US FOODS ENJOYS 68% LIFT IN SALES AS RESTAURANTS AND HOSPITALITY RECOVER
One of the largest foodservice distributors in the United States, US Foods Holding Corp, saw net sales rise by 68% to reach $7.7 billion in the 13 weeks to 3 July.
The company – which is behind brands like Del Pasado, Glenview Farms and Harbor Banks Seafood – partners with approximately 300,000 restaurants and foodservice operators and also has 80 cash and carry stores across the US.
The strong year-on-year increase was helped by the opening up of independent restaurants with case volume up 79%, versus a 53.5% average. In a statement, the listed company said: “The increase in both case volume and sales was a result of markets lifting in-person dining restrictions on restaurants and an increase in leisure travel.”
Supply chain labour a challenge says US Foods
In the same quarter a year ago, Covid-19 restrictions heavily impacted US Foods’ revenue so an uplift had been expected. The company’s stock price fell marginally on Monday, indicating that the results had been priced in. Sales had also benefited from food cost inflation of 8.2% in the second quarter, said US Foods based in Rosemont, Illinois.
US Foods CEO Pietro Satriano, commented: “As markets around the United States have reopened without restrictions, we have seen strong demand for our products, services and consultative expertise. While supply chain labour is expected to remain challenging for the next few quarters, we remain focused on delivering profitable growth as our industry continues to recover.”
Currently, the restaurant segment is trending ahead of 2019, though healthcare and hospitality – while both back on steady growth paths – are still below 2019 sales levels. US Foods expects total case volume to return to those former levels sometime in 2022.