Performance Food (PFGC) 6 Nov 242025 Q1 Earnings call transcript

Good day, and welcome to PFG's Fiscal Year Q1 2025 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Bill Marshall, Vice President, Investor Relations for PFG. Please go ahead, sir.

Thank you, Shelby, and good morning. We're here with George Holm, PFG's CEO; and Patrick Hatcher, PFG's CFO. at release which regarding the can section our press first XXXX Investor a of results, quarter be website issued this our morning fiscal Relations We pfgc.com. found in

measures of otherwise the results During our results be the the items. adjusted can will discussed for period same include we corresponding results reconciliation comparing fiscal The this release. results certain in earnings XXXX. the stated, these in on in call to back the are GAAP GAAP non-GAAP unless measures today, call found and The non-GAAP of

in Our earnings remarks on this call of contain and projections statements future results. the and forward-looking release

results statements and our review for could various cautionary forward-looking earnings actual from today's that SEC differ forward-looking our section to Please projections. materially statements filings and release factors the our in cause

call like I'd turn Now to to George. over the

quarter. progress will financial have for early some closing year Jose, your then first taking review discuss you questions. on Santiago then morning, in discuss X and some our a This will XXXX. we beginning the to thank Thanks, fiscal has highlights morning, excellent both will built results Bill. fiscal our and Brothers. momentum, today. then and provide Cheney our from and made have outlook been XXXX I for while And Good I closing fiscal It Foodservice we Patrick segment, business busy joining year acquisitions. everyone, comments call our as particularly before

the X We are our proud months. performed how has past of organization over

but a started could that signs pleased report for believe strategy the put stability and some consumer fiscal remainder very of has produced foundation am well year. strong we us X to challenges, The Our landscape have of have on the to executed results. provided solid that we see our segments I

on acquisition about business, into I few getting specifics more activity. say to our a Before wanted our words

service Jose broadline was we we in a the discussed year. early food acquired and distributor Rico attractive growth with August, Santiago good in fiscal Santiago momentum As in Puerto leading Jose margins.

worked have due to process into to PFG. has Foodservice Over both PFG's the extremely teams well the operations. hard their the business diligently Santiago and integrate largely Jose we X-plus past This work by of months, gone

early Rico The issuance with and us excellent We contributed results ABL Brothers is billion to as in hours an to for the Cheney put notes cultural I'd to of the us fund line. raising additional which during Puerto down fiscal the capacity across PFG allowed borrowing ready In for a acquisition. we finish like portion to at in close, team to the fit through $X PFG's thank in nicely facility has and to pay long our get early closed the were this the deal as proving be the already first of acquisition. quarter. Brothers team the new September, October, business well Cheney provided

Patrick shortly. will discuss the details financial

food an our Cheney's of on our supply Cheney focus difficult deal a organization. only associates, the While deal, Brothers operations play since months due the a Cheney's the it to been role from X,XXX roughly has has have Cheney X distributor, important first in and has to the been progress majority hurricane already the The the chain. Foodservice onboarding activity. representing welcome close well-being organization great experienced of made also a We of region associates PFG. we Southeast few month of The we foremost of as the

across needed much been food As United an and Rico. organization, ship able to supplies Puerto Southeastern States have the we

storms. fully proud While areas in service associates and by active operational our our impacted played it to will assisting rebuild some I'm to take customers. company role time these fully areas the the are of for our continuing businesses

World and supporting to provide associates Kitchen, each meals impacted. volunteering live to addition by our chefs and other work and supplies, those first Central Cross, Mercy and they communities stepped American and the In organizations where to food like help up to Red responders

ahead, Cheney brings opportunity about to Brothers Looking PFG. are the excited we incredibly

August, in independent quality Florida, has distribution rounds facilities that United scale room the Southeast region. asset facility strength Southeastern which state-of-the-art. with Cheney complement find the additional assets, North accelerate As the density skews should us route scale, rare operations with providing but excess our Cheney distribution the operating Cheney's our of enable across legacy region, Cheney's grow. enhances Brothers out high still business to business. in to scale customers, more and is the across area portfolio. discussed specialty us capacity It Cheney's broadline are Brothers in States. their in towards existing particularly Carolina build an and is particularly exceptionally to at growth, the business.

reflected margin per this showing At relatively August, case PFG's corporate provided the Provides available Cheney's In both very independent opportunity is margins. private demographic penetration. is we attractive we which the region, data positive enhance in growth, profit profile sales to to line constant time, website. and top the Cheney high believe restaurants Brothers EBITDA same and of high exposure a average. our well brand above low growth on

XXXX. our year offerings brand In XX% over Our restaurants. Performance Brands Foodservice operations been fiscal share. just successful legacy to have Brands incredibly Performance represented independent expanding of at independent

able private believe sales are the recent value similar Similar the transaction. independent Brands are to Reinhart in brands. the that total penetration Cheney even is most from Performance created XX% the private in to was acquisition nearly portfolio owned larger. years the levels to with of represent familiar legacy quarter, Foodservice But and we we to Reinhart's to have private Cheney, have at the brand opportunity since brand of that In we Many operation, Reinhart underpenetrated restaurants. Performance you expand been

growth In strategy very Reinhart. have an that high-quality fact, our is is believe Cheney trajectory. we very integration acquired to that in We similar for a asset excellent

the focused minimizing Chinese customers integrating on were efforts and to organization impact any initial while Our suppliers. associates,

another and from the practices sales a offering avenues transaction food important in best of profit transaction organizations to Vistar defines share position our Patrick as total accelerate nicely portfolio, high-quality believe the moment. that across and growth what Cheney Foodservice goals a landscape. total space. away-from-home organization X asset and in PFG an financial will of space will of the expect Brothers appeals Foodservice Core-Mark. to combined growth, food we the some continue this the we to is The the are we However, with in powerful the units provides these a is customers including a fits add us additional for discuss specific upon to growth to build are strategy X The and combination Cheney leading excited PFG away-from-home PFG. our to entity. piece across time, Over

its continues them late away-from-home Orlando, PFG both our PFG held XX and and competitors' fantastic the recognized industry's October, M&A their PFG Vistar through to some great leading space. warehouse SAs targeted parent leader Florida. of friends championship event organization showing and including number to of were categories. event. the event As the organically range family food hero. increasingly compete It's in attendees, a in In proud a opportunities, associates a children The had safest PFG associates, grow is allowing over and across XXX in within and national for a competitions. our the and why of was of awards detailing event, honored their is multiple support accepted a forward. industry to events. their of associates including transportation PFG's X PFG skilled

not landscape in apart. the its strength October, of products Core-Mark convenience to Convenience our in tailored but only of food PFG the Association National convenience convenience, Core-Mark's despite offerings, business Conference. store the In in with center the set traditional space service Stores

and create we our produce working selling. excited is particularly additional XXXX began to initiative Our we our share Investor together cross-selling are customer-first discussing We part market ordering Technology will segment important that is One cross platform that at digital about application. X of this an Day. June opportunities are our segments opportunities. increasingly believe collaboration

gain we a expanded force that progress. then, the company front our competitive and to knowledge Since customers provide consistently to and sales has resources should line tools, their believe across market are them help efforts, we the allowed key team of same the with have the our be At sales excellent continued our our time, always seeing selling businesses. we and have At share. at organization the advantage that our to PFG, grow offering

our be proposition. strategy. we value will segments. Importantly, that are enhance I our customer eventually believe and organization's business continue executing of am opportunities that well X performance cross-selling we rolled positioned our out proud further to growth will first believe Overall, across all Allowing

quarter our I outlook. review I'll and financial return Patrick? it with environment. some to who business and now comments turn will final on our over will then the Patrick, performance

in our previously to Thank guidance start morning. net guidance of XXXX fiscal PFG of the with at disclosed range. our you, results a is George, sales good midpoint end EBITDA and the adjusted previously off upper strong just and above range disclosed

We of the are in in fiscal high second which slightly a early very the confidence quarter. with outlook. line pleased accelerated XXXX momentum, has top degree Providing our

first grew XXXX fiscal in our fiscal from quarter XXXX. the to quarter, highlights the our a point first discussing PFG's net quarter. fourth X Before compared let's acceleration of X.X% sales plan, review some

X.X% independent restaurant excluding our price increase volume case Our acquisitions, Total independent our volume, a the fiscal cases. in top X.X% increased in volume total a balanced between increased line performance improvement realization. first X.X% net including and including total quarter, volume remains X.X%, in restaurant gain

the we we customers the inflation and total Total our convenience from fiscal inflation Cost fiscal growth, stabilization was XXXX which quarter. trends from cost and cost consumer. are the the the reflection double-digit inflation inflation seeing of in company believe poultry in independent about due seen [ in acceleration quarter, food segment As to X%, for acceleration of slight X% fiscal in consistent was X.X% quarter. the fourth quarter, Food was is first with fiscal a ] year-over-year the case we traffic both of second in signs an driving the and enter end service cheese. a

sequentially increase representing was quarter a of year-over-year as anticipated the segment well case gross in prior food more basis. quarter year's company business. increased inflation Total service volatility the the slightly gross period. than a we to equipped price believe profit to Inflation continued of the the cost course manage decelerate first normal quarter, in Vistar's the as X.X% profit $X.XX the to first fiscal in compared in and quarter, per in up on first was we particularly a fiscal are that X.X%

from to XX.X%, excellent and convenience quarter have performance We led by an respectively. see increasing outstanding in profit and growth Foodservice segments. produced once continued again, double-digit and the adjusted EBITDA Both commence cost Foodservice control, XX.X%

segments X adjusted lower decrease our by results strategy. a our of channels. improve Vistar's displays EBITDA some strong modest see diversification driven our fiscal the balance anticipate year. in did The the of to back continued Vistar We traffic foot towards customers' across half

expect in reported to first EBITDA strong adjusted last $XXX diluted XXXX, we which as XXXX, was guidance. above fiscal approximately per earnings the million. fiscal share to will Adjusted net through moment In a of in of when share Diluted PFG these we I was per the of We increased a X.X% results $XXX quarter. improvement guidance $X.XX, build while midpoint profit first I the review move year-over-year. announced address quarter our earnings fiscal X.X% the income million $X.XX, upon quarter

of rate rate in up period. quarter slightly effective first last year's comparable the the compared XX.X% tax Our the to was XX.X% in

We X of sheet of cash flow inventory anticipation is million months periods. candy generated of sizable the quarter and in in Turning holding these In generating cash to includes performance. allows during inventory efficient position first the manufacturer and flow rate flow. future future use activity, a very of gain a fiscal X profit. This often believe operating balance because to pricing a that position, cash increasing potential in generate $XX.X and a which XXXX, high We in categories the return investment tobacco of financial us of this of invest increases. PFG our price our

million. new as $XX.X building been capacity to capital as growth. also well in support to our in We've our state-of-the-art facilities increased actually the fleet We warehouse our long-term spending building quarter

purchases due Some the fleet capital in and disruption spending a of catch-up chain the global delays supply is from the to pandemic. following in building

also new projects the line these online only support XX In and XX expect but technologies We our cost incorporate new next long-term over provide come not consistent believe building efficiencies. to we months. over facilities designs will top growth fact, to

balance M&A Our remains supporting projects sheet healthy, activity. capital and our

above Santiago used the Our target midpoint acquisition. the Jose leverage to debt the the X.Xx range. fiscal quarter, finance Putting balances on increased first just reflecting ABL X.X of during borrowings to our

acquisition second As the in Brothers fiscal closed quarter. you we know, Cheney early the

of be second the we result, range top net our a expect As leverage the end target above when our quarter. close we to

flow ABL next to range quarters. our down expect our We within available to to bring our pay back cash use several facility over leverage target and the

time range We including our feel to current use sheet to that our provides balance future at very believe and share repurchases. well our debt comfortable have said, finance above historically this X.Xx M&A target with our balance we X.Xx reinvestment, leverage. operated to opportunities capital and spending, With

the topic repurchases, repurchase acquire of our we share X.X million $XXX quarter, of On shares $XX.XX, the company fiscal there's million during authorization. to an about $XXX at of the average remaining $XX.X share first million million paid price on

our buybacks of acquisition reduce repurchases While market we due the with our may conditions, in repurchase the said, as share closing we and to Cheney including those and we that may the early With levels active lower on factors, activity price to term. remains share leverage depending several short look repurchases of active, our valuation, conditions. become our more share reflect execute our relative share

XXXX. Turning guidance for our to fiscal

sales expect to year, the to billion full we the $XX.X net range. within billion For $XX.X be

and to We Cheney outlook and EBITDA with early $X.X results in We targets sales approximately our XX adjusted the year's adjusted EBITDA close Jose quarter the of acquisition fiscal have sales optimistic weeks range comfortable both net benefit These representing feel EBITDA full from to trends. very Cheney of billion billion. become $X.X with our expect and the be ranges XX industry or in We the net due increasingly the October. Santiago. estimated second include improving a to adjusted increased

we net $XX.X XXXX, For be the million with to in $XXX a EBITDA in billion $XXX $XX.X of to a range. to second quarter million anticipate adjusted sales fiscal range, billion

weeks versus financial the will XX weeks only a Cheney the acquisition of As reminder, impact quarter's results. XX

that Our accretion to $XX fiscal full in guidance diluted X run the benefits year the first of rate year, includes we notably expected by discussed the and by Cheney and annual the synergies including synergies. from acquisition in fiscal full closing August, the third million adjusted end year following EPS

acquisitions on to with start nicely fiscal are To Meanwhile, the underlying strong a year, the since setting for pleased have we of are excellent expected fiscal our us summarize, footing, our X very margins. our growth beginning and well the is to future. XXXX, up we add business and closed both to

M&A, is sheet continue we balance to our leverage to with healthy, in activity reduction. create and Our reinvestment use to our and businesses, position intend repurchase financial selective shareholder value through share along

timing decisions Our Cheney ]. reduction we this capital allocation to expect would the on are conditions, emphasize time, but debt at marketplace always of flows due to [ based

with like results now some who our back turn would I to about George, thoughts it will and close to industry.

we mentioned, are our operating X Patrick the external about environment. of segments As are our of future executing excited despite business. challenging a well. All

that resume are are cases to all Vistar trends. convenience, Convenience we they to of the will pleased and we grown macroeconomic continues market as and business segment increase and have experience to and in a major to share the ahead able and has a industry was up confident see we momentum our emerging momentum. backdrop. continues top several Despite sales the pick environment, out we nicely. on landscape, build look starting better accustomed declines profit line And across progress channels made outperformed to Our the with that seeing. but Foodservice categories bottom they continued industry to challenging are strong are

very as year, performance, Keep mind, But in improve expect top strong the in the we we in few across pleased the enter restaurants As report that back uptick over in experienced an confident and increasingly second fiscal we look will we line our an are trends. quarter a have are bottom December weeks, fiscal our experience particularly of our XXXX. in acceleration and we we we half independent seen volume sequentially. to to the past landscape, that

of I'm the and our and the that continue to in results, I some States. industry a across hard associates best and with Our we have our the leading company of as work to we both our believe the new talent United that position due are confident the in the businesses Foodservice upon Cheney Santiago underlying country. opportunities food service will build distribution Jose

over that been company's he our an been Before questions, and CEO President opening the years. named of channels, the the a decades. expanded Chief for to new today. [ for Pat Commercial to into to part Vistar growing Officer. fiscal line a organization your top Vistar bottom take has end through In time to organization shape by moment of ] and and helm the Pat I took of through From Pat has become organization retirement. the recently take margin segment XXXX, has the went to the integral has as become serving highest number over part Vistar, recognize wanted the ahead of group's success was at upcoming on Most what XXX% performance his that line XX Hagerty the of PFG's contributing it XXXX, into line. of

decades your you to service best retirement. personally I Pat I in interest our dedication the today. of wish would for him in Thank for time Food your to organization. and Performance We appreciate Group. like his thank

take And with questions. that, we'd your be happy to

first Carden question [Operator Instructions] Mark with we'll And UBS. our from take

at at as on you the the pace given So on normalization guys tough shifted your of for just to force, much macro? tires start, seeing hires just And this of all compensation the are a sales point?

that's the of in late. We've has X% with where fairly consistent our force. X% been running to sales of growth running and range, our We're Yes. about growth been the

no standpoint. big what feel a we're So good really from and changes comp we doing about there

salespeople. are commission Our people

to paycheck. write think degree, I their So some own

out and Okay. a up in did any then exited play are the quarter Great. your how or on terms seeing just the perspective, ticked strength on case your weakness pockets And It July. from quarter like surprising sounds throughout category from Obviously, a then you it it within business? little cadence intended a of you of standpoint just note, from bit high growth. a

X caution strong we increase so first to and XX.X%, for want independent quarter season we calendar better second X-point was kind X.X% than seeing case very in us, We're party quarter Yes. the point far. well. And last growth. a I of But the the December ran had that year fell fiscal to

between far time amount As Christmas. as of the Thanksgiving and

So has that actually since into the gotten said, better gotten quarter. each we've week second

So now, we're range. real and to to that continuing we're get would And of about to We're year. X to half plus add that and right We the little [ and confident back bit ] in people. at particularly in percent confident above to the X% have like get a find increase to right determined more the people. We salespeople just the there. we're X%

Bania We'll take our next question from BMO with Capital. Kelly

I kind little a wondering of the the signs mean on just George, stability. could of about talked acceleration elaborate the here. I was you you if

just follow-up it sounds think independents. consumer with you I seeing like behavior? if -- in Cheney channel I you're and and think to then maybe respect by is had we But a what changing time. have quick can with channel you go What

us better a Okay. experiencing market or so much this itself. of point, I is that increase quarter we're just don't our this job At far doing that know how the

negative It's it's as guess, for of what the better been a has feel I in see, some has in just market that the year. I we our been quite think that our ability, somewhere previous gain get But share to share down. independent we'll the numbers. consistent. we to market from that X% get

second everyone tough. our last as look though, that really got sure was January through year, you at we If remembers quarter, I'm fiscal

get So it. we we some better see expect further to when increases into

As certainly dining far us, growth from is where casual it as come from, that chains. coming not for has

really probably change there. the high our more business towards be numbers. more we this supply to at have the is challenges price-sensitive in -- there's seeing some QSR. -- bottom numbers XX% of We've end. income. I continuing And that fast we're seen food are to versus independent QSR And struggling would the last them high the seeing the challenged And they year's year's end better. We that But some those that really maybe think more of chains, are I then say, still we're

the a in about talk little Vistar note? you bit and Convenience Can same

Sure.

in I an that going there's adjustment price they're with there Convenience I mean, on price to used think increases. increases.

a I have is in still we're X% same-store sales And As is declines And business. that. Vistar we've said just running earlier, that the mid-single-digit rate, adjusting high. think they to consumer inflation

we As not number competitive same so as -- business, part far as somewhat two, challenges number value the the one, our not there, have Vistar we've seen we In thing being have some stores theater traffic And goes being soft. in challenges the there. being it of as more there. retail, far some

closings several we where the business, fairly cash had been value product we've closings. of had then seen would stores that's call accounts in we've And it there's And the some buy impulse I then the where register. it guess, at heavy I the

helpful. just particularly, to I expect X, any integrations about of if of year how the and line, you I the integration of then on That's the And was have anything cadence changed you kind X, time I ask And year acquisitions that X? of year approach wondering guess, that has color size? you synergies Cheney with wanted

due X synergies integration as with to We're and some diligence. it's that's and I as do Well, sales that done has really of probably month, growth done, look a way. very a develop part need on through that public to get the what been it. those the define we as running guess company, business. lot, want. depends you third getting lot second then spent synergies, They the of We do. the getting can you I know the just will I long a They're integration in guess, hours. doing year. pleasing. imagine, Yes. We And -- only things far put way how but only doing best we it -- them to we put I our as integration, well, at to intact, we're need a by good think the their the from They're don't people but

time, will what brands that mentioned. we company and have their out those a our it way. to we than get they is figure continues important we as Core-Mark then or consider but merchants. slow. whether And it different would depends a they no today want Reinhart from with come need offer that those brands get be And more may our we I We'll than adopt -- them on brands. come to come and they perform as product lot branded situation when adopt First the use all, brands, that mean to of a the a synergies And company of part or either It quick, as it's what they But as could be may to synergies or our they products. And of up them, not to just decision what's as to typically could takes we how company. the

possible for the part it on can call of private being to pick so as get and where impact want And their those and the conversation company cell We going synergies can you public a to sometimes, that company. people. And the a on large from a up a negative as getting have seamless make company. they that owner focused phone has

very right will So focused overly develop. we're those synergies, that now but on confident we're not

Heinbockel with question Guggenheim. John next our from take We'll

a new start salesperson you have you been they're with the what from to new sort replacements? Are not through from right? Automation, net capacity segments standpoint, of can talk Wanted facilities? they XX in, are constrained, standpoint? And right? a buildings, So but physical they

Yes.

is constraints, okay? sure. We a have physical replacement buildings, We building. X have have for that necessarily new don't XX We that's

to existing bitter new We on in have do which We this. almost have have a Pat will up. I They're Core-Mark, for we the additions Houston, distribution going center Texas. be all several in these might service. Where projects food And have turn buildings. to

think X not is the I only that's that Foodservice. have we

There's a Vistar expansion. .

Okay.

maybe... then And

I would with this. sure make we're clear

what projects going not So we buildings. XX but we XX major have call would new on,

A right, X X bigger XX RFPs -- maybe know your -- I good in there guess, gotten I next XX and right, next, [ chunky stuff I or X outlook a up don't picking there's I particular, in what right, months past or ] recently? those months in know, X then you what's Core-Mark, other X? Is success, And Okay. right, chunky all over that you here, had the the to thing, nonindependent segments those year think, for do business, along the in much over how potentially we've lines. similar than out the opportunity it size of

have pipeline. We respond to in typically We plenty don't the RFPs.

are. some that if we We are. showing in have as segment growth a We sales be couple within they would excellent that Core-Mark the same-store weren't negative as

there. So we're feeling good very

way. have coming do our double-digit yet. food business long stores we And shipping they've business in that in the service of come part a And not in we're convenience of already business, We experiencing Foodservice. that that performance Core-Mark signed we're but growth we we've that only the of the out have not

Yes.

in conversation been serious in think account national I our do right customer. is we're customers is independent pretty the are now fairly overcome some continuing with it's to that people. that great our great declines. But part showing on focus heavily accounts got Foodservice And that pipeline good. But are be some new business, to Our -- also of We've have able that. we some that we've

Deutsche Silberman Lauren question next take Bank. our from We'll with

I EBITDA $XXX ask Cheney about inter-quarter. about the million wanted guide, to for raising

I think you guys -- it was closer to $XXX TTM basis. million on a

business? any changing would of expectations? be for expectation change conservatism Is in any relative Just terms there the there is color So core a in there your additional helpful.

going We has key Patrick. And Cheney. of about talked it's We -- the since guidance, month -- confident are independent nicely question. of get on for a feel we seen just about to Lauren, the but increase look correct. And mean, Thanks QX, early. is how progressed a I weeks obviously, we cases. in then as and very your Yes, been our we're we metrics at numbers we When QX we've closed the good ago. this very XX just core some about, on been Cheney performing. like the

seen As be. some them is early where numbers and we've they George Jose want performing mentioned, look exactly we good. Santiago to

a progressing I you go But mentioned, sides. gave room on of more ample that throughout the like we year. confidence we both at lot look see guidance feel as if we you, as So the it's range we

we well. Cheney. after. with were Yes, that's another on area as hurricane some entire that basically put on make and one the I guidance we to that At And dealing the time want a distribution the had comment that for effect out, came

I it to lot made They sense as So at through our for closely. we the we'll us cautious a be year well. are about extremely guidance be that. go very thought And looking performing of

also we're this we to such had as December as last our earlier. accelerate, mentioned deal year, We have seeing a far with as big growth I and

cautious They've and much Cheney to weeks real through from clipping seen we've the of they've that. trying impact So on haven't seen an we're about continued just way done these these be all improvement, it. down, But hurricanes. as have we been well,

be when continue to We'll be our update So we we'll to at it appropriate. this. guidance cautious, looking we'll but keep find

you Very helpful. the then penetration just on a that And private label follow-up that. Appreciate discussed.

currently? now? Reinhart it's So where as when I first it you XX%. Cheney a acquired at Where relative was Reinhart think, running PFG read-through, running where that's, looking is to just And

a Cheney's. is situation than different Reinhart Well,

So to their try time this. not I'm take Reinhart's by much But penetration about with XX%. and increased too not going

then have time, know what And position very not of pretty what place XXs, they are branded products. they into kept With really as a that So and in bit they offering. we in percentage that were a brands moves product their And made our XXs, the we're because where some our low the Cheney, substantial were we've adopt. in we we're in over portfolio don't their adopted but to XXs. is those going know good

the saw good and people Dave be a Now a ] [ Craig company lot they show as and to that and our we for would a so that myself, food Hoskins we went felt whole. Joe had, recent a of products fit of X

it's want So But them we're continue on to adopt. going what brands our that. of emphasize they to that choice I work to their again with

[ what you choice that get up our ones should be, much adopt they of stuff are if have don't want around but we do to and too to the and that brand don't they them performance of to one's And offerings very offer because that. we X they they're Opco's what had, have our the disrupt quite arms time. proud want we they as is And to ] want that frankly, exactly legacy at to some Cheney,

it. now. a So really have time a answer. ask to By we'll next have you question again, you give that this number as threat We'll the can I and have can't what we call, good

We'll with Slagle from Alex Jefferies. take question our next

how was Or then play don't It allowed things if I As out? which faster was the on just a you were any. the like fast certain Were happy And closed comment how Cheney follow-up. you that? of know for did could the on progressed. from there we how impact sounds than dynamics that hurricanes, that that with expected. there magnitude pretty if

And to far the quickly. with then well and there's Well, about to if Florida we've look I of parts as the you our our little. what the do to at business facilities current our been pretty stick can and is position pretty has able other And in in as pizza Florida, it country of stayed current particularly ] being hurricanes, kind marketplace. business. Cheney very bulk And we business into in impact us position, we're done then the get think [ of that from the cognizant specialized our led this

as that we of it's the the and that volumes lost number restaurants. what for open. on because restaurants ] be are the higher still far independent totally as impacts right Cheney tends But are substantial. to biggest unit a that [ accounts of coast together Now percentage the putting -- just the And we're average is people helps versus fairly happens the numbers often it

seeing in the we're independent So world. greater

great Not job They their this. did material, through just not though, it's of surprisingly way working a material.

Got there potential anything what's visibility guess inflation, cheese year it. implications else? And And like or the the on are ahead? if for I that cheese your any look

of but now. cheese inflated previous months still for over couple the is That's sequentially, been a going year, has down Cheese right.

question our take We'll next with from Andrew King. CL Wolf

is for George. This question first

Jose as Reinhart, its combined, approaches acquisitions the Just and in as that's not Santiago, Cheney big size. looking and but at X big they're that

in sense, the and in share that see do market -- of sort you Reinhart a to way a general So was? be these as similar . for both catalyst otherwise growth,

them acquisitions. being impactful a of both very see as I good Yes.

together, represent X you at does it EBITDA Reinhart put than more the the If time. did

overlap and I EBITDA companies, what an the matured that growth EBITDA is of are similar be from I been doubled, other that's we'll could actually, that to and impact to full experience that distribution slightly the and X that what it is that than Cheney difference, that the them. offerings we that going centers with us. lot total a someone well in Upper area that that for it's we on the to go-to-market, with a impact of in purchased We'll have to in bigger our do offerings than was great distribution weak the the different but think have as our existing overlapping expect is that similar, as big happen. the them area. our why opportunity from best Cheney, a we call I they've we in done with a have better separate Reinhart some X big And think Reinhart, has spite much in see run Reinhart of but had earnings very experience that incredible out prove have product very Midwest that there Reinhart, we was that's have And brand more broaden a standpoint. grower don't get different and to very now not earnings in been our broadline some the centers has and but we have offerings. -- coexisted markets, we we've These did put of extremely Now and margins where us companies of kind that

that's Cheney. same that will And happen I think the with thing

going will management feelings Great is more We add least ahead X for And at where about distribution just us. have just team. I Cheney center. Cheney coexist will great

are shocked people I currently in that the many met Going was Cheney. with that how to worked I that there at show. past, at I've their so

know some us and So and to know a we going I to be think they, them it's degree, good mix.

Okay. Patrick, I the out your CapEx the wanted projects phases, -- XX if to and about you will. different and CapEx in pointing ask

in ramp million. $XXX year, that spending million $XXX been up CapEx the running last have did nearly You

going million have -- stay these projects. about kind from CapEx around Could been So so? here? going that $XXX is or in talk must of obviously, was some budget into Is that spending that the what just you of to it

Alex, for the thanks Yes, question.

Alex -- a right. Andrew. did up Yes. and year I I'm bit ramp sorry, You're Andrew apologize. little it We last --

projects, get availability last did where it that is them lately, ramp we So harder up a are to some These of and ability find year. are we're post catch-up was which workers lot of or done from pandemic, materials multiyear construction our improve seeing to good.

a through off a been start expect Foodservice. we'll these in we as of additional growth for the along that particularly bit. But as to that's opportunities driving little expense of little year, all and but we projects taper we across So the lot a have, describing, that go see would we've move some also segments, X as faster

build to evaluate some we're and cases, need them a expand one each new to locations So we or in of building. to going our even continue determine if

much adding shouldn't I didn't lot. touch One say thing of we a on lot are a is -- we

are into where as and building these us. a state-of-the-art facilities when buildings some automation appropriate, do more for well provides we that into We efficiencies greenfield lot of we're adding facilities,

a or things take to consideration of into we expand lot when buildings. different look So we add

right. All it. Got

rate in the the takeaways of one So there spending. run is increase the

catch but opportunity. lot a there's it's of Some of up,

right, you. work all Thank -- with So that. I'll

Andrew. Thanks,

from We'll take next Barclays. Bernstein Jeffrey our question with

Two Great. questions.

first improving just on George, the in seem is in guidance. that's weeks. The already trends, optimistic would I increasingly you And one recent 'XX, in today's fiscal in not reflected current the assume trends

if reconcile, think But juxtapose quarter. comment the seems that So that. first I'm to digit. you're with presumably upside It growing quarter, an it's single was higher I you're as -- just you've case is so second just that the line trying the which already independent to growth X% not I more in in X.X% seen already trying acceleration growth you like against made expecting sales force, X%. like to in fiscal a the think to

or the outlook growth forward is And terms case trying going should it's to out case comments? those follow-up. back interpret just numbers So here, accelerate sales to number going I to for the then your how going flush differences independent the or independent had is I'm force in in X we whether X from is pull of what those

what week. better. we're I When ran in and look -- QX, organic current X% our Yes. independent X% running each at somewhere growth, slightly and it's over between It's we gotten accelerated

get weather I January, in the us very and extreme but good November guess, that there's tougher of situations. we're we're up up we unless the some So gives month confidence comparison end comparisons just in as that recognize the of easy, we against some to December, recognize into also we put against way

us project. it makes it little a bit for to So tough

not running we're That's that's where In growth force the same range. in right sales far using to as as far using that at X% our in the is As QX. organic the about growth. now, X% it fiscal so QX

without And, Santiago. those and Jose numbers are without Cheney

Got it.

exaggerating, number independent was I just of what I X.X% of perhaps the guess, case you the growth component saying at that be? look if So would that, organic you're

[ ]. X.X%

you. Got

Okay.

force a So of roughly what you X% running to you're seeing put would to in a sales that's you're off that perspective. X% and X% from which increase X.X%, X%

Exactly.

I of you of sounds usage what as necessarily back assume your X.Xx. share I I know more to at if this could leverage you're think quarters, well, terms is. said, that's within outlook, Cheney, that last that left you'd in time that but by authorization couple I cash north repurchase about was X.Xx if with -- you case, curious on we now is But that if then How the $XXX focused your and like you we plan range time. you just sure debt And that you of quantify the to now, I what should level? It cash wasn't exhaust to within Should Understood. X.X the I'm is quarter, be [ 'XX. you anymore? ] fiscal usage think year-end year wouldn't frame still that said a you get implying leverage Patrick, that authorization to think guess, million said exhaust it

Yes.

close far I the projecting exceeding debt see we're probably As repurchase originally what modeled, less as Cheney earlier times we X.X as into level several mean, I and is leverage. on share back focus than the as I had said And we'll share result. will -- in October, what program, well, less reduction little as focus which since to mentioned, we'll our I mentioned as did we be quarters, X.Xx. that as the a leverage we we'll goes, is or probably activity repurchase a

moving got levels. for it. just guidance. for, to leverage And with I do fiscal for clarify, and D&A quarter give low the Got expense but 'XX, you your interest expense obviously, interest know you've pieces

directional So on interest for any color D&A expense 'XX? and

but Yes. was of, but it's function We financing interest going what's José don't offset leases. is the than but also by that on capital more obviously, really expense Santiago a EBITDA with guidance, give

online, expense addition fleet, as function and drivers also growth. things. again, It's, is that those interest we've buildings, borrowings. new buildings been then these investing And that does of our just in leases, also on overall coming the investing and primarily of really to goes in through in capital depreciation In and and then a come that's X

the there We going reasonable forward? in was unusual higher? should assume is Or what more drove saw a we that first of quarter run fiscal that some rate

there chain similar and some supply experiencing availability we're due that trailers of at tractor -- somewhat -- it's building are to I improve seeing [indiscernible], mentioned units. now. backlogs as the We're No,

of number So units. of larger we are seeing delivery

should So there will be and a then taper catch-up here, it off. again

Harbour from question Morgan take We'll Brian next Stanley. with our

for but inflation cheese, of higher spoke food towards do it about? on more your of think is commented you year, is the you any quickly, outlook, Real different what you this kind end

there. little honestly I but and convenience a already would digits a little seeing to mid-single really be bit bit the from going expect would off probably will I taper Vistar see was we're but single little digits. similar higher No. quarter, for more food, inflation it elevated, low food in a for that we're

that progression And kind alluded in think to. and trends of the business with sales I to pressure. the of channel that Vistar talk was partly know kind the acquired of that of margin don't you or sort if regards of know I more Could -- sort was mix there's you Okay. second year-over-year what margin you Just half? kind also improving about some that? the drives of

just a channel that It's the working to customers. our and also do mix with and consumer lot are Yes. trends with out there

and the things some recovery see their driving We things new going forward, lot on. one believe They going back a channels of new what's have earlier what's that's customers, half potential with they're balance that mentioned the improvement have they of the they're the terms of they we and softer are was exploring year. Vistar. of margin in we that to lot to of is was working the drive a that's in then do going half that in So see that pressure of theaters. of second quarter, What going some even the this but into

centers real of distribution serious that we to we're take can And that's don't a rapid area I lot to gross almost We a should product business. Yes. day. margin comment X little we our the that business that We're bit, country with the mix get green business on is that such experiencing quite all a we of in that too. get the change high like about. on because sell. possession

another that more on. down here things X of the we'll that's money road spending those some So be

weak. that that the business margin has and theater business the gross Vistar that in we but have been Our weak, been value is lowest business has

is in what gross margin gross profit on the low, it, per end Our the do we is cost case but because also low of Vistar. case the is okay so on

But mix of always to lot a noise have there. whole an the going is it. with going on impact there's So

Kelly. our take from question Edward next We'll

that that do of remain volumes? in this the then for on bit business EBITDA, outlook if a seeing are volumes And year case you're in soft little ability maybe backdrop? rest you grow to curious EBITDA the on in possible I was the potentially decline how to going convenience your business. think if talk the about the to that grow you that's to about continuing drivers Could

I mean us where Yes. great going. I this on A ball don't give you I a see but one, I have I'll think crystal

growing of that it's because today, but double low The margin. a Foodservice business EBITDA spite It's several or about very of in is growth tobacco had business guess experiencing has again, Our ability higher I mix, well. sales our to once favorite is years. at grow the it for my been decline

the that the up, that heavy for not volumes lost I period is periods, they're making just coded and we bit time. think part of down of during I did stay-at-home through and time, got I guess, a go think that the little

little far think, as as I will foodservice. come better an new business to we're We're So much on, in better in volumes, independent back outlook, higher point. much doing we as used price convenience. have a more coming within people The doing get

from we great I And as comparison the that guess and think to year. a and that. in delivery. at as I we that our warehouse only not progress made last that expense we're both our ratios far continue rate going standpoint, is potential And productivity But to did headwind do the

come it continuing and more in to will us from see from well do future I expense it come ratio So less line, here, EBITDA the on will growth declines. the

Great.

Just case volumes. a independent follow-up on

like So improving. it business is in the seems momentum

to and you then I tougher independent a of they half back back to an bit curious you growth. December off into election getting case volume like the look to X% this compare, easier you mean as comparisons as that about coming get Just that organic think have year. quite how XX% get do but

to you're as curious how George? that Just target, thinking about

loaded. of But to I which a way of X% ] see don't It lot year, our increases. little [ year, of was because the is back XX% ground hit developed And at the a again. okay, loaded. that we have a some envelope, bit experiencing it have we but ] nice I that make little to model and comp last be to and bit out, barely, I back-end more much late, Well, just front-end it X% -- up [ we're will us getting this just

We'll Saleh with take our Instructions] Peter [Operator BTIG. question next from

if is of go Great. adoption as how George, those, could more elaborate maybe based expecting wanted today, you through bit broad you I on would you're And tool, ask the what little you ordering highlight digital penetration of to and fiscal some it or just helpful? can be benefits, the if today a XXXX some that XXXX.

Yes. of I'm give to comments, turn a couple Patrick. going He's just a I'm over going to closer than I to you and that it little to am.

their see getting orders. that higher We a percentage were enter to little our want independent to Foodservice businesses, they're getting other place. on of as to our go in the own a feel about late system. good customers real doing. to program as We continue digital to probably what having right game And we the far you if But close we're the everybody

out it's It the our really us. -- been part beneficial So there sure really And and their still it's doing still job. make the helpful We sales for Vistar they're people. been time of some for business. saves in

that, Pat, give maybe with better have I'll some numbers. you So

day more it's a the seeing from continuing -- our very that more some you been just segments. then converted our the converting how little they've system tracking then every can Vistar, in of very app ways. One, capabilities to they ordering so we've to multiple especially the some of older as the customers that balance be we and convert system, And in track also again, add downloads were are customers we're -- their with just mobile then the new almost I'll and a story. to similar And different for converting And now added pleased, on we're foodservice waiting systems they're off add really many new on color. weren't platforms platform. of are on to additional pleasing. Yes, customers go more each the side, XXX% one to we're of One, the around legacy they're traditionally

more on done job one system, with we're They've excellent those the all, expect the continue all the platform continuing the their of just adopt they're has to in adding more The regionals and And new don't Vistar feedback. well. were really in and to But an converting we're positive, is in first the customer also platform, nationals customer currently converting just some difference will progress. customers our pleased are additional live legacy independent on for They And ordering their go feedback customers and from [indiscernible] continue been capabilities convenience to is as capabilities on of that and systems. salespeople's other of convenience see the we X add with to that feedback we which exist QX. the all very and Foodservice. based side

yours? its Cheney up? be Can does I they -- Does own Or adopting digital ordering just follow will have tool?

the their to how control, his their difference salesperson just us today, process. have that orders They we I X%. to have had salespeople But of And it's is in good by through own. good conversations that recently similar somewhat digital program where the give talked come of in a They're have the generated wide I've customer. you XXX% who to several the ordering

time digitally. the steady slow the see customer is So go-to-market I our different over but a their salespeople strategies. and system using little adoption order of have What placing

this appears Thank further now closing you. Marshall for I or the no additional back at time. to remarks. have Bill that program we any And will turn questions it over

joining call for our Thank today. you

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