The Short Answer
US Foods stock (USFD) is doubtful under standard Sharia screening. Distribution and logistics are permissible in themselves, but US Foods' product range includes alcohol, pork, and other non-halal items supplied to restaurants and bars, so a portion of revenue is tied to haram products and is hard to bound.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-28; calculated 2026-07-15.
5,167 / 14,164
49 / 14,164
2,451 / 14,164
- Financial
- Fails
- Overall
- Fails
Debt/assets is 36.48%, above the examined limit; liquidity/assets is 0.35% and receivables-plus-cash/assets is 17.30%, while income and prohibited-product allocation are incomplete.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 36.48%, above the examined MSCI total-assets limit; product-category classification remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 36.48%, above the examined Malaysia limit; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based debt failure remains material.
Business-activity disclosure
US Foods distributes food and related products to restaurants, healthcare, hospitality and institutional customers. Distribution is permissible in itself, but alcohol, pork and other non-halal products are included in the product mix.
Limitation: The filing does not allocate revenue to alcohol, pork or other prohibited product categories as a universal numerator.
Purification
The filing reports net interest expense but no standalone gross interest-income numerator, and it does not quantify prohibited product revenue; no fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from US Foods' March 28, 2026 Form 10-Q.
- Interest-bearing debt is $142 million current plus $5,025 million noncurrent; operating leases are excluded.
- Cash and cash equivalents are $49 million; receivables combine $2,170 million customer receivables and $232 million vendor receivables.
- Thirteen-week net sales are $9,610 million; the filing reports net interest expense and no standalone gross interest-income numerator.
- Foodservice distribution is permissible in principle, but alcohol, pork and other non-halal products are distributed and the filing does not quantify their revenue share.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
The March 28, 2026 filing shows interest-bearing debt/assets of 36.48%, so the current filing-based asset screen fails. The haram-product share is not quantified, leaving the overall judgment-sensitive business screen incomplete.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
US Foods' Business Activity
US Foods Holding Corp. is a foodservice distributor. Its activity is:
- Distribution: Food and related products to restaurants and institutions
- Customers: Restaurants, healthcare, hospitality, and education
- Product range: Includes alcohol, pork, and other non-halal items
Distribution and logistics are permissible in themselves, but part of the product mix is haram.
Why USFD Is Doubtful
1. Distributes Haram Products
US Foods distributes alcohol, pork, and other non-halal products to its customers. The share of revenue is hard to bound and may exceed the 5% haram-revenue tolerance, which is the central concern.
2. High Leverage
US Foods carries substantial debt from its buyout and acquisition history, so total debt / market cap should be confirmed against the 33% threshold using the latest filings — a second item that can fail the screen.
3. A Judgment-Dependent Verdict
The verdict is judgment-dependent: stricter investors may treat it as non-compliant on the product mix, while others may accept the permissible distribution core with purification. The filing reports net interest expense but no standalone gross interest-income numerator.
Filing-Based Ratios (March 28, 2026)
Based on US Foods' latest Form 10-Q:
- Haram Revenue: Alcohol, pork, and other non-halal items — hard to bound, may exceed 5% ❌/⚠️
- Debt / Total Assets: 36.48% — above examined limits ❌
- Liquidity / Total Assets: 0.35% ✅
- Receivables + Cash / Total Assets: 17.30% ✅
- Gross Interest Income: Not separately disclosed — purification remains incomplete ⚠️
Methodology Interpretation
The current filing-based asset screen fails on debt/assets under the examined FTSE, MSCI and Malaysia-style limits. Distribution is permissible in principle, but alcohol and pork revenue allocation is not disclosed.
- Core activity: Foodservice distribution and logistics
- Quantitative status: Debt fails; other known asset ratios pass
- Qualitative issue: Alcohol, pork and other non-halal product share is not quantified
Bottom Line
US Foods (USFD) is doubtful for Muslim investors. The distribution and logistics core is permissible, but the company distributes alcohol, pork, and other non-halal products, and the share of haram revenue is hard to bound and may exceed the 5% tolerance. The leverage adds a second concern. The verdict is judgment-dependent — stricter investors may treat it as non-compliant, while others may accept it with purification.
For permissible food and distribution alternatives, review our guide to haram investments to avoid and screen cleaner revenue mixes.
USFD's distribution core is permissible, but it distributes alcohol and pork and carries high debt. Use our screener to find clearer halal alternatives.
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