Performance Food Group Q1 net income rises 38.4%
PFG continues to expect fiscal 2027 net sales of approximately $72.5 billion to $73.0 billion and Adjusted EBITDA of approximately $2.125 billion to $2.225 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Performance Food Group Co. (PFGC) reported fiscal first-quarter 2027 results for the quarter ended September 26, 2026: net sales were $18.0 billion, up 5.5% year over year, and net income was $129.5 million, up 38.4%. Adjusted EBITDA, a non-GAAP measure, rose 10.0% to $528.0 million; diluted EPS increased 36.7% to $0.82 per share and adjusted diluted EPS rose 11.9% to $1.32 per share. Total case volume grew 4.2%, including 7.8% growth in independent Foodservice cases.
Net cash used in operating activities was $89.3 million, compared with $145.2 million a year earlier; free cash flow was negative $143.2 million versus negative $224.1 million. Foodservice Adjusted EBITDA rose 13.4% to $367.9 million and Convenience rose 3.8% to $125.6 million, while Specialty declined 4.8% to $89.5 million. PFG continues to expect full-year fiscal 2027 net sales of approximately $72.5 billion to $73.0 billion and Adjusted EBITDA of approximately $2.125 billion to $2.225 billion; guidance includes a 53rd week.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales rose 5.5%; net income increased 38.4% year over year.
- Moderate pointAdjusted EBITDA increased 10.0% to $528.0 million in fiscal first-quarter 2027.
Negative
- None.
Filing Explained
Performance Food Group reports that
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted Diluted EPS financial
Free Cash Flow financial
LIFO reserve financial
ABL Facility financial
Earnings Snapshot
For the second quarter of fiscal 2027, net sales approximately $17.0 billion to $17.2 billion and Adjusted EBITDA approximately $490 million to $510 million. For full-year fiscal 2027, net sales approximately $72.5 billion to $73.0 billion and Adjusted EBITDA approximately $2.125 billion to $2.225 billion; full-year guidance includes the 53rd week.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue and net income did PFGC report in fiscal Q1 2027?
What is PFGC's fiscal 2027 financial guidance?
What drove PFGC's first-quarter sales growth?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
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(IRS Employer |
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(Address of Principal Executive Offices) (Zip Code) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, Performance Food Group Company (the “Company”) issued a press release announcing the results of the Company’s operations for the fiscal quarter ended September 26, 2026. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in this Item 2.02.
The information in this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Description |
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99.1 |
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Press Release of Performance Food Group Company, dated November 4, 2026, announcing results for the fiscal quarter ended September 26, 2026. |
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104 |
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Cover page Interactive Data File (embedded within Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PERFORMANCE FOOD GROUP COMPANY |
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Date: |
November 4, 2026 |
By: |
/s/ A. Brent King |
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A. Brent King |
Exhibit 99.1
NEWS RELEASE |
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For Immediate Release |
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Investors: |
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Media: |
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William S. Marshall |
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Scott Golden |
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SVP, Investor Relations |
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Director, Communications & Engagement |
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(804) 287-8108 |
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(804) 484-7873 |
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Bill.Marshall@pfgc.com |
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Scott.Golden@pfgc.com |
Performance Food Group Company Reports First-Quarter Fiscal 2027 Results
Strong Case Volume, Net Sales and Profit Growth; Reiterates Full-Year Fiscal 2027 Financial Guidance
First-Quarter Fiscal 2027 Highlights
RICHMOND, Va. – November 4, 2026 – Performance Food Group Company (“PFG” or the “Company”) (NYSE: PFGC) today announced its first-quarter fiscal 2027 business results.
“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.”
First-Quarter Fiscal 2027 Financial Summary
Total case volume increased 4.2% for the first quarter of fiscal 2027 compared to the prior year period. Total organic case volume increased 2.5% for the first quarter of fiscal 2027 compared to the prior year period, benefiting from a 5.5% increase in organic independent Foodservice cases, including growth in Performance Brands cases. Total independent Foodservice case volume increased 7.8%.
Net sales for the first quarter of fiscal 2027 grew 5.5% compared to the prior year period to $18.0 billion primarily driven by an increase in organic cases sold, incremental sales from recent acquisitions, and an increase in selling price per case as a result of inflation. Overall product cost inflation for the Company was approximately 3.4% for the first quarter of fiscal 2027.
Gross profit for the first quarter of fiscal 2027 grew 8.5% compared to the prior year period to $2.2 billion primarily driven by vendor rebates and promotional incentives, a favorable shift in the mix of cases sold, including growth in the independent channel which generates higher gross profit due to additional services provided, as well as recent acquisitions.
Operating expenses rose 6.9% to $1.9 billion in the first quarter of fiscal 2027 compared to the prior year period primarily driven by recent acquisitions, an increase in personnel expenses related to salaries, wages, commissions and benefits, and an increase in fuel expenses (excluding the impact of fuel surcharges in net sales) primarily due to higher fuel prices and miles driven as a result of new business, partially offset by realized gains related to fuel hedges. The increase in operating expenses was partially offset by decreases in professional fees and insurance expense primarily related to auto insurance and workers’ compensation.
Net income for the first quarter of fiscal 2027 increased $35.9 million year-over-year to $129.5 million primarily driven by an increase in gross profit and decrease in interest expense, partially offset by increases in operating expenses and income tax expense. The effective tax rate in the first quarter of fiscal 2027 was 25.2% compared to 23.0% in the first quarter of fiscal 2026. The effective tax rate differed from the prior year period primarily due to a decrease in deductible discrete items related to stock-based compensation and a decrease in federal tax credits net of valuation allowance established, partly offset by a decrease in non-deductible compensation and other non-deductible expenses and a decrease in foreign taxes as a percentage of income.
For the quarter, Adjusted EBITDA rose 10.0% compared to the prior year period to $528.0 million.
Diluted EPS increased 36.7% to $0.82 per share in the first quarter of fiscal 2027 compared to the prior year period. Adjusted Diluted EPS increased 11.9% to $1.32 per share in the first quarter of fiscal 2027 compared to the prior year period.
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 $89.3 million and $145.2 million, respectively. The improvement in net cash used in operating activities in the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026 was largely driven by a change in the timing and volume of advanced purchases of inventory to take advantage of preferred pricing.
In the first quarter of fiscal 2027, PFG invested $53.9 million in capital expenditures, a decrease of $25.0 million compared to the prior year period. In the first quarter of fiscal 2027, PFG delivered negative free cash flow of $143.2 million compared to negative free cash flow of $224.1 million in the comparable prior year period.1
Share Repurchase Program
As of September 26, 2026, $498.5 million remained available for share repurchases under the Company’s $500 million share repurchase program, which expires on May 27, 2029.
First-Quarter Fiscal 2027 Segment Results
Foodservice
First-quarter fiscal 2027 net sales for Foodservice increased 5.0% compared to the prior year period to $9.6 billion primarily driven by recent acquisitions, organic case volume growth, and an increase in selling price per case as a result of inflation. Total case growth for Foodservice was 4.2% in the first quarter of fiscal 2027 compared to the prior year period. Total independent case growth was 7.8% for the first quarter of fiscal 2027 compared to the prior year period. Securing new, and expanding business with, independent customers resulted in organic independent case growth of 5.5% in the first quarter of fiscal 2027 compared to the prior year period. For the first quarter of fiscal 2027, independent sales as a percentage of total Foodservice sales increased to 43.0% from 41.6% in the comparable prior year period.
First-quarter fiscal 2027 Adjusted EBITDA for Foodservice increased 13.4% to $367.9 million compared to the prior year period primarily as a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Foodservice’s Adjusted EBITDA increased 10.7% primarily driven by growth in cases sold, a favorable shift in the mix of cases sold, including more Performance Brands products sold to independent customers, vendor rebates and promotional incentives, and recent acquisitions. Operating expenses impacting Foodservice’s Adjusted EBITDA increased 9.7% compared to the prior year period primarily as a result of recent acquisitions, an increase in personnel expenses primarily related to salaries, wages, commissions, and benefits, and an increase in fuel expenses (excluding the impact of fuel surcharges in net sales) primarily due to higher fuel prices and miles driven as a result of new business, partially offset by realized gains related to fuel hedges.
Convenience
First-quarter fiscal 2027 net sales for Convenience increased 5.4% compared to the prior year period to $6.9 billion primarily driven by case growth due to the addition of new chain customers and an increase in selling price per case as a result of inflation, partially offset by a mix shift from cigarettes to alternative nicotine products. Total Convenience cases sold increased 4.1% for the first quarter of fiscal 2027 compared to the prior year period.
First-quarter fiscal 2027 Adjusted EBITDA for Convenience increased 3.8% to $125.6 million compared to the prior year period primarily as a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Convenience’s Adjusted EBITDA increased 3.7% for the first quarter of fiscal 2027 compared to the prior year period primarily due to vendor rebates and promotional incentives and income earned from manufacturers for distribution and related services. Operating expenses impacting Convenience’s Adjusted EBITDA increased 3.5% in the first quarter of fiscal 2027 compared to the prior year period primarily as a result of an increase in personnel expenses primarily related to salaries, wages and benefits and an increase in fuel expenses (excluding the impact of fuel surcharges in net sales) primarily due to higher fuel prices, partially offset by realized gains related to fuel hedges. These increases in operating expenses were partially offset by decreases in fleet maintenance and repair expenses, rent expense primarily related to fleet leases, and insurance expense primarily related to auto insurance and workers’ compensation.
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 10.3% compared to the prior year period to $1.4 billion primarily driven by an increase in selling price per case due to favorable channel mix as well as inflation and an increase in cases sold, with growth in the vending, grocery retail, entertainment, and office supply channels, partially offset by declines in retail. Total Specialty cases sold increased 4.3% for the first quarter of fiscal 2027 compared to the prior year period.
First-quarter fiscal 2027 Adjusted EBITDA for Specialty decreased 4.8% to $89.5 million compared to the prior year period primarily as a result of an increase in operating expenses, partially offset by an increase in gross profit. Gross profit contributing to Specialty’s Adjusted EBITDA increased 3.5% for the first quarter of fiscal 2027 compared to the prior year period primarily driven by vendor rebates and promotional incentives and net sales growth. Operating expenses impacting Specialty’s Adjusted EBITDA increased 9.0% in the first quarter of fiscal 2027 compared to the prior year period primarily due to an increase in personnel expenses primarily driven by salaries, wages and benefits, an increase in bad debt expense, an increase in fuel expenses (excluding the impact of fuel surcharges in net sales) primarily due to higher fuel prices and miles driven, partially offset by realized gains related to fuel hedges, and an increase in third-party outbound freight expense.
Fiscal 2027 Outlook
For the second quarter of fiscal 2027, PFG expects net sales to be in a range of approximately $17.0 billion to $17.2 billion and Adjusted EBITDA to be in a range of approximately $490 million to $510 million.
For the full fiscal year 2027, PFG continues to expect net sales to be in a range of approximately $72.5 billion to $73.0 billion and Adjusted EBITDA to be in a range of approximately $2.125 billion to $2.225 billion. The guidance range for the full fiscal year includes the impact of a 53rd week.
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 North America with more than 150 locations. Founded and headquartered in Richmond, Virginia, PFG and our family of companies market and deliver quality food and food-related products to over 350,000 locations, including independent and chain restaurants, schools, business and industry locations, healthcare facilities, retailers, convenience stores, vending and office coffee service distributors and entertainment venues, and provide small parcel “pick and pack” capabilities utilizing third-party carriers to deliver order sizes too small to be served effectively by our fleet network. PFG’s success as a Fortune 100 company is achieved through our over 44,000 dedicated associates committed to building strong relationships with the valued customers, suppliers and communities we serve. To learn more about PFG, visit pfgc.com.
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:
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) |
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Three Months Ended |
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Three Months Ended |
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Net sales |
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$ |
18,018.4 |
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$ |
17,075.9 |
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Cost of goods sold |
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15,830.9 |
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15,059.3 |
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Gross profit |
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2,187.5 |
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2,016.6 |
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Operating expenses |
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1,915.3 |
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1,791.9 |
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Operating profit |
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272.2 |
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224.7 |
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Other expense, net: |
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Interest expense |
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98.4 |
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104.4 |
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Other, net |
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0.7 |
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(1.2 |
) |
Other expense, net |
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99.1 |
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103.2 |
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Income before taxes |
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173.1 |
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121.5 |
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Income tax expense |
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43.6 |
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27.9 |
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Net income |
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$ |
129.5 |
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$ |
93.6 |
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Weighted-average common shares outstanding: |
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Basic |
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156.7 |
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155.5 |
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Diluted |
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157.5 |
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156.9 |
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Earnings per common share: |
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Basic |
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$ |
0.83 |
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$ |
0.60 |
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Diluted |
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$ |
0.82 |
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$ |
0.60 |
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PERFORMANCE FOOD GROUP COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions) |
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As of |
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As of |
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ASSETS |
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Current assets: |
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Cash |
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$ |
35.9 |
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$ |
92.4 |
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Accounts receivable, less allowances of $68.9 and $71.4 |
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3,009.0 |
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|
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3,054.3 |
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Inventories, net |
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4,603.5 |
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|
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4,333.0 |
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Income taxes receivable |
|
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9.4 |
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69.5 |
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Prepaid expenses and other current assets |
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343.5 |
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|
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259.9 |
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Total current assets |
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8,001.3 |
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7,809.1 |
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Goodwill |
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3,566.1 |
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|
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3,565.0 |
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Other intangible assets, net |
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1,481.8 |
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1,544.6 |
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Property, plant and equipment, net |
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4,722.5 |
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4,784.9 |
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Operating lease right-of-use assets |
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888.1 |
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898.5 |
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Other assets |
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240.0 |
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247.0 |
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Total assets |
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$ |
18,899.8 |
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$ |
18,849.1 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Trade accounts payable and outstanding checks in excess of deposits |
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$ |
3,719.0 |
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$ |
3,693.4 |
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Accrued expenses and other current liabilities |
|
|
869.8 |
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|
|
1,091.4 |
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Finance lease obligations—current installments |
|
|
263.8 |
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|
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265.4 |
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Operating lease obligations—current installments |
|
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111.4 |
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|
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108.5 |
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Total current liabilities |
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4,964.0 |
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|
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5,158.7 |
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Long-term debt |
|
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5,170.0 |
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|
|
5,006.8 |
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Deferred income tax liability, net |
|
|
955.7 |
|
|
|
974.8 |
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Finance lease obligations, excluding current installments |
|
|
1,515.3 |
|
|
|
1,537.2 |
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Operating lease obligations, excluding current installments |
|
|
852.4 |
|
|
|
864.6 |
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Other long-term liabilities |
|
|
388.5 |
|
|
|
407.7 |
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Total liabilities |
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|
13,845.9 |
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|
|
13,949.8 |
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Total shareholders’ equity |
|
|
5,053.9 |
|
|
|
4,899.3 |
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Total liabilities and shareholders’ equity |
|
$ |
18,899.8 |
|
|
$ |
18,849.1 |
|
PERFORMANCE FOOD GROUP COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions) |
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Three Months Ended |
|
|
Three Months Ended |
|
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Cash flows from operating activities: |
|
|
|
|
|
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Net income |
|
$ |
129.5 |
|
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$ |
93.6 |
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Adjustments to reconcile net income to net cash used in operating activities |
|
|
|
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Depreciation and intangible asset amortization |
|
|
210.7 |
|
|
|
195.4 |
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Provision for losses on accounts receivables |
|
|
2.0 |
|
|
|
4.4 |
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Change in LIFO Reserve |
|
|
18.7 |
|
|
|
24.5 |
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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 |
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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 |
|
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 $5.0 billion secured credit facility (the “ABL Facility”) and indentures governing its outstanding notes (other than certain pro forma adjustments permitted under our ABL Facility and indentures relating to the Adjusted EBITDA contribution of acquired entities or businesses prior to the acquisition date). Under our ABL Facility and indentures, PFG’s ability to engage in certain activities such as incurring certain additional indebtedness, making certain investments, and making restricted payments is tied to ratios based on Adjusted EBITDA (as defined in the ABL Facility and indentures).
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 |
|
(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 |
|