Performance Food Group Company (PFGC)

Performance Food Group reported first-quarter fiscal 2027 results on 4 November 2026, with net sales up 5.5 percent to $18.0 billion 1.

Net income rose 38.4 percent to $129.5 million, and adjusted EBITDA, a profit measure that leaves out interest, taxes and depreciation, rose 10.0 percent to $528.0 million 1.

Chief executive Scott McPherson said continued market share gains drove strong case volume and revenue, while noting that the macroeconomic environment remains challenging 1.

The company reiterated its outlook for fiscal 2027 1. It expects net sales of about $72.5 billion to $73.0 billion and adjusted EBITDA of about $2.125 billion to $2.225 billion, a range that includes a 53rd week 1.

The quarter follows a year of change at the top 6. McPherson became chief executive on 1 January 2026, and George Holm moved to Executive Chair 6.

On 24 November 2025 the company and US Foods ended talks about a possible combination 3. The annual meeting is set for 18 November 2026 9.

The company sold shares to the public for the first time on 6 October 2015, listing on the New York Stock Exchange 16. In fiscal 2017 net sales grew 4.1 percent, mainly from more cases sold by Performance Foodservice, its restaurant supply business, and sales growth at Vistar 16.

The first big step into convenience-store supply came in the fourth quarter of fiscal 2019, with the acquisition of Eby-Brown, a distributor of packaged candy, snacks, specialty beverages and tobacco products 12. Eby-Brown added $949.7 million to net sales in fiscal 2019 and $4,223.7 million more in fiscal 2020 12.

On 30 December 2019 the company acquired Reinhart Foodservice from Reyes Holdings in a deal valued at $2.0 billion, which made it a larger restaurant supplier 12. Reinhart added $2,525.0 million of net sales in fiscal 2020 and $6,049.3 million in fiscal 2021 11.

COVID-19 cut demand from restaurants, theaters and offices in fiscal 2020 12. Excluding the two acquisitions, case volume fell 10.0 percent in fiscal 2020 12. The company reported a net loss of $114.1 million, compared with net income of $166.8 million a year earlier 12.

On 1 September 2021 the company completed the acquisition of Core-Mark, which expanded its convenience business into Canada 11. The deal was valued at $2.4 billion, net of cash received 11. Net sales rose $20.5 billion, or 67.4 percent, in fiscal 2022, and Core-Mark contributed $14.5 billion of that 11.

On 8 October 2024 the company acquired Cheney Brothers, a foodservice distributor, for $2.0 billion, paid with borrowings under its asset-based revolving credit facility 2. In fiscal 2025 net sales rose 8.6 percent, with total case volume up 8.5 percent and organic case volume up 2.1 percent 13.

Net income fell $95.7 million, or 22.0 percent, in fiscal 2025, because depreciation, amortization and interest expense rose with the acquisitions 13.

Fiscal 2026 ended on 27 June 2026 with net sales up $4.5 billion, or 7.2 percent, driven by organic cases, acquisitions including Cheney Brothers, and inflation of about 4.5 percent 2. Net income rose $19.1 million, or 5.6 percent, to $359.3 million 2.

The year also held a contest over the company's direction 4. Sachem Head, an activist investor, nominated directors, and on 23 September 2025 signed a cooperation agreement that put its principal Scott Ferguson on the board 410. On 15 September 2025 the company had signed a clean team agreement with US Foods 5.

Talks ended on 24 November 2025, and the company said its board was unanimous that the standalone plan was the best path 3. The annual report counts $20.2 million of fiscal 2026 legal and professional fees tied to shareholder activism and the US Foods clean team agreement 2.

On 19 February 2026 a subsidiary issued $1.06 billion of 5.625% senior notes due 2034 and used the proceeds, with revolver borrowings, to redeem its 5.500% notes due 2027 15.

Foodservice

Foodservice supplies restaurants and institutions such as schools and hospitals with meat, seafood, frozen and refrigerated food, dry groceries and supplies 2. It had $36,546.1 million of fiscal 2026 net sales and runs 90 distribution centers 2.

The company prefers independent restaurants because they use more services and its own Performance Brands, which earn higher profit per case 2. Independents made up 42.1 percent of Foodservice sales in fiscal 2026 and 43.0 percent in the latest quarter 21.

In the first quarter of fiscal 2027 Foodservice net sales rose 5.0 percent to $9.6 billion and its adjusted EBITDA rose 13.4 percent to $367.9 million 1.

Convenience

Convenience, built on Eby-Brown and Core-Mark, distributes cigarettes, alternative nicotine products, candy, snacks, food and general merchandise to convenience stores, drug stores and similar shops in the United States and Canada 2. It runs 38 distribution centers, 34 in the U.S. and four in Canada, and had $25,965.1 million of fiscal 2026 net sales 2.

Convenience net sales rose 5.4 percent to $6.9 billion in the latest quarter, helped by new chain customers and offset in part by a shift from cigarettes to alternative nicotine products 1. Adjusted EBITDA rose 3.8 percent to $125.6 million 1.

Specialty

Specialty, called Vistar in earlier annual reports, distributes candy, snacks, beverages and fresh and frozen foods to vending and office coffee distributors, retailers, entertainment venues and theaters 211. It also ships small parcels for customers whose orders are too small for its trucks 2. It operates 26 distribution centers and had $5,053.3 million of fiscal 2026 net sales 2.

In the latest quarter Specialty net sales rose 10.3 percent to $1.4 billion, but adjusted EBITDA fell 4.8 percent to $89.5 million on higher operating expenses 1.

Plants, trucks and people

At the end of fiscal 2026 the company operated 154 distribution centers, owning 71 and leasing 83, each averaging about 200,000 square feet 2. It has more than 44,000 associates, about 2,800 of them in local unions 2.

No customer made up more than 10 percent of net sales in fiscal 2026 2. Prices to customers are set either by contract, as a markup over cost, or at the time of order, so cost changes mostly pass through 2.

The people in charge

Scott McPherson has been president and chief executive since 1 January 2026 6. George Holm, the Executive Chair, was elected Non-Executive Chair of the board effective 1 January 2027 7.

Matthew Flanigan, who chairs the audit and finance committee, is to succeed Manuel Fernandez as lead independent director after the annual meeting 7.

Rivals

The annual report calls the food-away-from-home industry highly competitive and says customers may switch distributors for lower prices or better service 2. FreightWaves named Sysco as the largest food distributor, with over $80 billion in net sales and 337 distribution centers, and US Foods as another large rival 10.

Current problems

The annual report names fuel prices and trade policy as sources of uncertainty 2. Fuel expense rose $47.6 million in fiscal 2026 on higher fuel prices and miles driven, and the company has total indebtedness of $6.8 billion, including finance leases 2.

A lawsuit over JUUL e-cigarettes named its Eby-Brown and Core-Mark subsidiaries as distributor defendants 2. A parallel Illinois case was dismissed without prejudice on 20 October 2025, and the company considers it resolved 2.

The umbrella, in words

The company's main trade names are Performance Food Group, Performance Foodservice, Core-Mark and Vistar 2. Its own Performance Brands include West Creek, Silver Source, Braveheart 100% Black Angus, Heritage Ovens and Village Garden, as listed in its fiscal 2022 annual report 11.

Exhibit 21.1 lists the subsidiaries, including Cheney Brothers, Core-Mark Holding Company, Reinhart Foodservice, Performance Food Group, Inc. and AFFLINK 14.

It also holds an equity method investment in a purchasing alliance, which stood at $17.9 million at 26 September 2026 17. The company buys through the alliance for pricing and product choice, and recorded $844.6 million of purchases through it in the latest quarter 17.

On control, the proxy statement lists four holders of more than 5 percent of common stock as of 30 September 2026 9. They are Capital World Investors at 14.8 percent, BlackRock at 8.5 percent, FMR at 7.1 percent and Vanguard Capital Management at 5.1 percent 9.

Ferguson resigned from the board on 24 August 2026 8. Sachem Head's standstill and voting duties under its cooperation agreement ended on 13 September 2026, 20 days later 9.

The 154 distribution centers are its main property, 71 owned and 83 leased 2.

For the second quarter of fiscal 2027 the company expects net sales of about $17.0 billion to $17.2 billion and adjusted EBITDA of about $490 million to $510 million 1.

For all of fiscal 2027 it continues to expect net sales of about $72.5 billion to $73.0 billion and adjusted EBITDA of about $2.125 billion to $2.225 billion, including the effect of a 53rd week 1.

The annual meeting is on 18 November 2026 9. Stockholders vote on electing 10 directors, ratifying Deloitte & Touche as auditor for fiscal 2027, and an advisory vote on executive pay 9.

The company said that after the meeting the board decreases from 14 to 10 directors, eight of them independent 7. Fernandez, Dawson and Flanagan are not standing for re-election 7.

Holm is to become Non-Executive Chair on 1 January 2027, and Flanigan is to become Lead Independent Director after the meeting 7.

The annual report names its key strategies: focusing on independent sales and Performance Brands, pursuing new customers in all three segments, expanding geographies, using infrastructure and technology for efficiency, and making strategic acquisitions 2.

A $500 million share repurchase program runs to 27 May 2029, with $498.5 million remaining at 26 September 2026, and any repurchases are at management's discretion 12.

Chief executive McPherson said he is confident in the ability to keep gaining market share and deliver strong results through the rest of fiscal 2027 1.

The company hedged diesel fuel with collars for about 5 percent of expected gallons and a swap for 15 percent more over the twelve months after 27 June 2026 2.

The company says it has no current plans to pay dividends, and its debt agreements limit them 2.

The company also says the timing and size of any recovery of tariffs paid by suppliers and passed through to it are uncertain 17.

Past

Performance Food Group Company's revenue went from $17 billion in fiscal 2017 to $68 billion in fiscal 2026, up 16.8% a year; it rose in 9 of 9 years; it never fell from a peak; net income was positive in 9 of 10 of those years. Over the 3 fiscal years to 2026-06-27, the diluted share count grew about 0.2% a year, and dividends and buybacks returned about 4% of its operating cash flow over 3 years. Officers and directors filed 51 sales (49 under scheduled 10b5-1 plans) and 0 purchases of their own stock on the open market in the year to 2026-09-30. Performance Food Group Company's filings since 2017 show no warning events in the scan: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice. 1

Present

In its latest annual figures on file, for the fiscal year ended 2026-06-27, it reported revenue of $68 billion and a profit of $359 million. Return on equity: Performance Food Group Company earned about 7 cents of profit for every dollar of shareholders' money, and gross profitability: its products earned about 43 cents per dollar of everything the company owns. Leverage: it owed about 74 cents per dollar of assets, and net share issuance: its share count grew 0.4% over the year. Performance Food Group Company's revenue of $68 billion in fiscal 2026 ranks in the top 4% by size among 35 graded names in its industry family; a net margin of 0.5% ranks in the top 44%; revenue growth of 5.8% a year over the last 3 filed years ranks in the top 19%. The chief executive on the record is Mcpherson, Scott E (President and Chief Executive Officer, as filed), filing under that title since 2026-01-05, 9 months; the 20 officers and directors filing in the last fifteen months have been on the record a median of 7.1 years; 10 officer or director changes were reported on Form 8-K since 2023-10-21, against the 20 people in charge now. 21

Future

Quarterly report (Form 10-Q) for the quarter ending 2026-09-30 is due by 2026-11-09. Annual report (Form 10-K) for the fiscal year ending 2027-06-27 is due by 2027-08-26. Performance Food Group Company's revenue grew 5.8% a year over the last three filed years against 16.8% over all 10, slowing; the newest year grew 7.2%; capital spending grew 12.6% a year. Performance Food Group Company reported 4 lines of business in fiscal 2026: Foodservice at $37 billion (54%), Convenience at $26 billion (38%), Specialty at $5.1 billion (7%), and 1 more; 4 of 4 grew against the year before. Cash from operations less capital spending is 1.5% of revenue; a gross margin of 11.9%. 31

How the company operates

Performance Food Group Company is classed as a distribution business. In fiscal 2026, the company's revenue came from Foodservice 54%, Convenience 38%, Specialty 7%, Corporate and Other under 1%. As of 2026-06-27, it owns $18.85 billion and owes $13.95 billion. Book value per share: $31.21 on 157 million diluted average shares for fiscal 2026. 24

New moves

Form 8-K filed 2026-08-24 reports an officer or director change (item 5.02); Form 8-K filed 2026-08-20 reports an officer or director change (item 5.02) and other event (item 8.01). Form 8-K filed 2026-02-19 reports a major agreement signed (item 1.01) and new debt or an obligation taken on (item 2.03). Form 8-K filed 2025-12-18 reports an officer or director change (item 5.02) and a disclosure to investors under Regulation FD (item 7.01). Form 8-K filed 2025-09-23 reports a major agreement signed (item 1.01), an officer or director change (item 5.02), and a disclosure to investors under Regulation FD (item 7.01). Form S-3ASR filed 2025-11-20 is a shelf registration, ready for sale. 3