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

Performance Food Group (NYSE:PFGC) released its earnings results on Wednesday. The food distribution company reported $1.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.27 by $0.05, FiscalAI reports. Performance Food Group had a net margin of 0.53% and a return on equity of 15.15%. The company 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 business earned $0.60 EPS. The firm’s quarterly 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 Up 13.4%

Shares of PFGC stock traded up $12.93 on Wednesday, reaching $109.44. 3,414,590 shares of the stock were exchanged, compared to its average volume of 1,853,438. Performance Food Group has a twelve month low of $80.82 and a twelve month high of $117.47. The company has a current ratio of 1.51, a quick ratio of 0.67 and a debt-to-equity ratio of 1.34. The company has a market capitalization of $17.24 billion, a price-to-earnings ratio of 47.81, a PEG ratio of 1.30 and a beta of 0.91. The business’s 50 day moving average price is $95.49 and its 200 day moving average price is $97.46.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on PFGC. UBS Group reduced their price objective on Performance Food Group from $132.00 to $130.00 and set a “buy” rating on the stock in a research note on Friday, August 14th. BMO Capital Markets restated an “outperform” rating on shares of Performance Food Group in a report on Thursday, August 13th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Performance Food Group in a research report on Thursday, August 13th. Citigroup lifted their price objective on Performance Food Group from $143.00 to $144.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Finally, Wells Fargo & Company boosted their price objective 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. Eleven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $126.00.

Trending Headlines about Performance Food Group

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

• Positive Sentiment: Adjusted EPS was $1.32, above analysts’ estimates of about $1.26–$1.27 and up from $1.18 a year earlier. Net income increased 38%, with growth in independent customer cases cited as a contributor. Article: Performance Food Group Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management expects sales to increase in the second quarter and maintained its fiscal 2027 outlook, offering reassurance that the company’s annual expectations remain intact. Article: Performance Food Group Q1 Results Improve, Expects Q2 Sales To Rise; Backs Annual Outlook
• Neutral Sentiment: Quarterly net sales were $18.02 billion, up 5.5% year over year and broadly in line with analyst expectations, so revenue growth was solid but not a clear consensus surprise. Article: Performance Food Group Fiscal Q1 Adjusted Earnings, Net Sales Rise

Insider Activity at Performance Food Group

In other news, insider Erika T. Davis sold 1,320 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $105.29, for a total transaction of $138,982.80. Following the sale, the insider owned 40,402 shares of the company’s stock, valued at approximately $4,253,926.58. This trade represents a 3.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Hugh Hatcher sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $99.18, for a total value of $297,540.00. Following the sale, the insider owned 58,167 shares of the company’s stock, valued at approximately $5,769,003.06. The trade was a 4.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 41,459 shares of company stock worth $4,317,917 over the last three months. Company insiders own 2.10% of the company’s stock.

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.