US Foods Holding Corp. Barclays 19th Annual Global Consumer Conference

Thank you. Jeff, glad to be here.

Sure. Well, it's an interesting world out there where things change regularly, it seems like. Overall, when I think about our target customer types of independent healthcare and hospitality, growth rates continue to be very healthy in those. I'd say pretty similar broadly to Q2. That's the key takeaway. Our team continues to be pleased with the 21 quarters of share gains and independence that we had through the second quarter of 2023 with healthcare. If you go sort of broader than that, we have on chain, our expectation is it continues to be similar to black box. We've seen black box soften a little bit from Q2 through Q3 so far. I'd say the industry has had a little bit of a short-term challenge from the Cyclospora recalls and that, but that's begun to normalize on produce volumes, so that's soon to be behind us.

I think overall, if you sort of all other type of noise that we've talked about before with a retailer that closed some stores for us, education, just a later back to school, and customer losses there. Otherwise, key customers, very similar and feel like our ability to continue to gain share in those is well on track.

Well, I think on our last quarterly call, I think Dave Flitman, our CEO, put it well. Challenged but stable, I think is a good way to describe it out there. You see within specific concepts, to your point, you see winners and losers and those that are challenged. It seems like those that have found on the chains, those that have found that right value proposition seem to be winning. I think independents continue to be positioned well. They tend to have a loyal customer base, and they've fared well. So they will lean into values in some ways through specials and that, but they're not really the meal deals and some of that like a lot of the chains tend to be.

So overall, I think the consumer continues to be pretty stable as we think about their overall consumption ability, and I think the K-shaped continues to be unfortunately fully in force.

Sure. Well, I'm pleased, although we believe we can do more. I'm pleased with the continued acceleration, five quarters in a row of acceleration in our independent case growth. It really comes down to just core execution. Randy Taylor, who leads our field sales organization and field operations period, he has overall with that team, they focused a lot on whether it's underperforming markets and/or capabilities to be able to advance those, and that's helped increase. We've seen our net new customer accounts, acquisitions continue to grow for those five quarters, same as our overall case growth. So we're encouraged by that. Then we have things like our digital platform, our Pronto platform, which both continue to support the growth within the digital platform.

For example, we continue to deploy new capabilities, leveraging AI to be able to enhance sales growth, cross-sell, up-sell type of things. Each of those all contribute. What I get really excited about, though, is we have a number of markets that are growing well north of 5%, so we know that over time, 5% is something we can definitely well exceed even in a current environment. We try not to lose the whatever the noise of the day or the week is into the march toward continued acceleration.