Performance Food Group (NYSE:PFGC) Posts Earnings Results

Performance Food Group (NYSE:PFGC) released its quarterly earnings results on Wednesday. The food distribution company reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.05, FiscalAI reports. The company had revenue of $18.02 billion for the quarter, compared to the consensus estimate of $18.02 billion. Performance Food Group had a net margin of 0.53% and a return on equity of 15.15%. Performance Food Group’s revenue was up 5.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.60 EPS.

Here are the key takeaways from Performance Food Group’s conference call:

• PFG reported 5.5% sales growth and 4.2% growth in total cases in fiscal Q1. Adjusted EBITDA rose 10% to $528 million, at the upper end of its guidance range, while adjusted EPS increased 11.9% to $1.32.
• Foodservice independent cases grew 7.8% overall and 5.5% organically, driven by new account wins and increased sales to existing customers. Management also cited continued gains in Performance Brands and expects Jersey Mike’s onboarding to support chain growth beginning in February.
• Gross margin improved 33 basis points, which management attributed to product mix, brand penetration, procurement initiatives, and inventory management. PFG expects procurement savings to build through fiscal 2027 and 2028, reaching about $125 million by the end of fiscal 2028.
• Elevated diesel prices, soft restaurant traffic, and consumer pressure remain headwinds; fuel reduced Q1 results by about $16 million after surcharges and hedges, with a similar impact expected in Q2. Specialty margins are also under pressure, though management expects improvement in the second half as certain costs and comparisons ease.
• PFG reaffirmed fiscal 2027 sales guidance of $72.5 billion–$73 billion and adjusted EBITDA guidance of $2.125 billion–$2.225 billion. The outlook includes an approximately 2% benefit from a 53rd week and implies 12.7% adjusted EBITDA growth at the midpoint.

Performance Food Group Price Performance

Shares of NYSE:PFGC traded up $12.95 during trading hours on Wednesday, hitting $109.46. 6,350,686 shares of the company’s stock traded hands, compared to its average volume of 1,469,064. Performance Food Group has a 52 week low of $80.82 and a 52 week high of $117.47. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.67 and a current ratio of 1.51. The company’s fifty day simple moving average is $95.58 and its two-hundred day simple moving average is $97.52. The company has a market cap of $17.24 billion, a price-to-earnings ratio of 21.21, a price-to-earnings-growth ratio of 1.24 and a beta of 0.91.

Insider Buying and Selling at Performance Food Group

In related news, insider Erika Davis sold 8,008 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $104.21, for a total transaction of $834,513.68. Following the completion of the sale, the insider directly owned 43,986 shares of the company’s stock, valued at $4,583,781.06. This represents a 15.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider A. King sold 8,023 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $104.21, for a total transaction of $836,076.83. Following the sale, the insider directly owned 47,800 shares of the company’s stock, valued at approximately $4,981,238. This represents a 14.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 41,459 shares of company stock worth $4,317,917. 2.10% of the stock is currently owned by company insiders.

Key Stories Impacting Performance Food Group

Here are the key news stories impacting Performance Food Group this week:

• Positive Sentiment: Fiscal first-quarter adjusted EPS was $1.32, above analysts’ $1.27 estimate and up from $0.60 a year earlier. Net income rose 38%, with growth in independent-customer cases cited as a contributor. Performance Food Group Q1 2027: Net Income Up 38% on Independent Case Surge
• Positive Sentiment: Management expects second-quarter sales to rise and maintained its fiscal 2027 outlook, supporting expectations for continued growth. Performance Food Group Q1 Results Improve, Expects Q2 Sales To Rise; Backs Annual Outlook
• Positive Sentiment: TD Cowen raised its price target from $110 to $125 and reiterated a Buy rating, signaling greater analyst confidence in the shares. TD Cowen stock recommendations
• Neutral Sentiment: Revenue totaled $18.02 billion, matching consensus estimates, while increasing 5.5% year over year. Performance Food Group Fiscal Q1 Adjusted Earnings, Net Sales Rise

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Citigroup raised their price objective on shares of Performance Food Group from $143.00 to $144.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Wells Fargo & Company upped their target price on Performance Food Group from $115.00 to $130.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Weiss Ratings downgraded Performance Food Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 9th. TD Cowen increased their price target on Performance Food Group from $110.00 to $125.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of Performance Food Group in a research report on Thursday, August 13th. Eleven analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $127.67.

Performance Food Group Company Profile

Performance Food Group Co (NYSE:PFGC) is a food and foodservice distribution company serving restaurants, convenience stores, schools, health care facilities, hospitality businesses and other institutional customers. The company supplies a broad selection of fresh, frozen and dry food products, beverages, disposables, kitchen supplies and related equipment.

Performance Food Group operates through three primary business areas: Foodservice, which distributes products to independent and chain restaurants and institutional customers; Vistar, which supplies candy, snacks, beverages and other products to vending, theater, hospitality and specialty retail customers; and Convenience, which serves convenience stores and other retail locations with food, beverages, tobacco products and related merchandise.

The company traces its origins to 1987 and is headquartered in Richmond, Virginia.