PFGC · CIK 1618673
What Performance Food Group Company told the SEC could break it.
As a foodservice distributor, Performance Food Group buys substantially all of its products from third-party suppliers and typically without long-term contracts, so suppliers' failure to deliver the right quantities, on time or at requested prices could disrupt its supply or raise its costs. Running its delivery fleet exposes it to diesel prices — a 10% increase would add about $26.3 million in fuel cost — though it cushions that with customer fuel surcharges and costless-collar hedges on roughly 15% of expected gallons. And as a food handler it is subject to extensive FDA and USDA safety regulation, notably the Food Safety Modernization Act, which imposes prevention-based supply-chain controls, regulates imported food and gives the FDA mandatory recall authority, expanding its compliance burden.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- diesel fuel (delivery fleet)medium
PFG's distribution fleet is exposed to diesel-fuel prices — a 10% increase would add ~$26.3M to fuel costs — partially mitigated by customer fuel surcharges and costless-collar hedges (~15% of expected gallons).
“Using published market price projections for diesel and estimates of fuel consumption, a 10% hypothetical increase in diesel prices from the market price would result in a potential increase of approximately $26.3 million in fuel costs included in operating expenses on the consolidated statements of operations. As discussed above, this increase in fuel costs would be partially offset by fuel surcharges passed through to our customers.”
Regulatory & policy
- FDA/USDA food-safety regulation (FSMA)medium
PFG is subject to extensive food-safety regulation (FDA, USDA, state/local health departments), notably the FDA Food Safety Modernization Act, which imposes prevention-based supply-chain controls, regulates imported food, grants FDA mandatory recall authority, and has expanded its compliance requirements.
“The FDA Food Safety Modernization Act (the “FSMA”) imposes comprehensive, prevention-based controls across the food supply chain, further regulates food products imported into the United States, and provides the FDA with mandatory recall authority. The FDA has finalized FSMA regulations for implementation, which have significantly expanded our food safety requirements.”
SEC filing →As of 2025
Supplier concentration
- reliance on third-party suppliers (no long-term contracts)medium
PFG obtains substantially all of its foodservice products from third-party suppliers and typically has no long-term contracts; suppliers may fail to provide products in the needed quantities, timeframe or at requested prices, disrupting supply or raising costs.
“We obtain substantially all of our foodservice and related products from third-party suppliers. We typically do not have long-term contracts with our suppliers. Although our purchasing volume can sometimes provide an advantage when dealing with suppliers, suppliers may not provide the foodservice products and supplies needed by us in the quantities and timeframe and at the prices requested.”
SEC filing →As of 2025
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