Foodservice Distribution - The More Things Change, the More They Stay the Same—We Remain Buyers, Raising the PFGC Price Target to $125

Research evidence excerpt

Foodservice Distribution - The More Things Change, the More They Stay the Same—We Remain Buyers, Raising the PFGC Price Target to $125

Food Distribution June 28, 2026

John Heinbockel

john.heinbockel@guggenheimpartners.com Foodservice Distribution - The More Things Change,

212 381 4135 the More They Stay the Same—We Remain Buyers, Steven Forbes, CFA, CPA

steven.forbes@guggenheimpartners.com Raising the PFGC Price Target to $125

212 381 4188

Julio Marquez Key Message: The last several months have re-affirmed, once more, why foodservice julio.marquez@guggenheimpartners.com

212 823 6605 distribution should be a core holding for duration investors, in our view, especially during

seemingly annual periods of fundamental angst-driven significant share price pullbacks.

Jacob Nivasch As detailed in Exhibit 1, the sector rallied 15-35%, versus a flat S&P 500, in the past six

jacob.nivasch@guggenheimpartners.com weeks rightfully putting aside overdone concerns around the adverse impact of elevated 212 338 8837

fuel prices on the P&L. Consistent with medium-term trading dynamics, PFGC has led

Max Horowitz the way—see Exhibit 2—something we have incessantly discussed since the February

max.horowitz@guggenheimpartners.com sell-off. Despite these moves, we reiterate a bullish stance believing a “defensive growth”

212 518 9974 posture positions the sector well for both risk-on or risk-off markets and valuations are

not stretched, especially for PFGC, which trades at 10x 2027E EBITDA. We raise our

price target to a conservative $125 (from $115 prior).

Big Three “Mo” In A Soft, But Stable Market. We believe June quarter local case, and

overall, top-line momentum has remained solid despite an ongoing soft food-away-from-