US Foods Holding Corp 4Q23: Net Sales +4.9%, Case Volume +5.6%, Adj EBITDA +10.9%

Mar 19, 2024 | Corporate Insights, No Bull Economics

US Foods Holding’s full year 2024 guidance: net sales +5% to +8%; case volume growth +4% to +6%; and slight inflation of +0.5% to +1.5%. Management expects independent restaurant case growth to continue exceeding overall case growth & management believes that independent restaurant operators are strong, enjoying a nice recovery as they add new restaurants to the original base that came back online post-covid.

US Foods Revenue Breakdown

Key Points

  • +4.4% growth in total case volume during 2023 was led by a +6.9% increase in independent restaurant case volume, a +7.2% increase in healthcare volumes & an +8.9% increase in hospitality volumes.
  • US Foods exceeded its 1.5x restaurant market growth goal & has now gained market share with independent restaurants for 11 consecutive quarters.
  • Management credited its proprietary digital platforms (MOXe & VITALS) as key drivers for its 2023 sales growth. MOXe is now fully embedded with its independent restaurant business & 50% of its national chain business (full deployment anticipated by 2H24).
  • Food cost inflation was essentially flat during the quarter, while mix represented a -70 bps headwind.
  • Notably, management reported a regional labor strike during the quarter which was settled in a couple of weeks.
  • A +53 bps improvement in its 2023 adjusted EBITDA margin was driven by operational initiatives & management is targeting productivity savings of +3% to +5% in 2024.
  • Its adjusted EBITDA per case was $1.93 during 2023, up +14% y/y. This represents a +4.3% compound annual growth rate since 2019.

US Goods Holding Corp 4Q23 Financials

Marketing Consumer Research Weekly Banner

Nobull consumer research weekly

No Bull Economics

Get Corporate & Market Insights in your inbox