PFGC earnings analysis
What we found in PFGC's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Performance Food Group delivered improving fiscal 2026 operating momentum, with sales up 7.2%, case volume up 5.1%, Adjusted EBITDA up 9.2%, and diluted EPS recovering to $2.29 from $2.18. Foodservice, particularly the independent channel and Cheney Brothers contribution, drove most of the growth, while Convenience produced the strongest EBITDA growth. Cash generation and debt repayment improved, but thin operating margins, elevated interest costs, fuel-price sensitivity, and acquisition-related expense growth temper the outlook; the modest Q4 revenue and EPS misses also support a neutral rather than bullish stance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Broad-Based Revenue and Volume Growth
- Net sales rose 7.2% to $67.8395 billion in fiscal 2026, while total case volume increased 5.1% and organic case volume increased 2.8%. Product-cost inflation was approximately 4.5%, indicating growth was supported by both volume and pricing.
- Scale and Independent-Channel Strategy
- Management describes scale, Performance Brands, purchasing efficiencies, supply-chain capabilities, independent-customer expansion, geographic expansion, technology, and strategic acquisitions as core competitive advantages. Foodservice independent case growth was 10.2%, including 5.9% organic growth, and independent customers represented 42.1% of Foodservice sales.
- Foodservice Drives Growth
- Foodservice remained the primary growth engine, with external sales of $36.5461 billion and Segment Adjusted EBITDA of $1,293.0 million. The Cheney Brothers acquisition contributed $3.7 billion of fiscal 2026 sales and $142.8 million of gross profit impacting Foodservice Adjusted EBITDA.
- Earnings Recovery Despite Thin Margins
- Profitability improved from fiscal 2025: gross profit increased 9.1% to $8,090.6 million, operating profit increased 8.7% to $887.5 million, diluted EPS increased to $2.29 from $2.18, and Adjusted EBITDA increased 9.2% to $1,929.4 million. The improvement followed a fiscal 2025 decline in net income and EPS versus fiscal 2024.
- Stronger Cash Generation
- Operating cash flow increased to $1,413.7 million from $1,210.1 million, and cash flow after property, plant and equipment purchases was approximately $1,029.6 million. Capital purchases declined to $384.1 million from $506.0 million, while net cash paid for acquisitions was $383.4 million versus $2.5964 billion in fiscal 2025.
- Debt Repaid; Buybacks Moderated
- Capital allocation shifted toward debt reduction and balance-sheet management: the company repaid the $1.060 billion 2027 Notes and made $384.0 million of net ABL repayments, while issuing $1.060 billion of 5.625% Notes due 2034 to refinance the 2027 maturity. Only $1.5 million of stock was repurchased in fiscal 2026, leaving $498.5 million available under the $500 million authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Fuel, Tariff, and Geopolitical Exposure
- The filing identifies evolving tariffs, geopolitical events, and Middle East tensions as sources of uncertainty; it states that the conflict contributed to significantly higher fiscal 2026 fuel prices. A 10% increase in diesel prices would raise annual fuel costs by approximately $43.9 million before customer surcharges and derivative gains, while only about 5% of expected gallons were covered by collars as of June 27, 2026.
- Variable-Rate Debt and Interest Burden
- Interest-rate sensitivity remains material despite hedging: assuming approximately $2.0 billion of average ABL borrowings, approximately $1.8 billion is variable-rate debt and a hypothetical 100-basis-point SOFR increase would raise annual interest expense by approximately $18.2 million. Total interest expense already increased 15.4% to $413.7 million in fiscal 2026.
- Acquisition and Execution Costs
- Integration and operating leverage remain execution risks following acquisitions. Fiscal 2026 operating expenses increased $602.8 million, including $156.4 million related to Cheney Brothers, while Foodservice expenses increased $430.7 million, or 11.7%, against a 10.2% increase in total independent cases; the company also incurred $20.2 million of legal and professional fees related to shareholder activism and the US Foods clean team agreement.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.29
- Gross margin
- 11.9%
- Operating margin
- 1.3%
- Segment
- Foodservice: $36.5461 billion external sales, up 8.7%; Segment Adjusted EBITDA $1,293.0 million, up 5.8%.
- Segment
- Convenience: $25.9651 billion external sales, up 5.9%; Segment Adjusted EBITDA $475.4 million, up 16.7%.
- Segment
- Specialty: $5.0533 billion external sales, up 3.1%; Segment Adjusted EBITDA $360.4 million, up 3.5%.
What they said about what is next.
The 10-K does not provide quantitative fiscal 2027 revenue or EPS guidance. Fiscal 2026 revenue of $67.8395 billion was within the prior 10-Q guidance range of $67.7 billion to $68.0 billion; annual forward outlook was deferred to the earnings press release/call.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Performance Food Group Company (PFGC) reported Q3 fiscal 2026 results, with net sales increasing by 6.4% year-over-year to $16.3 billion, and diluted EPS of $0.27, marking a 28.9% decline compared to the prior year's…
- 10-Q · February 5, 2025
- Revenue grew to $15,638.2 million in the quarter (up $1,342.5 million or ~9.4% vs. prior-year quarter), driven in part by acquisitions, but profitability and net income declined: diluted EPS fell to $0.27 from $0.50 and…
- 10-Q · May 8, 2024
- PFG reported quarterly revenue of $13,857.7 million (vs $13,771.3 million a year ago), with gross profit of $1,568.9 million but operating profit down to $154.9 million from $168.8 million. Diluted EPS was $0.45 in the…
- 10-Q · February 8, 2023
- Performance Food Group reported quarterly net sales of $13,898.9 million (three months ended December 31, 2022), up $1,060.1 million (+8.3%) versus $12,838.8 million a year ago, with gross profit rising to $1,499.6…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing PFGC makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever