Performance Food Group Co. (PFGC)
NYSE:PFGC
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Performance Food Group
(NYSE:PFGC)
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Rating:66Neutral
Price Target:
$101.00
▲(8.02% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid operating performance and improving cash generation, supported by a generally positive earnings update and constructive (but not breakout) technicals. These strengths are meaningfully offset by elevated leverage in a low-margin model and a very high P/E valuation that leaves less room for execution missteps.
Positive Factors
Top-line Growth & Scale
Sustained revenue and case-volume growth across segments indicates durable demand and stronger market penetration. Scale increases purchasing leverage, supports national account wins and route density gains, enabling steadier gross profit generation and competitive resilience over the next several quarters.
Negative Factors
Elevated Leverage
High leverage in a low-margin distribution business constrains financial flexibility and heightens sensitivity to margin compression or interest-rate moves. Elevated debt limits capacity for large buybacks or aggressive organic investment and raises refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line Growth & Scale
Sustained revenue and case-volume growth across segments indicates durable demand and stronger market penetration. Scale increases purchasing leverage, supports national account wins and route density gains, enabling steadier gross profit generation and competitive resilience over the next several quarters.
Read all positive factors
Performance Food Group (PFGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.71B
Dividend YieldN/A
Average Volume (3M)1.95M
Price to Earnings (P/E)77.5
Beta (1Y)0.85
Revenue Growth8.45%
EPS Growth-12.95%
CountryUS
Employees36,630
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)2.12
Shares Outstanding157,089,840
10 Day Avg. Volume1,748,178
30 Day Avg. Volume1,949,323
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 Cap1.53
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit2.92
Enterprise Value/Ebitda13.67
Forecast
1Y Price Target
$122.25Price Target Upside30.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)4.62
Revenue Forecast (FY)$67.89B
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:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operational and financial developments—broad-based top-line growth (6.4% sales), improved adjusted EBITDA (+6.6% to $410.6M), strong cash flow (> $1B operating cash flow YTD), and solid segment execution (notably Convenience and independent Foodservice case growth). Several actionable near-term challenges were acknowledged, including integration and transition costs at Cheney Brothers, inflationary pressures (particularly in Convenience and Specialty), a March fuel-related headwind (~$7.3M), and Specialty’s negative EBITDA in the quarter. Management tightened full-year guidance while reiterating confidence in achieving multi-year targets and highlighted strategic M&A and capacity investments that should support 2027 acceleration. Overall, positive results and strong cash generation outweigh the transitory and segment-specific headwinds discussed on the call.Positive Updates
Top-line Revenue Growth
Total net sales grew 6.4% year-over-year in the fiscal third quarter, driven by contributions from all three operating segments with particular strength in Convenience.
Negative Updates
GAAP Net Income Decline
Reported net income of $41.7 million, a 28.5% decline year-over-year, driven by higher operating expenses and below-the-line items (notably increased interest and depreciation expense).
Read all updates
Q3-2026 Updates
Positive
Negative
Top-line Revenue Growth
Total net sales grew 6.4% year-over-year in the fiscal third quarter, driven by contributions from all three operating segments with particular strength in Convenience.
Read all positive updates
Company Guidance
Performance Food Group tightened full-year FY2026 guidance to sales of $67.7–$68.0 billion and adjusted EBITDA of $1.90–$1.93 billion (previously $67.25–$68.25B and $1.875–$1.975B), and reiterated its three‑year targets for FY2028 of $73–$75 billion in sales and $2.3–$2.5 billion of adjusted EBITDA. The Q3 backdrop that informed this outlook included total net sales up 6.4%, total cases +4.4%, independent restaurant cases +6.5%, Convenience organic case growth +8.3% (Convenience revenue +8.7%), gross profit up 6.4% with gross profit per case +$0.20, adjusted EBITDA of $410.6 million (+6.6%), net income $41.7 million (‑28.5% YoY), diluted EPS $0.27 and adjusted diluted EPS $0.80 (+1.3%). Inflation in Q3 ran about 4.5% companywide (Foodservice 1.5%, Specialty 5.1%, Convenience 7.9%), and management expects inflation to remain in the low‑ to mid‑single‑digit range for the rest of FY2026; the company also disclosed a ~$7.3 million gross fuel/mileage headwind in late Q3 (surcharge timing adjusted in April/May). Year‑to‑date operating cash flow exceeded $1 billion (up ≈$245 million), CapEx was ~ $266 million through nine months with full‑year CapEx expected below the long‑term target of 70 bps of net revenue, nine‑month free cash flow improved (~$312 million increase), share repurchases totaled $1.2 million at an average $83.11, and the Q3 effective tax rate was 25.4% with a full‑year rate expected near ~27%.Performance Food Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.75B | 63.30B | 58.28B | 57.25B | 50.89B | 30.40B |
| Gross Profit | 7.72B | 7.42B | 6.58B | 6.25B | 5.26B | 3.53B |
| EBITDA | 1.65B | 1.54B | 1.39B | 1.26B | 812.80M | 546.00M |
| Net Income | 328.50M | 340.20M | 435.90M | 397.20M | 112.50M | 40.70M |
Balance Sheet | ||||||
| Total Assets | 18.65B | 17.88B | 13.39B | 12.50B | 12.38B | 7.85B |
| Cash, Cash Equivalents and Short-Term Investments | 45.90M | 78.50M | 20.00M | 12.70M | 11.60M | 11.10M |
| Total Debt | 7.88B | 8.00B | 4.98B | 4.74B | 5.00B | 3.00B |
| Total Liabilities | 13.92B | 13.41B | 9.27B | 8.75B | 9.08B | 5.74B |
| Stockholders Equity | 4.72B | 4.47B | 4.13B | 3.75B | 3.30B | 2.11B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 704.10M | 767.40M | 562.40M | 61.00M | -124.20M |
| Operating Cash Flow | 1.45B | 1.21B | 1.16B | 832.10M | 276.50M | 64.60M |
| Investing Cash Flow | -870.80M | -3.09B | -682.70M | -294.60M | -1.86B | -199.80M |
| Financing Cash Flow | -546.30M | 1.94B | -472.60M | -536.20M | 1.58B | -274.40M |
Performance Food Group Technical Analysis
Positive
93.50
Price Trends
89.15
Positive
91.14
Positive
95.08
Negative
Market Momentum
1.58
Positive
53.92
Neutral
44.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFGC, the sentiment is Positive. The current price of 93.5 is above the 20-day moving average (MA) of 92.40, above the 50-day MA of 89.15, and below the 200-day MA of 95.08, indicating a neutral trend. The MACD of 1.58 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $3.12B | 33.24 | 13.54% | ― | 10.01% | 22.30% | |
66 Neutral | $14.71B | 77.54 | 7.13% | ― | 8.45% | -12.95% | |
63 Neutral | $17.72B | 43.16 | 15.27% | ― | 3.67% | 36.66% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $36.48B | 28.83 | 81.92% | 2.84% | 3.44% | -6.81% | |
61 Neutral | $3.00B | 28.34 | -4.97% | ― | -0.44% | 6.45% |
* Consumer Defensive Sector Average
PFGC
Performance Food Group
93.63
8.97
10.60%
SYY
Sysco
76.29
6.82
9.81%
CHEF
The Chefs' Warehouse
76.46
14.33
23.06%
UNFI
United Natural Foods
49.31
19.97
68.06%
USFD
US Foods Holding
80.47
4.64
6.12%
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.