Performance Food Group Company Reports First-Quarter Fiscal 2027 Results
Independent customers accounted for 43.0% of Foodservice sales, up from 41.6% a year earlier.
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Strong Case Volume, Net Sales and Profit Growth; Reiterates Full-Year Fiscal 2027 Financial Guidance
First-Quarter Fiscal 2027 Highlights
-
Total case volume increased
4.2% -
Total independent Foodservice case volume increased
7.8% -
Organic independent Foodservice case volume increased
5.5% -
Net sales increased
5.5% to$18.0 billion -
Gross profit improved
8.5% to$2.2 billion -
Net income increased
38.4% to$129.5 million -
Adjusted EBITDA(1) increased
10.0% to$528.0 million -
Diluted Earnings Per Share (“EPS”) increased
36.7% to$0.82 -
Adjusted Diluted EPS(1) increased
11.9% to$1.32
“We started fiscal 2027 with solid momentum, delivering strong first-quarter sales and profit growth,” said Scott McPherson, PFG’s President and Chief Executive Officer. “Continued market share gains across our businesses drove strong case volume and revenue performance in the quarter. Our team’s execution on several key efficiency initiatives improved our profitability, driving gross margin expansion and double-digit Adjusted EBITDA and EPS growth in the quarter. We recognize the macroeconomic environment remains challenging, but I am confident in our ability to continue gaining market share, execute our strategic priorities and deliver strong results through the remainder of fiscal 2027.”
(1) |
This earnings release includes several metrics, including Adjusted EBITDA, Adjusted Diluted Earnings Per Share, and Free Cash Flow, that are not calculated in accordance with Generally Accepted Accounting Principles in the |
First-Quarter Fiscal 2027 Financial Summary
Total case volume increased
Net sales for the first quarter of fiscal 2027 grew
Gross profit for the first quarter of fiscal 2027 grew
Operating expenses rose
Net income for the first quarter of fiscal 2027 increased
For the quarter, Adjusted EBITDA rose
Diluted EPS increased
Cash Flow and Capital Spending
During the first quarter of fiscal 2027 and the first quarter of fiscal 2026, PFG’s net cash used in operating activities was
In the first quarter of fiscal 2027, PFG invested
Share Repurchase Program
As of September 26, 2026,
First-Quarter Fiscal 2027 Segment Results
Foodservice
First-quarter fiscal 2027 net sales for Foodservice increased
First-quarter fiscal 2027 Adjusted EBITDA for Foodservice increased
Convenience
First-quarter fiscal 2027 net sales for Convenience increased
First-quarter fiscal 2027 Adjusted EBITDA for Convenience increased
Specialty
During the current fiscal year, Specialty has revised its sales channel classifications to better align with how management evaluates operating performance and market opportunities. As a result, the former value channel is presented as grocery retail, and the theater, concessions and hospitality channels are presented on a combined basis within entertainment. Comparative channel information discussed below has been reclassified to conform to the current presentation.
First-quarter fiscal 2027 net sales for Specialty increased
First-quarter fiscal 2027 Adjusted EBITDA for Specialty decreased
Fiscal 2027 Outlook
For the second quarter of fiscal 2027, PFG expects net sales to be in a range of approximately
For the full fiscal year 2027, PFG continues to expect net sales to be in a range of approximately
PFG’s Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, losses on early extinguishments of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. PFG’s management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. Please see the “Forward-Looking Statements” section of this release for a discussion of certain risks to PFG’s outlook.
Conference Call
As previously announced, a conference call with the investment community and news media will be webcast today, November 4, 2026, at 9:00 a.m. Eastern Time. Access to the webcast is available at www.pfgc.com.
About Performance Food Group Company
Performance Food Group is an industry leader and one of the largest food and foodservice distribution companies in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other nonhistorical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words.
Such forward-looking statements are subject to various risks and uncertainties. The following factors, in addition to those discussed under the section entitled Item 1A. Risk Factors in PFG’s Annual Report on Form 10-K for the fiscal year ended June 27, 2026 filed with the Securities and Exchange Commission (the “SEC”) on August 12, 2026, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, could cause actual future results to differ materially from those expressed in any forward-looking statements:
- costs and risks associated with a potential cybersecurity incident or other technology disruption;
- our reliance on technology and risks associated with disruption or delay in implementation of new or emerging technology, including artificial intelligence (“AI”), and the integration of AI into our processes;
- economic and market conditions and developments, including inflation or other adverse changes such as a downturn in economic conditions, geopolitical events, tariff increases or modifications, or a public health crisis, negatively affecting consumer confidence and discretionary spending;
- our growth and innovation strategy may not achieve the anticipated results;
- competition in our industry is intense, and we may not be able to compete successfully or adjust our cost structure where one or more of our competitors successfully implement lower costs;
- we do not have long-term contracts with certain customers;
- group purchasing organizations may become more active in our industry and increase their efforts to add our customers as members of these organizations;
- our reliance on third-party suppliers;
- we operate in a low margin industry, which could increase the volatility of our results of operations;
- our inability to increase our sales in the highest margin portion of our business;
- changes in pricing practices of our suppliers;
- our profitability is directly affected by cost inflation and deflation, commodity volatility and other factors;
- volatility of fuel and other transportation costs;
- risks relating to acquisitions, such as the risk that we are not able to realize the benefits of acquisitions or successfully integrate the businesses we acquire or that we incur significant integration costs;
- changes in eating habits of consumers, including the impact of advancements in pharmaceutical therapies, which may reduce the consumption of food prepared away from home;
- a portion of our sales volume is dependent upon the distribution of cigarettes and other tobacco products, sales of which are generally declining;
- labor relations and cost risks and availability of qualified labor;
- extreme weather conditions, including hurricane, flood, tornado, blizzard, earthquake, fire, and natural disaster damage and extreme heat or cold;
- negative media exposure and other events that damage our reputation;
- environmental, health, and safety costs, including compliance with current and future environmental laws and regulations relating to carbon emissions and climate change and related legal or market measures;
- our inability to comply with requirements imposed by applicable law or government regulations, including changes in regulation of e-vapor products and other alternative nicotine products;
- increase in excise taxes or reduction in credit terms by taxing jurisdictions;
- the potential impact of product recalls and product liability claims relating to the products we distribute and other litigation;
- adverse judgments or settlements or unexpected outcomes in legal proceedings;
- the cost and adequacy of insurance coverage and increases in the number or severity of insurance and claims expenses;
- impact of uncollectibility of accounts receivable;
- risks relating to our outstanding indebtedness, including the impact of interest rate increases on our variable rate debt; and
- our ability to raise additional capital on commercially reasonable terms or at all.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any forward-looking statement, including any contained herein, speaks only as of the time of this release or as of the date it was made, and we do not undertake to update or revise it as more information becomes available or to disclose any facts, events, or circumstances after the date of this release or our statement, as applicable, that may affect the accuracy of any forward-looking statement, except as required by law.
| PERFORMANCE FOOD GROUP COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||
|
||||||||
(In millions, except per share data) |
|
Three Months Ended
|
|
|
Three Months Ended
|
|
||
Net sales |
|
$ |
18,018.4 |
|
|
$ |
17,075.9 |
|
Cost of goods sold |
|
|
15,830.9 |
|
|
|
15,059.3 |
|
Gross profit |
|
|
2,187.5 |
|
|
|
2,016.6 |
|
Operating expenses |
|
|
1,915.3 |
|
|
|
1,791.9 |
|
Operating profit |
|
|
272.2 |
|
|
|
224.7 |
|
Other expense, net: |
|
|
|
|
|
|
||
Interest expense |
|
|
98.4 |
|
|
|
104.4 |
|
Other, net |
|
|
0.7 |
|
|
|
(1.2 |
) |
Other expense, net |
|
|
99.1 |
|
|
|
103.2 |
|
Income before taxes |
|
|
173.1 |
|
|
|
121.5 |
|
Income tax expense |
|
|
43.6 |
|
|
|
27.9 |
|
Net income |
|
$ |
129.5 |
|
|
$ |
93.6 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
||
Basic |
|
|
156.7 |
|
|
|
155.5 |
|
Diluted |
|
|
157.5 |
|
|
|
156.9 |
|
Earnings per common share: |
|
|
|
|
|
|
||
Basic |
|
$ |
0.83 |
|
|
$ |
0.60 |
|
Diluted |
|
$ |
0.82 |
|
|
$ |
0.60 |
|
| PERFORMANCE FOOD GROUP COMPANY | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
|
||||||||
(In millions) |
|
As of
|
|
|
As of
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash |
|
$ |
35.9 |
|
|
$ |
92.4 |
|
Accounts receivable, less allowances of |
|
|
3,009.0 |
|
|
|
3,054.3 |
|
Inventories, net |
|
|
4,603.5 |
|
|
|
4,333.0 |
|
Income taxes receivable |
|
|
9.4 |
|
|
|
69.5 |
|
Prepaid expenses and other current assets |
|
|
343.5 |
|
|
|
259.9 |
|
Total current assets |
|
|
8,001.3 |
|
|
|
7,809.1 |
|
Goodwill |
|
|
3,566.1 |
|
|
|
3,565.0 |
|
Other intangible assets, net |
|
|
1,481.8 |
|
|
|
1,544.6 |
|
Property, plant and equipment, net |
|
|
4,722.5 |
|
|
|
4,784.9 |
|
Operating lease right-of-use assets |
|
|
888.1 |
|
|
|
898.5 |
|
Other assets |
|
|
240.0 |
|
|
|
247.0 |
|
Total assets |
|
$ |
18,899.8 |
|
|
$ |
18,849.1 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Trade accounts payable and outstanding checks in excess of deposits |
|
$ |
3,719.0 |
|
|
$ |
3,693.4 |
|
Accrued expenses and other current liabilities |
|
|
869.8 |
|
|
|
1,091.4 |
|
Finance lease obligations—current installments |
|
|
263.8 |
|
|
|
265.4 |
|
Operating lease obligations—current installments |
|
|
111.4 |
|
|
|
108.5 |
|
Total current liabilities |
|
|
4,964.0 |
|
|
|
5,158.7 |
|
Long-term debt |
|
|
5,170.0 |
|
|
|
5,006.8 |
|
Deferred income tax liability, net |
|
|
955.7 |
|
|
|
974.8 |
|
Finance lease obligations, excluding current installments |
|
|
1,515.3 |
|
|
|
1,537.2 |
|
Operating lease obligations, excluding current installments |
|
|
852.4 |
|
|
|
864.6 |
|
Other long-term liabilities |
|
|
388.5 |
|
|
|
407.7 |
|
Total liabilities |
|
|
13,845.9 |
|
|
|
13,949.8 |
|
Total shareholders’ equity |
|
|
5,053.9 |
|
|
|
4,899.3 |
|
Total liabilities and shareholders’ equity |
|
$ |
18,899.8 |
|
|
$ |
18,849.1 |
|
| PERFORMANCE FOOD GROUP COMPANY | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
|
||||||||
(In millions) |
|
Three Months Ended
|
|
|
Three Months Ended
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
129.5 |
|
|
$ |
93.6 |
|
Adjustments to reconcile net income to net cash used in operating activities |
|
|
|
|
|
|
||
Depreciation and intangible asset amortization |
|
|
210.7 |
|
|
|
195.4 |
|
Provision for losses on accounts receivables |
|
|
2.0 |
|
|
|
4.4 |
|
Change in LIFO Reserve |
|
|
18.7 |
|
|
|
24.5 |
|
Deferred income tax (benefit) expense |
|
|
(22.5 |
) |
|
|
20.4 |
|
Other non-cash activities |
|
|
15.9 |
|
|
|
17.0 |
|
Changes in operating assets and liabilities, net: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
42.1 |
|
|
|
(2.4 |
) |
Inventories |
|
|
(272.4 |
) |
|
|
(551.8 |
) |
Income taxes receivable |
|
|
60.1 |
|
|
|
2.3 |
|
Prepaid expenses and other assets |
|
|
(71.9 |
) |
|
|
8.2 |
|
Trade accounts payable and outstanding checks in excess of deposits |
|
|
23.5 |
|
|
|
201.3 |
|
Accrued expenses and other liabilities |
|
|
(225.0 |
) |
|
|
(158.1 |
) |
Net cash used in operating activities |
|
|
(89.3 |
) |
|
|
(145.2 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property, plant and equipment |
|
|
(53.9 |
) |
|
|
(78.9 |
) |
Net cash paid for acquisitions |
|
|
(4.1 |
) |
|
|
— |
|
Proceeds from sale of property, plant and equipment and other |
|
|
4.2 |
|
|
|
0.9 |
|
Net cash used in investing activities |
|
|
(53.8 |
) |
|
|
(78.0 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net borrowings under ABL Facility |
|
|
162.3 |
|
|
|
246.3 |
|
Payments under finance lease obligations |
|
|
(70.3 |
) |
|
|
(57.5 |
) |
Net cash paid for acquisitions |
|
|
(1.5 |
) |
|
|
(1.5 |
) |
Payments of other debt |
|
|
(5.8 |
) |
|
|
— |
|
Proceeds from exercise of stock options and employee stock purchase plan |
|
|
21.6 |
|
|
|
20.4 |
|
Cash paid for shares withheld to cover taxes |
|
|
(19.7 |
) |
|
|
(24.8 |
) |
Net cash provided by financing activities |
|
|
86.6 |
|
|
|
182.9 |
|
Net decrease in cash and restricted cash |
|
|
(56.5 |
) |
|
|
(40.3 |
) |
Cash and restricted cash, beginning of period |
|
|
103.1 |
|
|
|
86.7 |
|
Cash and restricted cash, end of period |
|
$ |
46.6 |
|
|
$ |
46.4 |
|
|
||||||||
| The following table provides a reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: | ||||||||
(In millions) |
|
As of
|
|
|
As of
|
|
||
Cash |
|
$ |
35.9 |
|
|
$ |
92.4 |
|
Restricted cash(1) |
|
|
10.7 |
|
|
|
10.7 |
|
Total cash and restricted cash |
|
$ |
46.6 |
|
|
$ |
103.1 |
|
(1) |
Restricted cash is reported within other assets and represents the amounts required by insurers to collateralize a part of the deductibles for the Company’s workers’ compensation and liability claims along with cash required by a healthcare benefits and claims administration arrangement to maintain a healthcare imprest account for eligible healthcare expenses. |
| Supplemental disclosures of cash flow information: | ||||||||
|
||||||||
(In millions) |
|
Three Months Ended
|
|
|
Three Months Ended
|
|
||
Cash paid during the period for: |
|
|
|
|
|
|
||
Interest (net of amounts capitalized) |
|
$ |
136.3 |
|
|
$ |
112.0 |
|
Income taxes (net of refunds received) |
|
|
3.7 |
|
|
|
2.2 |
|
Statement Regarding Non-GAAP Financial Measures
This earnings release and the accompanying financial statement tables include several financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow. Such measures are not recognized terms under GAAP, should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and are not indicative of net income as determined under GAAP. Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate PFG’s liquidity or financial performance. Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow, as presented, may not be comparable to similarly titled measures of other companies because of varying methods of calculation.
PFG uses Adjusted EBITDA to evaluate the performance of its business on a consistent basis over time and for business planning purposes. In addition, targets based on Adjusted EBITDA are among the measures we use to evaluate our management’s performance for purposes of determining their compensation under our incentive plans. PFG believes that the presentation of Adjusted EBITDA enhances an investor’s understanding of PFG’s performance. PFG believes this measure is a useful metric to assess PFG’s operating performance from period to period by excluding certain items that PFG believes are not representative of PFG’s core business.
Management measures operating performance based on our Adjusted EBITDA, defined as net income before interest expense, interest income, income taxes, and depreciation and amortization, further adjusted to exclude certain items we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction and other adjustment items permitted in calculating covenant compliance under PFG’s
Management also uses Adjusted Diluted EPS, which is calculated by adjusting the most directly comparable GAAP financial measure by excluding the same items excluded in PFG’s calculation of Adjusted EBITDA, as well as amortization of intangible assets, to the extent that each such item was included in the applicable GAAP financial measure. For business combinations, the Company generally allocates a portion of the purchase price to intangible assets and such intangible assets contribute to revenue generation. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization over the useful lives of the intangible assets. The amount of the purchase price from an acquisition allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition, and thus the Company does not believe it is reflective of ongoing operations. Intangible asset amortization excluded from Adjusted Diluted EPS represents the entire amount recorded within the Company’s GAAP financial statements; whereas, the revenue generated by the associated intangible assets has not been excluded from Adjusted Diluted EPS. Intangible asset amortization is excluded from Adjusted Diluted EPS because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired, or the estimated useful life of an intangible asset is revised.
Management also uses Free Cash Flow, which is defined as net cash provided by operating activities less capital expenditures (purchases of property, plant, and equipment). PFG also believes that the presentation of Free Cash Flow enhances an investor’s understanding of PFG’s ability to make strategic investments and manage debt levels.
PFG believes that the presentation of Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow is useful to investors because these metrics provide insight into underlying business trends and year-over-year results and are frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies in PFG’s industry.
The following tables include a reconciliation of non-GAAP financial measures to the applicable most comparable GAAP financial measures.
| PERFORMANCE FOOD GROUP COMPANY | ||||||||||||||||
| Non-GAAP Reconciliation (Unaudited) | ||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
(In millions, except per share data) |
|
September 26, 2026 |
|
|
September 27, 2025 |
|
|
Change |
|
|
% |
|
||||
Net income (GAAP) |
|
$ |
129.5 |
|
|
$ |
93.6 |
|
|
$ |
35.9 |
|
|
|
38.4 |
|
Interest expense |
|
|
98.4 |
|
|
|
104.4 |
|
|
|
(6.0 |
) |
|
|
(5.7 |
) |
Income tax expense |
|
|
43.6 |
|
|
|
27.9 |
|
|
|
15.7 |
|
|
|
56.3 |
|
Depreciation |
|
|
149.7 |
|
|
|
128.7 |
|
|
|
21.0 |
|
|
|
16.3 |
|
Amortization of intangible assets |
|
|
61.0 |
|
|
|
66.7 |
|
|
|
(5.7 |
) |
|
|
(8.5 |
) |
Change in LIFO reserve (1) |
|
|
18.7 |
|
|
|
24.5 |
|
|
|
(5.8 |
) |
|
|
(23.7 |
) |
Stock-based compensation expense |
|
|
13.2 |
|
|
|
13.0 |
|
|
|
0.2 |
|
|
|
1.5 |
|
Acquisition & business optimization expenses (2) |
|
|
12.0 |
|
|
|
9.2 |
|
|
|
2.8 |
|
|
|
30.4 |
|
Other adjustments (3) |
|
|
1.9 |
|
|
|
12.1 |
|
|
|
(10.2 |
) |
|
|
(84.3 |
) |
Adjusted EBITDA (Non-GAAP) |
|
$ |
528.0 |
|
|
$ |
480.1 |
|
|
$ |
47.9 |
|
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share (GAAP) |
|
$ |
0.82 |
|
|
$ |
0.60 |
|
|
$ |
0.22 |
|
|
|
36.7 |
|
Impact of amortization of intangible assets |
|
|
0.39 |
|
|
|
0.42 |
|
|
|
(0.03 |
) |
|
|
(7.1 |
) |
Impact of change in LIFO reserve |
|
|
0.12 |
|
|
|
0.16 |
|
|
|
(0.04 |
) |
|
|
(25.0 |
) |
Impact of stock-based compensation expense |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
— |
|
Impact of acquisition & business optimization expenses |
|
|
0.08 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
33.3 |
|
Impact of other adjustments |
|
|
0.01 |
|
|
|
0.08 |
|
|
|
(0.07 |
) |
|
|
(87.5 |
) |
Tax impact of above adjustments |
|
|
(0.18 |
) |
|
|
(0.22 |
) |
|
|
0.04 |
|
|
|
18.2 |
|
Adjusted Diluted Earnings per Share (Non-GAAP) |
|
$ |
1.32 |
|
|
$ |
1.18 |
|
|
$ |
0.14 |
|
|
|
11.9 |
|
(1) |
Includes increases in the last-in-first-out (“LIFO”) reserve of |
(2) |
Includes acquisition and integration costs related to in-process, completed and abandoned acquisitions, facility closing costs and business optimization costs incurred prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to professional fees. |
(3) |
Includes amounts related to gains and losses on other commodity derivatives, insurance proceeds due to hurricane and other weather-related events, franchise tax expense, favorable and unfavorable leases, gains and losses on disposals of fixed assets, litigation-related accruals, foreign currency transaction gains and losses, and other adjustments permitted by our ABL Facility. Additionally, for the three months ended September 27, 2025, other adjustments included |
(In millions) |
|
Three Months Ended
|
|
|
Three Months Ended
|
|
||
Net cash used in operating activities |
|
$ |
(89.3 |
) |
|
$ |
(145.2 |
) |
Purchases of property, plant and equipment |
|
|
(53.9 |
) |
|
|
(78.9 |
) |
Free Cash Flow (Non-GAAP) |
|
$ |
(143.2 |
) |
|
$ |
(224.1 |
) |
Segment Results
Based on the Company’s organizational structure and how the Company’s management reviews operating results and makes decisions about resource allocation, the Company has three reportable segments: Foodservice, Convenience, and Specialty. Management evaluates the performance of these segments based on various operating and financial metrics, including their respective sales growth and Segment Adjusted EBITDA, which is the Company’s GAAP measure of segment profit. Segment Adjusted EBITDA is defined as net income before interest expense, interest income, income taxes, depreciation, and amortization and excludes certain items that the Company does not consider part of its segments’ core operating results, including changes in the LIFO reserve, stock-based compensation expense, and acquisition and business optimization expenses.
Corporate & All Other is comprised of unallocated corporate overhead and certain operations that are not considered separate reportable segments based on their size. Corporate & All Other may also include capital expenditures for certain information technology projects that are transferred to the segments once placed in service.
The following tables set forth total net sales and Segment Adjusted EBITDA by reportable segment and the reconciling items for Corporate & All Other and eliminations for the periods indicated (dollars in millions):
Net Sales |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
September 26, 2026 |
|
|
September 27, 2025 |
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
9,604.6 |
|
|
$ |
9,146.1 |
|
|
$ |
458.5 |
|
|
|
5.0 |
|
Convenience |
|
|
6,940.1 |
|
|
|
6,586.9 |
|
|
|
353.2 |
|
|
|
5.4 |
|
Specialty |
|
|
1,407.3 |
|
|
|
1,276.2 |
|
|
|
131.1 |
|
|
|
10.3 |
|
Total segments |
|
$ |
17,952.0 |
|
|
$ |
17,009.2 |
|
|
$ |
942.8 |
|
|
|
5.5 |
|
Corporate & All Other |
|
|
269.8 |
|
|
|
250.2 |
|
|
|
19.6 |
|
|
|
7.8 |
|
Intersegment eliminations |
|
|
(203.4 |
) |
|
|
(183.5 |
) |
|
|
(19.9 |
) |
|
|
(10.8 |
) |
Total net sales |
|
$ |
18,018.4 |
|
|
$ |
17,075.9 |
|
|
$ |
942.5 |
|
|
|
5.5 |
|
| Segment Adjusted EBITDA | ||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
September 26, 2026 |
|
|
September 27, 2025 |
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
367.9 |
|
|
$ |
324.4 |
|
|
$ |
43.5 |
|
|
|
13.4 |
|
Convenience |
|
|
125.6 |
|
|
|
121.0 |
|
|
|
4.6 |
|
|
|
3.8 |
|
Specialty |
|
|
89.5 |
|
|
|
94.0 |
|
|
|
(4.5 |
) |
|
|
(4.8 |
) |
Total segments |
|
$ |
583.0 |
|
|
$ |
539.4 |
|
|
$ |
43.6 |
|
|
|
8.1 |
|
Corporate & All Other |
|
|
(55.0 |
) |
|
|
(59.3 |
) |
|
|
4.3 |
|
|
|
7.3 |
|
Total Adjusted EBITDA |
|
$ |
528.0 |
|
|
$ |
480.1 |
|
|
$ |
47.9 |
|
|
|
10.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261104581022/en/
Investors:
William S. Marshall
SVP, Investor Relations
(804) 287-8108
Bill.Marshall@pfgc.com
Media:
Scott Golden
Director, Communications & Engagement
(804) 484-7873
Scott.Golden@pfgc.com
Source: Performance Food Group Company