US Foods (USFD) investor relations material

Consumer and industry environment

• Consumer demand remains pressured but stable, with restaurant foot traffic down 1–3% over the past two years and about 2% in recent months, yet the sector shows resilience through macro cycles.

• Independent restaurants are gaining share from chains due to flexibility and loyal customer bases, despite ongoing cost pressures from labor, rent, and food inflation.

• Hospitality and healthcare segments mirror restaurant trends, with dedicated support and technology tools driving growth and differentiation.

Financial performance and growth drivers

• Achieved over 6% EBITDA growth, 14 basis point margin expansion, and 15% EPS growth in Q1, with case growth acceleration across key segments.

• Independent restaurant case growth reached 4.6%, hospitality 5%, and healthcare 3.7% in Q1, driven by net new account generation and focused strategy.

• Private label penetration at 54% for independents and 35% overall, with ongoing efforts to expand through innovation, incentives, and menu integration.

Operational initiatives and technology

• Self-help initiatives remain central, targeting market outperformance, gross profit improvement, supply chain productivity, and continuous efficiency gains.

• AI and digital tools like MOXē, Menu IQ, and VITALS enhance sales productivity, customer experience, and operational forecasting, with rapid adoption and ongoing investment.

• Transitioning sales force to 100% commission over 2–3 years, following pilots and robust change management to align incentives with strategic goals.