Performance Food Group Company (PFGC) 2025 Investor Day May 28, 2025 09:00 AM ET Speaker0 Good morning, and thank you for joining PFG's twenty twenty five Investor Day. I'm Bill Marshall, Senior Vice President of Investor Relations. We have a great lineup of presentations for you today. But before, we get started, a few remarks and housekeeping items. Our program will run for about three hours, which includes plenty of time for questions following our prepared remarks. We will try to address as many questio ...

INVESTOR DAY 2025 BILL MARSHALL Senior Vice President, Investor Relations 1 Welcome & Introduction | Bill Marshall | SVP, Investor Relations AGENDA 2 Strategic Roadmap to Success | George Holm | Chairman & CEO 3 Strategy and M&A | Liz Mountjoy | SVP, Strategy & M&A 4 Differentiated Value Proposition| Scott McPherson | President & COO 5 People & Culture | Erika Davis | EVP & CHRO 6 Operational Excellence | Scott McPherson | President & COO 7 Financial Overview | Patrick Hatcher | EVP & CFO 8 Q&A Session Feed ...

Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ___________ Commission File Number 001-37578 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Performance Food Group Company (Exact name of registrant as specified in its charter) Delaware 43-1983182 (State ...

Here is how Performance Food performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Performance Food here>>> Shares of Performance Food have returned +12.9% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Performance Food Group (PFGC) reported $15.31 bill ...

Financial Data and Key Metrics Changes - Total net sales grew by 10.5% in Q3 2025, driven by acquisitions and volume growth [24] - Adjusted EBITDA increased by 20.1% to $385.1 million, with net income reported at $58.3 million [27] - Total company cost inflation was approximately 4.9%, with foodservice product cost inflation at 3.7% [25][26] Business Line Data and Key Metrics Changes - Foodservice segment saw organic independent case growth of 3.4% for the full third quarter, with a rebound to 6% in April [13][24] - Chain restaurant business grew cases by 1.5%, supported by new business onboarding [14] - Convenience segment volume grew by approximately 1%, outperforming the industry, while Specialty segment net sales were roughly flat [18][19] Market Data and Key Metrics Changes - The macroeconomic environment remains challenging, with consumer performance described as muted [5][10] - Despite challenges, the company gained market share across all three segments [20] - Inflation rates in foodservice are considered manageable, with ongoing monitoring of commodity prices [15][25] Company Strategy and Development Direction - The company aims to capture growth through a diversified food distribution strategy, focusing on both top and bottom line growth [7] - Strategic priorities include leveraging proprietary brands and procurement synergies to expand gross margins [12] - The company plans to discuss its long-term strategy at the upcoming Investor Day [7][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic landscape and capture market share [10][31] - The company remains cautious about the macro environment but optimistic about recent sales trends [49][50] - Future guidance reflects a conservative approach due to competitive pressures and economic uncertainty [30][31] Other Important Information - The Specialty segment was renamed to align with the company's naming conventions, with no operational changes [21] - The company has a robust M&A pipeline and continues to evaluate strategic acquisition opportunities [30][29] Q&A Session Summary Question: Insights on consumer demand and behavior - Management noted that independent case volume was strong at the beginning of the quarter but faced setbacks in February due to weather and economic uncertainty [36][39] Question: Outlook on food inflation - Management indicated that food inflation is expected to remain in the mid-single digits, with minimal impact from tariffs [41][44] Question: Trends in organic independent case growth - Management acknowledged a robust recovery in April but emphasized caution due to calendar differences and market conditions [48][50] Question: Changes in competition and market share - Management observed increased competition in the industry, particularly among smaller competitors, but noted that larger distributors are gaining market share [81] Question: Margin expectations for Q4 - Management expects minimal EBITDA margin expansion in Q4, influenced by strong prior year comparisons and ongoing productivity measures [98][100]

Core Viewpoint - Performance Food Group (PFGC) reported quarterly earnings of $0.79 per share, missing the Zacks Consensus Estimate of $0.86 per share, and showing a decline from $0.80 per share a year ago, indicating an earnings surprise of -8.14% [1][2] Financial Performance - The company posted revenues of $15.31 billion for the quarter ended March 2025, which was 0.73% below the Zacks Consensus Estimate, compared to $13.86 billion in the same quarter last year [2] - Over the last four quarters, Performance Food has surpassed consensus EPS estimates only once [2] Stock Performance - Performance Food shares have decreased by approximately 4.1% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.56 on revenues of $16.86 billion, and for the current fiscal year, it is $4.55 on revenues of $63.33 billion [7] Industry Context - The Food - Natural Foods Products industry, to which Performance Food belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of industries [8]

Exhibit 99.1 NEWS RELEASE For Immediate Release Investors: Media: William S. Marshall Scott Golden (804) 287-8108 (804) 484-7873 Bill.Marshall@pfgc.com Scott.Golden@pfgc.com SVP, Investor Relations Director, Communications & Engagement Performance Food Group Company Reports Third-Quarter and First-Nine Months Fiscal 2025 Results Strong Sales Momentum; Updates Full-Year Financial Guidance Third-Quarter Fiscal 2025 Highlights First-Nine Months Fiscal 2025 Highlights RICHMOND, Va. – May 7, 2025 – Performance F ...

Financial Performance - Net sales for the three months ended December 28, 2024, increased by 9.4% to $15,638.2 million compared to $14,295.7 million for the same period in 2023[109] - Gross profit for the three months ended December 28, 2024, rose by 14.4% to $1,827.8 million, up from $1,598.1 million in the prior year[109] - Adjusted EBITDA for the three months ended December 28, 2024, increased by 22.5% to $423.0 million, compared to $345.4 million for the same period in 2023[109] - For the six months ended December 28, 2024, net sales increased by 6.2% to $31,053.7 million compared to $29,234.3 million in the same period in 2023[109] - Net sales increased by $1,342.5 million, or 9.4%, for the second quarter of fiscal 2025 compared to the same period in fiscal 2024[111] - Total case volume increased by 9.8% in the second quarter of fiscal 2025 and 6.1% in the first six months compared to the same periods in fiscal 2024[112] - Gross profit rose by $229.7 million, or 14.4%, for the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024[113] - Total Adjusted EBITDA for the second quarter of fiscal 2025 was $423.0 million, an increase of $77.6 million, or 22.5%, compared to the second quarter of fiscal 2024[121] Operating Expenses - Operating expenses for the three months ended December 28, 2024, increased by 17.2% to $1,669.0 million, compared to $1,424.2 million in the prior year[109] - Operating expenses increased by $244.8 million, or 17.2%, for the second quarter of fiscal 2025 compared to the same period in fiscal 2024[114] - Operating expenses for Foodservice rose by $157.0 million, or 20.8%, from Q2 FY2024 to Q2 FY2025, primarily due to recent acquisitions and a $38.0 million increase in personnel expenses[124] Net Income and Tax - Net income (GAAP) for the three months ended December 28, 2024, decreased by 45.8% to $42.4 million, down from $78.3 million in the same period last year[109] - The company reported a decrease in income before income taxes by 49.2% to $56.7 million for the three months ended December 28, 2024[109] - Net income decreased by $35.9 million, or 45.8%, for the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024[117] - The effective tax rate for the second quarter of fiscal 2025 was 25.2%, down from 29.9% in the same period of fiscal 2024[118] Acquisitions - The company acquired Cheney Bros., Inc. on October 8, 2024, enhancing its Foodservice operations in the Southeastern United States[96] - The acquisition of Cheney Brothers contributed $825.0 million to net sales in the second quarter of fiscal 2025[122] - The increase in variable-rate debt is attributed to the Cheney Brothers acquisition[180] Cash Flow and Investments - Cash balance as of December 28, 2024, totaled $18.7 million, down from $27.7 million as of June 29, 2024[146] - Operating activities provided cash flow of $379.0 million in the first six months of FY2025, a decrease from $554.0 million in FY2024, largely due to advanced inventory purchases[147] - Cash used in investing activities totaled $2,736.7 million in the first six months of fiscal 2025, a significant increase from $436.4 million in the same period of fiscal 2024[148] - Acquisitions accounted for $2,535.5 million of the investing activities in the first six months of fiscal 2025, compared to $308.1 million in fiscal 2024[148] - Capital purchases of property, plant, and equipment were $203.9 million in the first six months of fiscal 2025, up from $147.1 million in fiscal 2024[149] Debt and Financing - Aggregate borrowings as of December 28, 2024, were $2,660.7 million, with an average interest rate of 6.05%[155] - The ABL Facility increased total revolving commitments from $4.0 billion to $5.0 billion and extended the maturity date to September 9, 2029[152] - The proceeds from the Notes due 2032, totaling $1.0 billion, were initially intended for the acquisition of Cheney Brothers but were used to pay down a portion of the ABL Facility[167] - The Notes due 2027 and 2029 were issued at 100.0% of their par value, with interest rates of 5.500% and 4.250%, respectively[157][161] - The ABL Facility contains covenants requiring maintenance of a minimum consolidated fixed charge coverage ratio if Alternate Availability falls below $375.0 million[156] - The Company may redeem the Notes due 2032 at a redemption price equal to 100% of the principal amount redeemed plus accrued interest, with specific conditions for early redemption[169] - As of December 28, 2024, the restricted payment capacity available under debt agreements is approximately $1,428.4 million[171] Assets and Market Risks - Total assets for the Foodservice segment increased by $3,961.2 million from $6,582.5 million as of December 30, 2023, to $10,543.7 million as of December 28, 2024, primarily due to recent acquisitions[174] - Total assets for the Vistar segment increased by $131.6 million from $1,434.9 million as of December 30, 2023, to $1,566.5 million as of December 28, 2024, driven by advanced purchases of products and warehouse expansion[175] - Total assets for the Convenience segment increased by $96.5 million from $4,085.7 million as of December 30, 2023, to $4,182.2 million as of December 28, 2024, due to advanced purchases of tobacco products and new warehouse facilities[177] - The company is in compliance with all covenants under the ABL Facility and the indentures governing the Notes due 2027, 2029, and 2032 as of December 28, 2024[172] - Approximately $150.0 million of the company's outstanding long-term debt is fixed through interest rate swap agreements, while approximately $2.5 billion represents variable-rate debt[181] - A hypothetical 100 bps increase in SOFR on the variable-rate debt would lead to an increase of approximately $25.1 million in annual interest expense[181] - The company’s market risks consist of interest rate risk and fuel price risk, with no material changes since June 29, 2024[180] Accounting Policies - There have been no material changes to the company's critical accounting policies and estimates compared to those described in the Form 10-K[179]

Financial Data and Key Metrics Changes - Total net sales grew by 9.4% in the fiscal second quarter, aided by acquisitions of Jose Santiago and Cheney Brothers, with organic independent cases up 5% [44][45][51] - Adjusted EBITDA increased by 22.5% to $423 million, exceeding guidance [51][52] - Diluted earnings per share was $0.27, while adjusted diluted earnings per share improved by 8.9% year-over-year to $0.98 [52] Business Line Data and Key Metrics Changes - Foodservice segment saw strong performance with organic independent case growth of 5%, driven by new account growth and improved margins [30][34] - Convenience segment experienced mid-single-digit growth in foodservice cases, with adjusted EBITDA at 28.5% [36][50] - Vistar segment reported low single-digit case increases, with growth in office coffee services and theater channels [39][40] Market Data and Key Metrics Changes - Organic independent restaurant case volume grew by 5% in the second quarter, up from 4.3% in the first quarter [9][10] - Vistar's total cases grew by 1.4% in the fiscal second quarter, with positive growth in vending and office coffee services [11][39] - Convenience business showed resilience despite industry challenges, with foodservice cases increasing at a mid-single-digit pace [36][50] Company Strategy and Development Direction - The company is focused on targeted acquisitions to drive growth, with successful integration of Jose Santiago and Cheney Brothers [6][15] - A diversification strategy across the food away from home market is emphasized, providing long-term growth opportunities [18] - Continued investment in sales force hiring, with a nearly 7% increase in headcount, is aimed at driving organic growth [34][150] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of fiscal 2025, anticipating a rebound in independent case growth [10][46] - Challenges in the Vistar segment are acknowledged, but improvements are expected in the latter half of the fiscal year [50][70] - The company is monitoring inflationary pressures, with total company cost inflation at 4.6% for the second quarter [47][101] Other Important Information - The company plans to prioritize debt reduction in the short term while maintaining a robust M&A pipeline [57][138] - Capital expenditures are expected to remain steady at approximately $100 million per quarter, with additional investments for growth projects at Cheney Brothers and Jose Santiago [54][56] - The effective tax rate for the second quarter was 25.2%, with expectations for a higher rate in the latter half of the fiscal year [52] Q&A Session Summary Question: Which segments are contributing to the higher sales outlook? - Management noted broad-based growth across all three segments, with independent growth being particularly strong [64][66] Question: Can you elaborate on cost of goods optimization? - Management confirmed that cost of goods optimization has been a focus, with collaborative efforts across segments driving improvements [70][72] Question: Thoughts on underlying momentum in the food service business? - Management indicated that underlying EBITDA growth is strong, with expectations for continued improvement in the second half of the year [75][76] Question: What is the inflation outlook? - Management expects inflation to remain manageable, with foodservice inflation projected in the low to mid-single digits [101][102] Question: How is Cheney Brothers performing post-acquisition? - Cheney Brothers is performing exceptionally well, with aggressive hiring and strong sales growth despite challenges [121][122] Question: What is the current leverage level? - Current leverage is in the high threes, with plans to reduce it back within the target range of 2.5 to 3.5 times [141][136]

Core Insights - Performance Food Group (PFGC) reported revenue of $15.64 billion for the quarter ended December 2024, marking a year-over-year increase of 9.4% [1] - The earnings per share (EPS) for the same period was $0.98, compared to $0.90 a year ago, although it fell short of the consensus estimate of $1.03 by 4.85% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $15.52 billion by 0.78% [1] Revenue Breakdown - Convenience revenue reached $5.97 billion, slightly above the estimated $5.96 billion [4] - Foodservice revenue was $8.37 billion, surpassing the average estimate of $8.24 billion [4] - Eliminations revenue was reported at -$172.40 million, compared to the estimated -$164.36 million [4] - Corporate & All Other revenue was $240.20 million, close to the average estimate of $241.28 million [4] - Vistar revenue was $1.23 billion, slightly below the average estimate of $1.24 billion [4] Stock Performance - Shares of Performance Food have returned +6.9% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]