Performance Food Group (NYSE:PFGC) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Performance Food Group (NYSE:PFGC) announced its quarterly earnings data on Wednesday. The food distribution company reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.05, FiscalAI reports. Performance Food Group had a net margin of 0.57% and a return on equity of 15.25%. The business had revenue of $18.02 billion for the quarter, compared to analyst estimates of $18.02 billion. During the same period in the prior year, the firm posted $0.60 EPS. The company’s revenue was up 5.5% on a year-over-year basis.

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 Stock Down 2.0%

Shares of NYSE:PFGC traded down $2.20 during mid-day trading on Friday, hitting $107.48. 653,315 shares of the company traded hands, compared to its average volume of 1,868,520. The firm has a market cap of $16.93 billion, a P/E ratio of 42.79, a PEG ratio of 1.41 and a beta of 0.91. The firm’s 50 day simple moving average is $95.73 and its 200 day simple moving average is $97.58. 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 1.32, a quick ratio of 0.67 and a current ratio of 1.61.

Insiders Place Their Bets

In related news, insider Hugh Hatcher sold 3,000 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $99.18, for a total value of $297,540.00. Following the completion of the transaction, the insider owned 58,167 shares of the company’s stock, valued at approximately $5,769,003.06. This represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider A. King sold 8,023 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $104.21, for a total value of $836,076.83. Following the completion of the transaction, the insider directly owned 47,800 shares in the company, valued at approximately $4,981,238. The trade was a 14.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 41,459 shares of company stock worth $4,317,917. 2.10% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of analysts have recently commented on PFGC shares. Citigroup upped their price objective on Performance Food Group from $143.00 to $144.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $133.00 price objective on shares of Performance Food Group in a report on Thursday, August 13th. Morgan Stanley lifted their price objective on Performance Food Group from $131.00 to $136.00 and gave the company an “overweight” rating in a research note on Thursday, October 15th. Sanford C. Bernstein boosted their target price on Performance Food Group from $130.00 to $135.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, Weiss Ratings cut Performance Food Group from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 9th. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $128.70.

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.