Performance Food Group sets $500 million stock buyback

RICHMOND, Va. - Performance Food Group Company (NYSE: PFGC), a prominent food and foodservice distribution company with a market capitalization of $13.45 billion, announced a new share repurchase program on Tuesday, May 27, 2025. The Board of Directors has authorized the repurchase of up to $500 million of the company’s common stock, extending until May 27, 2029. This new buyback plan supersedes the previous $300 million program. According to InvestingPro data, the company maintains strong financial health with a "Good" overall rating and liquid assets exceeding short-term obligations.

In conjunction with the announcement, PFG provided financial guidance, maintaining its fiscal 2025 net sales forecast of $63 billion to $63.5 billion, with Adjusted EBITDA expected to be between $1.725 billion and $1.75 billion. These projections include the anticipated results from the acquisition of Cheney Brothers, which was completed earlier in the fiscal year. The company has demonstrated solid growth, with revenue increasing 7.2% over the last twelve months to $57.9 billion. InvestingPro analysis shows 13 analysts have recently revised their earnings expectations downward for the upcoming period.

Looking further ahead, the company predicts a significant increase in performance by fiscal 2028, with annual sales projected to reach between $73 billion and $75 billion and Adjusted EBITDA ranging from $2.3 billion to $2.5 billion. The Adjusted EBITDA outlook does not account for certain income and expense items that are not considered part of the company’s underlying operations, such as restructuring charges and costs associated with acquisitions. Due to the unpredictable nature of these items, PFG has not provided a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook.

Performance Food Group is one of North America’s largest foodservice distributors, operating over 150 locations and employing more than 40,000 associates. The company serves a diverse customer base, including independent and chain restaurants, schools, healthcare facilities, and various retail outlets.

The information in this article is based on a press release statement. As with all forward-looking statements, they are subject to various risks and uncertainties, and actual results may differ materially. These statements are not guarantees of future performance, and investors are advised to review the company’s filings with the SEC for a more detailed discussion of potential risks. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which includes in-depth financial analysis, valuation metrics, and expert commentary.

In other recent news, Performance Food Group reported its third-quarter earnings for 2025, missing expectations on both earnings per share (EPS) and revenue. The company posted an adjusted EPS of $0.79, falling short of the projected $0.89, while revenue came in at $15.31 billion against a forecast of $15.35 billion. Despite this, the company reported a 10.5% increase in net sales, driven by a 20% rise in independent restaurant cases. Analysts at Citi have initiated coverage on Performance Food Group with a Buy rating and a price target of $121, highlighting potential upside due to shifts in the company’s operations. The analysts noted improvements in the core foodservice segment and beneficial changes in the Convenience segment as key factors. Performance Food Group has revised its net sales guidance for the fiscal year to between $63 billion and $63.5 billion. The company is also focusing on expanding its proprietary brands and e-commerce platform. These developments reflect a mix of both challenges and strategic advancements for Performance Food Group.

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