Performance Food Group Co. (PFGC) has disclosed a new risk, in the Debt & Financing category.
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Performance Food Group Co. faces significant financial and operational challenges due to its high level of indebtedness, which stood at approximately $4.05 billion as of June 29, 2024, including finance lease obligations. This debt load requires a considerable portion of the company’s operational cash flows for service payments, thereby reducing funds available for other corporate initiatives. Additionally, the company’s reliance on variable interest rates exposes it to the risk of rising interest costs, which could further strain financial resources. While the ABL Facility offers some liquidity, Performance Food Group’s strategic and competitive flexibility may be compromised compared to less leveraged peers.
The average PFGC stock price target is $87.29, implying 11.38% upside potential.
To learn more about Performance Food Group Co.’s risk factors, click here.
