Group 1: Earnings Performance - Performance Food Group (PFGC) reported quarterly earnings of $0.98 per share, missing the Zacks Consensus Estimate of $1.03 per share, but showing an increase from $0.90 per share a year ago, resulting in an earnings surprise of -4.85% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates only once, with revenues of $15.64 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.78% compared to $14.3 billion a year ago [2] Group 2: Stock Performance and Outlook - Performance Food shares have increased approximately 7.2% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - 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] Group 3: Estimate Revisions and Industry Ranking - The estimate revisions trend for Performance Food is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $15.24 billion, and for the current fiscal year, it is $4.74 on revenues of $62.87 billion [7] - The Food - Natural Foods Products industry is ranked in the top 21% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Performance - Net sales for Q2 FY2025 grew 9.4% to $15.6 billion, driven by acquisitions and inflation-related price increases[8]. - Adjusted EBITDA for Q2 FY2025 increased 22.5% to $423.0 million, reflecting strong operational performance[12]. - Net income for Q2 FY2025 decreased 45.8% to $42.4 million, primarily due to increased interest expenses[11]. - For the first six months of FY2025, net sales rose 6.2% to $31.1 billion, supported by recent acquisitions and case volume growth[14]. - Full FY2025 net sales outlook increased to approximately $63 billion to $64 billion, up from the previous estimate[28]. - Adjusted Diluted EPS for Q2 FY2025 increased 8.9% to $0.98 per share, while diluted EPS decreased 46.0% to $0.27 per share[12]. - Gross profit for the six months ended December 28, 2024, was $3,592.0 million, up 10.1% from $3,261.0 million for the same period in 2023[37]. - Operating profit for the three months ended December 28, 2024, was $158.8 million, a decrease of 8.5% from $173.9 million for the same period in 2023[37]. - Net income for the six months ended December 28, 2024, was $150.4 million, down 24.4% from $199.0 million for the same period in 2023[39]. - Adjusted EBITDA for the six months ended December 28, 2024, was $834.9 million, representing a 14.5% increase from $729.2 million in the prior year[49]. - Total Adjusted EBITDA for the three months ended December 28, 2024, increased by $77.6 million, or 22.5%, to $423.0 million compared to the same period in 2023[54]. - Total Adjusted EBITDA for the six months ended December 28, 2024, rose by $105.7 million, or 14.5%, to $834.9 million compared to the same period in 2023[54]. Cash Flow and Debt - Operating cash flow for the first six months of FY2025 was $379.0 million, down from $554.0 million in the prior year[19]. - Free cash flow for the first six months of FY2025 was $175.1 million, compared to $406.9 million in the prior year[20]. - Cash and restricted cash decreased to $18.7 million as of December 28, 2024, from $27.7 million as of June 29, 2024[39]. - Interest expense for the six months ended December 28, 2024, increased to $167.0 million, a 42.1% rise from $117.5 million in the previous year[49]. - Cash paid for interest during the year was $146.3 million for the six months ended December 28, 2024, compared to $122.3 million in the previous year[40]. - Long-term debt rose to $5,691.2 million as of December 28, 2024, up from $3,198.5 million as of June 29, 2024[38]. - Income tax payments net of refunds for the six months ended December 28, 2024, were $84.1 million, down from $109.0 million in the same period of 2023[40]. Segment Performance - Foodservice segment net sales rose by $1,289.0 million, or 18.2%, reaching $8,368.3 million for the three months ended December 28, 2024[53]. - Convenience segment net sales showed a slight increase of $26.1 million, or 0.4%, reaching $5,967.5 million for the three months ended December 28, 2024[53]. - Vistar segment net sales increased by $32.7 million, or 2.7%, totaling $1,234.6 million for the three months ended December 28, 2024[53]. - Corporate & All Other segment reported a net sales increase of $12.5 million, or 5.5%, reaching $240.2 million for the three months ended December 28, 2024[53]. - Corporate & All Other segment Adjusted EBITDA decreased by $12.3 million, or 22.0%, totaling $(68.1) million for the three months ended December 28, 2024[54]. - Segment Adjusted EBITDA is used to evaluate the performance of the three reportable segments: Foodservice, Vistar, and Convenience[52]. Acquisitions and Risks - The acquisition of Cheney Bros., Inc. is expected to enhance the company's market position, although there are risks associated with integration and realization of anticipated synergies[34]. - The company faces various risks including economic downturns, reliance on third-party suppliers, and intense competition in the foodservice distribution industry[34]. - Acquisition, integration, and reorganization expenses for the six months ended December 28, 2024, were $70.4 million, a significant increase from $13.7 million in the prior year[49]. Asset Management - Total assets increased to $17,097.0 million as of December 28, 2024, compared to $13,392.9 million as of June 29, 2024[38]. - Depreciation for the six months ended December 28, 2024, was $211.5 million, an increase of 24.3% from $170.1 million in the previous year[49].

Core Viewpoint - The article compares Performance Food Group (PFGC) and Sprouts Farmers (SFM) to determine which stock is more attractive to value investors [1] Valuation Metrics - PFGC has a forward P/E ratio of 18.75, while SFM has a forward P/E of 34.85 [5] - PFGC's PEG ratio is 0.96, indicating better expected EPS growth relative to its price, whereas SFM's PEG ratio is 1.94 [5] - PFGC has a P/B ratio of 3.29, compared to SFM's P/B of 10.92, suggesting PFGC is more undervalued based on book value [6] Zacks Rank and Style Scores - PFGC currently holds a Zacks Rank of 2 (Buy), while SFM has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for PFGC [3] - PFGC's Value grade is B, while SFM's Value grade is C, further supporting PFGC as the more favorable option for value investors [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Performance Food Group (PFGC) Analysis - PFGC has shown a price increase of 4.5% over the past four weeks, indicating growing investor interest [3] - The stock gained 9.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - PFGC has a beta of 1.43, suggesting it moves 43% higher than the market in either direction, indicating fast-paced momentum [4] - PFGC has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - PFGC is trading at a Price-to-Sales ratio of 0.24, indicating it is relatively cheap at 24 cents for each dollar of sales [6] Group 3: Investment Opportunities - PFGC appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to help identify winning stock picks based on various investing styles [8]

Core Viewpoint - The article compares Performance Food Group (PFGC) and Sprouts Farmers (SFM) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Both PFGC and SFM currently hold a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [3] - The Zacks Rank is a strategy that targets companies with favorable earnings estimate trends, which is beneficial for value investors [2] Group 2: Valuation Metrics - PFGC has a forward P/E ratio of 18.10, while SFM has a higher forward P/E of 33.30, suggesting PFGC may be undervalued [5] - PFGC's PEG ratio is 0.92, indicating a better valuation relative to its expected earnings growth compared to SFM's PEG ratio of 1.85 [5] - PFGC's P/B ratio is 3.18, significantly lower than SFM's P/B ratio of 10.44, further supporting PFGC's superior valuation [6] Group 3: Value Grades - PFGC has a Value grade of A, while SFM has a Value grade of C, indicating that PFGC is currently viewed as the better value option based on these metrics [6]

Performance Food Group Company (NYSE:PFGC) Q1 2025 Earnings Conference Call November 6, 2024 9:00 AM ET Company Participants Bill Marshall - VP, IR George Holm - CEO Patrick Hatcher - CFO Conference Call Participants Mark Carden - UBS Kelly Bania - BMO Capital John Heinbockel - Guggenheim Lauren Silberman - Deutsche Bank Alex Slagle - Jefferies Andrew Wolf - CL King Jeffrey Bernstein - Barclays Brian Harbour - Morgan Stanley Edward Kelly - Wells Fargo Peter Saleh - BTIG Operator Good day and welcome to PFG' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 September 28, 2024 ☐ 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 Performance Food Group Company (Exact name of registrant as specified in its charter) Delaware 43-1983182 (St ...

Core Insights - Performance Food Group (PFGC) reported revenue of $15.42 billion for the quarter ended September 2024, reflecting a year-over-year increase of 3.2% [1] - The earnings per share (EPS) for the quarter was $1.16, slightly up from $1.15 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate by 0.68%, while the EPS fell short of the consensus estimate by 4.13% [1] Revenue Breakdown - Revenue from Convenience was $6.36 billion, matching the average estimate from analysts [3] - Revenue from Foodservice reached $7.69 billion, surpassing the average estimate of $7.58 billion [3] - Revenue from Eliminations was reported at -$182.10 million, which was below the average estimate of -$168.19 million [3] - Corporate & All Other revenue was $256.10 million, slightly above the average estimate of $251.73 million [3] - Revenue from Vistar was $1.29 billion, exceeding the average estimate of $1.25 billion [3] Stock Performance - Performance Food's shares have returned +5% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.7% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Performance Food Group (PFGC) came out with quarterly earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.13%. A quarter ago, it was expected that this food distributor would post earnings of $1.35 per share when it actually produced earnings of $1.45, delivering a surprise of 7.41%.Over the last four quarter ...

Revenue and Sales Performance - Total case volume increased 2.6% in Q1 fiscal 2025, with independent foodservice case volume growing 7.8% and organic independent foodservice case volume up 4.3%[1][3] - Net sales grew 3.2% to $15.4 billion in Q1 fiscal 2025, driven by acquisitions, case volume growth, and inflation-driven price increases[1][4] - Net sales increased to $15,415.5 million in Q3 2024, up 3.2% from $14,938.6 million in Q3 2023[25] - Total net sales for Q3 2024 were $15,415.5 million, an increase of 3.2% compared to $14,938.6 million in Q3 2023[40] - Foodservice segment net sales increased 5.7% to $7.7 billion in Q1 fiscal 2025, with independent sales representing 41.7% of total segment sales[11] - Foodservice segment net sales for Q3 2024 were $7,692.1 million, an increase of 5.7% compared to $7,277.0 million in Q3 2023[40] - Vistar segment net sales for Q3 2024 were $1,285.7 million, an increase of 2.8% compared to $1,250.4 million in Q3 2023[40] - Convenience segment net sales for Q3 2024 were $6,363.7 million, an increase of 0.4% compared to $6,337.0 million in Q3 2023[40] Profitability and Margins - Gross profit increased 6.1% to $1.8 billion in Q1 fiscal 2025, primarily due to acquisitions, procurement efficiencies, and favorable product mix[1][5] - Gross profit rose to $1,764.2 million in Q3 2024, a 6.1% increase from $1,662.9 million in Q3 2023[25] - Net income decreased 10.5% to $108.0 million in Q1 fiscal 2025, impacted by higher operating expenses and interest costs[1][7] - Net income decreased to $108.0 million in Q3 2024, down 10.5% from $120.7 million in Q3 2023[25] - Net income (GAAP) for Q3 2024 was $108.0 million, a decrease of 10.5% compared to $120.7 million in Q3 2023[37] Adjusted EBITDA and Segment Performance - Adjusted EBITDA rose 7.3% to $411.9 million in Q1 fiscal 2025, with Foodservice segment Adjusted EBITDA up 13.8% to $280.0 million[1][8][12] - Adjusted EBITDA (Non-GAAP) for Q3 2024 was $411.9 million, an increase of 7.3% compared to $383.8 million in Q3 2023[37] - Foodservice Segment Adjusted EBITDA for Q3 2024 was $280.0 million, an increase of 13.8% compared to $246.0 million in Q3 2023[41] - Vistar Segment Adjusted EBITDA for Q3 2024 was $83.2 million, a decrease of 6.1% compared to $88.6 million in Q3 2023[41] - Convenience Segment Adjusted EBITDA for Q3 2024 was $105.3 million, an increase of 11.2% compared to $94.7 million in Q3 2023[41] - Vistar segment Adjusted EBITDA decreased 6.1% to $83.2 million in Q1 fiscal 2025, impacted by a 20.2% increase in operating expenses[13] Cash Flow and Financial Position - Operating cash flow decreased to $53.5 million in Q1 fiscal 2025 from $87.1 million in prior year, due to advanced inventory purchases[9] - Net cash provided by operating activities decreased to $53.5 million in Q3 2024, down 38.6% from $87.1 million in Q3 2023[27] - Free cash flow (Non-GAAP) for Q3 2024 was -$43.0 million, compared to $33.9 million in Q3 2023[38] - Capital expenditures increased by $43.3 million to $96.5 million in Q1 fiscal 2025, resulting in negative free cash flow of $43.0 million[10] - Net cash used in investing activities increased to $669.8 million in Q3 2024, up from $266.9 million in Q3 2023, primarily due to acquisitions[27] - Cash and restricted cash increased to $50.3 million as of September 28, 2024, up from $15.2 million as of September 30, 2023[27][28] - Long-term debt increased to $3,926.0 million as of September 28, 2024, up from $3,198.5 million as of June 29, 2024[26] - The company borrowed $1,000.0 million under Notes due 2032 in Q3 2024[27] Future Outlook and Risks - For full fiscal 2025, the company expects net sales of $62.5-$63.5 billion and Adjusted EBITDA of $1.7-$1.8 billion[15] - The Cheney Brothers Acquisition poses risks including potential integration challenges and uncertainty in expected financial performance[23] Key Performance Metrics - Adjusted EBITDA is used as a key performance metric and is tied to the company's $5.0 billion secured credit facility[32]