US Foods Holding Corp. (USFD) Awarded $198.26M Defense Logistics Agency Contract

US Foods Holding Corp. (NYSE:USFD) is among the 12 Best Food Stocks to Buy in 2026.

US Foods Holding Corp. (USFD) Awarded $198.26M Defense Logistics Agency Contract

On January 8, 2026, TheFly reported that the Defense Logistics Agency had awarded US Foods Holding Corp. (NYSE:USFD) a maximum $198.26 million firm-fixed-price contract with economic price adjustment. The indefinite-delivery, indefinite-quantity contract covers a full line of food and beverage products and was awarded as a sole-source purchase under 10 U.S. Code 3204 and FAR 6.302-1. The award has no option periods and is set up as a 465-day bridge contract. The ordering period closes on April 17, 2027, and the performance will take place in Virginia. The Army, Navy, Air Force, Marine Corps, and Coast Guard are among the military services that use them. The defense working capital funds for fiscal years 2026 through 2027 will provide funding. Defense Logistics Agency Troop Support is the contracted activity.

Separately, Citi analyst Karen Holthouse reduced US Foods Holding Corp. (NYSE:USFD)’s price objective from $99 to $90 on January 7, 2026, and retained a Buy rating. The modification reflects changes made to Citi’s 2026 prognosis for the food distributors group as a whole. Distributors are in a better position than the restaurant industry as a whole, according to Citi.

US Foods Holding Corp. (NYSE:USFD) is a food service distributor in the United States that supplies food and non-food items to government buildings, supermarkets, restaurants, healthcare facilities, and educational institutions.

While we acknowledge the risk and potential of USFD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than USFD and that has 10,000% upside potential, check out our report about this cheapest AI stock.