue−$32.6B
- Selling, general and administrative−$5.6B
- Operating income$1.2B
Competitive position
US Foods competes in a foodservice distribution industry with local, regional and national distributors. Broadline distributors offer a wide assortment, while system distributors carry products specified for large chains and specialized distributors focus on particular products or customer types. Cash-and-carry retailers, wholesale clubs, commercial websites and grocery stores also serve the industry.
US Foods identifies these competitor types but does not identify individual competitors by name. Customers choose among providers based on assortment, quality, price and service levels.
The company’s offering combines a nationwide distribution network, sales relationships, private brands and digital tools. MOXē lets customers order and manage inventory, while Check Business Tools include services for online ordering, staffing, food costs and menu design. US Foods says customers using these solutions tend to purchase more products and have stronger commercial relationships with it.
Our reading: The distribution network and local sales teams provide a meaningful service advantage, but customers can also buy from several other types of distributor and retailer. Our reading: Digital tools and private brands may reinforce relationships, though the available evidence does not establish how difficult they are for customers to replace. US Foods has no patents or licenses material to its business.
Growth opportunities
US Foods seeks growth by selling more products and services to independent restaurants, healthcare providers and hospitality customers. It believes its combination of private brands, business tools and delivery options can help it reach new customers, deepen existing relationships and increase private-brand penetration. The company also believes the strategy positions it to benefit from growth in food-away-from-home consumption.
In fiscal year 2025, net sales rose 4.1%, driven primarily by case volume growth and food cost inflation. Total case volume rose 1.0%: independent restaurant volume increased 3.3%, healthcare volume increased 4.4%, and hospitality volume increased 2.9%, partly offset by a 3.5% decline in chain volume. Total organic case volume increased 0.4%.
The company is expanding customer access through scheduled delivery, Pronto, CHEF’STORE and US Foods Direct. Its MOXē tools include image ordering, delivery alerts and menu-cost management, while its Exclusive Brands portfolio spans multiple food categories.
Acquisitions are another part of the strategy. In 2025, US Foods acquired Jake’s Finer Foods and Gourmet Ranch to expand its reach in South Texas, and Shetakis to extend its reach into Nevada and the southwest United States. Integrating those acquisitions and realizing their synergies are company priorities. US Foods says it will selectively pursue future acquisitions that support its strategic priorities.
- $29.5BFY2021
- $34.1BFY2022
- $35.6BFY2023
- $37.9BFY2024
- $39.4BFY2025
- $0.04FY2026 guidance
Structural risks
- Consumer spending: An economic downturn, public health crisis or other pressure on consumer confidence could reduce the amount of food prepared away from home and adversely affect the business.
- Supply and food safety: Suppliers may not provide products in the quantities, at the times or at the prices requested. Regulatory noncompliance can lead to lawsuits, investigations, liabilities and restrictions on operations.
- Labor: Labor relations and higher labor costs could affect results. In fiscal year 2026, 11 collective bargaining agreements covering approximately 2,100 union associates are subject to renegotiation.
- Debt: Indebtedness can restrict financing and require cash for principal and interest. Approximately 34% of the net principal amount accrued interest at variable rates as of December 27, 2025, exposing the company to higher interest rates.
- Acquisitions and technology: US Foods may fail to integrate acquired businesses or realize their expected benefits. Integrating artificial intelligence into its processes may also present business, compliance, security and reputational risks.
Bottom line
Our reading
Our reading: US Foods is a food distribution business built around repeat customer orders, a nationwide delivery network and services that help operators manage purchasing. Its private brands and digital tools can deepen relationships, but customers have alternatives and buying decisions remain sensitive to price and service. Its exposure includes foodservice demand, supplier availability, labor costs and debt obligations.