Recommendation
Following a 25%+ correction in US Foods Holding Corp. (USFD) from July 2018 to November 2018, investors may be wondering if USFD can keep costs low, compete in the industry and at the same time endure a possible GDP contraction?
Although US Foods resides in a cyclical industry, the company does have an established position since the 19th century. The core investment thesis is that USFD will continue expanding its capital into innovation, cost cuts and private brand growth. In the last year the company has been suffering from operational challenges, hence the drop