US Foods (USFD) Investor Day 2024 summary

Strategic transformation and leadership

• Executing a transformation with a seasoned leadership team, focusing on customer-centric solutions, operational excellence, and strong execution since 2023.

• Organization flattened and decentralized, aligning sales with operations for faster decision-making and collaboration.

• Introduced a simplified four-pillar strategy centered on culture, service, growth, and profit.

• Leveraging digital technologies and differentiated offerings to accelerate market position and drive targeted customer growth in independent restaurants, healthcare, and hospitality.

• Exploring strategic alternatives for CHEF'STORE, with potential proceeds likely allocated to share repurchases.

Market position and growth opportunities

• Operates in a $359B+ foodservice market, serving ~250,000 customers, with a focus on high-growth, high-margin segments.

• Expected to grow case volume 1.5x to 2.5x the market from 2025E to 2027E.

• Consumer spending trends favor food away from home, supporting long-term demand.

• Expanding share in fragmented markets through digital innovation and team-based selling.

Operational and digital excellence

• Achieved >5% supply chain productivity improvement and >10pp driver retention increase in 2023.

• Deployed UMAS/UMOS operating system and flexible scheduling, reducing turnover by 30%+.

• Investing in semi-automation, advanced analytics, and AI to drive 3–5% annual productivity gains and $100M+ in working capital removal.

• MOXē digital platform reached 84% company-wide penetration, driving higher retention, sales, and seller productivity.

• Digital business is more profitable (+15%) and stickier (+4–5% lower churn) than non-digital, with plans to reach 95% digital penetration and unlock $1.5B in incremental digital sales.