Q2 2026 Performance Food Group Co Earnings Call Transcript
Key Points
- Performance Food Group Co (PFGC) reported a 5.2% increase in total net sales for the second quarter, with growth across all three operating segments.
- The Foodservice segment achieved 5.3% organic independent case growth, driven by a 5.8% increase in independent account growth.
- The Convenience segment saw a 6.1% increase in net sales, benefiting from market share gains and the onboarding of new accounts such as Love's and RaceTrac.
- PFGC's adjusted EBITDA increased by 6.7% to $451 million, with contributions from all three operating segments.
- The company generated $456 million in operating cash flow in the first six months of 2026, an increase of $77 million compared to the same period last year.
- The quarter faced challenges such as declining foot traffic, the impact of a government shutdown, and softer sales per location across segments.
- Cheney Brothers' integration costs and infrastructure investments have had a short-term negative impact on PFGC's overall P&L.
- Deflation in cheese and poultry categories posed a challenge, impacting margins due to PFGC's over-indexing in these commodities.
- The Specialty segment experienced a difficult quarter in theater sales, which were down over 30%, representing a significant drag on overall sales.
- Higher interest expenses and an increased effective tax rate impacted the company's EPS, which remained flat year-over-year.
Good day, everyone, and welcome to PFG's Fiscal Year Q2 2026 Earnings Conference Call. (Operator Instructions)
I would now like to turn the call over to Bill Marshall, Senior Vice President, Investor Relations for PFG. Please go ahead, sir.
Thank you, and good morning. We're here with Scott McPherson, PFG's CEO; and Patrick Hatcher, PFG's CFO. We issued a press release this morning regarding our 2026 fiscal second quarter results, which can be found in the Investor Relations section of our website at pfgc.com.
During our call today, unless otherwise stated, we are comparing results to the results in the same period in fiscal 2025. Any reference to 2025, 2026 or specific quarters refers to our fiscal calendar, unless otherwise stated. The results discussed on this call will include GAAP and non-GAAP results adjusted for certain items. The reconciliation of these non-GAAP measures to the corresponding GAAP measures can be found at the back of the earnings release.
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