- After years of frustration with margins and organic growth, a large shareholder is launching a proxy battle to effectively take control of the board.
- There are valid grounds for criticism/frustration here, including a lack of progress with private label penetration and share-of-wallet with restaurant customers, and distribution costs remain stubbornly high.
- Management has laid out multi-year targets for improved results, including a renewed focus on distribution efficiency and topline growth, but the 2024 targets are basically in line with pre-pandemic performance.
- US Foods does look undervalued today, and better execution could drive meaningful upside.
For further details see:
US Foods Spotlight On Management's Operational Challenges