Revenue: Exceeded $63 billion for fiscal 2025.
Net Sales Growth: 11.5% increase in Q4 2025.
Organic Independent Case Growth: 5.9% in Q4 2025.
Chain Business Case Growth: 4.5% in Q4 2025.
Adjusted EBITDA: Increased 19.9% to $546.9 million in Q4 2025.
Net Income: $131.5 million in Q4 2025.
Diluted EPS: $0.84 in Q4 2025; Adjusted diluted EPS: $1.55.
Operating Cash Flow: $1.2 billion for fiscal 2025.
Free Cash Flow: Approximately $704 million for fiscal 2025.
Capital Expenditures: $506 million in fiscal 2025.
Convenience Segment Profit Growth: Adjusted EBITDA growth of 4.8% in Q4 2025.
Specialty Segment Sales Growth: 4.1% increase in Q4 2025.
Guidance for Fiscal 2026: Projected net sales between $67 billion and $68 billion; Adjusted EBITDA between $1.9 billion and $2 billion.
Release Date: August 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Performance Food Group Co (NYSE:PFGC) achieved a significant milestone by surpassing $63 billion in top-line revenue for fiscal 2025.
The company reported a 14.6% increase in gross profit for the fourth quarter, with a gross profit per case increase of $0.17 compared to the prior year.
PFGC’s food service segment experienced nearly 6% organic independent case growth in the fourth quarter, indicating strong market share gains.
The convenience segment achieved positive case growth in each quarter of fiscal 2025, despite industry-wide sales declines.
PFGC’s specialty segment saw a 4.1% increase in net sales in the fourth quarter, with strong performance in vending, office coffee services, retail, and value channels.
The food away from home industry is still not operating at the desired level, impacting overall market conditions.
PFGC’s independent restaurant case growth target of 6% was not met in 2025, achieving only 4.6% growth.
The convenience segment continues to face mid-single-digit sales declines across key categories.
High competition in the theater channel and financial struggles for several customers affected the specialty segment.
The company is facing increased costs due to investments in sales force expansion and onboarding new convenience accounts, which may impact short-term profitability.
Q: How are you feeling about your July and August performance, and what industry traffic backdrop are you building your guidance on? A: George Holm, CEO: So far, July and the first couple of weeks of August have shown an uptick, especially in our independent food service business. We are confident in achieving a 6% growth target this year. Scott McPherson, COO: Black box results improved over the fourth quarter, with positive trends in July. The convenience segment remains pressured, but we continue to grow and outperform. Specialty segments also show momentum, particularly in e-commerce.
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Q: Are you seeing any changes in the availability of quality sales talent, and will there be changes in your hiring pace? A: Scott McPherson, COO: We saw great availability of talent in Q4, our strongest hiring quarter of the year, finishing with an 8.8% increase in salespeople. We are decentralized, allowing opcos to make hiring decisions. George Holm, CEO: We are hiring beyond our typical pace to aggressively pursue business, especially in the restaurant sector, which is crucial for our growth.
Q: Can you discuss the procurement savings target and its contribution to the fiscal ’26 outlook? A: Scott McPherson, COO: We are making good progress on procurement savings, creating win-win scenarios with vendors, especially after acquiring Cheney Brothers and Jose Santiago. The savings will be spread over our three-year guidance, and we are on pace to achieve our targets in the first year.
Q: What are your thoughts on the M&A landscape and your pipeline for potential deals? A: George Holm, CEO: We have some actionable conversations, but nothing significant in size. The market is active, and we are open to strategic M&A that aligns with our growth strategy. Patrick Hatcher, CFO: Our strategy remains unchanged, focusing on disciplined M&A to drive growth and shareholder value.
Q: Can you elaborate on the independent case growth and how new account growth translates to increased penetration? A: George Holm, CEO: New business accounts are slightly less than existing ones, but our salespeople secure a significant portion of new accounts’ business quickly. We’ve been growing our lines and sales, indicating increased penetration within existing accounts. Our strategy of adding salespeople is reducing account losses and enhancing growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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