Sachem has privately nominated candidates to the board of Performance Food after accumulating a position in the distributor, according to sources https://t.co/7RM8gK5SgC ...

Performance Food Group Company PFGC posted better-than-expected results for the fourth quarter on Wednesday. The company reported fourth-quarter adjusted earnings per share of $1.55, beating the analyst consensus estimate of $1.45. Quarterly sales of $16.938 billion outpaced the Street view of $16.860 billion (+11.5% year over year). Performance Food Group expects first-quarter sales between $16.60 billion and $16.90 billion, compared to the $16.916 billion consensus estimate. The company sees adjusted EBIT ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 28, 2025 (Exact name of registrant as specified in its charter) | Delaware 43-1983182 | | | | | | --- | --- | --- | --- | --- | | (State or other jurisdiction of (IRS Employer | | | | | | incorporation or organization) Identification No.) | | | | | | 12500 West Creek Parkway | | | | | | Richmond, Vir ...

U.S. Stock Market Performance - U.S. stocks traded higher, with the Dow Jones index gaining over 400 points, closing up 0.97% at 44,888.04 [1] - The NASDAQ rose 0.14% to 21,711.19, and the S&P 500 increased by 0.24% to 6,461.26 [1] Sector Performance - Health care shares increased by 1% on Wednesday [1] - Utilities stocks fell by 0.7% during the same trading session [1] Company Earnings Reports - Performance Food Group Company (PFGC) reported fourth-quarter adjusted EPS of $1.55, exceeding the analyst consensus estimate of $1.45 [2] - Quarterly sales reached $16.938 billion, surpassing the expected $16.860 billion, reflecting an 11.5% year-over-year increase [2] Commodity Market Updates - Oil prices decreased by 1% to $62.57, while gold prices increased by 0.4% to $3,412.90 [4] - Silver rose by 1.4% to $38.545, whereas copper fell by 0.3% to $4.5115 [4] European Market Performance - European shares showed positive movement, with the eurozone's STOXX 600 rising by 0.52% [5] - Spain's IBEX 35 Index increased by 0.95%, London's FTSE 100 rose by 0.15%, Germany's DAX 40 gained 0.74%, and France's CAC 40 rose by 0.73% [5] Asian Market Performance - Asian markets closed higher, with Japan's Nikkei 225 gaining 1.30%, Hong Kong's Hang Seng up by 2.58%, China's Shanghai Composite increasing by 0.48%, and India's BSE Sensex rising by 0.38% [6] Notable Stock Movements - Bolt Projects Holdings, Inc. (BSLK) shares surged 147% to $5.38 following a year-over-year increase in second-quarter financial results [8] - Sapiens International Corporation N.V. (SPNS) shares rose 44% to $42.54 after Advent agreed to acquire the company in a $2.5 billion deal [8] - WEBTOON Entertainment Inc. (WBTN) shares increased by 80% to $16.88 after announcing a partnership with Disney [8] - Zevra Therapeutics, Inc. (ZVRA) shares dropped 22% to $9.15 after second-quarter results [8] - KinderCare Learning Companies, Inc. (KLC) shares fell 16% to $8.20 after missing second-quarter earnings estimates [8] - ProFrac Holding Corp. (ACDC) shares decreased by 39% to $3.8550 after pricing a $75 million stock offering at $4 per share [8]

Financial Data and Key Metrics Changes - The company achieved net sales exceeding $63 billion in fiscal year 2025, with a year-over-year growth of 11.5% in Q4 [6][29]. - Adjusted EBITDA increased by 19.9% to $546.9 million in Q4, surpassing previous guidance [32][34]. - Total company gross profit rose by 14.6% in Q4, with a gross profit per case increase of $0.17 compared to the prior year [30][32]. Business Line Data and Key Metrics Changes - The foodservice segment saw organic independent case growth of 4.6% for the full year and 5.9% in Q4, with a focus on high-performing chain customers contributing to 2.2% case growth for the year [10][11]. - The convenience segment experienced positive case growth throughout the year, despite industry-wide sales declines, achieving double-digit profit growth [12][13]. - The specialty segment reported a 4.1% increase in net sales in Q4, with notable growth in vending and e-commerce channels [26][27]. Market Data and Key Metrics Changes - The overall food away from home industry is still recovering, with the company gaining market share and improving margins [5][6]. - The convenience segment continues to face mid-single-digit sales declines across key categories, but the company has managed to grow share and outperform competitors [12][63]. - The independent restaurant case growth was impacted by severe weather in February, but overall trends are improving as the industry recovers [10][19]. Company Strategy and Development Direction - The company is focused on its "PFG One" strategy, which aims to capture growth opportunities across all business segments [7][17]. - Continued investment in hiring food service sales representatives is a priority, with an 8.8% increase in headcount compared to the previous year [8][9]. - The company is committed to disciplined M&A activities to drive sustainable growth across its segments [37][38]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 6% growth target for independent cases in 2026, supported by positive trends in restaurant traffic [43][47]. - The company anticipates low to mid-single-digit inflation in 2026, with a focus on managing product cost fluctuations [31][32]. - Management remains cautious about the overall industry recovery, noting mixed results among casual dining chains [78][80]. Other Important Information - The company generated $1.2 billion in operating cash flow in fiscal 2025, with a focus on capital expenditures for growth projects [35][36]. - The board has decided not to engage in information sharing with US Foods regarding a potential business combination, emphasizing the company's strong market position [15][18]. Q&A Session Summary Question: How is the industry traffic backdrop affecting guidance for the year ahead? - Management noted an uptick in independent food service business in July and early August, contributing to confidence in achieving growth targets [43][47]. Question: What is the outlook for the convenience segment given current pressures? - Management highlighted ongoing share growth and new business wins, indicating confidence in performance despite broader industry challenges [63][65]. Question: How does new account growth translate to increased penetration in future quarters? - Management indicated that new accounts are performing well, with strong growth in lines per drop, suggesting positive long-term growth potential [67][68]. Question: What is the current state of the M&A landscape? - Management expressed optimism about the M&A pipeline, noting active discussions and a favorable market environment for potential acquisitions [72][73].

Financial Data and Key Metrics Changes - The company achieved total net sales of over $63 billion in fiscal 2025, reflecting an 11.5% growth in the fourth quarter compared to the same period in fiscal 2024 [5][29] - Adjusted EBITDA increased by 19.9% to $546.9 million in the fourth quarter, exceeding previous guidance [32] - Net income for fiscal 2025 was reported at $131.5 million, with diluted earnings per share at $0.84 and adjusted diluted earnings per share at $1.55, representing a 6.9% year-over-year increase [33] Business Line Data and Key Metrics Changes - The foodservice segment saw organic independent case growth of 4.6% for the full year and 5.9% in the fourth quarter, with a focus on new business and increased penetration in existing accounts [10][20] - The chain business generated 2.2% case growth for the full year and 4.5% in the fourth quarter, with a shift towards high-performing customers [11] - The convenience segment achieved positive case growth in each quarter of the year, despite industry-wide sales declines, and saw double-digit profit growth [12][13] - The specialty segment experienced a 4.1% increase in net sales in the fourth quarter, with notable growth in vending and e-commerce channels [26] Market Data and Key Metrics Changes - The overall food away from home industry is still recovering, with restaurant foot traffic improving month by month, although it remains below desired levels [4][20] - The convenience segment continues to face challenges, but the company is gaining market share and outperforming competitors [42][60] Company Strategy and Development Direction - The company is focused on its "PFG One" strategy, which aims to capture growth opportunities across all business segments [6] - Continued investment in hiring food service sales representatives is a priority, with an 8.8% increase in headcount compared to the previous year [7] - The company is committed to disciplined M&A activities to drive sustainable growth across its segments [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 6% growth target for the upcoming year, supported by positive trends in independent food service business [41] - The company anticipates continued improvement in the industry backdrop, with expectations for better trends in the future [8][42] - Management highlighted the importance of maintaining a strong balance sheet to explore new investment opportunities while focusing on capital allocation strategies [36] Other Important Information - The company is closely monitoring product cost inflation, which was approximately 4.3% in the fourth quarter, with expectations of low single to mid-single digit inflation in 2026 [30][31] - The company repurchased about 177,000 shares at an average cost of $75.39 per share, totaling $13.4 million, while prioritizing debt reduction [35] Q&A Session Summary Question: How is the industry traffic backdrop affecting guidance for the year ahead? - Management noted an uptick in independent food service business in July and early August, contributing to confidence in achieving growth targets [41] Question: What changes are being seen in the availability of quality talent for sales positions? - The fourth quarter saw a strong availability of talent, with the company finishing the year with an 8% increase in new salespeople hired [46] Question: What progress has been made on procurement savings targets? - Management expressed confidence in achieving procurement synergy and balanced progress towards targets outlined at the Analyst Day [55] Question: How significant are the new customer wins in the convenience segment? - New customer agreements are expected to contribute positively to sales and profit growth, with onboarding planned for the upcoming quarters [25][76] Question: What is the outlook for the convenience segment given current challenges? - Management indicated that while the macro environment remains challenging, the convenience segment is expected to perform well due to strong business wins [61] Question: How is the integration of recent acquisitions progressing? - Integration of Cheney Brothers and Jose Santiago is on track, with both businesses showing strong management and competitive positioning [99]

This quarterly report represents an earnings surprise of +6.90%. A quarter ago, it was expected that this food distributor would post earnings of $0.86 per share when it actually produced earnings of $0.79, delivering a surprise of -8.14%. Performance Food Group (PFGC) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quar ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) PFG saw strong Q4 and full FY2025 growth in case volume, sales, and Adjusted EBITDA, but GAAP Net Income and Diluted EPS decreased due to acquisition costs [Fourth-Quarter Fiscal 2025 Highlights](index=1&type=section&id=Fourth-Quarter%20Fiscal%202025%20Highlights) PFG's Q4 FY2025 achieved double-digit growth in case volume, net sales, and Adjusted EBITDA, primarily from Independent Foodservice, yet Net Income and Diluted EPS declined significantly Q4 Fiscal 2025 Key Metrics vs. Q4 Fiscal 2024 | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $16.9 billion | +11.5% | | Gross Profit | $2.0 billion | +14.6% | | Total Case Volume | N/A | +11.9% | | Net Income | $131.5 million | -21.0% | | Adjusted EBITDA | $546.9 million | +19.9% | | Diluted EPS | $0.84 | -21.5% | | Adjusted Diluted EPS | $1.55 | +6.9% | [Full-Year Fiscal 2025 Highlights](index=1&type=section&id=Full-Year%20Fiscal%202025%20Highlights) PFG's full FY2025 saw robust growth in net sales and Adjusted EBITDA, with strong operating cash flow, but Net Income and Diluted EPS declined significantly Full-Year Fiscal 2025 Key Metrics vs. Full-Year Fiscal 2024 | Metric | FY 2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $63.3 billion | +8.6% | | Gross Profit | $7.4 billion | +12.8% | | Total Case Volume | N/A | +8.5% | | Net Income | $340.2 million | -22.0% | | Adjusted EBITDA | $1.8 billion | +17.3% | | Diluted EPS | $2.18 | -21.9% | | Adjusted Diluted EPS | $4.48 | +4.2% | | Operating Cash Flow | $1.2 billion | N/A | | Free Cash Flow | $704.1 million | N/A | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) PFG's FY2025 saw strong top-line growth from case volume and acquisitions, but net income declined due to higher operating and financing costs related to these acquisitions - CEO George Holm credited the **strong financial results** to contributions from all three operating segments and successful market share gains, highlighting the ongoing integration of Cheney Brothers and José Santiago[4](index=4&type=chunk)[6](index=6&type=chunk) [Fourth-Quarter Fiscal 2025 Financial Summary](index=3&type=section&id=Fourth-Quarter%20Fiscal%202025%20Financial%20Summary) Q4 net sales and Adjusted EBITDA grew significantly, driven by case volume and acquisitions, but net income declined due to increased operating expenses and financing costs from recent acquisitions - Net sales growth was driven by recent acquisitions (including Cheney Brothers), a favorable shift in case mix, and price inflation of approximately **4.3%**[8](index=8&type=chunk) - Operating expenses increased by **18.3%**, primarily due to acquisitions, higher personnel costs, and increased depreciation, partially offset by lower fuel prices[10](index=10&type=chunk) - The decrease in net income primarily resulted from higher depreciation, amortization, and interest expense related to recent acquisitions, outweighing gross profit contributions from new businesses[11](index=11&type=chunk) [Full-Year Fiscal 2025 Financial Summary](index=3&type=section&id=Full-Year%20Fiscal%202025%20Financial%20Summary) Full-year net sales and Adjusted EBITDA rose significantly, but net income decreased due to higher costs associated with recent acquisitions and increased average borrowings - Full-year net sales growth was driven by acquisitions, an **8.5%** increase in total case volume, and product cost inflation of approximately **4.7%**[13](index=13&type=chunk)[14](index=14&type=chunk) - Gross profit grew **12.8%** due to acquisitions, procurement efficiencies, and a favorable sales mix with growth in the independent channel[15](index=15&type=chunk) - Net income declined primarily due to increased depreciation, amortization, and interest expense related to acquisitions and higher average borrowings[17](index=17&type=chunk) [Cash Flow, Capital Allocation, and Share Repurchases](index=5&type=section&id=Cash%20Flow%2C%20Capital%20Allocation%2C%20and%20Share%20Repurchases) PFG generated strong FY2025 operating cash flow, increased capital expenditures, and actively managed its capital structure through share repurchases, including a new, larger program [Cash Flow and Capital Spending](index=5&type=section&id=Cash%20Flow%20and%20Capital%20Spending) Operating cash flow increased in FY2025 due to higher operating income, but free cash flow decreased due to a significant increase in capital expenditures Fiscal 2025 Cash Flow Summary (in millions) | Metric | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | Cash Flow from Operating Activities | $1,210.1 million | $1,163.0 million | | Capital Expenditures | $506.0 million | $395.6 million | | Free Cash Flow | $704.1 million | $767.4 million | [Share Repurchase Program](index=5&type=section&id=Share%20Repurchase%20Program) PFG repurchased common stock in FY2025 and authorized a new, larger share repurchase program, replacing the previous authorization - In fiscal year 2025, the company repurchased **0.8 million shares** for a total of **$57.6 million**, at an average cost of **$75.53 per share**[21](index=21&type=chunk) - A new **$500 million** share repurchase program was authorized on May 27, 2025, with an expiration date of May 27, 2029[22](index=22&type=chunk) [Segment Performance (Q4 Fiscal 2025)](index=5&type=section&id=Segment%20Performance%20(Q4%20Fiscal%202025)) All three operating segments contributed to Q4 growth, with Foodservice as the primary driver, showing significant increases in net sales and Adjusted EBITDA from acquisitions and independent case growth [Foodservice](index=5&type=section&id=Foodservice) The Foodservice segment's Q4 net sales and Adjusted EBITDA surged, driven by acquisitions, significant total case volume growth, and a rise in organic independent case volume Foodservice Q4 FY2025 Performance | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $9.2 billion | +20.0% | | Adjusted EBITDA | $386.9 million | +26.3% | | Total Case Growth | N/A | +17.4% | | Organic Independent Case Growth | N/A | +5.9% | - Growth was driven by recent acquisitions (including Cheney Brothers), case volume growth in independent and Chain business, and higher selling prices[23](index=23&type=chunk) [Convenience](index=5&type=section&id=Convenience) The Convenience segment reported Q4 increases in net sales and Adjusted EBITDA, attributed to higher selling prices from inflation, a recent acquisition, and modest organic case volume growth Convenience Q4 FY2025 Performance | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $6.4 billion | +2.8% | | Adjusted EBITDA | $120.0 million | +4.8% | | Organic Case Volume Growth | N/A | +0.6% | - Adjusted EBITDA growth resulted from higher gross profit from inventory holding gains and a favorable product mix, partially offset by increased personnel expenses[26](index=26&type=chunk)[27](index=27&type=chunk) [Specialty](index=7&type=section&id=Specialty) The Specialty segment's Q4 net sales and Adjusted EBITDA grew, supported by increased case volume, particularly in vending, office coffee, value, and retail channels Specialty Q4 FY2025 Performance | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $1.3 billion | +4.1% | | Adjusted EBITDA | $93.2 million | +9.0% | | Total Case Volume Growth | N/A | +4.2% | - Adjusted EBITDA growth was driven by higher gross profit from sales growth and inventory holding gains, with operating expenses only slightly increasing due to cost controls and lower fuel expense[29](index=29&type=chunk) [Fiscal 2026 Outlook](index=7&type=section&id=Fiscal%202026%20Outlook) PFG projects continued growth in both net sales and Adjusted EBITDA for fiscal 2026, with specific guidance provided for Q1 and the full year Fiscal 2026 Guidance | Period | Metric | Guidance Range | | :--- | :--- | :--- | | **Q1 Fiscal 2026** | Net Sales | $16.6 billion - $16.9 billion | | | Adjusted EBITDA | $465 million - $485 million | | **Full-Year Fiscal 2026** | Net Sales | $67 billion - $68 billion | | | Adjusted EBITDA | $1.9 billion - $2.0 billion | [Financial Statements (Unaudited)](index=11&type=section&id=Financial%20Statements%20(Unaudited)) The unaudited financial statements detail sales growth but lower net income due to higher expenses, significant asset and liability expansion from acquisitions, and strong operating cash flow used for investments [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) For FY2025, net sales grew, but operating profit slightly decreased, and net income fell significantly, primarily due to a substantial increase in interest expense FY 2025 Statement of Operations Summary (in millions) | Line Item | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net sales | $63,298.9 | $58,281.2 | | Gross profit | $7,416.6 | $6,577.1 | | Operating profit | $816.3 | $826.4 | | Interest expense, net | $358.4 | $232.2 | | Net income | $340.2 | $435.9 | [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets and liabilities significantly increased, primarily driven by goodwill, intangible assets, PP&E, and long-term debt from acquisitions Balance Sheet Summary (in millions) | Line Item | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Total current assets | $7,135.1 | $6,153.3 | | Goodwill | $3,480.1 | $2,418.3 | | Total assets | $17,881.2 | $13,392.9 | | Total current liabilities | $4,517.6 | $3,758.1 | | Long-term debt | $5,388.8 | $3,198.5 | | Total liabilities | $13,408.8 | $9,266.0 | | Total shareholders' equity | $4,472.4 | $4,126.9 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For FY2025, net cash from operating activities was strong, with significant cash used in investing activities for acquisitions and capital expenditures, largely funded by new borrowings FY 2025 Statement of Cash Flows Summary (in millions) | Line Item | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,210.1 | $1,163.0 | | Net cash used in investing activities | $(3,089.0) | $(682.7) | | Net cash provided by (used in) financing activities | $1,937.9 | $(472.6) | [Non-GAAP Financial Measures and Reconciliations](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains PFG's use of non-GAAP measures like Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow to clarify core operating performance by excluding specific items, with detailed reconciliations provided - Management uses non-GAAP measures like **Adjusted EBITDA** and **Adjusted Diluted EPS** to evaluate business performance, for business planning, and as part of management compensation incentives[43](index=43&type=chunk)[45](index=45&type=chunk) - **Free Cash Flow** is defined as net cash provided by operating activities less capital expenditures and is used to assess the company's ability to make strategic investments and manage debt[46](index=46&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA and Diluted EPS to Adjusted Diluted EPS](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20and%20Diluted%20EPS%20to%20Adjusted%20Diluted%20EPS) For FY2025, GAAP Net Income was reconciled to Adjusted EBITDA through adjustments for interest, taxes, depreciation, amortization, LIFO reserve changes, and acquisition expenses, with Diluted EPS similarly adjusted FY 2025 GAAP to Non-GAAP Reconciliation Summary (in millions) | Metric | Amount | | :--- | :--- | | Net income (GAAP) | $340.2 | | (+) Interest, Taxes, D&A | $1,194.9 | | (+) Other Adjustments | $231.8 | | **Adjusted EBITDA (Non-GAAP)** | **$1,766.9** | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=16&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) Free Cash Flow for FY2025 was calculated by subtracting capital expenditures from net cash provided by operating activities, representing a decrease from the prior fiscal year FY 2025 Free Cash Flow Calculation (in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $1,210.1 | | (-) Purchases of property, plant and equipment | $(506.0) | | **Free cash flow (Non-GAAP)** | **$704.1** | [Segment Results Reconciliation](index=19&type=section&id=Segment%20Results%20Reconciliation) PFG reports performance for Foodservice, Convenience, and Specialty segments, with Foodservice being the largest contributor to both Net Sales and Segment Adjusted EBITDA in FY2025, showing strong profitability growth FY 2025 Segment Performance (in millions) | Segment | Net Sales | Segment Adjusted EBITDA | | :--- | :--- | :--- | | Foodservice | $33,646.1 | $1,221.6 | | Convenience | $24,507.5 | $407.3 | | Specialty | $4,905.0 | $348.2 | | **Total Segments** | **$63,058.6** | **$1,977.1** |

On July 11, Bloomberg reported the company is said to have drawn takeover interest from US Foods.. Performance Food shares rose 0.9% to close at $98.36 on Tuesday. Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables. Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying PFGC stock? Here's what analysts think: ...

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