US Foods Holding Takes Cost-Cutting Steps, Draws $1 Billion Credit to Combat Sales Drop
US Foods Holding Corp. (USFD), a leading food distribution company, said it is rolling out cost-cutting measures to mitigate restaurant and hospitality sales declines.
US Foods said it will draw $1 billion under its existing revolving credit facilities to retain as cash on hand. The food distribution company added that it had no debt maturing until fiscal 2022 and was working on additional financing opportunities if needed.
The stock’s Moderate Buy consensus rating is based on a total of 3 reviews in the last 3 months, which include 2 Buys from Wells Fargo and Credit Suisse and 1 Hold from Barclays. With shares priced around $13, the average price target of $40.33 room for potential upside of 211% in the coming 12 months. (See United Foods’ stock analysis on TipRanks)
In light of the rapidly evolving coronavirus impacts on the foodservice and restaurant industries, US Foods is withdrawing its fiscal 2020 guidance.
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