Market Cap Increases by 4 Trillion Won in a Day... US 'Food Distribution Stocks' Surge 12%

US Foods Holding Corp. (NASDAQ: USFD) closed at $90.96 on the New York Stock Exchange on the 22nd, up 11.96%. At that price, its market capitalization is roughly $20 billion, which—using an exchange rate of about ₩1,520 per dollar—equates to around ₩30 trillion. In a single day, its value increased by about $2.7 billion (approximately ₩4 trillion).

In its early May first-quarter results, US Foods reported revenue of $9.6 billion and net income of $116 million, with adjusted EBITDA and earnings per share both growing by double digits. During the quarter, the company also repurchased $125 million of its own shares. On the 14th, the board announced a leadership transition in which CEO Dave Flitman will also serve as board chair. Immediately afterward, an amendment to the bylaws was approved at an extraordinary shareholders’ meeting to allow holders of more than 25% of common shares to call special meetings—further strengthening shareholder rights.

US Foods is the second-largest foodservice distributor in the United States, supplying food and non-food products to about 250,000 customers in restaurants, hotels, hospitals, schools and the military. Since its 2016 IPO on the NYSE, the company has faced pressure from activist investors and speculation about a merger with competitor Performance Food Group. Through large share buybacks and cost-efficiency initiatives, US Foods has reshaped its business and is now seen as a key player in the ongoing consolidation of the U.S. food distribution industry.