Analyst Note| Rebecca Scheuneman, CFA |
No-moat Performance Food Group reported fiscal fourth-quarter sales of $9.3 billion, 50% and 9% higher than the fourth quarters of fiscals 2020 and 2019, respectively, excluding the 53rd week. This was better than our $8.0 billion estimate and the $8.7 billion FactSet consensus. Management reported that sales have not decelerated in recent weeks, despite a pickup in the number of COVID-19 cases. Product shortages remain a challenge, and we suspect the firm could be gaining market share as a result, as its clout as the third-largest U.S. food-service distributor likely allows it to more easily secure product than its smaller competitors.