Performance Food Group Reiterates Fiscal 2027 Outlook

The Tip Desk · November 4, 2026 · 3 min read

First-quarter net sales rose 5.5% to $18.0 billion as Adjusted EBITDA grew 10.0% to $528.0 million.

Performance Food Group Company (PFGC), a North American food and foodservice distributor, reported first-quarter fiscal 2027 net sales of $18.0 billion, a 5.5% increase from a year earlier, as Adjusted EBITDA rose 10.0% to $528.0 million.

The company said the slower sales pace compared with the 6.4% increase in the fourth quarter of fiscal 2026 still reflected market-share gains, organic case growth, recent acquisitions and higher selling prices. Total case volume increased 4.2%, and organic case volume rose 2.5%.

President and Chief Executive Officer Scott McPherson said continued market-share gains across the businesses drove case volume and revenue, and that execution on efficiency initiatives improved profitability. The company reiterated full-year fiscal 2027 guidance of net sales of approximately $72.5 billion to $73.0 billion and Adjusted EBITDA of approximately $2.125 billion to $2.225 billion, a range that includes the impact of a 53rd week.

Gross profit improved 8.5% to $2.2 billion. The company attributed the increase primarily to vendor rebates and promotional incentives, a favorable shift in the mix of cases sold, including growth in the independent channel, and recent acquisitions. Overall product cost inflation was approximately 3.4%, down from about 4.7% in the fourth quarter of fiscal 2026. Operating expenses rose 6.9% to $1.9 billion, which the company said was driven by acquisitions, higher personnel costs and fuel expenses, partially offset by realized fuel-hedge gains and lower professional fees and insurance.

Net income increased 38.4% to $129.5 million, or $0.82 a share, after a 23.4% increase in the fourth quarter of fiscal 2026. Adjusted diluted EPS was $1.32. The company said the net-income increase was driven primarily by higher gross profit and lower interest expense, partially offset by higher operating expenses and income tax expense. The effective tax rate was 25.2%.

Foodservice, the largest reportable segment, posted net sales of $9.6 billion, up 5.0%. Total Foodservice case growth was 4.2%, and independent case growth was 7.8%. Independent sales rose to 43.0% of Foodservice sales from 41.6% a year earlier. Foodservice Adjusted EBITDA increased 13.4% to $367.9 million. The company said Foodservice gross profit contributing to Adjusted EBITDA rose 10.7% on more cases, a mix shift including more Performance Brands products to independent customers, vendor rebates and acquisitions. Foodservice operating expenses impacting Adjusted EBITDA increased 9.7%.

Convenience net sales increased 5.4% to $6.9 billion, with total Convenience cases up 4.1%. Convenience Adjusted EBITDA increased 3.8% to $125.6 million. The company said Convenience sales were driven by new chain customers and inflation, partially offset by a mix shift from cigarettes to alternative nicotine products.

Specialty net sales increased 10.3% to $1.4 billion, with Specialty cases up 4.3%. Specialty Adjusted EBITDA decreased 4.8% to $89.5 million, which the company attributed primarily to higher operating expenses, including personnel costs, bad debt, fuel and third-party outbound freight, partially offset by a 3.5% increase in gross profit contributing to Adjusted EBITDA. During the current fiscal year, Specialty revised channel classifications, presenting the former value channel as grocery retail and combining theater, concessions and hospitality as entertainment.

Net cash used in operating activities was $89.3 million, compared with $145.2 million a year earlier. The company said the improvement was largely driven by a change in the timing and volume of advanced inventory purchases to take advantage of preferred pricing. Capital expenditures were $53.9 million. Free cash flow was negative $143.2 million, compared with negative $224.1 million a year earlier. As of September 26, 2026, $498.5 million remained available under a $500 million share-repurchase program that expires May 27, 2029.

For the second quarter of fiscal 2027, PFG expects net sales of approximately $17.0 billion to $17.2 billion and Adjusted EBITDA of approximately $490 million to $510 million.