Performance Food Group Co (NYSE:PFGC) stock fell 0.42% (As on August 14, 11:21:13 AM UTC-4, Source: Google Finance) though the company beat the market’s expectations for the fourth quarter of FY25. The company’s strong performance was driven by robust case volume growth, with total case volume increasing 11.9% compared to the prior year period. Independent foodservice case volume, a key growth metric, surged 20.4%, with organic independent foodservice case volume rising 5.9%. Total organic case volume increased 3.9% for the fourth quarter of fiscal 2025 compared to the prior year period, benefiting from a 5.9% increase in organic independent cases and growth in cases sold to Foodservice’s chain business. Adjusted EBITDA for the quarter increased 19.9% to $546.9 million compared to the prior year period. Gross profit improved 14.6% to $2.0 billion, while net income decreased 21.0% to $131.5 million, primarily due to increased depreciation, amortization, and interest expenses related to recent acquisitions.

PFGC in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.55, beating the analysts’ estimates for the adjusted earnings per share of $1.45. The company had reported the adjusted revenue growth of 11.5 percent to $16.9 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $16.78 billion. The increase in net sales was driven by recent acquisitions, including the acquisition of Cheney Bros., Inc., an increase in cases sold including a favorable shift in the mix of cases sold, and an increase in selling price per case as a result of inflation. Overall product cost inflation for the Company was approximately 4.3% for the fourth quarter of fiscal 2025.

Additionally, in fiscal 2025, PFG provided $1,210.1 million in cash flow from operating activities compared to $1,163.0 million in cash flow from operating activities in the prior year period. In fiscal 2025, PFG invested $506.0 million in capital expenditures, an increase of $110.4 million versus the prior year period. In fiscal 2025, PFG delivered free cash flow of $704.1 million compared to free cash flow of $767.4 million in the prior year period.

For the first quarter of fiscal 2026, PFG expects revenue between $16.6 billion and $16.9 billion, with adjusted EBITDA projected to be between $465 million and $485 million. For the full fiscal year 2026, the company forecasts revenue of $67 billion to $68 billion and adjusted EBITDA of $1.9 billion to $2.0 billion.