Industry Overview - The Zacks Natural Foods Products industry includes companies that manufacture and sell a variety of organic and natural products, including fruits, vegetables, dairy, bakery items, meat, seafood, and packaged meals [3] - The industry is experiencing growth due to increasing consumer health awareness and demand for nutritious products, leading companies to expand product lines and invest in digital capabilities [1][5] Major Trends - There is a significant shift towards healthier eating habits, with consumers prioritizing fresh and organic food choices, which is positively impacting the natural food industry [4] - Companies are diversifying their offerings and expanding market reach through strategic partnerships and acquisitions, focusing on research and development for convenient, flavorful options [5] Financial Performance - The Zacks Natural Foods Products industry has outperformed the broader Zacks Retail - Wholesale sector and the S&P 500 over the past year, with a growth of 59.9% compared to 25.5% and 27.2% respectively [11] - The industry's current forward 12-month price-to-earnings (P/E) ratio is 17.88X, lower than the S&P 500's 21.48X and the sector's 23.28X, indicating potential value [12] Company Highlights - **Sprouts Farmers Market, Inc. (SFM)**: This company has seen a 156.8% increase in stock price over the past year, with a consensus EPS estimate for the current fiscal year rising by 8% to $3.37 [14] - **SpartanNash Company (SPTN)**: The company has demonstrated resilience and a focus on profitability, with shares increasing by 27.2% in the past year and EPS estimates rising from $1.94 to $1.96 [16] - **Performance Food Group Company (PFGC)**: This company has benefited from its position in the food-away-from-home market, with shares rising by 23.9% in the past year, although EPS estimates have slightly declined from $4.92 to $4.87 [18]

Performance Food Group Co. PFGC is one of the largest food service distributors in the United States. The company sources, markets, and delivers food and foodrelated products through a network of over 150 distribution facilities to over 125,000 businesses in the food service industry. The company is acquiring food service distributor Cheney Brothers for $2.1 billion, which will expand its footprint with restaurant and hospitality customers in the Southeastern region of the United States. The drop in inflati ...

The already-powerful company aims to bulk up even more through acquisitions. Performance Food Group's (PFGC 1.20%) shares were performing very well over the past few trading sessions, to the point where they were up by nearly 12% in price week to date as of early Friday morning. That's according to data compiled by S&P Global Market Intelligence. The main reason why wasn't exactly a mystery -- the comestibles company posted a very encouraging quarterly earnings report. A convincing earnings beat Performance ...

Tom Werner August 14th ended up being a really good day for shareholders of food distribution giant Performance Food Group Company (NYSE:PFGC). Shares of the company closed up 7.7% after two different announcements that management made. For starters, management announced financial results covering the final quarter of the company's 2024 fiscal year. Although revenue and earnings per share fell short of expectations, adjusted earnings exceeded forecasts. Management also included in this announcement guidance ...

Global Research and Evidence Lab 14 August 2024 First Read Performance Food Group Company What's The Initial View On 4Q'24 Results? PFGC's 4Q'24 adj EPS $1.45 vs. UBSe $1.35; cons. $1.37; Acquiring Cheney Bros Altogether, we think PFGC's 4Q results reflect its ability to take market share, despite the increasingly challenging macro backdrop. It guided in line to slightly above where we believe market expectations were for adjusted EBITDA for FY'25 (based on our conversations with investors). Still, we belie ...

Acquisition and Investments - The company entered into a definitive Stock Purchase Agreement to acquire Cheney Bros., Inc. for a transaction valued at $2.1 billion, subject to customary conditions and regulatory approvals[10]. - The Company paid $307.7 million for two acquisitions in fiscal year 2024, compared to $63.8 million for one acquisition in fiscal year 2023[256]. - The Company is in the process of acquiring Cheney Bros., Inc. for $2.1 billion, expected to be financed through borrowing and new senior unsecured notes[256]. - The total purchase price allocation for the two acquisitions in fiscal 2024 includes $22.5 million in net working capital and $116.4 million in goodwill[257]. - The Core-Mark acquisition, valued at $2.4 billion, resulted in net sales of $14.5 billion and a net loss of $17.6 million for the fiscal year ended July 2, 2022[261]. Financial Performance - Net sales for the fiscal year ended June 29, 2024, were $58,281.2 million, an increase of 1.8% from $57,254.7 million in the previous fiscal year[206]. - Gross profit for the fiscal year ended June 29, 2024, was $6,577.1 million, up from $6,254.9 million, reflecting a gross margin increase[206]. - Operating profit increased to $826.4 million for the fiscal year ended June 29, 2024, compared to $765.8 million in the prior year, indicating a growth of 7.9%[206]. - Net income for the fiscal year ended June 29, 2024, was $435.9 million, representing a 9.7% increase from $397.2 million in the previous year[207]. - Total assets as of June 29, 2024, were $13,392.9 million, up from $12,499.0 million as of July 1, 2023, showing a growth of 7.1%[205]. - Total liabilities increased to $9,266.0 million as of June 29, 2024, compared to $8,753.5 million in the prior year, reflecting a rise of 5.9%[205]. - Retained earnings rose significantly to $1,302.9 million as of June 29, 2024, compared to $867.0 million in the previous year, marking an increase of 50.2%[205]. - The company reported a diluted earnings per share of $2.79 for the fiscal year ended June 29, 2024, compared to $2.54 in the previous year, an increase of 9.8%[206]. - Cash increased to $20.0 million as of June 29, 2024, from $12.7 million as of July 1, 2023, indicating a growth of 57.5%[205]. - Cash provided by operating activities reached $1,163.0 million, significantly up from $832.1 million in the prior year[212]. Segment Performance - The Foodservice segment operates 78 distribution centers and serves over 175,000 customer locations, focusing on increasing sales to independent customers who typically generate higher gross profit per case[12][13]. - Vistar, a national distributor, serves over 75,000 customer locations from 27 distribution centers, expanding its reach to various channels including hospitality venues and college bookstores[14][15]. - The Convenience segment serves approximately 50,000 customer locations in the U.S. and Canada, operating 39 distribution centers and offering a full range of products including food, beverages, and health and beauty care products[16]. - Net external sales for the Foodservice segment reached $29,002.4 million for the year ended June 29, 2024, an increase from $28,467.5 million in the previous year[331]. - Foodservice Adjusted EBITDA for the fiscal year ended June 29, 2024, was $1,001.2 million, up from $943.6 million in the previous year, representing a growth of 6.5%[333]. - Vistar Adjusted EBITDA increased to $340.6 million for the fiscal year ended June 29, 2024, compared to $325.3 million in the prior year, reflecting a growth of 4.3%[333]. Regulatory and Compliance - The company’s operations are subject to various regulations, including those from the USDA and FDA, which impose standards for product quality and sanitation[30]. - The company is subject to various federal, state, and local laws, including those related to environmental, health, and safety requirements, which may incur material costs for compliance[34]. - The company’s customer relationships with U.S. federal and state governmental entities subject it to additional regulations applicable to government contractors[32]. Risk Management - The company manages economic risks primarily through the management of its debt funding and the use of derivative financial instruments[280]. - The entire change in the fair value of derivatives designated as cash flow hedges is recorded in other comprehensive income and reclassified into earnings when the hedged transaction occurs[281]. - As of June 29, 2024, Performance Food Group, Inc. had three interest rate swaps with a combined notional amount of $500.0 million[282]. - A hypothetical 100 bps increase in SOFR on variable-rate debt would lead to an increase of approximately $9.2 million in annual interest expense[190]. - The company incurred interest payments of $242.1 million during the fiscal year ended June 29, 2024, compared to $218.5 million in the previous year[215]. Shareholder Equity and Stock Compensation - The total shareholders' equity as of July 1, 2023, was $3,745.5 million, reflecting growth from $3,299.5 million as of July 2, 2022[210]. - Stock-based compensation expense was $37.4 million for the fiscal year ended June 29, 2024, slightly down from $39.2 million in the prior year[212]. - The intrinsic value of exercised options was $4.3 million for fiscal 2024, compared to $3.6 million for fiscal 2023, indicating an increase of approximately 19.4%[319]. - Total unrecognized compensation cost for all awards under the 2015 Incentive Plan is $45.0 million as of June 29, 2024, expected to be recognized over a weighted-average period of 1.7 years[323]. Legal and Contingencies - The Company is engaged in various legal proceedings, but management does not believe that the ultimate resolution will have a material adverse effect on its financial position[308]. - JUUL reached settlements in the multidistrict litigation, with the first settlement payment made on October 27, 2023, which may impact the Company’s future financial obligations[310]. Inventory and Assets - As of June 29, 2024, the Company's inventory balance was $3,314.7 million, with $2,164.4 million valued at FIFO and $1,150.3 million valued at LIFO[226]. - The Company’s inventories were adjusted by approximately $16.5 million for slow-moving, excess, and obsolete inventories as of June 29, 2024[226]. - As of June 29, 2024, total intangible assets with definite lives amounted to $2,322.5 million, with a net value of $945.5 million after accumulated amortization[265]. - The investment in wholly owned subsidiary increased to $4,227.9 million as of June 29, 2024, from $3,826.3 million as of July 1, 2023[336].

Key Takeaways Performance Food Group acquired Cheney Bros., a foodservice distribution company with a footprint in the Southeast. Cheney Bros. generates about $3.2 billion in annual revenue. PFG also posted fourth-quarter adjusted EPS that exceeded analysts' expectations. Performance Food Group Co. (PFGC) shares surged in intraday trading Wednesday after announcing a $2.1 billion cash acquisition of foodservice distributor Cheney Bros. and posting fourth-quarter adjusted earnings per share (EPS) that topped ...

Performance Food Group (PFGC) came out with quarterly earnings of $1.45 per share, beating the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.41%. A quarter ago, it was expected that this food distributor would post earnings of $0.83 per share when it actually produced earnings of $0.80, delivering a surprise of -3.61%. Over the last four quart ...

The market expects Performance Food Group (PFGC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 14, 2024, might help the stock move higher if these key n ...

☐ 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 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 30, 2024 Performance Food Group Company (Exact name of registrant as specified in its charter) Delaware 43-1983182 (State ...