US Foods Holding Corp. (USFD): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how US Foods Holding Corp. runs its massive operation, which generated a trailing twelve-month revenue of $39.115 billion as of Q3 2025. As a seasoned analyst, I can tell you their model hinges on balancing a vast national distribution network with a sharp focus on independent restaurants-a segment that grew case volume by 2.7% in Q2 2025-all while pushing digital adoption via their MOXe e-commerce platform, which now accounts for 89% of total company orders. Below, we break down the nine essential building blocks, from their key supplier alliances to their cost structure, giving you the precise strategic snapshot you need to understand their current performance drivers.

US Foods Holding Corp. (USFD) - Canvas Business Model: Key Partnerships

The Key Partnerships component of the US Foods Holding Corp. Business Model Canvas centers on a network of suppliers, technology collaborators, financial backers, and strategic acquisition targets that fuel its expansive distribution capabilities across the United States.

Strategic alliances with thousands of national and regional food suppliers.

US Foods Holding Corp. sources fresh, frozen, and dry food products, along with non-food items, from thousands of suppliers. The company supports approximately 250,000 customer locations nationwide, which include independent restaurants, chain restaurants, healthcare facilities, and hospitality venues. To manage these relationships, approximately 4,000 sales associates are deployed at local, regional, and national levels. Furthermore, the company has established specific distribution alliances, securing approximately 20 retail distribution partnerships across national grocery store chains, wholesale grocers, and consumer packaged goods brands as of April 3, 2025. These retail partners include The Kroger Co. and C&S Wholesale Grocers. Group Purchasing Organizations (GPOs), which negotiate terms for customers in healthcare, hospitality, and education, accounted for approximately 25% of net sales in fiscal year 2024.

Collaboration with technology providers for e-commerce and supply chain optimization.

Digital tools are a core driver of US Foods Holding Corp.'s strategy. The MOXe e-commerce platform achieved a record 89% penetration for total company orders and 78% for independent restaurant orders in the second quarter of fiscal year 2025. By the second quarter of 2025, 90% of US Foods Holding Corp. customers were using MOXe. The company is also integrating AI; an AI-powered search tool on MOXe is generating complete orders equivalent to roughly 1.3 million additional cases annually. On the logistics side, the rollout of Descartes routing software across the national network improved delivery efficiency by 2.3% compared with the prior year. The proprietary routing system is cited as the best delivery efficiency in the company's history.

Financial relationships for capital allocation, including the $1 billion share repurchase program.

US Foods Holding Corp. demonstrates confidence in its standalone plan through significant capital returns. The Board of Directors approved a new $1 billion share repurchase program as of November 24, 2025. This followed a previous authorization of up to $1 billion approved on May 7, 2025. During the third quarter of fiscal year 2025, the company repurchased 4.1 million shares of common stock for approximately $335 million. In the second quarter of fiscal year 2025, the company repurchased 3.2 million shares for approximately $250 million. For the full fiscal year 2024, the company repurchased 16.4 million shares for $958 million. The net leverage ratio stood at 2.6x Adjusted EBITDA at the end of the third quarter of fiscal year 2025.

Logistics partners for specialized or last-mile delivery services.

Specialized logistics are supported by the 'Pronto' small truck delivery service, which targets smaller, independent operators with more frequent deliveries. Pronto expanded to 44 markets and is expected to generate about $950 million in sales in 2025, with a long-term target of $1.5 billion in sales by 2027. The company operates more than 70 broadline locations and approximately 90 cash and carry stores. The acquisition of Jake's Finer Foods in January 2025, for example, helps increase local capacity and expand the footprint in South Texas.

Tuck-in acquisition targets, like Jake's Finer Food for $92 million in January 2025.

The strategy includes accretive tuck-in mergers and acquisitions. The acquisition of Jake's Finer Foods, a broadline distributor in Houston, Texas, closed on January 10, 2025, for a purchase price of $92 million. Jake's Finer Foods generated more than $160 million in annual revenue across independent and multi-unit restaurants prior to the acquisition. Subsequent to the third quarter of 2025, US Foods Holding Corp. signed an agreement to acquire Shetakis, an independent food distributor in Las Vegas, Nevada.

Here's a snapshot of key partnership metrics as of late 2025 data points:

The company's focus on digital adoption is clear:

• MOXe platform penetration for independent restaurant orders reached 78% in Q2 2025.
• The Pronto service is on track to generate about $950 million in sales in 2025.
• The company has approximately 20 retail distribution partnerships secured as of April 2025.
• Net Debt to Adjusted EBITDA ratio was 2.6x at the end of Q3 2025.

Finance: review Q3 2025 cash flow statement for capital deployment breakdown by Friday.

US Foods Holding Corp. (USFD) - Canvas Business Model: Key Activities

You're looking at the core engine of US Foods Holding Corp. (USFD) right now, the things they absolutely must do well to keep the business running and growing as of late 2025. It's all about moving product efficiently and winning the customer one order at a time.

Broadline distribution and complex supply chain management across the U.S.

This is the foundation. US Foods Holding Corp. operates as a broadline distributor, which means they manage the complexity of sourcing and delivering a wide array of food and non-food items. They serve approximately 250,000 customer locations across the Continental U.S.. The physical network supporting this includes over 70 facilities and a fleet of more than 6,500 trucks. Operational efficiency is key to margin protection; for the first nine months of fiscal year 2025, cash flow provided by operating activities reached $1,076 million.

Here's a look at the scale of their Q3 2025 operational performance:

Sales and marketing focused on independent restaurant share gains.

The focus on independent restaurants is driving growth. This segment is a major priority for capturing market share. You can see the success in the case volume growth figures compared to other segments. They have a long track record here; as of Q1 2025, they extended their streak of market share gains with Independent Restaurants to 16 consecutive quarters.

Case volume growth by segment in Q2 2025:

• Independent Restaurants: 2.7%
• Healthcare: 4.9%
• Hospitality: 2.4%
• Chain Volume: Declined by 4.0% (by design, focusing on profit over volume)

The Q3 2025 results showed acceleration, with independent restaurant case volume up 3.9%. For the full year 2025, management had previously projected independent restaurant case growth between 2%-5%. That's a clear action: prioritize the independent customer base for volume expansion.

Private label product development and merchandising for exclusive brands.

Developing and pushing their own exclusive brands is a key activity for margin enhancement. Private label penetration within core independent restaurants reached over 53% as of Q2 2025. The momentum is strong; annual sales for US Foods Exclusive Brands (private label) surpassed $1 billion for the first time in 2024. This focus aligns with a broader industry trend where private label dollar sales grew 4.4% in the first half of 2025, outpacing national brands' 1.1% dollar sales increase.

Digital transformation and maintenance of the MOXe e-commerce platform.

Digital tools are central to execution and customer retention. The proprietary MOXe e-commerce platform is seeing massive adoption. In Q2 2025, 90% of US Foods customers were using MOXe, with 78% of independent restaurant orders placed online. The company is aiming for 95% online ordering among independent restaurants within two years. Furthermore, the integration of Artificial Intelligence (AI) is showing measurable results; an AI-powered search tool on MOXe is generating more complete orders equivalent to roughly 1.3 million additional cases annually.

Fleet management and optimization of the Pronto small truck delivery service.

Managing the fleet and optimizing delivery routes is critical for controlling operating expenses. The Pronto service, which uses smaller trucks for more frequent deliveries to smaller operators, is a specific operational focus. Pronto has expanded to 44 markets. This service is on track to generate $1 billion in revenue in 2025, leading US Foods Holding Corp. to raise its long-term sales target for Pronto to $1.5 billion. On the broader logistics side, the rollout of a proprietary routing system across all distribution markets improved delivery efficiency by 2.3% compared with last year as of Q3 2025.

Finance: draft 13-week cash view by Friday.

US Foods Holding Corp. (USFD) - Canvas Business Model: Key Resources

You're looking at the core assets that let US Foods Holding Corp. actually move product and capture sales in late 2025. These aren't just line items on a balance sheet; they are the engines of their operation, from the physical hubs to the digital storefront.

The foundation rests on a massive physical footprint combined with a rapidly advancing digital layer. Honestly, the scale of their logistics is what keeps them competitive against rivals like Sysco.

That MOXe platform, their proprietary e-commerce system, is definitely a huge differentiator now. It's not just for ordering; it's becoming the central operating system for many of their customers.

Here's a closer look at the digital engagement and the value captured through their own product lines:

• Customer usage of the MOXe platform reached 90% of all customers by Q2 2025.
• For the crucial independent restaurant segment, online order penetration hit 78% in Q2 2025.
• The company has a stated goal to reach 95% online ordering adoption among independent restaurants within two years.
• The Exclusive Brands portfolio, or private label, has driven penetration to over 53% among their core independent restaurant customers, which directly supports margin expansion goals.

The physical network is supported by a substantial human capital investment. You can't run a fleet of thousands of trucks and over 70 distribution centers without the right people on the ground.

US Foods Holding Corp. relies on its large workforce to execute daily deliveries and manage customer relationships. As of the latest reports in 2025, the company employed approximately 30,000 associates across its operations. That number includes the sales teams who are on the road and the operations staff managing the complex inventory within those broadline locations.

US Foods Holding Corp. (USFD) - Canvas Business Model: Value Propositions

You're looking at the core reasons why US Foods Holding Corp. keeps winning business in the competitive foodservice space as of late 2025. It's not just about moving boxes; it's about integrated solutions.

One-stop-shop for a wide range of food and non-food products

US Foods Holding Corp. provides a comprehensive offering, positioning itself as the single source for many operator needs. This breadth is a key convenience factor for customers managing complex supply chains.

The selection available through the platform includes:

• More than 400,000 items available for operators to find.
• Serving diverse segments including independent and chain restaurants, healthcare, hospitality, governmental, and educational institutions.

Business solutions and consulting to help independent restaurants succeed

The value extends beyond product delivery into operational support. US Foods Holding Corp. focuses on providing business support and technology solutions to help customers operate profitably. This is supported by internal efficiency drives.

Key operational support metrics include:

High-quality, exclusive private label products for better margins

The push on proprietary brands is a direct value driver for both US Foods Holding Corp. and its customers, offering higher profitability. These exclusive brands are a structural hedge against food cost inflation, which was around 3.7% in 2025.

The penetration and profitability figures are concrete:

• Private label penetration with key independent customers reached over 53% as of late 2025.
• US Foods Holding Corp.'s own brands are roughly twice as profitable as manufacturer brands.

Digital ordering convenience and business management tools via MOXe

The MOXe platform is central to the modern customer experience, offering an all-in-one application for ordering, tracking, and billing. This digital adoption is high across the customer base.

Digital adoption statistics for Q2 2025:

• 90% of US Foods Holding Corp. customers were using the MOXe e-commerce platform.
• Among independent restaurants, 78% of orders were placed online in Q2 2025.
• The company expects online ordering penetration among independent restaurants to reach 95% within two years.
• An AI-powered search tool on MOXe is generating more complete orders equivalent to roughly 1.3 million additional cases annually.

Reliable, timely delivery through a national network and small-truck service

Reliability is bolstered by network improvements and specialized delivery options like Pronto, which uses smaller trucks for more frequent deliveries in dense areas. The national network is supported by over 70 distribution facilities.

Delivery service performance and targets include:

• The Pronto service is on track to generate about $950 million in sales in 2025.
• Pronto is expected to exceed a $1 billion annual run rate by the end of 2025.
• The long-term sales target for Pronto has been raised to $1.5 billion.
• A rollout of Descartes routing software across the national network improved delivery efficiency by 2.3% compared with last year.

Finance: draft 13-week cash view by Friday.

US Foods Holding Corp. (USFD) - Canvas Business Model: Customer Relationships

You're looking at how US Foods Holding Corp. keeps its massive customer base engaged and growing, which is key since they partner with approximately 250,000 customer locations nationwide. The relationship strategy balances high-touch human interaction with powerful digital self-service tools.

Dedicated sales representatives providing personalized, high-touch service.

While technology drives efficiency, the human element remains central, especially for complex accounts. US Foods Holding Corp. relies on a dedicated sales force, listed at approximately ~4,000 Sales Associates as of the end of fiscal year 2024. The goal is personalized service, but the digital shift is changing the sales rep's role. The MOXe platform has automated routine tasks, reducing the daily workload for the sales team by 30%, allowing them to focus on higher-value consultative selling. This shift supports the long-term goal of becoming the 'undisputed best in the industry' by enhancing service quality.

Self-service digital ordering and account management via MOXe.

Digital adoption is a major growth driver, with the MOXe e-commerce platform being the centerpiece of this relationship strategy. As of the second quarter of fiscal year 2025, 90% of US Foods customers were using MOXe for ordering and account management. For independent restaurants, the penetration rate hit a record 78% in Q2 2025, with the company projecting this will rise to 95% by 2027. Customers leveraging MOXe interact 8x more with US Foods than non-digital customers, and platform adoption has contributed to a 5% increase in overall customer retention since its launch. An AI-powered search tool introduced in 2025 within MOXe is already generating more complete orders, equivalent to roughly 1.3 million additional cases annually.

Here are the key metrics showing the digital relationship strength as of late 2025:

Promotional pricing and volume discounts for large chain customers.

US Foods Holding Corp. is deliberately refocusing its chain restaurant strategy. While chain sales volume decreased by 4.0% in Q2 2025 and by 2.4% in Q3 2025, management stated this was a design choice to optimize for profit rather than just volume. This suggests a shift in relationship focus for this segment, prioritizing margin expansion over sheer volume growth, which likely involves more stringent or targeted promotional terms for large chains.

Educational resources and culinary support for chefs and operators.

The company embeds support directly into its offerings to help operators run their businesses profitably. This support is delivered through technology and product innovation:

• Menu Profit Pro: Calculates item cost and margin.
• Menu Profit Pro: Keeps recipe costs aligned with menu prices.
• Scoop™ program: Introduces on-trend products multiple times a year.
• Proprietary technology leverages machine learning for operator insights via VITALS.

Long-term, trust-based relationships, especially with independent operators.

The independent restaurant segment is a clear focus for building deep, trust-based relationships, evidenced by consistent growth. Independent restaurant case volume grew 2.7% in Q2 2025 and 3.9% in Q3 2025, marking 16 consecutive quarters of growth in this segment as of Q1 2025. Furthermore, private label penetration has expanded to over 53% with core independent restaurants, which directly contributes to higher margins for both parties. This segment is seen as the most profitable, driving the overall strategy.

Finance: finalize the 2026 budget assumptions for sales force headcount by end of Q4.

US Foods Holding Corp. (USFD) - Canvas Business Model: Channels

The Channels block for US Foods Holding Corp. details how the company reaches its diverse customer base, which is heavily reliant on a mix of direct sales, physical infrastructure, and digital ordering tools.

Direct engagement is maintained through a dedicated sales force. This team serves approximately 250,000 customer locations across the Continental U.S.. This direct touchpoint is critical for relationship management, especially with independent operators.

Physical distribution relies on a national network. US Foods Holding Corp. operates over 70 distribution facilities nationwide. These facilities are being modernized, with new semi-automated centers opening, such as one near Chicago in June 2025, and another under construction in Austin, Texas.

Digital ordering is a primary channel for transaction placement. The MOXe e-commerce platform is seeing high adoption. As of the second quarter of 2025, 90% of all US Foods Holding Corp. customers were using MOXe. For the independent restaurant segment, which is a key growth area, the platform penetration reached a record 78% in Q2 2025.

Here is a quick summary of the primary channel metrics as of late 2025:

The CHEF'STORE cash and carry retail channel provides an alternative for immediate or smaller-quantity needs. While the prompt suggests over 90 stores, projections from early 2024 indicated a network of more than 95 locations across 14 states by the end of 2024. The company is exploring strategic alternatives for this segment.

The Pronto service is a specialized channel using smaller trucks for more frequent deliveries, targeting smaller, independent operators. This service has expanded to 44 markets. US Foods Holding Corp. is on track to generate about $950 million in sales from Pronto in 2025, leading to an increased long-term sales target of $1.5 billion by 2027.

These channels are supported by technology enhancements:

• AI-powered search on MOXe is generating complete orders equivalent to roughly 1.3 million additional cases annually.
• Proprietary routing software has improved delivery efficiency by 2.3% compared to the prior year across the national network.
• An operations quality initiative has cut order errors by 24%.

US Foods Holding Corp. (USFD) - Canvas Business Model: Customer Segments

You're looking at the core of US Foods Holding Corp.'s business-who they sell to. Their customer base is a mix of independent operators and larger institutions, and how each group performs really shapes the overall results. The strategy clearly favors certain segments, which is evident in the volume metrics from the latest reports.

The company serves approximately 250,000 customer locations across the United States, operating as a broadline distributor of food and non-food products. No single customer accounted for more than 2% of total sales, which shows a diversified, though concentrated, customer base where the top 50 customers represented about 47% of net sales as of early 2025.

Here's a look at the volume performance across the key customer groups based on the Third Quarter Fiscal Year 2025 results:

Independent restaurants are definitely a key growth driver for US Foods Holding Corp. This segment has seen consistent success, extending its streak of market share gains. For instance, in Q2 2025, independent restaurant case volume grew by 2.7%, and this momentum carried into Q3 2025 with a 3.9% increase. The company credits its digital tools, like the MOXe ecommerce platform, for resonating strongly here; in Q2 2025, 78% of orders from independent restaurants were placed online, an all-time high.

Healthcare and hospitality institutions also show consistent strength. In Q2 2025, healthcare volume was up 4.9%, and hospitality grew by 2.4%. This continued into Q3 2025 with healthcare volume up 3.9% and hospitality up 2.4%. The focus on these areas is strategic, as they are considered two of the company's most profitable customer segments.

The National and regional chain restaurants segment presents a different picture. This group saw a volume decline of 4.0% in Q2 2025 and a 2.4% decrease in Q3 2025. Management has indicated this is partly a result of deliberate choices to exit lower-margin business within this category, shifting focus toward profit over pure volume growth.

Beyond these primary drivers, US Foods Holding Corp. also serves other important segments:

• Educational and governmental institutions: These sectors are part of the broad base served by the company's approximately 70 distribution facilities.
• Small-to-midsize foodservice operators: These operators benefit significantly from the company's technology solutions, which help them compete effectively.

Overall digital engagement is high across the base; 90% of US Foods Holding Corp. customers now use the MOXe ecommerce platform as of Q2 2025.

Finance: review the Q4 2025 segment data as soon as it's released to confirm the chain segment trend.

US Foods Holding Corp. (USFD) - Canvas Business Model: Cost Structure

The cost structure for US Foods Holding Corp. is heavily weighted toward procurement and distribution activities, reflecting its core business as a large-scale foodservice distributor.

Cost of goods sold (COGS) represents the largest single component of expense, directly tied to food and product procurement costs. This cost is managed through private label penetration, which expanded to over 53% with core independent restaurants as of late 2025.

Distribution and logistics costs are a significant driver within the overall operating expense base. These costs inherently include expenditures for fuel, fleet maintenance, and the associated labor for delivery personnel.

Labor expenses are substantial, supporting over 30,000 employees as of fiscal year 2025, a figure that remained at 30,000 from 2024 (Source 1, 4, 5). This workforce includes essential drivers and warehouse staff.

Operating expenses are actively managed to achieve operating leverage, meaning revenue growth outpaces the growth in these costs. For instance, in the first quarter of fiscal year 2025, operating expenses were $1.4 billion, representing 14.9% of net sales of $9.4 billion (Source 7). By the second quarter of fiscal year 2025, operating expenses were also $1.4 billion, but as a percentage of higher net sales of $10.1 billion, this figure decreased to 13.9% (Source 9).

Specific cost management initiatives are yielding measurable results. Vendor management savings have already exceeded $50 million year-to-date in 2025, putting US Foods Holding Corp. on track to surpass its 2027 target of $260 million in savings (Source 2).

The following table details key financial metrics from the first half of fiscal year 2025 that illustrate the relationship between sales, procurement costs (COGS), and operating expenses:

The company is focused on productivity improvements to control these costs. These include continued distribution productivity improvement and actions to streamline administrative processes and costs (Source 7, 9). The digital platform MOXe is also a factor, boasting 78% penetration for independent restaurant orders in Q2 2025, which aids in efficiency (Source 2).

Key cost drivers that US Foods Holding Corp. monitors include:

• Food and product procurement costs.
• Distribution costs, including fuel and fleet expenses.
• Labor costs for over 30,000 associates.
• Selling and administrative costs.

US Foods Holding Corp. (USFD) - Canvas Business Model: Revenue Streams

The revenue streams for US Foods Holding Corp. (USFD) are fundamentally anchored in broadline foodservice distribution, a high-volume, low-margin business model that relies on scale and operational efficiency to drive profitability. The core of the business is product sales across a vast catalog of food and non-food items delivered to a diverse customer base, primarily independent restaurants.

The scale of this operation is significant, with Trailing Twelve Months (TTM) revenue reported at $39.115 billion as of Q3 2025, reflecting a 4.80% year-over-year growth rate for the LTM ending that period. The most recent quarterly performance, Q3 2025, saw net sales reach $10.2 billion [cite: 1, 2, 3, 5, 6, 7, 8 from first search, 1 from third search].

The composition of these sales is critical to understanding margin performance. The largest single category driving the top line is the sale of Meats and seafood, which represents 36.35% of the Q3 2025 revenue base. This is followed by the sales of dry, refrigerated, and frozen grocery products, which form the bulk of the remaining food sales.

The revenue mix also includes essential non-food components necessary for foodservice operations. Sales of non-food items, such as equipment, disposables, and supplies, accounted for 8.81% of the Q3 2025 revenue. This category, while smaller in percentage, provides necessary breadth to the customer offering.

A key lever for margin improvement and customer stickiness is the strategic push toward private label penetration. Management has successfully driven private label penetration to over 53% specifically within the core independent restaurant customer segment. This is important because the company's own brands are roughly twice as profitable as manufacturer brands, allowing US Foods Holding Corp. (USFD) to offset food cost inflation and enhance overall profitability.

Here's a breakdown of the key revenue drivers and associated metrics from Q3 2025 performance:

The focus on specific customer segments directly impacts the revenue quality:

• Independent restaurant case volume growth accelerated to 3.9% in Q3 2025.
• Healthcare segment case volume grew by 3.9%.
• Hospitality segment case volume increased by 2.4%.
• Chain volume was down -2.4% year-over-year, a planned exit from lower margin contracts.

The success in driving higher-margin sales is reflected in profitability metrics:

• Adjusted Gross Profit as a percentage of net sales reached 17.7% in Q3 2025.
• Adjusted EBITDA margin for Q3 2025 was 5.0%, an expansion of 28 basis points year-over-year.

You can see how the mix shift towards private label and independent restaurants is directly translating to better per-case profitability, which is the real goal here.