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]

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]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks ...

Core Insights - Performance Food Group (PFGC) has a stronger earnings outlook compared to Sprouts Farmers (SFM), with a Zacks Rank of 2 (Buy) versus SFM's 3 (Hold) [1] - Value investors utilize various valuation metrics to assess if a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [2] Valuation Metrics - PFGC has a forward P/E ratio of 17.06, while SFM's forward P/E is significantly higher at 34.36 [2] - The PEG ratio for PFGC is 0.83, indicating better value relative to its expected earnings growth, compared to SFM's PEG ratio of 3.29 [2] - PFGC's P/B ratio stands at 3.14, while SFM has a much higher P/B ratio of 9.14, suggesting PFGC is more favorably valued [2] Value Grades - PFGC has a Value grade of A, while SFM has a Value grade of C, indicating that PFGC is perceived as a better investment option for value investors [3]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional va ...