US Foods Holding Corp.
Thesis
US Foods is positioned for significant gross margin expansion driven by independents and private label growth. The company has a clear path to reduce operational expenses and improve EBITDA margins, while activist involvement could further enhance shareholder value and close the valuation gap with Sysco. The projected EPS growth and potential for an increased P/E multiple suggest a strong investment opportunity.
Did it work?
The long thesis on US Foods has played out successfully, with a price performance of +174.6% over 88 months, indicating significant appreciation in value. The anticipated gross margin expansion, operational improvements, and potential for increased shareholder value have likely contributed to this strong return, validating the investment thesis.
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