Performance Food Group Company (PFGC) shares experienced a significant drop in premarket trading on Monday, November 24, 2025, declining by 4.30% to $92.50 as of 8:18 AM EST. This downturn followed the announcement that the company and US Foods have mutually agreed to end their information sharing process. This decision signals the conclusion of merger discussions that had been ongoing since July 2025, when the two major food distributors first began exploring a potential business combination.
The companies had previously entered into a formal information exchange agreement in September. However, after a comprehensive evaluation of regulatory considerations and potential synergies, both parties ultimately decided to proceed with their standalone strategies.
PFGC and US Foods Conclude Two-Month Information Sharing Process
Performance Food Group and US Foods jointly announced the termination of their potential merger discussions on Monday morning. This development occurred approximately two months after they had agreed to exchange sensitive financial information, with the intention of proceeding without violating antitrust laws. George Holm, Chairman and CEO of Performance Food Group, stated that following a thorough evaluation conducted with independent financial and legal advisors, the company’s Board of Directors unanimously concluded that executing their standalone strategic plan offers the most direct route to achieving long-term stockholder value.
This decision comes at a time when activist investor Scott Ferguson had joined PFG’s board in September, and hedge fund Sachem Head Capital Management had encouraged the food distributor to consider the merger.
The terminated deal would have combined two prominent entities within the food distribution sector. According to LSEG data, US Foods was valued at $15.85 billion, while Performance Food Group was valued at $15.16 billion. Holm further emphasized that the robust performance reported in the company’s recent fiscal first quarter, coupled with continued positive momentum, bolsters confidence in their ability to independently drive value for stockholders.
Earlier in August, the CEO had indicated that the board determined there was “no basis” to engage with US Foods, although the company later reversed this stance and entered into information sharing discussions.
Market Capitalization Remains Stable Despite Premarket Decline on Deal News
Performance Food Group shares closed at $96.65 on Thursday, November 21, marking a gain of 2.49%, or $2.35, before their drop to $92.50 in premarket trading on Monday following the announcement of the merger termination.
The stock has shown strong performance over the past year, with a one-year return of 11.86%, exceeding the S&P 500’s return of 11.00%. Over a five-year period, the stock delivered an impressive return of 120.36%, significantly outperforming the benchmark’s 85.61%. Despite the premarket decline, the company maintains a market capitalization of $15.16 billion and is currently trading at a trailing P/E ratio of 46.24.
The company has reaffirmed its full fiscal year 2026 guidance, projecting net sales to be between $67.5 billion and $68.5 billion, with Adjusted EBITDA expected to range from $1.9 billion to $2.0 billion. For the second quarter of fiscal 2026, PFG anticipates net sales between $16.4 billion and $16.7 billion, with Adjusted EBITDA projected at $450 million to $470 million.
Analyst sentiment remains largely positive, with an average price target of $121.67 as of November 2025, which is substantially higher than the current trading price. Fourteen analysts have rated the stock as “Strong Buy” or “Buy.”