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With earnings season wrapping up last week, we thought it'd be a good time to circle back to some names that might have gotten overlooked amid the flood of earnings reports. Today, we wanted to take a look at Performance Food Group (PFGC), which operates through its Foodservice, Convenience, and Specialty segments to supply customers across North America in the food-away-from-home industry. PFGC saw a nice jump following its Q4 (Jun) results on August 13.

• A positive in its Q4 report was that the company reported its largest EPS beat since Q4 of last year, following 3 consecutive quarters of a miss. Additionally, revenue increased 11.2% yr/yr to $16.9, a good bit above analyst expectations. PFGC saw strong underlying trends in all three of its segments and were boosted by the addition of José Santiago and Cheney Brothers.
• Turning to segment performance, Foodservice, which markets and distributes food and food-related products to independent and chain restaurants, is PFGC's largest segment and revenue driver. Revenue increased 20% yr/yr to $9.2 bln, accelerating from Q3 (Mar). Management noted that while restaurant foot traffic improved month-by-month, it declined yr/yr in Q4. That said, its Foodservice organization was able to offset the headwind with new accounts and increased penetration into existing accounts. As a result, its organic independent case growth was 6%. Notably, it saw an acceleration in both independent and chain businesses with higher profit contributions.
• Its Convenience segment, which supplies a full range of consumer products such as snacks, groceries and beverages to convenience stores, drug stores and grocery retailers, was impressive in Q4. Management noted that while the backdrop for the total c-store industry remains consistently difficult, the segment saw sales growth accelerate in each quarter of FY25. In particular, Core-Mark (acquired in 2021), continues to grow case volume despite total industry case declines, driven by a combination of increased foodservice programs to existing customers and new account wins. Additionally, Core-Mark has signed agreements with several new customers, and PFGC will be onboarding these stores in Q2-Q3 of FY26. Finally, its Specialty segment, which distributes to vending operators, office locations and venues such as theaters, saw a nice recovery, with sales increasing 4.2% yr/yr compared to a 0.2% decline in Q3.
• Looking ahead, the company issued FY26 revenue guidance above consensus at $67-68 bln. In terms of inflation, it expects low-single to mid-single digit inflation in FY26 and noted that increases in beef and seafood offset price decreases in FY25. Additionally, the company sources the majority of its inventory from domestic suppliers and does not expect a material impact from tariff increases.

Overall, we thought it was a good time to revisit PFGC given its strong close to FY25 last week. What stands out is the return to EPS upside and revenue coming in above expectations following a miss in Q3. All three segments showed solid acceleration in the quarter, with Specialty delivering a notable recovery. Investors appeared encouraged by the upside FY26 revenue guidance and the strong momentum the company carries into FY26, particularly in light of the mixed reports from food names over the past couple of weeks.