Performance Food Group Co

Performance Food Group Company (Nasdaq: PFGC) operates as a major North American distributor of food and food-related products through its website at www.pfgc.com. The company markets and distributes more than 300,000 products to approximately 350,000 customer locations across the food-away-from-home industry from over 150 distribution centers, employing more than 44,000 associates across North America.

The company operates through three reportable segments. The Foodservice segment, operating 90 distribution centers, serves independent restaurants, chain restaurants, and institutional food-away-from-home locations with broadline assortments including custom-cut meat and seafood, frozen foods, refrigerated products, dry groceries, and disposables. The Convenience segment, with 38 distribution centers and six redistribution centers in the U.S. and Canada, distributes consumer products and foodservice items to convenience stores, drug stores, mass merchants, grocery stores, and liquor stores, offering cigarettes, alternative nicotine products, candy, snacks, fresh products, beverages, and general merchandise. The Specialty segment operates 26 distribution centers and serves vending and office coffee service distributors as well as retailers, entertainment venues, and theaters with candy, snacks, beverages, and perishable foods.

Performance Food Group's competitive advantages stem from economies of scale in purchasing and procurement, a broad variety of proprietary Performance Brands products commanding higher margins, extensive geographic coverage, and supply chain efficiencies including an inbound logistics backhaul network. The company sources products from various suppliers, including large national brand corporations and smaller regional suppliers, while serving as an important distribution partner providing suppliers access to its broad customer base.

The company's pricing mechanisms typically pass cost fluctuations to customers through either percentage markups, fixed markups per unit, or pricing set at time of order. With inventory turning every three to four weeks, the company maintains significant insulation from commodity cost fluctuations. The company holds numerous perpetual trademarks including Performance Food Group, Performance Foodservice, Core-Mark, and Vistar, with Performance Brands recognized throughout the foodservice industry. Approximately 99 percent of associates work full-time, with roughly 70 percent employed on an hourly basis, and approximately 2,800 associates are union members.