Performance Food Group Co (PFGC)

History and Background

Performance Food Group (PFG) was founded in 1885 as a grocery distribution company. It has grown through acquisitions and organic expansion to become a leading foodservice distributor in North America.

Core Business Areas

• Foodservice: PFG's Foodservice segment distributes a broad range of food and related products to independent restaurants, chain restaurants, and other foodservice customers.
• Vistar: Vistar is PFG's convenience store and vending distributor, serving convenience stores, vending machine operators, and other retail outlets.
• Convenience: This segment caters to convenience stores distributing groceries and other merchandise.

Leadership and Structure

George Holm is the Chairman, President, and CEO. The company has a traditional hierarchical structure with various executive vice presidents leading different business segments and functions.

Key Offerings

• Center of the Plate Proteins: Includes beef, pork, poultry, and seafood. Competitors: Sysco, US Foods, Gordon Food Service. Market share data for specific protein categories is not readily available aggregated for PFG alone, but they are a major player in this space.
• Dry Goods: Includes canned goods, grains, and other shelf-stable items. Competitors: Sysco, US Foods, Gordon Food Service. Market share data is similarly unavailable at a granular level, but PFG is a significant distributor.
• Frozen Foods: Includes frozen vegetables, fruits, and prepared meals. Competitors: Sysco, US Foods, Gordon Food Service. PFG is a major player.

Industry Overview

The foodservice distribution industry is competitive and fragmented, with a mix of national, regional, and local players. Trends include increasing demand for fresh and locally sourced products, as well as technological advancements in supply chain management.

Positioning

PFG is a leading foodservice distributor, positioned to benefit from its scale, national reach, and diversified customer base. Competitive advantages include its efficient distribution network and strong supplier relationships.

Total Addressable Market (TAM)

The US foodservice market is estimated to be in the hundreds of billions of dollars. PFG is positioned to capture a significant share of this TAM through its distribution network and customer relationships.

Key Competitors

• SYY
• USFD
• ARMK

Competitive Landscape

PFG competes with other large national distributors like Sysco and US Foods, as well as regional and local players. PFG's strengths lie in its scale, distribution network, and diversified customer base.

Reinhart Foodservice

• Year: 2019
• Acquisition Price (USD millions): 2000
• Strategic Rationale: Expanded PFG's geographic reach and customer base.

Historical Growth: PFG has experienced significant growth through acquisitions and organic expansion.

Future Projections: Analyst estimates project continued revenue growth driven by market share gains and industry tailwinds.

Recent Initiatives: Recent initiatives include investments in technology to improve supply chain efficiency and expansion into new markets.

Performance Food Group is a major player in the foodservice distribution industry, benefiting from its large scale and efficient distribution network. While facing competition and economic headwinds, PFG is poised for continued growth through strategic acquisitions and market share gains. Monitoring economic conditions and managing supply chain risks are crucial for sustaining success. The lack of dividend payout might deter some investors.

Data Sources:

• Company Filings (SEC), Market Research Reports, Analyst Estimates

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It does not constitute financial advice. Market share estimates are approximate.