The company boasts revenues of $23 billion annually, with 26% from independents and small chains and the remainder from the government, institutional, and large chains. Controlling about 9% of the entire restaurant market, US Foods is second only to Sysco (NYSE: SYY), with its 13% penetration, as a national distributor.

Interestingly, Sysco attempted to purchase US Foods for $8.2 billion back in 2013. Unfortunately for the companies, but fortunately for us, antitrust concerns quashed the proposed deal in 2015. Imagine the potential profits should this deal be proposed again with the antitrust concerns addressed! And today this seems more likely, as with the Trump administration we will likely see a more lenient government regarding regulations.

The 2017 projections are very positive and suggest improved margins. Bullish analysts have forecasted earnings of $1.24 a share on just under $23 billion in sales against $168 million, or 98 cents a share, on $23 billion in sales in 2015.

Interestingly, US Foods trades at 16 times projected 2018 earnings. Sysco trades at 21 times forecasted earnings on the same time frame. US Food's debt-to-EBITDA ratio posts at 3.8 times but could fall due to the IPO. If that happens, dividends and share buybacks become a distinct possibility, further adding to the bullish case.

Risks To Consider: The IPO lockup was removed from the shares in November. However, private equity groups who owned the company before the IPO, KKR and Clayton Dubilier & Rice, still hold 76% of the shares. Should these shareholders start selling the stock, the price could fall sharply.