Performance Food Group Company Q3 FY2026 earnings call

• Leveraging diversification across the food away from home market as central to the long-term vision. • Food service segment highlighted strong sales execution, independent case growth, and technology like Customer First. • Convenience segment praised for onboarding large customers and strong growth. • Specialty segment noted for expansion into e-commerce fulfillment and other emerging channels.

Food service segment: Food service business (excluding Cheney) saw high single-digit EBITDA growth. Independent cases accelerated to 6.5% in Q3, exceeding the 6% benchmark. New account growth was ~5.4%. Cheney continued strong sales growth, especially with independents where cases grew north of 6%. Chain business saw case volume increase with a robust pipeline of new chain business. Convenience segment: Delivered 8.7% total revenue growth and 34.1% adjusted EBITDA, with 8.3% organic case growth. Specialty segment: Case growth of 1.1% led to 5.3% revenue increase year over year, but faced margin challenges.

Full-year sales target revised to $67.7 billion to $68 billion. Full-year adjusted EBITDA expected in the range of $1.9 billion to $1.93 billion.

• Impact of fuel prices on product inflation outlook. • Uncertainty around duration of Middle East conflict affecting oil prices and potential impact on business. • Competitive landscape and market dynamics posing risks.

Q: Nice quarter, but trimmed Q4 guidance, can you talk about offsets?

A: Exit Q3 with strong top line momentum and EBITDA increase. Confident about controllables, some pressure from fuel and Cheney expenses but looking towards 27.

Q: Quantify net impact of fuel costs in Q4?

A: Gross impact for Q3 was 7.3, surcharges adjusted but some headwind in Q4.

Q: Impact of Cheney expenses on fourth quarter?

A: More spillover than anticipated due to customer transition waves, but sales growth seen in new building.

Q: On local independent case growth, can you talk about cadence?

A: January was great, then weather impacts, average of Jan-Feb equals Mar-Apr.

Q: How does CashWay's mix compare to base food service?

A: Diversified mix with independent and some convenient sales, fits well into portfolio.

Q: On Cheney, any incremental opportunities?

A: Opportunity in brands, procurement around brands, and core competencies.

Q: Impact of gas spike on business?

A: Restaurant independents outperforming chains, convenience store trips ticked up but consumer resilient.

Q: Penetration in convenience segment?

A: Primary supplier model, penetration in food service part, same-store outperformance.

Q: GLP-1 impact?

A: Some compression on snack and candy initially, but bounce back, focus on protein, fiber, smaller portions.

Q: M&A pipeline?

A: Focused on broad line food service, examples like CashWay and Chaney.

Q: Convenience segment price deflation?

A: No deflation, manufacturers discounting at point of sale with no impact on margins.

Q: Cheney private label opportunities?

A: Taking Cheney's private labels and evaluating for Chaney, aiming for 50% brand cases to independence.