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Performance Food Group Co PFGC

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Performance Food Group Reports Record-High Sales, but Shares Appear Over-Cooked

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.

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Company Profile

Business Description

Performance Food Group is the third-largest U.S. food-service distributor, with 7% market share and a heavy presence along the Eastern seaboard, the Southeast, and the Midwest. PFG’s food-service business (expected to be 52% of fiscal 2022 sales) has its largest exposure to national and regional restaurant chains (50% of segment revenue), followed by independent restaurants (36%) and other channels (15%) such as healthcare facilities, hotels, and schools. The firm’s Vistar segment (48% of sales) is a national distributor of candy, snacks, and beverages to convenience stores, vending and office coffee service distributors, theaters, sporting arenas, and correctional facilities.

Contact
12500 West Creek Parkway
Richmond, VA, 23238
T +1 804 484-7700
Sector Consumer Defensive
Industry Food Distribution
Most Recent Earnings Jun 30, 2021
Fiscal Year End Jul 2, 2022
Stock Type Slow Growth
Employees 23,000

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