Following expressions of discontent with the strategy and management of US Foods (USFD), Sachem Head Capital Management a significant institutional shareholder has negotiated the appointment of three independent directors and arranged for the replacement of the CEO.  Pietro Satriano resigned following a seven-year tenure.  Investors point to the low profitability of US Foods in comparison with major competitor Sysco Corp. that managed to negotiate both COVID restrictions and current inflation more successfully. (Report on SYY quarterly results retrievable by entering “Sysco” in the SEARCH” block)

The results of USFD for Q1 of FY 2022 announced on Thursday May 12th confirmed a loss of $7 million on revenue of $7,798 million with diluted EPS of $(0.07). Corresponding values for Q1 of FY 2021 were a net loss of $24 million on revenue of $6,295 million with diluted EPS of $(0.18). On a 12-month trailing basis US Foods attained an operating margin of 1.6 percent and a profit margin of 0.6 percent. Comparative values for Sysco were 3.4 percent and 1.3 percent respectively. US Foods generated a 2.4 percent return on assets and 3.4 percent on equity.

The Company posted assets of $12,960 with long-term debt of $5,364 million against Market capitalization of $7,588 million. USFD has traded over the past 52 weeks in a range of $30.02 to $40.51 with a 50-day moving average of $36.44. The Company trades with a future P/E of 14.8 and closed on Wednesday 11th May at $33.85, opening the following morning post-release at $32.40.