Food Distribution Quarterly Highlights
Public food distributors continue to deliver steady earnings growth in a challenging macro environment
- Sales growth among public food distributors in Q3 was driven primarily by inflation and contributions from previously completed acquisitions with case growth in the LSD
- Case volume growth was mixed across channels with independents outperforming chain business
- Organic independent case growth exceeded restaurant traffic growth (which remained negative) as public foodservice distributors continue to take share in an environment where purchase decisions are increasingly price-driven
- Despite a tough macro environment for topline growth, food distributors continue to deliver earnings growth through efficiency and profitability focused initiatives
- Investments in AI-powered tools, digital platforms and route & facility optimizations continue to streamline operations and improve customer experience
- Continued investment in sales teams, technology and distribution centers in growing markets are positioning public food distributors for sustained growth, particularly if restaurant traffic trends improve into 2026
- M&A continues to be a core growth strategy with both US Foods and Chefs’ Warehouse announcing tuck-in acquisitions during the quarter
- Deal activity in the sector remains robust with ample opportunities for both continued tuck-in acquisitions and more transformational transactions expanding specialty product portfolios and capabilities
