Performance Food Group Co. Reports 8% Sales Growth in FQ2, Driven by Price Inflation and Channel Mix.

Trending News ☀️

Performance Food ($NYSE:PFGC) Group Co. (PFG) is a leading foodservice distributor in the United States. The company saw a 6.6% growth in independent case sales, which are cases sold to independent restaurants and other food service customers. This was largely due to higher selling prices per case due to inflationary pressures. PFG has also experienced positive growth in its other product categories, including frozen and refrigerated food items, as well as other non-food items such as paper goods and supplies. This is a testament to the company’s ability to deliver a wide range of products and services to meet customers’ needs.

The positive sales growth in FQ2 is a strong indicator of the company’s potential for future success. Going forward, PFG will continue to focus on providing customers with high-quality products and services that meet their needs, while also maintaining its commitment to excellent customer service. This combination of factors should help PFG continue to grow and succeed in the foodservice industry.

Share Price

The news coverage has been largely positive, with analysts expecting the company to continue to grow.

However, the stock market did not respond in kind; on Wednesday, Performance Food Group Co. stock opened at $60.5 and closed at $59.9, down by 3.1% from its prior closing price of 61.8. This indicates that investors may be wary of the company’s long-term outlook. They provide food products, equipment and supplies to restaurants, healthcare facilities, educational institutions and other foodservice venues. The company has been making investments in technology and automation to improve their efficiency and reduce their costs. They have also been focusing on expanding their portfolio of products, with a particular focus on health and wellness items to meet the changing demands of customers. Overall, Performance Food Group Co.’s second quarter sales growth is encouraging news for investors and a sign that the company may be well-positioned for further growth in the coming quarters. However, investors will need to keep a close eye on the company’s performance to assess whether the market’s reaction was warranted or not. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Performance Food. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Performance Food. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Performance Food. More…

Key Ratios Snapshot

Some of the financial key ratios for Performance Food are shown below. More…

Analysis

GoodWhale’s analysis of PERFORMANCE FOOD‘s fundamentals has classified it as a “cheetah” company. This type of company is characterized by high revenue or earnings growth, but is considered to be less stable due to lower profitability. Investors who may be interested in such a company could include those seeking quick rewards and high returns on investment, as well as those that are comfortable with a higher level of risk. Its health score of 8/10 was given considering its cashflows and debt, meaning the company is capable of paying off debt and funding future operations. This could be attractive to investors looking for a company with solid financials that can survive future economic uncertainties. The company’s assets and profitability indicate it could be a sound long-term investment. The higher growth potential, combined with its low dividend rate, is an attractive combination for investors looking for both short-term rewards and long-term capital gains. In conclusion, PERFORMANCE FOOD’s fundamentals make it an attractive investment for those who are comfortable with a higher level of risk in exchange for potentially high returns. Its assets and profitability suggest it could be a sound long-term investment, while its higher growth potential and low dividend rate make it appealing to investors looking for both short-term rewards and long-term capital gains. More…

Peers

The company operates through three segments: Performance Foodservice, PFG Customized, and Vistar. Performance Foodservice segment offers food and non-food products to independent restaurants, quick-service restaurants, caterers, and national restaurant chains. PFG Customized segment provides food and non-food products to customers who desire a customized distribution solution. Vistar segment supplies non-food products, equipment, and solutions to customers in the vending, office coffee service, theatre, and foodservice management industries.

– US Foods Holding Corp ($NYSE:USFD)

With a market capitalization of $6.66 billion as of 2022, US Foods Holding Corp is a publicly traded foodservice distributor. The company operates a network of nearly 300 distribution centers across the United States, serving more than 250,000 customers. US Foods Holding Corp also offers a variety of foodservice solutions, including custom-cut meat, seafood, and poultry; branded and private label products; and kitchen supplies and equipment. The company’s return on equity was 6.98% as of 2022.

– Sysco Corp ($NYSE:SYY)

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of brands includesSysco, Brakes, FreshPoint and EFS. The company operates approximately 330 distribution facilities worldwide and serves more than 625,000 customer locations.

– Sligro Food Group NV ($LTS:0MKM)

Sligro Food Group is a Dutch food retailer and wholesaler. The company has a market cap of 662.56M as of 2022 and a return on equity of 8.07%. The company operates a chain of supermarkets and hypermarkets under the brand name “Sligro”.

Summary

Performance Food Group Co. reported 8% sales growth in their second quarter, attributed to price inflation and a shift in sales channels. Despite the positive news, the stock price declined on the day of the announcement. Investors may be concerned about the effects of inflation on future sales or the potential risk of relying too heavily on one channel for sales. Regardless, this quarter’s growth is an encouraging sign for prospective investors and could be a sign of future success for the company.