Financial Data and Key Metrics Changes - Total net sales grew by 10.8% in Q1 2026, driven by strong trends across all operating segments and the addition of Cheney Brothers [32][33] - Adjusted EBITDA increased by 16.6% to $480.1 million, with all three operating segments contributing to the strong performance [35][38] - Gross profit increased by 14.3%, with a gross profit per case increase of $0.32 compared to the prior year's period [35] Business Line Data and Key Metrics Changes - Foodservice segment saw total cases up by 15.6%, with organic independent case growth of 6.3% [25][26] - Convenience segment achieved 3.5% sales growth, benefiting from inflation and strong relative volume performance in key categories [27][28] - Specialty segment's net sales declined by 0.7%, but adjusted EBITDA grew by 13% due to improved operating leverage [30][31] Market Data and Key Metrics Changes - Cost inflation for the company was approximately 4.4% for the quarter, with foodservice inflation at 2.5% [33][34] - Specialty segment experienced a year-over-year cost inflation increase of 3.8%, primarily due to candy price inflation [34] Company Strategy and Development Direction - The company is focused on capturing profitable market share wins and executing operationally across all segments [26][31] - Investments in people and technology are prioritized to support growth, with a 6% increase in foodservice sales force headcount [21][32] - The company is committed to debt reduction and evaluating strategic M&A opportunities to drive growth and shareholder value [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong performance through fiscal 2026, with a robust pipeline of potential new business [31][38] - The company is well-equipped to handle inflationary scenarios, expecting rates to remain in the low to mid single-digit range throughout 2026 [34][35] - Management noted that while there are challenges in the restaurant channel, the diversified structure provides consistent performance across various economic scenarios [30][31] Other Important Information - The company is raising its sales guidance for the full year, projecting net sales between $67.5 billion and $68.5 billion [37] - The effective tax rate for Q1 was 23%, with expectations to remain close to historical ranges for 2026 [35] Q&A Session Summary Question: How did independent case growth progress by month? - Management noted consistent growth through Q1, with a strong October, but some softening in the last few weeks due to external factors [44] Question: Any impacts from uncertainty related to hiring? - Management stated that the commission structure has been effective in attracting talent, and hiring remains within a comfortable range [48][50] Question: Can you provide updates on progress with smaller chains? - Management highlighted strong growth in regional accounts and emphasized the importance of food service in the convenience segment [60] Question: What are the expectations for independent case growth in Q2? - Management remains optimistic about achieving a target of 6% for the full year, driven by independent account wins [73] Question: Can you elaborate on the profitability of the specialty segment? - Management indicated that improved operating leverage and a favorable mix of business contributed to strong profitability despite a challenging backdrop [90] Question: Are there any concerns regarding inflation impacting guidance? - Management reiterated expectations for low to mid single-digit inflation, with no significant concerns at this time [114]

Performance Food Group Company (PFGC) 2025 Investor Day Summary Company Overview - **Company**: Performance Food Group Company (PFGC) - **Event**: 2025 Investor Day held on May 28, 2025 - **Focus**: Leading distributor in the food away from home industry Key Industry Insights - **Market Size**: The available market for PFGC is approximately $787 billion, with a significant opportunity for growth in food service, convenience, and specialty segments [22] - **Growth Potential**: PFGC is in the early stages of growth, with a focus on double-digit EBITDA growth despite challenges in achieving double-digit top-line growth [23][26] Core Business Segments 1. **Foodservice** - **Revenue**: $32.1 billion, with $7.4 billion from proprietary brands [71] - **Customer Base**: 175,000 customers, primarily in the restaurant space [71] - **Growth Strategy**: Focus on independent customers for higher profitability and strong sales organization [72][75] 2. **Convenience** - **Revenue**: $24.3 billion, with 74% of revenues from nicotine products [79] - **Customer Base**: 51,000 customers, largest player in North America [79] - **Growth Strategy**: Shifted successful commission structure from food service to convenience, resulting in consistent market share growth [81][82] 3. **Specialty** - **Revenue**: $4.8 billion, with a diverse customer base across various segments [89] - **Growth Strategy**: Focus on e-commerce and operational technology to enhance efficiency and reach [95][96] Strategic Initiatives - **PFG One Platform**: A collaborative approach across segments to drive sales growth and operational efficiency [3][30] - **M&A Strategy**: Continued focus on acquisitions to enhance operational capabilities and market presence, with successful integrations of companies like Cheney Brothers and Jose Santiago [43][44][52] - **Technology Investments**: Emphasis on improving warehousing, delivery, and customer ordering technology to enhance service delivery [28][85] Financial Performance Metrics - **EBITDA Margins**: Vary across segments, with foodservice showing over 5% EBITDA and specialty segments having different margin profiles [13][16] - **Acquisition Growth**: 108 new locations added through acquisitions over the past five and a half years, representing a 46% increase [49] - **Case Growth**: 19.5% CAGR in food service cases sold into convenience since 2020 [50] Customer Engagement and Market Positioning - **Customer Touchpoints**: PFGC aims to create multiple engagement points across its segments, enhancing customer loyalty and service [60][68] - **Partnerships**: Successful collaborations with key customers, such as Rudder's, demonstrating strong growth in both food service and convenience segments [100] Conclusion - **Outlook**: PFGC is positioned for continued growth with a strong focus on strategic acquisitions, operational efficiencies, and leveraging technology to enhance customer service and market reach [53][90]