US Foods Holding (USFD) 7 Nov 24 2024 Q3 Earnings call transcript
1min read In its third quarter earnings call, US Foods Holding Corp. reported a double-digit adjusted EBITDA growth, demonstrating the company's resilience amidst a challenging macro environment and unforeseen weather-related impacts. The company's solid performance was driven by its strategic initiatives, operational efficiency, and focus on key customer segments.
Strategic Initiatives and Operational Excellence
US Foods continued to execute its strategic initiatives, achieving a 13% adjusted EBITDA growth and expanding adjusted EBITDA margin by 27 basis points. The company's focus on culture, service, growth, and profitability is paying off, with strong results despite the hurdles posed by Hurricane Helene and Milton.
Market Share Gains and Capital Deployment
US Foods gained market share in its target customer types of independent restaurants, health care, and hospitality, growing total volume by 3.8%. The company's strategic capital deployment, including the repurchase of over $1.1 billion of shares, underscores its commitment to shareholder value and financial discipline.
Looking Ahead
With a focus on digital innovation, operational excellence, and market leadership, US Foods is well-positioned to capitalize on growth opportunities and navigate the evolving market landscape. The company's long-term strategies, including its growth algorithm, aim to generate significant capital for strategic initiatives and capital allocation.
US Foods' third quarter results are a testament to its robust execution and strategic initiatives, setting the stage for a strong finish to the year and a promising outlook for 2025. As the company continues to navigate the challenges of the current macro environment, its focus on operational excellence and customer satisfaction will be crucial in driving sustainable growth and shareholder value.
