How US Foods is Rewriting the Rules of Foodservice Distribution with Pronto and Digital Innovation

The foodservice industry has long been a patchwork of inefficiencies—fragmented supply chains, rigid delivery schedules, and a reliance on manual processes that stifle scalability. But US Foods Holding Corp. (USFD) is challenging this status quo with a bold digital-first strategy centered on its Pronto division. By reimagining how food is sourced, delivered, and managed, the company is not only capturing market share but also redefining what EBITDA and EPS growth mean in an industry where operational complexity has historically constrained profitability.

The Pronto Play: A Scalable Solution for a Digital-First Era

Pronto, US Foods' small-truck delivery service, is more than a logistics tweak—it's a strategic lever for digital transformation. Traditional foodservice distributors rely on heavy-truck deliveries, which are efficient for large orders but ill-suited for smaller, time-sensitive needs. Pronto fills this gap by offering a flexible, tech-enabled solution for customers requiring faster turnaround or smaller quantities. As of Q2 2025, Pronto operates in 44 markets and is on track to generate $900 million in sales this year, with a $1.5 billion target by 2027. This growth isn't just incremental; it's a testament to the power of digital scalability in an analog-heavy sector.

The service's integration with the MOXē platform—a unified ecommerce portal launched in late 2022—has been critical. MOXē's AI-driven features, such as predictive search and delivery tracking, streamline the customer experience while reducing operational friction. For instance, the platform's ability to recommend products based on historical purchasing patterns has boosted average order sizes, while real-time inventory visibility minimizes stockouts. These innovations are not just improving customer satisfaction; they're driving revenue growth and margin expansion.

Digital Efficiency: From EBITDA to EPS

The financial implications of US Foods' digital pivot are striking. In Q2 2025, the company reported a 12% year-over-year increase in adjusted EBITDA to $548 million, with margins expanding 40 basis points to 5.4%. Adjusted diluted EPS surged 28% to $1.19 per share. While these figures reflect broader operational improvements, the role of Pronto and digital tools is undeniable.

Consider the cost structure. By optimizing delivery routes using Descartes technology, US Foods has improved cases per mile by over 2% year-over-year. This efficiency, combined with AI-driven inventory management and reduced manual errors, has cut operational costs while maintaining service levels. Meanwhile, Pronto's focus on smaller, more frequent deliveries aligns with the growing demand for agility among restaurant operators—a demographic that now accounts for 78% e-commerce penetration among independent restaurants, up from 65% in 2022.

The Long Game: Why This Matters for Investors

US Foods' strategy is not just about incremental gains. It's about building a moat in a fragmented industry. The company's digital ecosystem—encompassing MOXē, Pronto, and AI-powered analytics—creates a flywheel effect: enhanced customer experience drives higher adoption, which in turn generates data to refine operations further. This self-reinforcing cycle is a key reason why US Foods has raised its 2025 guidance, now projecting 9.5–12% EBITDA growth and 19.5–23% EPS growth.

For investors, the takeaway is clear: US Foods is leveraging digital innovation to address systemic inefficiencies in foodservice distribution. The Pronto division, in particular, exemplifies how scalable solutions can unlock value in a sector that has long been resistant to disruption. With a $1.5 billion sales target for Pronto by 2027 and a digital adoption rate on track to hit 95% of customers, the company is positioning itself as a long-term earnings compounder.

Risks and Realities

No strategy is without risks. The foodservice industry remains cyclical, and economic downturns could pressure discretionary spending. Additionally, while US Foods' digital tools are robust, competitors like Sysco and regional players are also investing in tech. However, US Foods' first-mover advantage in AI-driven commerce and its 89% overall e-commerce penetration give it a distinct edge.

Conclusion: A Digital-First Earnings Story

US Foods' transformation is a masterclass in how digital-first thinking can redefine profitability. By embedding scalability into its DNA—through Pronto's flexible delivery model, MOXē's AI-powered platform, and data-driven operational efficiencies—the company is turning traditional constraints into competitive advantages. For investors, this is more than a story about EBITDA and EPS growth; it's a blueprint for how to future-proof a business in an industry ripe for reinvention.

In the end, the question isn't whether US Foods can sustain its momentum—it's whether the market fully appreciates the scale of its digital transformation. For those who recognize the potential, the company's stock offers a compelling case study in how innovation can turn even the most analog industries into high-growth opportunities.