Performance Food Group (NYSE:PFGC) Announces Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Performance Food Group (NYSE:PFGC) released its quarterly earnings results on Wednesday. The food distribution company reported $0.98 earnings per share for the quarter, missing analysts’ consensus estimates of $1.07 by ($0.09), FiscalAI reports. The company had revenue of $16.44 billion during the quarter, compared to analysts’ expectations of $16.54 billion. Performance Food Group had a return on equity of 15.97% and a net margin of 0.50%.The firm’s revenue was up 5.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.98 EPS.

Here are the key takeaways from Performance Food Group’s conference call:

• Scott McPherson is the new CEO with George Holm moving to Executive Chair, and management stresses continuity, continued M&A focus, and confidence in executing the three‑year plan.
• PFG reported solid Q2 results with total net sales up ~5.2%, adjusted EBITDA up 6.7% to $451M and net income increasing 45.5%, which management says were within prior guidance despite a tough macro backdrop.
• Integration of Cheney Brothers added higher near‑term operating and integration costs, and management warns the majority of synergies won’t flow to the income statement until late year two through year three, pressuring near‑term margins.
• The convenience segment strengthened after onboarding >500 Love’s and ~600 RaceTrac locations, with Core‑Mark adjusted EBITDA up 13.4% and favorable margin mix from growth in non‑combustible nicotine and food service sales.
• Guidance was updated downward for FY26 adjusted EBITDA to $1.875B–$1.975B (Q3 EBITDA $390M–$410M), as management factors in cheese/poultry deflation, Cheney investments, specialty theater weakness and recent weather impacts.

Performance Food Group Stock Performance

Shares of NYSE PFGC traded down $8.87 during trading on Wednesday, reaching $88.22. The stock had a trading volume of 6,848,224 shares, compared to its average volume of 2,597,598. The firm’s 50 day moving average price is $93.23 and its two-hundred day moving average price is $97.94. Performance Food Group has a one year low of $68.39 and a one year high of $109.05. The stock has a market cap of $13.83 billion, a PE ratio of 42.41, a P/E/G ratio of 1.14 and a beta of 0.93. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.70 and a current ratio of 1.67.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Danske Bank A S bought a new stake in shares of Performance Food Group during the 3rd quarter valued at about $115,000. CANADA LIFE ASSURANCE Co boosted its stake in Performance Food Group by 2.1% in the third quarter. CANADA LIFE ASSURANCE Co now owns 74,139 shares of the food distribution company’s stock valued at $7,733,000 after acquiring an additional 1,552 shares during the period. Caxton Associates LLP acquired a new position in Performance Food Group in the third quarter valued at approximately $5,804,000. Williamson Legacy Group LLC bought a new position in shares of Performance Food Group during the third quarter valued at approximately $348,000. Finally, Woodline Partners LP raised its position in shares of Performance Food Group by 27.9% during the 3rd quarter. Woodline Partners LP now owns 1,009,267 shares of the food distribution company’s stock worth $105,004,000 after purchasing an additional 220,062 shares during the period. 96.87% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on PFGC. Piper Sandler decreased their target price on shares of Performance Food Group from $116.00 to $111.00 and set an “overweight” rating for the company in a research note on Friday, December 12th. Barclays lowered their target price on Performance Food Group from $120.00 to $105.00 and set an “overweight” rating for the company in a research note on Wednesday, January 7th. Sanford C. Bernstein began coverage on Performance Food Group in a research note on Wednesday, October 22nd. They issued an “outperform” rating and a $130.00 price target on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Performance Food Group in a report on Monday, December 29th. Finally, Morgan Stanley set a $123.00 price objective on Performance Food Group in a report on Tuesday, January 20th. Nine research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $118.22.

Performance Food Group Company Profile

Performance Food Group Company (NYSE: PFGC) is a leading foodservice distribution company headquartered in Richmond, Virginia. The company operates through multiple segments, offering a broad range of products including fresh, frozen and dry foods, as well as non-food items such as supplies, paper goods and equipment. Performance Food Group serves a diverse customer base that encompasses independent and multi-unit restaurants, healthcare facilities, hospitality venues, schools, and other institutional customers.

Through its national broadline division, Performance Food Group provides next-day delivery of products sourced from both company-owned processing facilities and third-party suppliers.