Research · Sep 3, 2026
[PFGC] Performance Food Group Thesis 2026: Cheney Brothers Integration Scales Independent Restaurant Channel
Performance Food Group (PFGC) FY25 (Jun) revenue $63.30B (+8.6%); op income $816M (-1.2%); NI $340M (-22%); EPS $2.18 (-22%). FCF $704M (-8%). Total debt $8.0B (+61% vs FY24, post-Cheney). Three segments: Foodservice (largest), Convenience (Core-Mark), Specialty (formerly Vistar). Q4 FY25 organic ind case growth +5.9%; Q1 FY26 +6%; Q2 FY26 +5.3% organic + 5.8% account growth. Q1 FY26 Foodservice sales +18.8%, segment adj EBITDA +18.1%. Convenience Q2 FY26 sales +6.1%, adj EBITDA +13.4%; new wins Love's Travel Stops + RaceTrac. Specialty theater down >30% Q2 FY26; vending/office coffee/campus/e-commerce strong. Cheney Brothers acquisition closed Q2 FY25 (Dec 2024); Jose Santiago Puerto Rico. Sales force +6-7% YoY headcount. Performance Brands 53% sales to independents. FY26 guide (Q2 FY26 update): net sales $67.25-68.25B, adj EBITDA $1.875-1.975B, Q3 FY26 $16.0-16.3B / $390-410M EBITDA. Strategic priorities: revenue growth, share gains, GM enhancement, operating leverage. Debt reduction priority (target 2.5-3.5x leverage). George Holm CEO retirement announced Q2 FY26. Risks: macro, Cheney integration, theater, deflation, inflation, CEO transition, tariffs, immigration, leverage, competition (SYY, USFD).