InsideFood Message Board
Register Calendar
 
 
 


Reply
  Author   Comment  
atiboy15

Senior Member
Registered:
Posts: 148
Reply with quote  #1 
Ok, can anyone chime in on US Foods huge drop today on the stock market? I know its because they missed earnings forecasts and announced a buyout but I am thinking of buying their stock first thing tomorrow morning on the down?
1
new to sales

Member
Registered:
Posts: 20
Reply with quote  #2 
You must be a US Rep , because who else would put money in a company with 5 BILLION in DEBTS. You have so many other options for investments.  The greatest US President for 6 more years, great economy and you think its wise to buy USFD stock!
0
bestdsr

Member
Registered:
Posts: 32
Reply with quote  #3 
Sysco and PFG also went down.
USFD is ok....the company is profitable....missed earnings forecast by .01 cent. Sales were flat....so...is everyone else

If you are an employee take advantage of their stock purchase plan. Even it went down 15% today it is up 40% since they went public. The company we bought today will fit in nicely....
0
DENFOODIE

Junior Member
Registered:
Posts: 18
Reply with quote  #4 
Sysco and PFG also went down.
USFD is ok....the company is profitable....missed earnings forecast by .01 cent. Sales were flat....so...is everyone else

If you are an employee take advantage of their stock purchase plan. Even it went down 15% today it is up 40% since they went public. The company we bought today will fit in nicely....[/QUOTE

What he said. All true.
0
IKnowStuff

Avatar / Picture

Member
Registered:
Posts: 74
Reply with quote  #5 
Usually stocks involving broad liners are pretty safe overall. Even if they go down, they never bottom out. People ALWAYS need food. No matter what. What I will say, is pay attention to how Southern California is doing. That’s the biggest market for USF and where they go, so goes the company. At this moment, it’s looking bad. BUT, it will eventually come full circle and recover. You certainly cannot look at these stocks as a short term fix or a get rich quick thing. It’s a long term investment. You decide if you are willing to part with the money and wait. Another thing, after this s*** show today, more change will come. You will see management changes, changes in the way employees at large are handled. It’s not going to be good for a while. It will get way worse before it gets better. You just need to decide what you want to tolerate.
__________________
The all seeing eye
0
Sidney

Member
Registered:
Posts: 83
Reply with quote  #6 
aye aye
__________________
Sidney
0
laser

Senior Member
Registered:
Posts: 139
Reply with quote  #7 
The elephant in the room for US is the intent to do more business with fewer TM's and trying to force customers to order online as opposed to letting the customer make that decision. This came back to bite Sysco when they cut their their sales force about ten years ago, and DeLaney openly admitted this later on one of their investor calls. They portrayed this decline as kind of a one off due to higher freight costs and out of stocks due to transitioning to a central ordering system. The proof in the pudding will be how their results are the next three quarters.
__________________
laser
0
JustAnObserver

Member
Registered:
Posts: 34
Reply with quote  #8 
When they said "$55M in efficiencies", they didn't mean tighter delivery routing.
0
deville215

Member
Registered:
Posts: 22
Reply with quote  #9 
Quote:
Originally Posted by laser
The elephant in the room for US is the intent to do more business with fewer TM's and trying to force customers to order online as opposed to letting the customer make that decision. This came back to bite Sysco when they cut their their sales force about ten years ago, and DeLaney openly admitted this later on one of their investor calls. They portrayed this decline as kind of a one off due to higher freight costs and out of stocks due to transitioning to a central ordering system. The proof in the pudding will be how their results are the next three quarters.


So you claim that this had nothing to do with disruption from moving to centralized replenishment affecting inbound/outbound? I get that folks want to attack their handling of TM headcount, but how do you back that statement up? And do you then believe that they can't reaccelerate case growth, especially with Street business, since it's not just a temporary transition?
0
FSVET

Avatar / Picture

FS God....FIRST InsideFood Poster
Registered:
Posts: 786
Reply with quote  #10 
So you claim that this had nothing to do with disruption from moving to centralized replenishment affecting inbound/outbound? I get that folks want to attack their handling of TM headcount, but how do you back that statement up? And do you then believe that they can't re-accelerate case growth, especially with Street business, since it's not just a temporary transition?

Centralized purchasing has hurt every USF Division. Buyers in Rosemont have no idea what goes on locally. Divisions have had to accept products from other vendors that in some cases are not as good quality as what was being sourced locally. This is especially true of produce. Southern California has access to some of the best and freshest produce, but the buyer in Rosemont (who, I'm told, has no foodservice experience) doesn't have a clue. Just look for the cheapest they can get.


__________________
The problem with your gene pool, is that there is no lifeguard.
0
laser

Senior Member
Registered:
Posts: 139
Reply with quote  #11 
Sysco's experiment with centralized purchasing through SAP was a big mess and was one of the first areas they abandoned. The theory of reducing the merchandising head count at the DC's and relying on an automated replenishment system in foodservice is much more difficult than in retail, which seems to be the model Sysco attempted and now US is implementing. Higher service levels and tighter hands on inventory management exists in foodservice. My guess is that this will cost US more money than they will ever admit to, just like it cost Sysco.
__________________
laser
0
Previous Topic | Next Topic
Print
Reply

Easily create a Forum Website with Website Toolbox.