Performance Food to Repurchase $300M in Shares

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Performance Food ($NYSE:PFGC) Group Company (NYSE: PFGC) announced Wednesday a new four-year share repurchase program for up to $300 million of its outstanding common stock. The new program will be funded with cash on hand, cash generated from operations and borrowings under the firm’s credit facility. The previous $250 million share repurchase program was set to expire on March 31.

“Our strong free cash flow generation and balance sheet position us well to return significant capital to our shareholders through share repurchases and dividends,” said George Holm, Performance Food Group’s chief executive officer. “We are confident in our ability to continue to drive shareholder value through our differentiated foodservice platform and strategic initiatives.”

Market Price

performance food group company announced that it would repurchase $300 million of its common stock. So far, news sentiment around the move has been mostly positive, with analysts citing the move as a sign of confidence in the company’s future prospects. On Wednesday, PERFORMANCE FOOD stock opened at $58.0 and closed at $58.7, up by 1.0% from the previous day’s close of 58.1. This is a positive sign, as it suggests that investors are confident in the company’s ability to execute on its repurchase plan.

Overall, this move by PERFORMANCE FOOD is a positive sign for the company’s future prospects. It shows that management is confident in the company’s ability to generate strong cash flows, and it should help to support the stock price in the long run.

VI Analysis

Performance Food Group is a strong growth company that is medium in asset and profitability, and weak in dividend. The company has a high health score of 8/10, which indicates that it is capable of safely weathering any crisis without the risk of bankruptcy. Performance Food Group is classified as a “cheetah” company, which means that it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are interested in this type of company may be attracted to its high growth potential, but should be aware of the risks associated with its less stable financial position.

VI 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

If you’re looking for a food company to invest in, Performance Food could be a good option. The company recently announced that it would be repurchasing $300 million worth of shares, which is a positive sign for investors. Furthermore, the company’s financials are generally strong, with healthy revenue and profit margins. Of course, as with any investment, there are risks involved. The food industry is notoriously competitive, and Performance Food could face challenges from larger rivals.

Additionally, the company is reliant on a small number of key customers, so any major changes in their buying habits could have a significant impact on Performance Food’s bottom line. Overall, Performance Food looks like a solid investment option for those interested in the food industry. With strong financials and a share repurchase program in place, the company is well-positioned to reward investors in the years to come.