US Foods (USFD) Morgan Stanley Global Consumer & Retail Conference summary

Market outlook and demand trends

• Optimism for 2025 driven by improving market data since mid-2023, with positive trends continuing into October despite weather disruptions.

• Focus remains on both overall market growth and targeted share gains in independents, healthcare, and hospitality.

• Independent segment has seen 14 consecutive quarters of share gains, expected to continue.

• Competitive environment remains stable, with differentiation and scale as key advantages.

• Anticipates acceleration to a more normalized growth rate in 2025.

Growth drivers and customer segments

• Revenue growth algorithm targets 5%+ over time, with multiple paths to achieve this through case growth and share gains in key segments.

• Independent restaurants outperform chains due to unique customer experiences and loyalty.

• Sales force expansion in low- to mid-single digits supports ongoing growth, leveraging technology for enhanced customer experience.

• Healthcare and hospitality wins attributed to innovation, streamlined service models, and specialized technology tools.

Technology and operational efficiency

• MOXē e-commerce platform processes 76% of independent volume, with usage expected to rise.

• Pronto service, targeting urban independents, is on track for $700 million in sales and expanding to more markets.

• Descartes routing technology and a new local pricing tool are being deployed to improve efficiency and customer service.

• First semi-automated warehouse to go live mid-next year, aiming for efficiency and quality improvements.