Nov 4, 2026, 7:00 AM ETConsumer Defensive

Performance Food Group Company — First-Quarter Fiscal 2027 Earnings Summary

PFGCPERFORMANCE FOOD GROUP CO

Financial Performance

Net sales increased 5.5% year-over-year to $18.0 billion, driven by organic case volume growth, recent acquisitions, and a 3.4% product cost inflation.
Gross profit grew 8.5% to $2.2 billion, attributed to vendor rebates, promotional incentives, favorable case mix shifts toward the independent channel, and acquisitions.
Net income increased 38.4% to $129.5 million, up $35.9 million from the prior year period.
Adjusted EBITDA rose 10.0% to $528.0 million.
Diluted EPS increased 36.7% to $0.82, while Adjusted Diluted EPS increased 11.9% to $1.32.
Operating expenses rose 6.9% to $1.9 billion, primarily due to acquisitions, increased personnel expenses, and higher fuel costs, partially offset by gains on fuel hedges and lower professional fees.
Net cash used in operating activities improved to $89.3 million from $145.2 million in the prior year period, largely due to inventory purchase timing.
Free cash flow was negative $143.2 million, an improvement from negative $224.1 million in the prior year period.
Capital expenditures decreased $25.0 million to $53.9 million compared to the prior year.
Long-term debt increased to $5.17 billion as of September 26, 2026, from $5.01 billion as of June 27, 2026.
The effective tax rate was 25.2% in the first quarter of fiscal 2027, compared to 23.0% in the prior year period.

For the second quarter of fiscal 2027, net sales are expected to range from approximately $17.0 billion to $17.2 billion, with Adjusted EBITDA expected between $490 million and $510 million.
Full-year fiscal 2027 net sales guidance remains $72.5 billion to $73.0 billion, and Adjusted EBITDA guidance remains $2.125 billion to $2.225 billion.
The full-year guidance includes the impact of a 53rd week.
Management reiterated confidence in gaining market share and executing strategic priorities despite a challenging macroeconomic environment.

Foodservice: Net sales increased 5.0% to $9.6 billion; total case volume grew 4.2%, with independent case volume up 7.8% and organic independent case volume up 5.5%. Adjusted EBITDA increased 13.4% to $367.9 million. Independent sales as a percentage of total Foodservice sales rose to 43.0% from 41.6%.
Convenience: Net sales increased 5.4% to $6.9 billion, driven by new chain customers and price increases, partially offset by a mix shift from cigarettes to alternative nicotine products. Total cases sold increased 4.1%. Adjusted EBITDA increased 3.8% to $125.6 million.
Specialty: Net sales increased 10.3% to $1.4 billion, driven by price increases and growth in vending, grocery retail, entertainment, and office supply channels, partially offset by retail declines. Total cases sold increased 4.3%. Adjusted EBITDA decreased 4.8% to $89.5 million due to higher operating expenses.
The Specialty segment reclassified sales channels to align with management evaluation, presenting the former value channel as grocery retail and combining theater, concessions, and hospitality into entertainment.

The company reported continued market share gains across its businesses.
Growth in the independent Foodservice channel, which generates higher gross profit due to additional services, contributed significantly to overall performance.
The company operates in a low-margin industry with intense competition, noting that competitors may successfully implement lower costs.

Key risks include inflation, commodity volatility, and fuel price fluctuations.
Potential impacts from cybersecurity incidents, technology disruptions, and AI integration delays.
Risks associated with acquisitions, including integration costs and failure to realize benefits.
Declining sales volume of cigarettes and other tobacco products.
Exposure to labor relations, qualified labor availability, and extreme weather conditions.
Regulatory changes regarding e-vapor products and environmental compliance.
Potential for product recalls, litigation, and adverse legal judgments.

CEO Scott McPherson stated the company started fiscal 2027 with solid momentum, delivering strong sales and profit growth.
Management highlighted that execution on efficiency initiatives improved profitability, driving gross margin expansion and double-digit Adjusted EBITDA and EPS growth.
The tone was confident regarding the ability to continue gaining market share and delivering results through the remainder of fiscal 2027 despite macroeconomic challenges.

As of September 26, 2026, $498.5 million remained available for share repurchases under the $500 million program, which expires on May 27, 2029.
The company has over 150 locations and serves more than 350,000 locations with over 44,000 associates.
Adjusted EBITDA outlook excludes certain non-recurring income and expense items, including losses on early debt extinguishments, restructuring charges, and acquisition-related legal fees.
A conference call was held on November 4, 2026, at 9:00 a.m. Eastern Time.