Performance Food Whips Up Growth, But Profit Miss Takes A Bite Out

Performance Food Group Co PFGC reported third-quarter 2025 revenue growth of 10.5% year-on-year to $15.31 billion, missing the analyst consensus estimate of $15.4 billion.

Total case volume grew 10% year over year. The increase in net sales was driven by recent acquisitions, including the purchase of Cheney Bros, an increase in cases sold, including a favorable shift in the mix of cases sold, and an increase in selling price per case due to inflation. 

Net sales for food service increased 19.2% to $8.4 billion, and Specialty decreased 0.2% to $1.1 billion.

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Operating expenses rose 16.5% to $1.6 billion. Gross profit increased 16.2% Y/Y to $1.8 billion, with the margin expanding 60 basis points to 11.9%.

The operating margin was 1.1%, and operating income for the quarter was $174.4 million versus $154.9 million last year.

Adjusted EBITDA for the quarter jumped 20.1% to $385.1 million. Adjusted EPS of $0.79 missed the analyst consensus estimate of $0.87. 

As of March 29, the company held $10.2 million in cash and equivalents. Net cash provided by operating activities for the nine months totaled $827.1 million, compared to $956.7 million last year.

As of March 29, approximately $166.4 million remains available for additional share repurchases under the company’s $300 million share repurchase program authorized by the Board of Directors in November 2022.

Outlook: The company cut the top end of its FY23 sales outlook range and sees $63 billion – $63.5 billion (prior $63 billion – $64 billion) versus the $63.24 billion consensus.

PFGC expects adjusted EBITDA of $1.725 billion to $1.75 billion.

Price Action: PFGC shares traded lower by 0.06% at $81.03 at last check Wednesday.

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