PFGC Reports Weaker Q4 Results

Performance Food Group Co. (NYSE: PFGC ) stock fell Wednesday after the company reported weaker-than-expected fiscal fourth-quarter results and issued first-quarter sales guidance below Wall Street estimates.

Earnings Snapshot Performance Food Group reported adjusted earnings of $1.59 per share, narrowly missing the $1.60 analyst estimate.

Sales rose 6.4% year over year to $18.03 billion but fell short of the $18.09 billion consensus estimate.

All three operating segments contributed to the increase.

Total case volume rose 3.5%, while total Independent Foodservice case volume increased 8%.

Organic Independent Foodservice case volume grew 5.8%.

Company-wide cost inflation was about 4.7%.

Inflation stood at 2.7% in Foodservice, 5.3% in Specialty and 7.1% in Convenience.

Foodservice product inflation eased to less than 1% in July, providing some relief heading into fiscal 2027.

Gross profit increased 8.3%, while gross profit per case rose 34 cents.

The company credited procurement initiatives and continued growth in its branded products.

Adjusted EBITDA increased 7.4% year over year to $587.5 million, reaching the high end of the company's guidance.

Performance Food Group launched more than 580 branded SKUs during fiscal 2026.

Its portfolio now includes about 25,000 SKUs across more than 85 brand families.

Operating cash flow exceeded $1.4 billion in fiscal 2026, while free cash flow topped $1 billion.

GLP-1s Drive Shift Toward Protein During the earnings call, Performance Food Group CEO Scott McPherson said the company is seeing changes in consumer behavior as GLP-1 use grows.

He pointed to a shift toward more protein and fresh food, while independent restaurants are adapting menus and portion sizes.

McPherson said "protein is really the word of the day," adding that protein cereals and bars are "on fire" and manufacturers are rolling out new products to meet changing demand.

Share Buyback Performance Food Group's board approved a $500 million share repurchase program in May 2025, replacing its previous $300 million authorization.

The program expires May 27, 2029.

During the fourth quarter, the company repurchased and retired fewer than 100,000 shares for $300,000 at an average price of $83.18 per share.

As of June 27, 2026, about $498.5 million remained available under the program.

Foodservice Leads Sales Foodservice net sales increased 6.8% to $9.8 billion.

Acquisitions, inflation-related pricing and organic case growth supported the increase.

Total Foodservice cases rose 4.1%.

Total independent cases increased 8%, while organic independent cases grew 5.8%.

Independent customers accounted for 43.1% of Foodservice sales.

Performance Food Group's private-label and owned brands represented about 54% of cases sold to independent restaurants during the quarter, excluding Cheney Brothers.

The figure was slightly above 50% including Cheney Brothers.

Convenience sales rose 5.7% to $6.8 billion, helped by higher volumes from new chain customers and inflation-related pricing.

Core-Mark's segment EBITDA increased 10.4% year over year as gross margins improved and the business controlled expenses.

Major non-nicotine categories, including foodservice, candy, snacks, and health and beauty, posted mid-single-digit growth.

That compared with an industry decline of nearly 6%.

Specialty sales increased 6.6% to $1.3 billion, driven by higher pricing, increased case volumes and a favorable channel mix.

Cases rose 0.8%, led by vending, campus, travel and hospitality customers.

Fiscal 2027 Outlook For the first quarter, Performance Food Group expects sales of $17.9 billion to $18.1 billion, compared with the $18.14 billion analyst estimate.