Performance Food Group Earnings: Strong Volume Growth, FY2026 Guidance Raised
- Hardik Shah
- 1 day ago
- 3 min read
TLDR
Revenue Strength: Q4 net sales rose 11.5% to $16.9B, driven by strong case growth and recent acquisitions.
Margin Trends: Adjusted EBITDA up 19.9% in Q4 to $546.9M, aided by procurement efficiencies and mix shift toward higher-margin business.
Forward Outlook: FY2026 guidance calls for $67–$68B in sales and $1.9–$2.0B in Adjusted EBITDA, supported by integration synergies.
Business Overview
Performance Food Group Company (NYSE: PFGC) is a leading North American food and foodservice distributor with three operating segments: Foodservice, Convenience, and Specialty.The company serves 300,000+ locations, including independent and chain restaurants, convenience stores, healthcare, education, vending, office coffee, retail, and entertainment venues.PFGC has grown both organically and via strategic acquisitions—most recently Cheney Brothers and José Santiago—to expand geographic reach and enhance product capabilities.
Performance Food Group Earnings
Fourth Quarter FY2025
Net Sales: $16.9B, +11.5% YoY, driven by acquisitions, favorable case mix, and ~4.3% inflation.
Case Volume: +11.9% total; organic +3.9%; independent organic +5.9%.
Gross Profit: $2.0B, +14.6%, supported by procurement efficiencies and mix shift.
Net Income: $131.5M, -21.0% due to higher depreciation, amortization, and interest from acquisitions.
Adjusted EBITDA: $546.9M, +19.9%.
Diluted EPS: $0.84 (-21.5%); Adjusted EPS: $1.55 (+6.9%).
Full Year FY2025
Net Sales: $63.3B, +8.6% YoY.
Case Volume: +8.5% total; independent organic +4.6%.
Gross Profit: $7.4B, +12.8%.
Net Income: $340.2M, -22.0%.
Adjusted EBITDA: $1.8B, +17.3%.
Free Cash Flow: $704.1M.
Forward Guidance
Q1 FY2026
Net Sales: $16.6B–$16.9B
Adjusted EBITDA: $465M–$485M
Full Year FY2026
Net Sales: $67B–$68B
Adjusted EBITDA: $1.9B–$2.0B
CEO George Holm said, “We enter fiscal 2026 with a stable industry backdrop and significant business momentum… We are confident in our ability to achieve the fiscal 2026 targets that we announced today.”
Operational Performance
Segment Highlights
Foodservice:
Sales up 20.0% to $9.2B; case volume +17.4% (independent +20.4% total; +5.9% organic).
Adjusted EBITDA up 26.3% to $386.9M.
Growth fueled by acquisitions, new accounts, and penetration gains.
Convenience:
Sales +2.8% to $6.4B; organic case growth +0.6% despite industry declines.
Adjusted EBITDA +4.8% to $120M, aided by inventory gains and favorable mix.
Specialty:
Sales +4.1% to $1.3B; case volume +4.2%.
Adjusted EBITDA +9.0% to $93.2M, with growth in vending, office coffee, and retail channels.
“In the fourth quarter, our total organic independent case growth accelerated 250 basis points sequentially… showing our consistent ability to take market share.” – Scott McPherson, COO
Market Insights
Restaurant foot traffic improved sequentially in Q4 but remained down YoY; PFG outperformed via share gains and account wins.
Convenience retail faced industry case declines, yet PFG delivered growth in foodservice programs and snacks.
Specialty segment navigated elevated candy/snack pricing and theater channel competition by expanding customer base and improving efficiencies.
Consumer Behavior & Sentiment
Independent restaurant demand resilient despite mixed traffic trends; new account growth +5.3% in Q4.
Chains showing selective growth—PFG focusing on high-performing, value-oriented partners.
Convenience shoppers shifting toward fresh food and snack options.
Strategic Initiatives
PFG One platform integrates capabilities across segments to capture cross-selling and procurement synergies.
Continued investment in sales talent—Foodservice sales reps +8.8% YoY.
Expansion in white-space markets, notably Western U.S.
Ongoing M&A pipeline, with disciplined due diligence and integration approach.
“PFG’s Board has a track record of regularly evaluating a range of potential paths to generate shareholder value… any transaction would need to clear a high bar on all fronts—value, speed, and certainty to completion.” – George Holm, Chairman & CEO
Capital Allocation
FY2025 CapEx: $506M, focused on warehouse expansions and fleet growth.
Share repurchases: $57.6M for FY2025; new $500M authorization through 2029.
Prioritizing debt reduction in near term while maintaining balanced approach to CapEx, buybacks, and M&A.
The Bottom Line
PFGC closed FY2025 with double-digit case growth, margin expansion, and strong free cash flow. Management’s FY2026 guidance implies continued top- and bottom-line growth, underpinned by integration synergies from Cheney Brothers and José Santiago, share gains in independent and chain accounts, and resilient segment performance.
Key watchpoints include inflation trends, restaurant traffic recovery, and execution on new customer onboarding in Convenience.
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