Performance Food Group (NYSE:PFGC) Shares Gap Down on Disappointing Earnings

Shares of Performance Food Group Company (NYSE:PFGC) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $113.96, but opened at $105.79. Performance Food Group shares last traded at $106.4350, with a volume of 604,709 shares.

The food distribution company reported $1.59 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.01). Performance Food Group had a return on equity of 15.33% and a net margin of 0.49%.The firm had revenue of $18.03 billion for the quarter, compared to the consensus estimate of $18.11 billion. During the same quarter last year, the firm posted $0.84 earnings per share. The business’s revenue for the quarter was up 6.7% on a year-over-year basis.

Key Headlines Impacting Performance Food Group

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

• Positive Sentiment: Fiscal fourth-quarter net sales rose approximately 6.4%–6.7% year over year to about $18.0 billion, while net income increased 23.4% to $162.3 million. Total case volume grew 3.5%, including an 8.0% increase in independent foodservice volume. PFGC reports fiscal Q4 net sales of $18.0 billion
• Positive Sentiment: Management expects fiscal 2027 adjusted EBITDA of approximately $2.125 billion to $2.225 billion and revenue of $72.5 billion to $73.0 billion, broadly matching the $72.6 billion analyst consensus. Performance Food Sales, Profit Rise on Higher Prices
• Neutral Sentiment: Higher prices helped lift sales and profit, but costs also increased, leaving investors focused on whether Performance Food Group can sustain margin improvement. Fiscal fourth-quarter gross profit rose 8.3% to $2.2 billion.
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” rating, providing some support despite the earnings reaction. Performance Food Group Given Average Recommendation of Moderate Buy
• Negative Sentiment: Adjusted quarterly EPS was $1.59, below consensus estimates ranging from $1.60 to $1.62, while revenue of $18.03 billion also missed the $18.11 billion estimate. The earnings miss is the clearest near-term catalyst for the stock’s decline. Performance Food Group Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Fiscal 2027 revenue guidance is roughly in line with expectations, while first-quarter revenue guidance of $17.9 billion to $18.1 billion reaches consensus only at the top end, suggesting limited near-term upside.

Wall Street Analyst Weigh In

Several brokerages have issued reports on PFGC. TD Cowen initiated coverage on shares of Performance Food Group in a research report on Tuesday, July 7th. They issued a “buy” rating and a $128.00 price target for the company. Citigroup lifted their price target on shares of Performance Food Group from $135.00 to $143.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Weiss Ratings reissued a “hold (c)” rating on shares of Performance Food Group in a research note on Wednesday, June 24th. Morgan Stanley increased their price objective on Performance Food Group from $120.00 to $131.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Finally, Guggenheim raised their target price on Performance Food Group from $115.00 to $125.00 and gave the stock a “buy” rating in a research report on Monday, June 29th. Eleven 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 currently has an average rating of “Moderate Buy” and an average target price of $123.82.

Insider Buying and Selling at Performance Food Group

In other Performance Food Group news, Director Kimberly Grant sold 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $95.00, for a total transaction of $237,500.00. Following the completion of the transaction, the director owned 11,935 shares in the company, valued at approximately $1,133,825. This trade represents a 17.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider A Brent King sold 6,111 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $105.00, for a total transaction of $641,655.00. Following the completion of the transaction, the insider owned 44,260 shares in the company, valued at $4,647,300. This trade represents a 12.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 27,187 shares of company stock valued at $2,743,695. 4.50% of the stock is currently owned by company insiders.

Institutional Trading of Performance Food Group

Institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. lifted its stake in shares of Performance Food Group by 30.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 791,881 shares of the food distribution company’s stock valued at $62,266,000 after purchasing an additional 184,066 shares during the period. Empowered Funds LLC acquired a new stake in Performance Food Group during the first quarter worth approximately $359,000. EverSource Wealth Advisors LLC increased its holdings in Performance Food Group by 440.2% in the second quarter. EverSource Wealth Advisors LLC now owns 659 shares of the food distribution company’s stock worth $58,000 after purchasing an additional 537 shares in the last quarter. Marshall Wace LLP bought a new stake in Performance Food Group in the second quarter worth approximately $230,000. Finally, Qube Research & Technologies Ltd lifted its stake in Performance Food Group by 499.5% in the second quarter. Qube Research & Technologies Ltd now owns 328,849 shares of the food distribution company’s stock valued at $28,764,000 after buying an additional 273,997 shares during the period. Institutional investors own 96.87% of the company’s stock.

Performance Food Group Stock Performance

The stock has a market capitalization of $16.70 billion, a price-to-earnings ratio of 50.62, a price-to-earnings-growth ratio of 1.43 and a beta of 0.91. The company has a 50 day simple moving average of $109.16 and a 200-day simple moving average of $97.73. The company has a quick ratio of 0.68, a current ratio of 1.52 and a debt-to-equity ratio of 1.40.

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.