Report
John Brick, CFA
EUR 101.80 For Business Accounts Only

Despite a leading market share position, US Foods lacks sufficient scale to garner a low-cost edge.

US Foods is the second-largest company in the almost $300 billion foodservice distribution industry, controlling 8% of the market. But despite its national scale, foodservice distribution is a locally competitive industry, where the firm is not always the leader. As such, we don’t believe it has amassed a competitive edge. For one, US Foods competes against other national operators (number-one Sysco, and number-three Performance Foods), as well as 15,000 smaller distributors that often bring a t...
Underlying
US Foods Holding Corp.

US Foods Holding. through its subsidiaries, markets and distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customer locations 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 provides fresh, frozen, and dry food stock-keeping units as well as non-food items, sourced from suppliers. The company's network of distribution facilities and trucks allow the company to operate and provide customer service.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
John Brick, CFA

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