{ "docId": "019dd923-622b-71dc-a6dc-cc048585d9d9", "docSlug": "48f4c5037617", "documentTitle": "US Foods Holding Corp. (USFD)", "authorId": "22_Sachem_Head", "authorName": "Scott Ferguson", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2022-04-26 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 1, "pageCount": 8, "prevPage": null, "nextPage": 2, "slideType": "executive_summary", "function": "diagnose_problem", "density": "overcrowded", "nDataPoints": 16, "notes": "The slide uses a series of bar charts to demonstrate TSR underperformance across multiple time horizons (1Y, 3Y, 5Y, and since IPO).", "elementsJson": [ "paragraph", "bar_chart_vertical", "footnote" ], "metadataConfidence": 1, "imagePath": "https://imgproxy.kitesheet.com/V-ohhIjVsqumX0LrVzIQXdsorlXBvsDrDIC9SzI2avw/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80OGY0YzUwMzc2MTcvcDAwMS5qcGc", "slideHref": "/slides/019dd923-622b-71dc-a6dc-cc048585d9d9/1", "deckHref": "/decks/019dd923-622b-71dc-a6dc-cc048585d9d9", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-cc048585d9d9.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-cc048585d9d9#slide-1", "components": [ { "bbox": null, "kind": "callout", "text": "The Company's underperformance relative to its peers and the broader market with respect to total stockholder return is evident over nearly every relevant time period.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0393-73a7-a0aa-e70f5521566a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.35, "x": 0.118, "y": 0.535 }, "kind": "chart", "text": "5-Year TSR", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "429670b1-f09d-4deb-8678-f07977d2821a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.35, "x": 0.118, "y": 0.395 }, "kind": "chart", "text": "1-Year TSR", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9a0622aa-3a39-4aeb-bb26-951b8703962a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.35, "x": 0.532, "y": 0.535 }, "kind": "chart", "text": "TSR Since IPO: 5/25/2016", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bcef1e6c-7843-4107-934f-a4b10c137572", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.35, "x": 0.532, "y": 0.395 }, "kind": "chart", "text": "3-Year TSR", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df3d1fcb-2fd3-4901-96ca-dddcfd27d8d5", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Total Stockholder Return: 8.7%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-0393-73a7-a0aa-e8b4a3a75c9b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.764, "x": 0.118, "y": 0.695 }, "kind": "paragraph", "text": "This disappointing performance cannot be explained away by blaming COVID-19... US Foods currently trades at ~11x earnings per share, while Sysco trades at ~17x earnings per share.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "191bd119-a3e4-4e86-9e54-6559ed9bc70e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.764, "x": 0.118, "y": 0.165 }, "kind": "paragraph", "text": "We beneficially own approximately 8.7% of US Foods common stock... We have nominated five highly qualified individuals who have the skills, experience and alignment necessary to help instill a fresh culture.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "612bc692-e97a-4c50-bddb-f8be13704fee", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.764, "x": 0.118, "y": 0.835 }, "kind": "paragraph", "text": "The Company is trying to mislead and distract stockholders by cherry-picking time spans that show a favorable 1-year total shareholder return.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f2f3c20f-8102-461e-b66b-762b532e4ded", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.35, "x": 0.118, "y": 0.265 }, "kind": "title", "text": "USFD has underperformed since its IPO", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "426d989b-8885-43c9-acd6-7b98b3c946dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.35, "x": 0.118, "y": 0.131 }, "kind": "title", "text": "Dear Fellow US Foods Stockholders:", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "efb4afc8-5d39-4a32-ba96-67df33929ef7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "before-after-framing", "slug": null, "matchId": "f3985634-468c-4e7a-9e94-3a4d97626fb7", "evidence": "Contrasting historical underperformance with proposed board changes", "confidence": 0.8 } ], "arcBeats": [ { "to": 2, "from": 1, "beatId": "7175d72a-61b8-4b98-be90-64c42475a0cf", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Problem (Identify pain)", "beatSlug": "problem-agitate-solution-problem-identify-pain", "evidence": "The document identifies the problem of USFD's underperformance.", "position": 0, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [ { "to": 2, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "928c5a35-0a7d-431e-b6ef-07300bf67499", "evidence": "The document implies that the cost of inaction is 100% upside potential not being realized.", "position": 0, "objective": "to highlight the cost of inaction", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": "https://imgproxy.kitesheet.com/VYXJNVw6F3g3_2XARmwTrMAD2pBs1FyRpobwOLwlST0/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80OGY0YzUwMzc2MTcvcDAwMS5wbmc", "thumbSrc": "https://imgproxy.kitesheet.com/OMIoIgzA4AeRy4xFvIssMlP5NTLJfRM8nij4mVYX9NY/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80OGY0YzUwMzc2MTcvcDAwMS5qcGc", "thumbSrcAlt": "https://imgproxy.kitesheet.com/4yOPnmlyoFCtapul49aA7FNWH5MkSbFa68jLipXClPM/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80OGY0YzUwMzc2MTcvcDAwMS5wbmc" }