2Q Foodservice Distribution Preview: USA | Food Retail & Distribution

Research evidence excerpt

2Q Foodservice Distribution Preview: USA | Food Retail & Distribution

USA | Food Retail & Distribution EquityJulyResearch15, 2026

KEY STOCKS FEATURED INCLUDE:2Q Foodservice Distribution Preview

C2Q likely in line or better for distributors, w/foodservice demand proving more TICKER RATING PRICE TARGET

resilient than expected, & oppty for pockets of upside (esp CHEF in upscale). We USFD BUY $116.00

think FS Distributors setting up to be relatively durable winners in the current PFGC BUY $130.00

envmt as share gains continue & profitability set-up likely better than most SYY BUY $95.00

given pricing power, favorable customer/product mix & productivity opptys that CHEF BUY $112.00

showcase durability of models. Reit Buys on PFGC, USFD, SYY, CHEF.

SYY (Buy, $95 PT): With management reiterating its outlook for at least 2.5% local volume growth KEY CHANGES INCLUDE:

for F4Q as of early June, solid fuel hedging, and announced incremental cost save initiatives,

TICKER RATING PRICE TARGET

we expect the quarter to be largely in line, with EPS toward the upper end of the range for F26

($4.50-4.60), implying about $1.51 for F4Q. We look for net sales $21.98b, EBITDA $1.349b and USFD BUY $116.00 ($115.00)

EPS $1.51, with local cases +2.5% (2.0% organic). Looking ahead, we expect F27 guide to be mostly PFGC BUY $130.00 ($120.00)

consistent with the 3-yr algo, and see oppty for sales growth of 5% (we est $88.87b vs Cons CHEF BUY $112.00 ($87.00)

$88.51b) and EPS growth of about 7% (we est $4.92 vs Cons $4.94). F27 to see benefits from

announced cost-save initiatives ($60m run rate starting F4Q, which helps offset the temporary halt

on buybacks related to pending RD transaction), and also expect to hear more about additional

Organic indep case growth & 2yr trend vs