US Foods HoldingUSFD +0.91%81 Gross Margin % is 17.20% as of Mar. 2026, which is 1% below its 10-year median of 17.34. GuruFocus rates USFD with a GF Score™ of 81/100 and a GF Value™ of $73.91 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 305 Retail - Defensive companies, US Foods Holding ranks worse than 70.49% on this metric.
The historical rank and industry rank for US Foods Holding's Gross Margin % or its related term are showing as below:
USFD'
s Gross Margin % Range Over the Past 10 Years
Min: 15.79 Med: 17.34 Max: 17.81
Current: 17.4
During the past 13 years, the highestGross Margin % of US Foods Holding was 17.81%. The lowest was 15.79%. And the median was 17.34%.
USFD's Gross Margin % is ranked worse than 70.49% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs USFD: 17.40
US Foods Holding had a gross margin of 17.20% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for US Foods Holding was 2.00% per year.
US Foods Holding (NYSE:USFD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
US Foods Holding had a gross margin of 17.20% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
US Foods Holding Gross Margin % Related Terms
US Foods Holding Gross Margin % Historical Data
* Premium members only.
The historical data trend for US Foods Holding's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
USFD vs PFGC, CHEF, UNFI: Gross Margin % Comparison
For the Food Distribution subindustry, US Foods Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
US Foods Holding Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where US Foods Holding's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
US Foods Holding (USFD) has a Gross Margin % of 17.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on US Foods Holding and its competitors. This is near median its historical median of 17.34. Over the past decade, US Foods Holding's Gross Margin % has ranged from 15.79 to 17.81. According to the industry distribution chart, US Foods Holding ranks #215 out of 305 companies in the Retail - Defensive industry, placing it in the top 70.5%.
Is US Foods Holding's Gross Margin % too high?
US Foods Holding's current Gross Margin % of 17.20% is near median its 10-year median of 17.34. Over the past 10 years, this metric has ranged from a low of 15.79 to a high of 17.81. The Retail - Defensive industry median Gross Margin % is 24.14. US Foods Holding's value of 17.20% is 28.7% below this industry median. Based on the distribution chart, US Foods Holding ranks #215 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, US Foods Holding has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does US Foods Holding's Gross Margin % compare to PFGC and CHEF?
According to the Retail - Defensive industry distribution chart, US Foods Holding ranks #215 out of 305 companies for Gross Margin %. This places US Foods Holding in the lower half of its industry. The industry median Gross Margin % is 24.14. US Foods Holding's value of 17.20% is 28.7% below this benchmark. Historically, US Foods Holding's own Gross Margin % has ranged from 15.79 to 17.81 over the past decade. While the company's 10-year median is 17.34 vs. the industry median of 24.14, US Foods Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. US Foods Holding's current Gross Margin % of 17.20% is 28.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on US Foods Holding and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. US Foods Holding's current Gross Margin % is 17.20%, which is near median its own 10-year median of 17.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Foods Holding stock overvalued right now?
Based on GuruFocus' analysis, US Foods Holding (USFD) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.91, compared to a current price of $96.22 — trading 30.2% above its estimated fair value. The current Gross Margin % is 17.20%, which is near median its 10-year median of 17.34 and 28.7% below the Retail - Defensive industry median of 24.14. US Foods Holding's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For US Foods Holding (USFD), the current Gross Margin % is 17.20% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is US Foods Holding (USFD) Overvalued in 2026?
Based on GuruFocus' analysis, US Foods Holding stock appears to be overvalued.
The current stock price of $96.22 is trading 30.2% above its estimated GF Value™ of $73.91.
GuruFocus considers US Foods Holding to be Modestly Overvalued.
Key valuation signals for USFD:
Gross Margin %: 17.20% (near median its 10-year median of 17.34)
GF Value™: $73.91 vs. price of $96.22 (30.2% above fair value)
Industry Position: 28.7% below the Retail - Defensive median (#215 of 305)
No single metric tells the full story. See the USFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Foods Holding Corp is a U.S. food service distributor that distributes food and nonfood products to the healthcare and hospitality industries, restaurants, education, government facilities, and grocers. It has various customer locations across the United States, with a vast network of distribution facilities, a fleet of trucks, and cash and carry locations offering food and non-food products, and a comprehensive suite of e-commerce, technology, and business solutions to its customers. The company operates in one business segment in which it markets, sells, and distributes fresh, frozen, and dry food and non-food products to foodservice customers throughout the U.S. The products offered are as snacks, beverages, fresh produce, sauces, condiments, canned/frozen fruits and others.
81GF Score
Get the complete analysis for USFD
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
USFD has been successfully added to your 
