Performance Food Group’s first‑quarter fiscal 2026 results show net sales of $17.1 billion, up 10.8% from $15.3 billion a year earlier. The lift is driven by a 16.6% increase in independent foodservice case volume and strong performance in the Foodservice, Convenience, and Specialty segments, which reported $9.1 billion, $6.6 billion, and $1.3 billion in sales respectively.
Adjusted EBITDA rose 16.6% to $480.1 million, a margin expansion from 2.8% to 2.8% of sales. The improvement reflects higher mix in high‑margin Foodservice sales and disciplined cost management, offsetting modest increases in freight and inventory costs.
Net income fell to $93.6 million, a 13.3% decline from the prior year’s $107.2 million, largely due to higher operating and interest expenses. Adjusted earnings per share were $1.18, beating the consensus estimate of $1.14 by $0.04 (3.5%) but missing the higher estimate of $1.21. The beat is attributable to revenue growth and margin expansion, while the miss reflects the impact of the 15.7% rise in operating expenses and higher interest costs on the earnings base.
The company’s independent foodservice channel grew 16.6% in case volume, contributing to the overall sales increase. Foodservice sales reached $9.1 billion, Convenience sales were $6.6 billion, and Specialty sales were $1.3 billion. The acquisition of Cheney Brothers, closed in 2025 for $2.1 billion, is expected to add roughly $3.2 billion in annual revenue, but the quarter‑to‑quarter contribution was not disclosed.
Management raised full‑year net sales guidance to $67.5 billion–$68.5 billion from the prior $67.0 billion–$68.0 billion range and maintained adjusted EBITDA guidance at $1.9 billion–$2.0 billion. The upward revision signals confidence in continued demand growth and the successful integration of recent acquisitions.
CEO George Holm said the company is “optimistic about the balance of the year” and that the acquisition of Cheney Brothers “will expand and enhance our offerings to a high‑quality and diverse customer base.” He also noted that the company remains focused on cost discipline and strategic investments in digital ordering and warehouse automation.
Investors reacted cautiously, with some analysts noting the EPS ambiguity and the rise in operating expenses. The mixed reaction underscores the importance of profitability metrics even as revenue and guidance improve.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.