Latest news with #CheneyBrothers
Yahoo
21-03-2025
- Business
- Yahoo
Walls going on up new Cheney Brothers food facility in Florence County
FLORENCE COUNTY, S.C. (WBTW) — Work is progressing on a $66 million Cheney Brothers food distribution facility that is expected to bring nearly 300 jobs to Florence County. A Facebook post by the Florence County Economic Development Partnership on Friday showed a crane and workers erecting a concrete wall at the facility, which is being built at the Pee Dee Commerce City East Industrial Park. The facility is located on nearly 50 acres across Interstate 95 from Buc-ee's. Officials with the Florida-based company announced plans for a groundbreaking in November. The 386,047-square-foot facility will have 45 loading docks and more than 100,000 square feet of dry storage, a 90,000-square-foot freezer and a variety of specialized coolers, officials said. It will also feature the largest culinary kitchen the company has developed. * * * Dennis Bright is the Digital Executive Producer at News13. He joined the team in May 2021. Dennis is a West Virginia native and a graduate of Marshall University in Huntington, West Virginia. Follow Dennis on Facebook, X, formerly Twitter, and read more of his work here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
06-02-2025
- Business
- Yahoo
Performance Food Group Co (PFGC) Q2 2025 Earnings Call Highlights: Strong Sales Growth and ...
Total Net Sales Growth: 9.4% increase in the fiscal second quarter. Organic Independent Restaurant Case Volume Growth: 5% in the quarter. Adjusted EBITDA Growth: 22.5% increase to $423 million. Net Income: $42.4 million for the fiscal second quarter. Diluted Earnings Per Share: $0.27; Adjusted diluted EPS: $0.98, an 8.9% improvement year-over-year. Operating Cash Flow: $379 million in the first six months of fiscal 2025. Free Cash Flow: Approximately $175 million after $204 million in capital expenditures. Foodservice Segment Adjusted EBITDA Growth: 29.4% in the quarter. Convenience Segment Adjusted EBITDA Growth: 28.5% in the quarter. Vistar Segment Case Growth: Low single-digit increases in key channels. Fiscal Year 2025 Net Sales Guidance: $63 billion to $64 billion. Fiscal Year 2025 Adjusted EBITDA Guidance: $1.725 billion to $1.8 billion. Warning! GuruFocus has detected 7 Warning Signs with PFGC. Release Date: February 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Performance Food Group Co (NYSE:PFGC) reported a 9.4% increase in total net sales for the fiscal second quarter, driven by both organic growth and contributions from recent acquisitions. The company achieved a 5% organic independent restaurant case volume growth, indicating strong performance in its core segment. PFGC's Convenience segment showed resilience with positive total volume growth, outpacing the industry in key product categories despite challenges. The integration of recent acquisitions, Cheney Brothers and Jose Santiago, is progressing well, contributing positively to both top and bottom lines. PFGC's adjusted EBITDA increased by 22.5% to $423 million, surpassing the upper end of their guidance range, showcasing strong operational execution. The Vistar segment faced challenges with lower foot traffic and customer-specific issues, impacting its performance despite some positive case growth. PFGC's leverage increased due to the Cheney Brothers acquisition, pushing it above the target range, necessitating a focus on debt reduction. The company anticipates continued challenges in the Vistar segment for the rest of the fiscal year, despite easier comparisons. PFGC's Convenience segment is still facing significant inflationary pressures, particularly in candy and snacks, affecting overall performance. The company noted that achieving the 6% independent case growth target for the fiscal year would require some improvement in the macroeconomic environment. Q: Can you elaborate on which segments are contributing to the higher sales outlook and any signs of stabilization in challenged accounts? A: Scott McPherson, Executive Vice President, Chief Field Operations Officer, noted that independent growth trends are strong, with a 7% increase in headcount and 5% in new accounts. The chain accounts are also rebounding. On the Convenience side, they continue to outperform the macro environment. Patrick Hatcher, CFO, added that Vistar will face challenges but expects growth in several channels. Q: Could you provide more details on cost of goods optimization and procurement efficiencies? A: Scott McPherson explained that while cost optimization has always been a focus, recent efforts have been more collaborative across segments, helping to drive sales growth and optimize costs. Q: What is the underlying momentum in the Foodservice business, and how confident are you in achieving 6% independent organic growth for the year? A: George Holm, CEO, acknowledged that achieving 6% growth will require a 7-8% increase in the back half of the year. He expressed confidence based on internal metrics and market information, although some help from the industry is needed. The company is seeing better SKU penetration and expects improvement in the macro backdrop. Q: Can you discuss the impact of inventory holding gains in the second quarter and expectations for the rest of the year? A: Patrick Hatcher stated that there were some inventory holding gains in Q2, but they were managed and not outsized. For the back half of the year, minimal holding gains are expected, with overall gains being relatively immaterial. Q: How are you approaching new restaurant formation and customer acquisitions given the current environment? A: George Holm noted that new restaurant formation continues, with many independent restaurants opening. The company is also seeing growth in certain chains. Despite higher build costs and traffic challenges, the outlook for new customer acquisitions remains positive. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
