01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. (NYSE: USFD) reported fiscal 2024 (52 weeks ended December 28, 2024) net sales of $37.88 billiona, up 6.4% from $35.60 billion, driven by case volume growth.
Total case volume rose 4.2%, with independent restaurant case volume up 4.4% and organic case volume up 1.4%. Operating income increased to $1.10 billionb from $1.02 billion, while net income available to common shareholders was $494 million, down slightly from $499 million. Adjusted EBITDA rose 11.7% to $1.74 billion, or 4.6% of net sales, and free cash flow was $836 million.
The company's results were affected by a $124 millionc non-cash pension settlement charge tied to termination of the majority of its defined benefit plan, and by a $61 million LIFO expense. Total indebtedness was $4.93 billion at year-end, with about 32% of principal at floating rates. The company refinanced its term loans and issued $500 million of 5.75% senior notes due 2033 during the year.
It repurchased 16.4 million shares for approximately $958 milliond under its amended repurchase program, leaving about $75 million of authorization remaining. The filing also discloses that the company is exploring a sale of its CHEF'STORE wholesale restaurant supply business, has agreed to sell its Freshway business (closed January 31, 2025), and completed the Jake's Finer Foods acquisition for about $92 million on January 10, 2025. Liquidity was about $1.5 billion, and management believes operating cash flow and ABL capacity are sufficient for the next 12 months.
02—Key points
Key Highlights
- Net sales rose $2.28 billion, or 6.4%, to $37.88 billion in fiscal 2024, driven by 4.2% total case volume growth and 2.6% food cost inflation.
- Operating income increased $82 million to $1.10 billion; gross profit margin held at 17.3% of net sales.
- Net income available to common shareholders was $494 million ($2.02 diluted EPS), compared with $499 million in fiscal 2023, reflecting a $124 million pension settlement charge.
- Adjusted EBITDA increased 11.7% to $1.74 billion (4.6% of net sales) and free cash flow was $836 million.
- Total debt was $4.93 billion at December 28, 2024, with about 32% bearing floating rates; the company issued $500 million of 5.75% senior notes due 2033.
- The company repurchased 16.4 million shares for about $958 million in fiscal 2024, with approximately $75 million remaining under the amended program.
- Portfolio changes include the IWC Food Service acquisition ($214 million net), the Jake's Finer Foods acquisition (about $92 million, January 2025), and the planned sale of Freshway and an exploration of a sale of CHEF'STORE.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, US Foods Holding kept $0.01.
- Revenue$37.88B100.0%
- Cost of revenue−$31.34B82.7%
- Gross profit$6.53B17.3%
- Operating costs−$5.43B14.3%
- Operating income$1.10B2.9%
- Interest, other & tax−$605.0M1.6%
- Net income$494.0M1.3%
Where FY2024 revenue went
$37.88B- Cost of revenue: $31.34B, 83% of revenue
- SG&A: $5.41B, 14% of revenue
- Net income: $494.0M, 1.3% of revenue
- Interest, other & tax: $605.0M, 1.6% of revenue
Kept 1.3% as net incomeNet income $494.0M · 1.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $37.88B$35.60B | +6.4% |
| Cost of Revenue | $31.34B$29.45B | +6.4% |
| Gross Profit | $6.53B$6.15B | +6.3% |
| SG&A Expenses | $5.41B$5.12B | +5.8% |
| Operating Expenses | $5.43B$5.13B | +5.9% |
| Operating Income | $1.10B$1.02B | +8.1% |
| Net Income | $494.00M$506.00M | −2.4% |
| EPS (Basic) | $2.05$2.09 | −1.9% |
| EPS (Diluted) | $2.02$2.02 | 0.0% |
| Shares Outstanding (Basic) | 241.00M239.00M | +0.8% |
| Shares Outstanding (Diluted) | 244.00M250.00M | −2.4% |
05—Questions
Frequently Asked Questions
How did US Foods perform financially in fiscal 2024?
Net sales grew 6.4% to $37.88 billion, operating income rose to $1.10 billion from $1.02 billion, and Adjusted EBITDA increased 11.7% to $1.74 billion. Net income available to common shareholders was $494 million, roughly flat with the prior year, as a $124 million pension settlement charge offset operating gains.
What is the company's debt position and liquidity?
Total indebtedness was $4.93 billion as of December 28, 2024, and about 32% of principal bore floating rates. The company reported approximately $1.5 billion in cash and available liquidity, including $1.485 billion of remaining capacity under its ABL Facility.
Does US Foods pay dividends or repurchase shares?
The company has not paid common dividends since its stock began trading publicly in 2016 and has no plans to pay them in the foreseeable future. It repurchased 16.4 million shares for about $958 million in fiscal 2024 under its amended share repurchase program.
What drove the pension-related charge and what is the impact going forward?
The company terminated and settled the majority of its defined benefit plan on October 31, 2024, recognizing a $124 million non-cash net actuarial loss. The filing states the company does not expect to make contributions to the retirement plans in fiscal 2025.
What strategic changes is the company making?
The company completed the IWC Food Service acquisition in April 2024 and the Jake's Finer Foods acquisition in January 2025. It agreed to sell its Freshway business, which closed January 31, 2025, and announced in June 2024 that it intends to explore a sale of its CHEF'STORE wholesale restaurant supply business.
06—Continue