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

Performance Food Group (NYSE:PFGC) released its quarterly earnings results on Wednesday. The food distribution company reported $1.32 EPS for the quarter, topping the consensus estimate of $1.27 by $0.05, FiscalAI reports. The business had revenue of $18.02 billion during the quarter, compared to analysts’ expectations of $18.02 billion. Performance Food Group had a return on equity of 15.15% and a net margin of 0.53%. The company’s quarterly revenue was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.60 earnings per share.

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 Trading Up 13.4%

PFGC stock traded up $12.93 during midday trading on Wednesday, hitting $109.44. The stock had a trading volume of 3,414,590 shares, compared to its average volume of 1,853,438. The firm has a market cap of $17.24 billion, a PE ratio of 47.81, a price-to-earnings-growth ratio of 1.30 and a beta of 0.91. The company’s 50-day moving average price is $95.49 and its 200 day moving average price is $97.46. Performance Food Group has a 12-month low of $80.82 and a 12-month high of $117.47. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.51 and a quick ratio of 0.67.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on PFGC shares. TD Cowen lowered their target price on shares of Performance Food Group from $115.00 to $110.00 and set a “buy” rating on the stock in a research report on Thursday, October 15th. Weiss Ratings downgraded Performance Food Group from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 9th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Performance Food Group in a research note on Thursday, August 13th. Citigroup boosted their target price on Performance Food Group from $143.00 to $144.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Finally, UBS Group lowered their target price on Performance Food Group from $132.00 to $130.00 and set a “buy” rating on the stock in a report on Friday, August 14th. Eleven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $126.00.

Key Stories Impacting 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 Donald Bulmer sold 10,535 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $105.90, for a total transaction of $1,115,656.50. Following the transaction, the insider directly owned 54,291 shares in the company, valued at $5,749,416.90. This represents a 16.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Hugh Hatcher sold 3,000 shares of the business’s 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 sale, the insider owned 58,167 shares of the company’s stock, valued at $5,769,003.06. The trade was a 4.90% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 41,459 shares of company stock worth $4,317,917. 2.10% of the stock is owned by insiders.

About Performance Food Group

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.