Performance Food Group Company operates in the food-away-from-home industry, marketing and distributing more than 300,000 food and food-related products to customers across North America from over 150 distribution centers to over 350,000 customer locations. The industry is highly competitive, with numerous national, regional, local, and specialty distributors, and competition is based on the quality and price of the product and a distributor’s ability to fill orders completely and accurately and to provide timely deliveries. The food-away-from-home industry is seasonal, with lower profit in the first quarter of each calendar year, and the Company may experience lower operating profit during its third fiscal quarter depending on the timing of acquisitions.

Primary competitors are not individually named in the filing, but the industry is described as highly competitive with national, regional, local, and specialty distributors, some of which may have greater scale and greater financial and other resources than the Company in certain markets. The Company believes it has a competitive advantage through economies of scale in purchasing and procurement, supply chain efficiency including a growing inbound logistics backhaul network, best practices in warehousing, transportation, and risk management, the ability to benefit from the scale of purchases of items and services not for resale, and the ability to optimize networks so that customers are served from the most efficient distribution centers. The Company also benefits from its proprietary-branded products called Performance Brands, which are higher margin products and typically generate higher gross profit per case than other brands.

The Company generates revenue by marketing and distributing food and food-related products to customers in the food-away-from-home industry, serving a diverse mix of customers including independent and chain restaurants, schools, business and industry locations, vending distributors, office coffee service distributors, retailers, convenience stores, and theaters. Revenue is transactional in nature, with pricing either set by contract (based on a percentage markup over cost or a fixed markup per unit) or priced at the time of order. The Company also provides value-added services including product selection and procurement, menu development, and operational strategy. No customer comprised more than 10% of consolidated net sales for fiscal 2026, fiscal 2025, or fiscal 2024.

The Foodservice segment offers a broadline assortment of products including custom-cut meat and seafood, operates a network of 90 distribution centers, and markets and distributes food and food-related products to independent restaurants, chain restaurants, and other institutional food-away-from-home locations. Independent customers typically use more value-added services and purchase more Performance Brands, generating higher gross profit per case that more than offsets the generally higher supply chain costs incurred in serving them. Chain customers are multi-unit restaurants with five or more locations and include fine dining, family and casual dining, fast casual, and quick-serve restaurants, as well as other institutions such as schools, healthcare facilities, business and industry locations, and retail establishments. Sales to chain customers are typically lower gross margin but have larger deliveries than those to independent customers. The Convenience segment is one of the largest wholesale consumer products and foodservice distributors in the convenience retail industry, offering a full range of products including cigarettes and alternative nicotine products, candy, snacks, food including fresh products, groceries, dairy, bread, beverages, general merchandise and health and beauty care products, and operates a network of 38 distribution centers and six redistribution centers in the U.S. and Canada, excluding two distribution facilities it operates as a third-party logistics provider, with 34 distribution centers located in the U.S. and four located in Canada. The Specialty segment is a leading national distributor of candy, snacks, and beverages as well as fresh and frozen perishable foods and other non-food items, operating a network of 26 Specialty distribution centers, and delivers to vending and office coffee service distributors as well as direct to customer locations including retailers, entertainment venues, and theaters, and provides small parcel pick and pack capabilities including fulfillment of ambient, frozen, fresh and temperature sensitive items utilizing third-party carriers.

The Company has over 44,000 employees as of June 27, 2026, with approximately 99% employed on a full-time basis and approximately 70% non-exempt or paid on an hourly basis. Approximately 2,800 associates were members of local unions as of June 27, 2026. The Company offers a 401(k) plan with a company match, an Employee Stock Purchase Plan, adoption assistance, education assistance, a scholarship program for children of associates, flexible spending accounts, and health savings accounts. The Company has numerous perpetual trademarks and trade names of significant importance, including Performance Food Group, Performance Foodservice, Core-Mark, and Vistar, and has registered or applied for trademark protections for its Performance Brands.

During fiscal 2026, the Company completed the acquisition of Cheney Brothers Inc. on October 8, 2024. The Company’s fuel expense increased $57.1 million in fiscal 2026 compared to fiscal 2025, due to higher fuel prices and miles driven as a result of new business and acquisitions. The Company experienced a $25.3 million increase in insurance expense in fiscal 2026 compared to fiscal 2025, primarily related to acquisitions, vehicle liability, and workers’ compensation. As of June 27, 2026, the Company had $6.8 billion of indebtedness, including finance lease obligations, and had $2.9 billion of availability under the ABL Facility after giving effect to $160.3 million of outstanding letters of credit and $137.2 million of lenders’ reserves. The Company had collars in place for approximately 5% of the gallons it expects to use over the twelve months following June 27, 2026, and subsequent to June 27, 2026, entered into a swap for an additional 15% of the gallons expected to be used over the twelve months following June 27, 2026.

For fiscal 2026, the Company experienced product cost inflation of 4.5%, which increased product costs. Net sales increased due to product cost inflation contributing to an increase in selling price per case. The Company’s fuel expense increased $57.1 million in fiscal 2026 compared to fiscal 2025, and insurance expense increased $25.3 million in fiscal 2026 compared to fiscal 2025. The Company had $6.8 billion of indebtedness as of June 27, 2026, and $2.9 billion of availability under the ABL Facility.

The Company’s growth strategy includes increasing independent and organic sales, expanding Performance Brands, making strategic acquisitions, and achieving improved operating efficiencies as it continues to expand and diversify its customer base. The Company seeks to increase the mix of total sales to independent customers because they typically use more value-added services and purchase more Performance Brands, which are higher margin products. The Company also pursues growth through strategic acquisitions, though the market for acquisition targets in the food-away-from-home industry is highly competitive, which could make it more difficult to find appropriate strategic acquisition opportunities.

The Company’s growth strategy includes expanding its Performance Brands, which are proprietary-branded products that typically generate higher gross profit per case than other brands. The Company also focuses on increasing sales to independent customers, who are more likely to purchase Performance Brands and generate higher gross profit per case. The Company’s Specialty segment has built upon its national network to broaden the channels it serves, including vending and office coffee service distributors, retailers, entertainment venues, and theaters, and provides small parcel pick and pack capabilities including fulfillment of ambient, frozen, fresh and temperature sensitive items utilizing third-party carriers to deliver direct to consumers for supplier partners and direct to customers whose order sizes are too small to be served effectively by the fleet network.

The Company operates in a low margin industry, and its profitability is directly affected by cost inflation and deflation, commodity volatility, and other factors. The Company experienced inflation of 4.5% for fiscal 2026, which increased product costs. The Company’s pricing mechanisms are designed to provide significant insulation from fluctuations in the cost of goods sold, with inventory turning on average every three to four weeks. The Company seeks to minimize the effect of higher diesel fuel costs by reducing fuel usage through more efficient truck routes and increasing miles per gallon through on-board computers and other technologies, and by managing fuel prices through diesel fuel surcharges to customers and through the use of costless collars or swaps.

The Company operates a network of 154 distribution centers across its three reportable segments as of June 27, 2026, with 71 facilities owned and 83 leased. The Foodservice segment operates 90 distribution centers, the Convenience segment operates 38 distribution centers, and the Specialty segment operates 26 distribution centers, all with an average square footage of approximately 200,000 square feet per facility. The Company relies on information technology networks and systems to manage substantially all business processes and activities, and has incorporated and is continuing to incorporate AI, including machine learning, into its operations including sales, support and supply chain operations. The Company maintains a comprehensive Information Security Program anchored in a multi-tiered, defense-in-depth strategy, and partners with independent third-party service providers to regularly perform cybersecurity assessments such as network and application penetration testing.

The Company offers equity awards to eligible associates designed to foster ownership and reward sustained contributions, and maintains a 401(k) plan with a company match and an Employee Stock Purchase Plan. The Company’s capital expenditure plans are not specifically quantified in the filing, but the Company states that Corporate & All Other may include capital expenditures for certain information technology projects that are transferred to the segments once placed in service. The Company had $2.9 billion of availability under the ABL Facility as of June 27, 2026, after giving effect to $160.3 million of outstanding letters of credit and $137.2 million of lenders’ reserves.

The Company faces headwinds from periods of difficult economic conditions, including inflationary pressure, increased fuel prices, and macroeconomic challenges that could negatively affect consumer discretionary spending decisions within customers’ establishments. The Company’s fuel expense increased $57.1 million in fiscal 2026 compared to fiscal 2025 due to higher fuel prices and miles driven, and insurance expense increased $25.3 million in fiscal 2026 compared to fiscal 2025 primarily related to acquisitions, vehicle liability, and workers’ compensation. The Company also faces risks from supply chain interruptions, labor shortages, and the potential for increased costs from regulatory changes including those related to climate change, GHG emissions, and data privacy laws.

The Company faces structural headwinds including the declining consumption of cigarettes and other tobacco products, which constitute a significant portion of sales volume, due to restrictions on marketing, decreases in social acceptance, increases in regulation and excise taxes, health concerns, and the rise in popularity of tobacco alternatives. The Company expects consumption trends of legal cigarette products will continue to be negatively impacted by these factors. The Company also faces risks from changes in consumer eating habits, including a decline in consuming food away from home, and from the potential impact of weight loss drugs such as GLP-1s.

Management’s message emphasizes that the Company’s people are the driving force behind delivering on commitments to customers, communities, and stockholders, and that the Company believes engaged associates are the foundation of a strong company. The strategic priorities emphasized include growing the business through increasing independent and organic sales, expanding Performance Brands, making strategic acquisitions, and achieving improved operating efficiencies as the Company continues to expand and diversify its customer base. Management also emphasizes the importance of the Company’s Information Security Program and the integration of AI technologies into operations, including sales, support and supply chain operations, with the intent to enhance their operation, efficiency and effectiveness.

For fiscal 2026, the Company experienced product cost inflation of 4.5% ⁴, which increased product costs. Net sales increased due to product cost inflation contributing to an increase in selling price per case. The Company’s fuel expense increased $57.1 million ⁵ in fiscal 2026 compared to fiscal 2025, due to higher fuel prices and miles driven as a result of new business and acquisitions. Insurance expense increased $25.3 million ⁶ in fiscal 2026 compared to fiscal 2025, primarily related to acquisitions, vehicle liability, and workers’ compensation. As of June 27, 2026, the Company had $6.8 billion ⁷ of indebtedness, including finance lease obligations, and had $2.9 billion ⁸ of availability under the ABL Facility after giving effect to $160.3 million ⁹ of outstanding letters of credit and $137.2 million ¹⁰ of lenders’ reserves under the ABL Facility. The aggregate market value of common stock held by non-affiliates at December 26, 2025 was $11,771,720,185 ¹¹, and 157,533,032 ¹² shares of common stock were outstanding as of August 5, 2026.

The Company operates in a low margin industry, and a decline in net sales or increase in costs that is small relative to total net sales or costs could have a material impact on net income. A significant portion of sales volume depends on the distribution of cigarettes and other tobacco products, sales of which are generally declining due to restrictions on marketing, decreases in social acceptance, increases in regulation and excise taxes, health concerns, and the rise in tobacco alternatives. The Company’s fuel expense increased $57.1 million ¹ in fiscal 2026 compared to fiscal 2025, and insurance expense increased $25.3 million ² in fiscal 2026 compared to fiscal 2025, highlighting exposure to volatile fuel and insurance costs. The Company had $6.8 billion ³ of indebtedness as of June 27, 2026, and a substantial portion is floating rate debt, exposing the Company to interest rate increases. The Company relies on third-party suppliers and does not have long-term contracts with them, exposing the business to supply chain interruptions and increases in product costs.