Performance Food Group (PFGC)
NYSE:PFGC
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Performance Food Group
(NYSE:PFGC)
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Rating:57Neutral
Price Target:
$84.00
▼(-4.82% Downside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by solid operating growth and improved cash generation, tempered by elevated leverage and thin, recently softening margins. Technicals are currently weak with the stock trading below key moving averages, and valuation looks demanding at a 41.688 P/E. Earnings call commentary supports the long-term thesis but highlighted meaningful near-term margin and integration headwinds, while recent corporate actions modestly improve maturity profile amid higher debt usage.
Positive Factors
Revenue growth & scale
Sustained multi-year top-line growth nearly doubled revenue since 2021, demonstrating durable customer demand and scale benefits. Large revenue base supports purchasing leverage, route density and supplier terms that underpin competitive positioning and resilience over the next 2–6 months.
Negative Factors
Elevated leverage
Higher absolute debt and elevated leverage increase interest expense sensitivity and reduce capital flexibility in a low-margin distribution business. Even with extended maturities, reliance on debt constrains nimble investment or rapid deleveraging and raises execution risk across the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & scale
Sustained multi-year top-line growth nearly doubled revenue since 2021, demonstrating durable customer demand and scale benefits. Large revenue base supports purchasing leverage, route density and supplier terms that underpin competitive positioning and resilience over the next 2–6 months.
Read all positive factors
Performance Food Group (PFGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.98B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)57.9
Beta (1Y)0.83
Revenue Growth10.55%
EPS Growth-23.38%
CountryUS
Employees36,630
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.98
Shares Outstanding157,098,970
10 Day Avg. Volume1,389,105
30 Day Avg. Volume1,521,638
Financial Highlights & Ratios
PEG Ratio-1.81
Price to Book (P/B)3.03
Price to Sales (P/S)0.21
P/FCF Ratio19.23
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit2.79
Enterprise Value/Ebitda13.29
Forecast
1Y Price Target
$116.29Price Target Upside31.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.67
Revenue Forecast (FY)$67.61B
Performance Food Group Business Overview & Revenue Model
Company Description
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates through three segments: Foodservice, Vistar, and Convenience. The company offers a range of frozen f...
How the Company Makes Money
PFGC primarily makes money by purchasing food, beverages, and related supplies from manufacturers and other suppliers and reselling them at a markup to food-away-from-home and institutional customers through its distribution network. Revenue is ge...
Performance Food Group Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial performance (5.2% sales growth, 6.7% adjusted EBITDA growth, 7.6% gross profit growth, strong convenience and foodservice share gains, and improved cash flow) while acknowledging meaningful near-term headwinds: higher-than-expected integration and operating costs from the Cheney acquisition, commodity deflation (cheese and poultry) hurting margins, a severe theater sales decline (~30%, ~$50M drag), and higher interest and tax expense. Management reaffirmed multi-year targets and procurement synergy opportunities, expects Cheney synergies to materialize in years two–three, and maintained a disciplined capital allocation stance. Overall, positive momentum and long-term thesis remain intact, but near-term profitability is pressured by integration, commodity, and weather-related factors.Positive Updates
Revenue Growth
Total net sales grew 5.2% year-over-year in Q2 FY2026, with full-year sales guidance updated to $67.25–$68.25 billion and three-year target of $73–$75 billion for FY2028.
Negative Updates
Cheney (Channing Brothers) Integration Costs and OpEx Overruns
Integration and infrastructure investments (new 350k sq ft facility in Florence, 42k sq ft in Saint Cloud, manufacturing expansions and public-company conversions) produced higher-than-expected operating expenses, creating EBITDA hurdles that management expects to persist into Q3 and normalize with synergies late year two into year three.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total net sales grew 5.2% year-over-year in Q2 FY2026, with full-year sales guidance updated to $67.25–$68.25 billion and three-year target of $73–$75 billion for FY2028.
Read all positive updates
Company Guidance
Management updated Q3 guidance to net sales of $16.0–$16.3 billion and adjusted EBITDA of $390–$410 million, and narrowed full‑year fiscal 2026 targets to $67.25–$68.25 billion of sales and $1.875–$1.975 billion of adjusted EBITDA; the outlook assumes continued cheese and poultry deflation, investment related to Cheney capacity onboarding, a difficult specialty environment and recent winter‑storm impacts, and expects a very modest sequential decline in net interest expense and a 2026 tax rate near its historical average. They reiterated full‑year CapEx of ~70 basis points of net revenue and reiterated their three‑year fiscal‑2028 targets of $73–$75 billion in sales and $2.3–$2.5 billion in adjusted EBITDA, noting as context Q2 trailing metrics of $451 million adjusted EBITDA, 5.2% net sales growth, 3.4% total company case growth (5.3% organic independent restaurant cases; 6.3% convenience organic case gain), $456 million of operating cash flow through six months and $264 million of FCF.Performance Food Group Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
55
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.77B | 63.30B | 58.28B | 57.25B | 50.89B | 30.40B |
| Gross Profit | 7.81B | 7.42B | 6.58B | 6.25B | 5.26B | 3.53B |
| EBITDA | 1.64B | 1.54B | 1.39B | 1.26B | 812.80M | 546.00M |
| Net Income | 345.10M | 340.20M | 435.90M | 397.20M | 112.50M | 40.70M |
Balance Sheet | ||||||
| Total Assets | 18.18B | 17.88B | 13.39B | 12.50B | 12.38B | 7.85B |
| Cash, Cash Equivalents and Short-Term Investments | 41.00M | 78.50M | 20.00M | 12.70M | 11.60M | 11.10M |
| Total Debt | 7.99B | 8.00B | 4.98B | 4.74B | 5.00B | 3.00B |
| Total Liabilities | 13.53B | 13.41B | 9.27B | 8.75B | 9.08B | 5.74B |
| Stockholders Equity | 4.65B | 4.47B | 4.13B | 3.75B | 3.30B | 2.11B |
Cash Flow | ||||||
| Free Cash Flow | 792.70M | 704.10M | 767.40M | 562.40M | 61.00M | -124.20M |
| Operating Cash Flow | 1.29B | 1.21B | 1.16B | 832.10M | 276.50M | 64.60M |
| Investing Cash Flow | -603.90M | -3.09B | -682.70M | -294.60M | -1.86B | -199.80M |
| Financing Cash Flow | -652.40M | 1.94B | -472.60M | -536.20M | 1.58B | -274.40M |
Performance Food Group Technical Analysis
Neutral
88.25
Price Trends
90.25
Negative
91.74
Negative
95.58
Negative
Market Momentum
-0.69
Negative
54.92
Neutral
85.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFGC, the sentiment is Neutral. The current price of 88.25 is above the 20-day moving average (MA) of 85.28, below the 50-day MA of 90.25, and below the 200-day MA of 95.58, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PFGC.
Performance Food Group Risk Analysis
Performance Food Group disclosed 34 risk factors in its most recent earnings report. Performance Food Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Performance Food Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $20.16B | 25.64 | 15.01% | ― | 4.80% | 3.49% | |
69 Neutral | $2.63B | 28.36 | 12.69% | ― | 8.88% | 54.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.81B | 28.34 | -4.97% | ― | 1.45% | -5.49% | |
59 Neutral | $34.82B | 22.87 | 88.72% | 2.84% | 2.92% | -4.06% | |
57 Neutral | $13.98B | 57.89 | 7.66% | ― | 10.55% | -23.38% |
* Consumer Defensive Sector Average
PFGC
Performance Food Group
88.25
11.94
15.65%
SYY
Sysco
73.36
3.53
5.05%
CHEF
The Chefs' Warehouse
64.65
10.24
18.82%
UNFI
United Natural Foods
47.03
22.39
90.87%
USFD
US Foods Holding
91.39
27.90
43.94%
Performance Food Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Performance Food Group Issues New Senior Notes, Redeems 2027 Debt
Neutral
Feb 19, 2026
On February 19, 2026, Performance Food Group, Inc., an indirect wholly owned subsidiary of Performance Food Group Company, issued at par $1.06 billion of 5.625% senior notes due March 1, 2034, and used the proceeds, along with borrowings under its...
Business Operations and StrategyPrivate Placements and Financing
Performance Food Group Prices New Senior Notes Offering
Positive
Feb 9, 2026
On February 9, 2026, Performance Food Group Company announced that its indirect wholly owned subsidiary, Performance Food Group, Inc., priced a $1.06 billion offering of 5.625% senior notes due 2034, to be sold to qualified institutional buyers un...
Business Operations and StrategyPrivate Placements and Financing
Performance Food Group Announces New Senior Notes Offering
Neutral
Feb 9, 2026
On February 9, 2026, Performance Food Group Company said its indirect wholly owned subsidiary, Performance Food Group, Inc., plans to issue $1.06 billion of senior notes due 2034 in a private offering to qualified institutional buyers and certain ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.