This report is an updated version of the report published on 19 January 2026 at 11:17 PM Pacific Time.

US Foods Holding Corp. (NYSE: USFD)

US Foods Holding Corp. (NYSE: USFD) is one of America's leading foodservice distributors.

Recommendation Rationale – SELL at USD 85.71

• Financial Highlights: USFD’s operating expenses rose 6.0% YoY to USD 1,471mn in Q3 FY25, up from USD 1,388mn in Q3 FY24, driven mainly by higher total case volumes and increased distribution, selling, and administrative costs. Cash and cash equivalents declined to USD 56mn as of 27 September 2025 from USD 81mn as of 28 September 2024. Meanwhile, total debt increased to USD 4,952mn as of 27 September 2025, compared with USD 4,789mn as of 28 September 2024.
• Trading Near the Resistance: USFD stock has approaching its R2 level recommended on 07 October 2025. Therefore, share price can face resistance at the current levels.
• Market Risks: USFD faces market risks from rising operating costs linked to higher case volumes and increased distribution, selling, and administrative expenses, which could weigh on margins. Elevated leverage heightens exposure to interest rate movements and refinancing risk. In addition, lower cash balances may limit financial flexibility amid intense competition. Other risks include macro-driven demand volatility, fluctuations in fuel, labour, and input costs, etc.

USFD’s Daily Price Chart

Valuation Methodology: P/E Multiple Approach (FY December'26E) (Illustrative)

Stock might trade at a slight discount to its peers, considering the risks associated and global economic uncertainty. For conducting the valuation, the following peers were included: Murphy USA Inc (NYSE: MUSA), Performance Food Group Co (NYSE: PFGC), and BJ's Wholesale Club Holdings Inc (NYSE: BJ) have been considered.

Considering that the stock has approaching its R2 level, macroeconomic uncertainty, share price movement, current trading levels, and risks associated, a ‘Sell’ rating has been provided on the stock at the closing price of USD 85.71 per share, up by 0.62% as on 16 January 2026.

US Foods Holding Corp. (NYSE: USFD) is part of Global Agriculture Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 16, 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.