Performance Food Group (NYSE: PFGC) – Sell or Short Recommendation – $21.70 Target
March 29, 2016 concludes the 180-day lockup period on Performance Food Group Inc. .
We previewed the event on our IPO Insights platform last week.
When the lockup period ends for PFGC, its pre-IPO shareholders, directors and executives will have the chance to sell their sell their ~85 million pre-IPO shares (85.8% of shares outstanding).
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The potential for a sudden increase in stock available in the open market may cause a significant decrease in the price of Performance Food Group shares and open a short opportunity for aggressive investors.
Business Summary: Distributor of Food and Food-related Products in the United States
Performance Food Group is the third largest company by revenue in the United States food service distribution industry. The company has over 12,000 employees, 68 distributions centers across 41 countries worldwide, and its clients include Outback Steakhouse, Cracker Barrel, Ruby Tuesday, and T.G.I. Fridays.
PFGC is the parent company over three divisions that distribute products across the United States: PFG Customized Distribution, Vistar, and Performance Foodservice. Together these three divisions support over 150,000 clients in the United States. Its revenue tops $240 billion annually, and they carry over 150,000 national and branded products.
Performance Food Group has a vast portfolio of food products for its clients to choose from, including Braveheart Black Angus Beef and Roma Italian products.
The PFG Foodservice division offers a wide range of consumables including seafood, vegetables, pasta, desserts, bread, eggs, cheese and dairy products, beverages, appetizers and soups.
The PFG Customized division offers meats, produce, seafood, dairy and smallwares.
The Vistar division supplies frozen foods, snacks, gum, mints, candies, disposables and cleaners.
