Performance Food Group (PFGC) Targeted for Acquisition by US Foods

Performance Food Group Company (NYSE:PFGC) is one of the best alternative meat stocks to invest in according to analysts. On July 11, shares of US Foods Holding (USFD) surged to an all-time high following reports that the company was considering a potential acquisition of Performance Food Group (PFGC). The report detailed that the talks for a potential acquisition (or combination) remain private and nonbinding, with no guarantee that a deal will materialize.

A filled shopping cart with popular food and beverage items.

If completed, the merger would create the largest foodservice distributor in the US, with combined annual revenues of roughly $100 billion. This would surpass the current market leader, Sysco (NYSE:SYY), which reported approximately $64 billion in sales in 2024. The combined entity would hold approximately 18% of the $371 billion US food distribution market, becoming the number one player in the segment.

US Foods aims to strengthen its position in the independent restaurant channel and other higher-margin markets through acquisitions. Performance Food’s strengths include independent pizzerias, convenience stores, and candy/snacks areas, where US Foods is weaker. The merger would create scale and potential efficiencies, though analysts warn it could pressure US Foods’ EBITDA margins in the short term.

Performance Food Group Company (NYSE:PFGC) is one of the largest foodservice distributors in North America. It supplies over 300,000 locations, including restaurants, schools, and healthcare facilities. Through its FarmSmart brand, Performance Food has introduced innovative hybrid products, such as the Beef & Jackfruit Burger in collaboration with The Jackfruit Company.

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Disclosure: None. This article is originally published at Insider Monkey.