# Performance Food Group (PFGC.US)

Canonical: https://gigainvestors.com/s/PFGC

Analysis as of: 2026-10-16T07:31:09.083Z. Financial observations: FY2012–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $97.31 per share; close as of 2026-10-15.

Estimated value: low $55.76 per share, central $73.67 per share, high $86.22 per share. Buy at or below the central value $73.67 per share. Valuation as of 2026-10-16T07:31:09.083Z; scenarios are not confidence intervals.

Expected annual return: 8.3% at the stated quote. About 8.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.01×

- FY2018: 0.01×

- FY2019: 0.01×

- FY2020: -0.00×

- FY2021: 0.01×

- FY2022: 0.01×

- FY2023: 0.01×

- FY2024: 0.01×

- FY2025: 0.01×

- FY2026: 0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.2%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 11.7%

- Recent gross margin (lower of latest and 3-year median): 11.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.7%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 9.2%

- FY2018: 16.1%

- FY2019: 11.6%

- FY2020: -2.4%

- FY2021: 4.0%

- FY2022: 3.7%

- FY2023: 9.1%

- FY2024: 9.1%

- FY2025: 6.8%

- FY2026: 7.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.9B

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 41.8%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.3 pp

- Working capital / revenue, final three-year average: 5.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 3.20×

- FY2023: 1.57×

- FY2024: 1.37×

- FY2025: 1.62×

- FY2026: 2.20×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.6% vs 7.3%

- Per-share earnings: 0.93 to 2.29 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.8%

- Ordinary dilution, 5-year annual growth: 3.3%

- Market cap gain: $15B

- Cumulative retained earnings: $1.9B

- Diluted shares, 10-year annual growth: 4.8%

- Diluted shares, 5-year annual growth: 3.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.8%

- Per-share value change: $1.35

- Per-share value, starting three-year median: $0.93

- Per-share value, ending three-year median: $2.29

- Buybacks concentrated in cheaper years (correlation): 0.61

- Average buyback yield: 0.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $7.5B

- Cumulative net income, 10 years: $2.0B

- ROIC, first three-year median: 11.6%

- ROIC, last three-year median: 7.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.93

- FY2018: $1.90

- FY2019: $1.59

- FY2020: -$1.01

- FY2021: $0.31

- FY2022: $0.74

- FY2023: $2.54

- FY2024: $2.79

- FY2025: $2.18

- FY2026: $2.29

### accounting: pass

- Sloan accruals: -5.6%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.04×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.8%

- FY2018: -4.2%

- FY2019: -3.2%

- FY2020: -9.6%

- FY2021: -0.3%

- FY2022: -1.3%

- FY2023: -3.5%

- FY2024: -5.4%

- FY2025: -4.9%

- FY2026: -5.6%

## Holders

- [Stephen Mandel](https://gigainvestors.com/LPC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Daniel Loeb](https://gigainvestors.com/tp): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.1% a year for ten years · sales +7.2%

Story as of 2026-10-16T09:59:23.474Z; price observation 2026-10-15.

Price needs cash profits to grow 8.1% a year for ten years

- 2025-08-13: Performance Food Profit Falls In Q4; Guides FY26 ([nasdaq.com](https://www.nasdaq.com/articles/performance-food-profit-falls-q4-guides-fy26))

- 2026-02-05: PFGC Q4 Deep Dive: Margin Pressure and Cautious Outlook Amid Market Share Gains ([finance.yahoo.com](https://finance.yahoo.com/news/pfgc-q4-deep-dive-margin-053534336.html))

- 2026-08-13: PFGC Q4 Earnings Miss on Higher Fuel Costs, Sales Increase Y/Y ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pfgc-q4-earnings-miss-higher-160300934.html))

### Sales · FY2025–2026

sales +7.2%; source https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm; observed 2026-08-12.

- FY2017: $17B 

- FY2018: $18B 

- FY2019: $20B 

- FY2020: $25B 

- FY2021: $30B 

- FY2022: $51B 

- FY2023: $57B 

- FY2024: $58B 

- FY2025: $63B 

- FY2026: $68B 

### Gross margin · FY2026

gross margin 11.9%; source https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm; observed 2026-08-12.

- FY2017: 12.7% 

- FY2018: 13.0% 

- FY2019: 12.7% 

- FY2020: 11.4% 

- FY2021: 11.6% 

- FY2022: 10.3% 

- FY2023: 10.9% 

- FY2024: 11.3% 

- FY2025: 11.7% 

- FY2026: 11.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in food distribution; annual sales are USD 67.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm (filed 2026-08-12); FY2026: revenue 67839500000; grossProfit 8090600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PFGC.US: Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in North America. It operates through three segments: Foodservice, Convenience, and Specialty. The company offers beef, pork, poultry, seafood, frozen food, refrigerated products, and dry groceries to disposables, cleaning and kitchen supplies, and related products, as well as value-added services, such as product selection and procurement, menu development, and operational strategies to independent restaurants, chain restaurants, and other institutional food-away-from-home locations. It also provides wholesale consumer products, including cigarettes and alternative nicotine products, candy, snacks, fresh products, groceries, dairy, bread, beverages, general merchandise, and health and beauty care products to traditional convenience stores, drug stores, mass merchants, grocery stores, liquor stores, and other specialty and small format stores. In addition, the company distributes candy, snacks, beverages, fresh and frozen perishable food, and other non-food items. Performance Food Group Company was founded in 1885 and is headquartered in Richmond, Virginia.

### Why customers stay

Margins ranged from 11.3% to 11.9% during 2024–26; it earns 8.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2024: grossProfit / revenue = 11.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2025: grossProfit / revenue = 11.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm (filed 2026-08-12); FY2026: grossProfit / revenue = 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); 10-year return on capital observations [[2017,0.09165330125634857],[2018,0.1613108495068406],[2019,0.11589334928857],[2020,-0.024015844746054168],[2021,0.039933825680827706],[2022,0.03670089462895896],[2023,0.09053246618423284],[2024,0.090562459649765],[2025,0.06793639379530785],[2026,0.07273605318577407]]; median 0.08163425968500346. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 10% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm (filed 2026-08-12); Gross margin observations: [[2021,0.1159647224077187],[2022,0.10328112688897141],[2023,0.10924692645319947]]; range within 2 percentage points.

### Where the cash goes

Reinvests 48.6% of cash earnings; earns 41.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2017: growth capex 14100000; upkeep 126100000; cash acquisitions 192900000; owner earnings 96300000. Growth capex plus acquisitions / owner earnings = 2.149532710280374.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2018: growth capex 10000000; upkeep 130100000; cash acquisitions 71100000; owner earnings 198700000. Growth capex plus acquisitions / owner earnings = 0.4081529944640161.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2019: growth capex 0; upkeep 139100000; cash acquisitions 211600000; owner earnings 182700000. Growth capex plus acquisitions / owner earnings = 1.1581828133552272.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2020: growth capex 0; upkeep 158000000; cash acquisitions 1989000000; owner earnings 4200000. Growth capex plus acquisitions / owner earnings = 473.57142857142856.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2021: growth capex 0; upkeep 188800000; cash acquisitions 18100000; owner earnings 190800000. Growth capex plus acquisitions / owner earnings = 0.09486373165618449.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2022: growth capex 0; upkeep 215500000; cash acquisitions 1650500000; owner earnings 359800000. Growth capex plus acquisitions / owner earnings = 4.587270705947748.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2023: growth capex 0; upkeep 269700000; cash acquisitions 63800000; owner earnings 624200000. Growth capex plus acquisitions / owner earnings = 0.10221082986222364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2024: growth capex 0; upkeep 395600000; cash acquisitions 307700000; owner earnings 597000000. Growth capex plus acquisitions / owner earnings = 0.5154103852596315.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2025: growth capex 0; upkeep 506000000; cash acquisitions 2596400000; owner earnings 552100000. Growth capex plus acquisitions / owner earnings = 4.702771237094729.

- Source: https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm (filed 2026-08-12); FY2026: growth capex 0; upkeep 384100000; cash acquisitions 383400000; owner earnings 789100000. Growth capex plus acquisitions / owner earnings = 0.4858699784564694.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); Incremental return on capital 0.417902593830361, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); Dividend observations: [[2017,138400000],[2018,0],[2019,6600000],[2020,1445000000],[2021,31200000],[2022,0],[2023,30800000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm (filed 2026-08-12); FY2026: cash repurchases 1500000 USD.

### Are managers owners

Insiders own 4.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PFGC.US SharesStats.PercentInsiders = 4.205 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.1% yearly over ten years; actual growth was 21.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); Ten-year compound average after fade. Initial solved rate 0.10266590716285762. Price 97.31; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.6962283384301733 → FY2026 5.026114649681529. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $24.00 per share

- 2016-11: $21.10 per share

- 2016-12: $24.00 per share

- 2017-01: $22.15 per share

- 2017-02: $23.60 per share

- 2017-03: $23.80 per share

- 2017-04: $24.90 per share

- 2017-05: $28.30 per share

- 2017-06: $27.40 per share

- 2017-07: $28.80 per share

- 2017-08: $27.80 per share

- 2017-09: $28.25 per share

- 2017-10: $28.30 per share

- 2017-11: $29.65 per share

- 2017-12: $33.10 per share

- 2018-01: $34.35 per share

- 2018-02: $30.65 per share

- 2018-03: $29.85 per share

- 2018-04: $32.45 per share

- 2018-05: $35.75 per share

- 2018-06: $36.70 per share

- 2018-07: $35.85 per share

- 2018-08: $33.10 per share

- 2018-09: $33.30 per share

- 2018-10: $29.32 per share

- 2018-11: $34.46 per share

- 2018-12: $32.27 per share

- 2019-01: $34.16 per share

- 2019-02: $38.53 per share

- 2019-03: $39.64 per share

- 2019-04: $40.95 per share

- 2019-05: $39.35 per share

- 2019-06: $40.03 per share

- 2019-07: $43.85 per share

- 2019-08: $46.79 per share

- 2019-09: $46.01 per share

- 2019-10: $42.61 per share

- 2019-11: $47.06 per share

- 2019-12: $51.48 per share

- 2020-01: $51.79 per share

- 2020-02: $42.40 per share

- 2020-03: $24.72 per share

- 2020-04: $29.35 per share

- 2020-05: $26.65 per share

- 2020-06: $29.14 per share

- 2020-07: $28.02 per share

- 2020-08: $36.51 per share

- 2020-09: $34.62 per share

- 2020-10: $33.61 per share

- 2020-11: $43.38 per share

- 2020-12: $47.61 per share

- 2021-01: $46.88 per share

- 2021-02: $54.24 per share

- 2021-03: $57.61 per share

- 2021-04: $58.70 per share

- 2021-05: $50.13 per share

- 2021-06: $48.49 per share

- 2021-07: $45.82 per share

- 2021-08: $50.22 per share

- 2021-09: $46.46 per share

- 2021-10: $45.23 per share

- 2021-11: $40.31 per share

- 2021-12: $45.89 per share

- 2022-01: $42.19 per share

- 2022-02: $56.04 per share

- 2022-03: $50.91 per share

- 2022-04: $49.25 per share

- 2022-05: $43.34 per share

- 2022-06: $45.98 per share

- 2022-07: $49.71 per share

- 2022-08: $49.98 per share

- 2022-09: $42.95 per share

- 2022-10: $52.04 per share

- 2022-11: $60.98 per share

- 2022-12: $58.39 per share

- 2023-01: $61.32 per share

- 2023-02: $56.59 per share

- 2023-03: $60.34 per share

- 2023-04: $62.69 per share

- 2023-05: $55.29 per share

- 2023-06: $60.24 per share

- 2023-07: $59.76 per share

- 2023-08: $62.13 per share

- 2023-09: $58.86 per share

- 2023-10: $57.76 per share

- 2023-11: $65.05 per share

- 2023-12: $69.15 per share

- 2024-01: $72.68 per share

- 2024-02: $76.77 per share

- 2024-03: $74.64 per share

- 2024-04: $67.88 per share

- 2024-05: $69.60 per share

- 2024-06: $66.11 per share

- 2024-07: $69.00 per share

- 2024-08: $74.64 per share

- 2024-09: $78.37 per share

- 2024-10: $81.25 per share

- 2024-11: $88.24 per share

- 2024-12: $84.55 per share

- 2025-01: $90.31 per share

- 2025-02: $85.14 per share

- 2025-03: $78.63 per share

- 2025-04: $80.66 per share

- 2025-05: $89.56 per share

- 2025-06: $87.47 per share

- 2025-07: $100.40 per share

- 2025-08: $101.40 per share

- 2025-09: $104.04 per share

- 2025-10: $96.74 per share

- 2025-11: $97.07 per share

- 2025-12: $89.92 per share

- 2026-01: $95.45 per share

- 2026-02: $97.06 per share

- 2026-03: $85.66 per share

- 2026-04: $90.56 per share

- 2026-05: $98.19 per share

- 2026-06: $111.79 per share

- 2026-07: $114.39 per share

- 2026-08: $99.17 per share

- 2026-09: $91.51 per share

- 2026-10: $97.31 per share

## Annual estimated value (USD per share)

- FY2017: low $8.58 per share, central $9.77 per share, high $11.34 per share

- FY2018: low $9.55 per share, central $10.87 per share, high $12.62 per share

- FY2019: low $11.79 per share, central $13.41 per share, high $15.57 per share

- FY2020: low $13.94 per share, central $15.86 per share, high $18.42 per share

- FY2021: low $15.63 per share, central $17.79 per share, high $20.66 per share

- FY2022: low $32.33 per share, central $46.18 per share, high $54.25 per share

- FY2023: low $32.72 per share, central $43.28 per share, high $50.65 per share

- FY2024: low $33.12 per share, central $43.51 per share, high $50.91 per share

- FY2025: low $43.59 per share, central $56.38 per share, high $65.92 per share

- FY2026: low $55.79 per share, central $73.71 per share, high $86.26 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1618673/000119312526346886/pfgc-20260627.htm); period 2026-06-27, filed 2026-08-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.