Performance Food Group Reports 23% Jump in Q4 Net Income on Strong Independent Channel Growth
The foodservice distributor posted net income of $162.3 million for the quarter ended June 27, while full-year free cash flow exceeded $1 billion.
Strong Quarter Caps Fiscal 2026
Performance Food Group Company reported fourth-quarter net income of $162.3 million, a 23.4% increase from the prior-year period, as the Richmond, Virginia-based foodservice distributor continued to gain market share in its independent customer channel (8-K filing, 2026-08-12).
Net sales for the quarter ended June 27, 2026 rose 6.4% to $18.0 billion, driven by inflation, organic case volume growth, and recent acquisitions. Total case volume increased 3.5%, while total independent foodservice case volume grew 8.0%, with organic independent growth of 5.8%.
Diluted earnings per share increased 22.6% to $1.03, while adjusted diluted EPS rose 2.6% to $1.59. Adjusted EBITDA climbed 7.4% to $587.5 million. The company noted product cost inflation of approximately 4.7% for the quarter.
"Our solid execution throughout the year produced a strong finish to fiscal 2026," said President and CEO Scott McPherson. "Consistent market share gains across our business units translated into strong revenue growth and record-setting EBITDA results."
Full-Year Results and Cash Generation
For the full fiscal year 2026, Performance Food Group reported net income of $359.3 million, up 5.6% from fiscal 2025. Net sales increased 7.2% to $67.8 billion, while adjusted EBITDA rose 9.2% to $1.93 billion.
The company generated $1.41 billion in operating cash flow, up from $1.21 billion in the prior year, and free cash flow of $1.03 billion, significantly higher than the prior year's $704.1 million. Capital expenditures totaled $384.1 million, down $121.9 million year-over-year.
Gross profit for the full year improved 9.1% to $8.1 billion, benefiting from growth in the independent channel, which generates higher gross profit due to additional services provided, as well as acquisitions including Cheney Bros., Inc.
Segment Performance
The Foodservice segment reported fourth-quarter net sales of $9.8 billion, up 6.8%, with total case growth of 4.1% and independent case growth of 8.0%. Adjusted EBITDA for the segment increased 2.2% to $395.5 million, as higher gross profit was partially offset by increased operating expenses including personnel costs and fuel expenses.
Independent sales represented 43.1% of total Foodservice sales for the quarter.
The Convenience segment posted net sales of $6.8 billion, up 5.7%, with total cases increasing 3.9%. Adjusted EBITDA rose 10.4% to $132.5 million, despite a mix shift from cigarettes to alternative nicotine products.
Capital Allocation
During fiscal 2026, the company repurchased less than 0.1 million shares of common stock for a total of $1.5 million at an average cost of $83.12 per share. As of June 27, 2026, $498.5 million remained available under the company's share repurchase program, which expires May 27, 2029.
According to MarginX data, director George L. Holm recently exercised options for 29,131 shares and sold 29,131 shares.
Operating expenses for the full year rose 9.1% to $7.2 billion, driven by higher personnel costs, acquisition-related expenses, and legal fees incurred in connection with shareholder activism and a clean team agreement with US Foods Holding Corp.
This article was generated by MarginX from the 8-K filing on 2026-08-12. It is not investment advice.