Performance Food Group's Q2 2025: Contradictions in Growth Expectations, Inflation Outlook, and Margins

These are the key contradictions discussed in Performance Food Group Company's latest 2025Q2 earnings call, specifically including: Independent Case Growth Expectations, Inflation Outlook, Foodservice Case Growth Expectations, Gross Margin Improvements, Expectations for Independent Case Growth, and Macroeconomic Conditions:



Organic Growth and Sales Trends:
- Performance Food Group (PFG) reported a 9.4% increase in total net sales for Q2 2025, with organic independent restaurant case volume growing 5%.
- The growth was driven by improved consumer backdrop, steady market share gains, and strong performance in the Vistar segment.

Cheney Brothers and Jose Santiago Integration:
- The integration of Cheney Brothers and Jose Santiago contributed significantly to PG's fiscal Q2 results, with both acquisitions showing strong performance.
- Cheney Brothers, in particular, demonstrated double-digit top-line growth, despite facing challenges in the Southeast due to weather and consumer recovery.

Cost Inflation and Profitability:
- PFG reported a total company cost inflation of 4.6%, with foodservice inflation at 3.2%, which was in line with expectations for long-term inflation rates.
- The company maintained strong profitability, with both Foodservice and Convenience segments achieving double-digit adjusted EBITDA growth.

Convenience Segment Performance:
- Despite industry challenges, the PFG's Convenience segment achieved positive total volume growth, outperforming the industry in key product categories.
- The growth was driven by new account growth, market share gains, and strong performance in foodservice offerings to convenience stores.