US Foods Holding Corp. (NYSE:USFD) Q2 2023 Earnings Call Transcript

Peter Saleh : Great. And then just on the leverage being around 3x. Currently, how are you thinking about capital allocation kind of going forward? Is it more debt pay down? Or do you think you’ll shift a little bit more to share repurchase at this point in time as EBITDA continues to grow and the leverage kind of comes down naturally?

Dirk Locascio : Well, I expect — as you know, Dave’s comments that we did close early in the third quarter on the Renzi Foodservice acquisition. So that is a Q3 use. And then on top of that, I do expect for the near term, a continued balance of debt pay down and share repurchase. We think both are important, and we’re going to continue to focus on. I think the good working capital performance this year as the team service levels have improved. Our teams have very methodically gone through and found those opportunities to remove some of the added stock we added when vendor service levels were lower, while still focus on maintaining high customer service levels that’s allowed us to generate the even stronger working capital numbers this year, which has helped with the funding of the acquisition, et cetera. So to directly answer your question, I have to, I expect it to be balanced, but you will see our first tuck-in M&A, which we’re excited about.

Operator: And we have reached the end of our question-and-answer session. I will now turn the call back over to Dave Flitman for some final closing remarks.

David Flitman : Thank you all very much for joining us today. Our business is strong, and I have great confidence in our ability to accelerate our momentum. Have a great day.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.