Performance Food Group Hits Record Sales

Performance Food Group Company(NYSE:PFGC) reported fourth-quarter earnings for fiscal 2025 (ended June 28, 2025) on August 13, delivering net sales growth of 11.5% year-over-year in the fourth quarter of fiscal 2025, surpassing $63 billion in annual revenue for fiscal 2025, and a 19.9% year-over-year increase in adjusted EBITDA to $546.9 million in fiscal 2025. Management guided fiscal 2026 net sales to between $67 billion and $68 billion and adjusted EBITDA of $1.9 billion to $2 billion, and provided updates on major new business wins, capital allocation, and a rejected M&A approach from US Foods.

PFGC accelerates market share gains through aggressive Salesforce expansion

The company reported an 8.8% full-year increase in foodservice sales representatives in fiscal 2025 and achieved 4.6% organic independent restaurant case growth in fiscal 2025, which rose to 5.9% in the fourth quarter of fiscal 2025, despite broader industry pressures. Approximately 82% of the business is comprised of restaurants, making salesforce capacity in this channel critical to driving margin and volume gains.

"In the fourth quarter, we continued to hire foodservice sales reps at a very aggressive rate, ending the year with an 8.8% increase compared to the prior year. We are not slowing down this important investment in our business. As I mentioned earlier, the industry backdrop has room to improve, and I am confident that we will see better trends in the future. The investments we are making in our people now will enable us to significantly accelerate growth as the industry finds its footing." -- George Holm, CEO

This ongoing investment in high-quality sales talent positions Performance Food Group Company to outpace competitors and capture incremental share as restaurant industry demand recovers, offering a powerful lever for long-term compound growth.

PFGC delivers record performance and margin expansion across all business segments

Adjusted EBITDA in the fourth quarter of fiscal 2025 rose 19.9% year-over-year to $546.9 million, driven by double-digit profit growth in the convenience segment, 9% adjusted EBITDA growth in specialty in the fourth quarter of fiscal 2025, and improved gross profit per case by $0.17 in the fourth quarter of fiscal 2025. Gross margin improvements reflect both business mix optimization and rigorous cost management, including meaningful procurement synergies realized in fiscal 2025 from recent acquisitions of Jose Santiago and Cheney Brothers.

"In fiscal 2025, we achieved net sales above the midpoint of the long-term target range we announced in 2022, with adjusted EBITDA above the high end of the target range. The financial priorities we outlined at our Investor Day in May support our operating strategy and new three-year sales and adjusted EBITDA targets. We are focused on translating our profit into strong and stable cash flow, which we then look to deploy in value-creating investments and cash return to shareholders." -- Patrick Hatcher, CFO

Superior segment execution, coupled with clearly articulated deployment of excess cash into high-return projects and share repurchases, enhances the durability and quality of future earnings streams.

PFGC rebuffs US Foods approach, affirms stand-alone value creation strategy

Management disclosed that US Foods requested information sharing regarding a possible business combination, referencing outreach in the week prior to the fourth quarter fiscal 2025 earnings call, which was declined after board-level review, citing high execution standards and confidence in the existing growth path. During 2025, the company advanced its three-year strategic plan—aimed at food away from home market leadership—while maintaining an active M&A pipeline focused on disciplined bolt-on acquisitions rather than transformative deals. Management stated there are actionable opportunities but "nothing significant in size" in the current pipeline.

"Because of the successful execution of our strategy and our confidence in the path forward, any transaction would need to clear a high bar on all fronts: value, speed, and certainty to completion, taking into consideration associated risks, including regulatory, synergy, and integration risks. After careful consideration, the Performance Food Group Company board determined that there was no basis to engage in the information sharing requested by US Foods. We have demonstrated Performance Food Group Company's powerful value proposition across our three business segments, have strong momentum underway, and have conviction in the value-creating potential of our strategy." -- George Holm, CEO

By declining discussions with US Foods and reaffirming its independent trajectory, Performance Food Group Company signaled management’s confidence in delivering long-term shareholder value as a stand-alone leader.

Looking Ahead

Performance Food Group Company guided fiscal 2026 net sales to between $67 billion and $68 billion and adjusted EBITDA to between $1.9 billion and $2 billion, with first-quarter fiscal 2026 net sales expected to be between $16.6 billion and $16.9 billion and adjusted EBITDA projected at $465 million to $485 million for the first quarter of fiscal 2026. Capital expenditures are planned at 70 basis points of sales in fiscal 2026, focused on warehouse and fleet expansion, while debt reduction remains the primary capital allocation priority. Three-year targets, reaffirmed at Investor Day, call for $73 billion to $75 billion in sales and $2.3 billion to $2.5 billion in adjusted EBITDA for fiscal 2028.

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