US Foods Holding Corp gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
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: 17.31 Max: 17.81
Current: 17.27
During the past 12 years, the highestGross Margin % of US Foods Holding was 17.81%. The lowest was 15.79%. And the median was 17.31%.
USFD's Gross Margin % is ranked worse than 67.31% of 312
companies
in the Retail - Defensive industry
Industry Median: 22.78
vs USFD: 17.27
US Foods Holding had a gross margin of 17.79% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for US Foods Holding was -1.30% per year.
US Foods Holding Gross Margin % Historical Data
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.
Competitive Comparison of US Foods Holding's Gross Margin %
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's Gross Margin % Distribution in the 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 (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 17.79% for the quarter that ended in Dec. 2023 => 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
Thank you for viewing the detailed overview of US Foods Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
US Foods Holding (US Foods Holding) Business Description
us Foods is the second-largest U.S. food service distributor behind Sysco, holding 11% market share of the highly fragmented food service distribution industry. us Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (collectively 22% of 2021 sales), restaurants (61%), and education, government facilities, and grocers (17%). In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. After Sysco's attempt to purchase us Foods failed to gain federal approval in 2015, us Foods entered the public market via an initial public offering.
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