US Foods Delivers Strong Q4 Results, Sets Sights on Future Growth
US Foods Holding Corporation, a leading food distributor in the United States, has reported strong fourth-quarter results, marking a successful conclusion to its three-year long-range plan. During its recent earnings call, CEO Dave Flitman highlighted the company's achievements and set ambitious targets for future growth.
According to the conference call transcript, US Foods delivered record full-year earnings of $1.74 billion in 2024, exceeding its original commitment by overachieving its target. This success was driven by the focused execution of its strategy, which included initiatives such as accelerating cost savings, expanding technology leadership, reducing net leverage, and increasing adjusted EBITDA margin.
Under Flitman's leadership, US Foods made significant progress in executing its strategy, resulting in impressive financial metrics. The company achieved a 100-basis-point increase in adjusted EBITDA margin to 4.6%, extended its technology leadership position, and reduced net leverage to 2.8x, within the target range of 2x to 3x.
Flitman expressed confidence in US Foods' ability to outpace industry volume growth over the long term and expand margins through self-help initiatives while driving value creation for shareholders. He announced ambitious targets for future growth, including a 5% sales CAGR, a 10% adjusted EBITDA CAGR, at least 20 basis points of annual adjusted EBITDA margin expansion, and a 20% adjusted diluted EPS CAGR through 2027.
The company's strong fourth-quarter results included record adjusted EBITDA of $1.74 billion, an expanded adjusted EBITDA margin by 22 basis points, and record adjusted EPS of $3.15, which represented 20% growth. Additionally, US Foods deployed its strong cash flow through a strategic acquisition and nearly $1 billion of share repurchases in 2024.
Flitman also highlighted the importance of adapting to changing macro environments and demonstrated US Foods' ability to adjust to any scenario while focusing on controlling the controllables. He expressed gratitude to the company's 30,000 associates for their dedication and sharp focus in delivering excellence and helping customers make it every day.
As US Foods embarks on its new long-range plan, Flitman emphasized the excitement of this next chapter, promising continued growth and value creation for shareholders. The company's confidence in achieving ambitious targets reflects its commitment to driving sustained success and outperforming industry volume growth over the long term.
