Core Insights - US Foods Holding Corp. has launched Menu IQ, an AI-powered profitability solution aimed at helping food service operators manage food costs more effectively [1] - Menu IQ shifts menu management from intuition-based decisions to a data-driven strategy focused on optimizing menu profitability, enhancing operational efficiency [1] - The solution is provided at no additional cost to US Foods customers, reinforcing the company's commitment to delivering innovative tools for its clients [1]

Company Overview - Sysco Corporation is a leading global distributor of fresh food and related products to the food-away-from-home industry [1] - The company generated approximately $81 billion in sales in fiscal year 2025 [2] - Sysco serves around 730,000 customer locations, with a balanced business model across various customer segments and geographies [2] Sales Distribution - 60% of Sysco's sales come from local restaurants, while the remaining 40% is derived from recession-resistant categories such as government, education, healthcare, and large campuses and office complexes [2] - The company holds leading market share positions in these recession-resistant categories [2] Leadership and Strategic Initiatives - Kevin Hourican, President, CEO, and Chairman, along with Kenny Cheung, CFO, are set to discuss the company's specific initiatives that are driving structural improvements [3] - These initiatives are aimed at unlocking durable and compounding performance, supporting Sysco's commitment to a steady return of capital to shareholders [3]

Financial Data and Key Metrics Changes - For the year 2025, adjusted EBITDA grew 11% to over $1.9 billion, with an EBITDA margin expansion of 30 basis points to a record 4.9% [7][25] - Adjusted earnings per share (EPS) reached a record of $3.98, reflecting a 26% growth, which was more than double the adjusted EBITDA growth rate [7][25] - Fourth quarter net sales increased 3.3% to $9.8 billion, driven by total case volume growth of 0.8% and food cost inflation and mix impact of 2.5% [23][24] Business Line Data and Key Metrics Changes - Independent restaurant case volume grew 4.1%, marking the strongest net new independent account growth of the year at approximately 4.7% [10][23] - Healthcare and hospitality segments grew 2.9% and 3.1%, respectively, in the fourth quarter, with continued share gains in both customer types [10][23] - Chain restaurant volume decreased by 3.4%, primarily due to slower industry traffic and strategic exits [23] Market Data and Key Metrics Changes - Chain restaurant foot traffic was down 2.8% for the fourth quarter, reflecting a deceleration from the previous quarter [9] - Despite industry headwinds, the company maintained confidence in capturing profitable market share in a fragmented industry [9] Company Strategy and Development Direction - The company is focused on executing its long-range plan from 2025 to 2027, emphasizing operational excellence and productivity initiatives [5][6] - The introduction of AI capabilities in technology platforms aims to enhance customer engagement and operational efficiency [8][14] - The company is transitioning to a 100% variable compensation structure for its sales force, expected to drive long-term growth [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying momentum in business despite weather-related disruptions and a challenging macro environment [32][33] - The company expects to achieve its 2026 full-year guidance despite early-year weather impacts, projecting adjusted EBITDA growth of 9%-13% and adjusted diluted EPS growth of 18%-24% [31][32] - Management remains confident in the ability to deliver solid top-line performance and double-digit adjusted EBITDA growth [33] Other Important Information - The company repurchased approximately $930 million of its shares and completed two tuck-in acquisitions for over $130 million [8][29] - The corporate credit rating was upgraded by Moody's to Ba1, reflecting solid operating performance and improved credit metrics [30] Q&A Session Summary Question: Can you provide more color on quarter-to-date volumes and underlying momentum? - Management noted strong early January performance, rebounding from weather disruptions, and highlighted the strongest organic independent case growth in two years [41][42] Question: What are your expectations regarding inflation and its impact on gross profit per case? - Management indicated that self-help initiatives remain the primary drivers of gross profits, with disinflation having a minimal impact on overall performance [46][47] Question: How do you view the maturation of the sales force and its impact on case growth? - Management expects productivity from the sales force to ramp up significantly in the latter half of 2026, with a focus on net new account generation [51][52] Question: What is the outlook for case growth across different customer types? - Management anticipates independent case growth of 4%-7% for the year, with strong pipelines in healthcare and hospitality [75][76] Question: Can you elaborate on the sales compensation structure transition? - Management clarified that the transition to a 100% variable compensation structure may take 2-3 years for the majority of sellers, with positive feedback from sales leaders [66][68]

Financial Data and Key Metrics Changes - For the year 2025, adjusted EBITDA grew 11% to over $1.9 billion, with an EBITDA margin expansion of 30 basis points to a record 4.9% [7][25] - Adjusted earnings per share (EPS) reached a record of $3.98, reflecting a 26% growth, which was more than double the adjusted EBITDA growth rate [7][25] - Fourth quarter net sales increased 3.3% to $9.8 billion, driven by total case volume growth of 0.8% and food cost inflation and mix impact of 2.5% [23][24] Business Line Data and Key Metrics Changes - Independent restaurant case volume grew 4.1%, marking the strongest net new independent account growth of the year at approximately 4.7% [10][23] - Healthcare and hospitality segments grew 2.9% and 3.1%, respectively, in the fourth quarter, with the company achieving its 21st consecutive quarter of share gains in healthcare [10][24] - Chain restaurant volume was down 3.4%, primarily due to slower industry traffic and strategic exits [24] Market Data and Key Metrics Changes - Chain restaurant foot traffic was down 2.8% for the fourth quarter, decelerating 230 basis points from the third quarter [9] - Despite challenges, the company remains confident in capturing profitable market share in a highly fragmented industry [9] Company Strategy and Development Direction - The company is focused on executing its long-range plan from 2025 to 2027, emphasizing operational excellence and productivity initiatives [5][8] - The company aims to enhance its technology leadership through new AI capabilities and improve customer service experiences [12][14] - A new 100% variable compensation structure for the sales force is being implemented to drive long-term growth [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 financial targets despite weather-related disruptions in early 2026 [32][33] - The company anticipates a lower inflationary environment compared to 2025, projecting adjusted EBITDA growth of 9%-13% and adjusted diluted EPS growth of 18%-24% for 2026 [31] - Management remains optimistic about the underlying momentum of the business and the ability to drive profitable growth [41][75] Other Important Information - The company repurchased approximately $930 million of its shares and completed two tuck-in acquisitions for over $130 million in 2025 [8][29] - The corporate credit rating was upgraded by Moody's to Ba1, reflecting solid operating performance and credit metric improvement [30] Q&A Session Summary Question: Can you provide more color on quarter-to-date volumes and underlying momentum? - Management noted strong momentum in early January, rebounding from weather-related disruptions, and highlighted the strongest organic independent case growth in two years [41][42] Question: What are your expectations regarding inflation and its impact on gross profit per case? - Management indicated that self-help initiatives are the primary drivers of gross profits, and while disinflation had a slight negative impact, strong results were still achieved [46] Question: How do you view the maturation of the sales force and its impact on case growth? - Management expects productivity from the sales force to ramp up significantly in the latter half of 2026, contributing to growth acceleration [50][52] Question: Is the net new business growth driven more by headcount growth or existing salespeople? - Management stated that net new business growth is driven by both existing sales force productivity and consistent hiring over the past three years [61] Question: What is the expected impact of the new compensation structure on case growth? - Management believes the new compensation structure will unlock sales force potential over time, enhancing overall growth [76]

Financial Data and Key Metrics Changes - PFG's total net sales grew by 5.2% in Q2 2026, with total company cases increasing by 3.4% [20][24] - Net income reached $61.7 million, a 45.5% increase year-over-year [24] - Adjusted EBITDA increased by 6.7% to $451 million, with diluted earnings per share at $0.39 and adjusted diluted earnings per share flat at $0.98 year-over-year [24][25] Business Line Data and Key Metrics Changes - Food service segment delivered 5.3% organic independent case growth, driven by a 5.8% independent account growth [9][20] - Convenience segment net sales increased by 6.1%, benefiting from market share gains and onboarding of new accounts [15][20] - Specialty segment saw sales growth tempered by a 30% decline in theater, but other channels grew at a high single-digit to low double-digit rate [17][20] Market Data and Key Metrics Changes - Industry-wide foot traffic decelerated, with December traffic down 3.5% [10] - Convenience segment sales were driven by low single-digit dollar growth from food and mid-teen growth in non-combustible nicotine products [16][20] - Total company cost inflation was approximately 4.5%, with food service inflation at 1.8% and convenience inflation at 7.4% [21][23] Company Strategy and Development Direction - PFG's three-year strategic vision focuses on revenue growth, market share gains, gross margin enhancement, and improving operating leverage [8] - The company aims to achieve sales in the range of $73-$75 billion and adjusted EBITDA between $2.3 billion and $2.5 billion by fiscal 2028 [28] - The integration of Cheney Brothers is expected to contribute significantly to revenue and profit growth in the long term, with synergies anticipated to flow through in years two and three [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth and EBITDA performance despite a challenging macro environment [9][18] - The company anticipates a modest sequential decline in net interest expense and expects to maintain a tax rate close to historical averages [25][27] - Management remains optimistic about achieving the full-year guidance despite challenges in Q2, with expectations for a strong second half of the year [28][29] Other Important Information - The company generated $456 million of operating cash flow in the first half of 2026, an increase of $77 million compared to the same period last year [25][26] - PFG did not repurchase any shares in the quarter, prioritizing debt reduction while maintaining a robust M&A pipeline [26] Q&A Session Summary Question: Can you provide additional color on performance by month for organic independent case growth? - Management noted strong performance in October, followed by impacts from the government shutdown in November and December, with a rebound in January despite weather challenges [33][34] Question: How did the pace of your sales force growth compare to recent quarters? - The sales force grew at approximately 6%, with consistent market share gains in independent accounts [35][36] Question: Can you discuss the dynamics at play for the food service business in Q2? - Management highlighted strong independent growth but noted higher-than-expected costs related to the Cheney acquisition and deflation in cheese and poultry impacting margins [40][42] Question: What is the outlook for the convenience segment's EBITDA margins? - Management expressed optimism about margin expansion due to growth in food service and the shift towards non-combustible nicotine products [44][46] Question: How is the integration of Cheney progressing? - The integration is on track, with some costs running higher than anticipated due to infrastructure investments, but overall performance is satisfactory [41][42] Question: What is the company's approach to M&A following the Cheney acquisition? - Management confirmed no change in M&A strategy, emphasizing collaboration and careful integration of acquisitions [57][58] Question: How does deflation impact margins? - Deflation primarily affects margins, particularly in cheese and poultry, where oversupply has led to lower prices [51][52]

Core Viewpoint - Cisco, a leading food service distributor in North America, has reported strong earnings, leading to a significant increase in its stock price, marking its best performance in over five years [1][4]. Company Performance - Cisco's adjusted earnings profit was 99 cents, beating estimates by one cent and reflecting a 6.5% increase year-over-year from 93 cents [4]. - Sales reached approximately $20.76 billion, which, while $14 million below consensus estimates, still represented a 3% year-over-year growth [5]. - The company has been on an acquisition spree, including the purchase of Ginsburg Foods, which is expected to enhance gross margins going forward [5]. Market Position and Strategy - Cisco services a diverse range of clients, including restaurants, hotels, hospitals, and schools, and is expanding its offerings with its Commerce 360 software to enhance digital infrastructure [3]. - The company is experiencing local volume growth of 1.2%, indicating pricing power despite a modest increase in sales [6]. - Cisco's net income margins are currently at 2.25%, which is low compared to other businesses but acceptable given its high volume [6]. Financial Metrics - Cisco's gross margin has expanded by 25 basis points, contributing to a better margin profile, with net income margins higher by 50 basis points compared to five-year averages [7]. - The stock is approaching new 52-week and five-year highs, supported by a dividend yield of approximately 2.9%, with 47% of earnings paid out as dividends [8][14]. Industry Context - The food distribution sector, including companies like Walmart and Costco, is performing well amid inflation, contrasting with the struggles faced by food brands like General Mills and Conagra [12]. - Cisco's brand-agnostic approach allows it to thrive in the wholesale distribution network, which is currently outperforming other segments of the food industry [13].

Financial Data and Key Metrics Changes - The company has maintained a strong profit growth trajectory, achieving a 10% EBITDA and 20% EPS compound annual growth rates despite industry-related top-line pressures [10][12][52] - The company is focused on controlling costs and driving productivity, which has allowed it to offset rising expenses while continuing to invest in the business [12][18] Business Line Data and Key Metrics Changes - The company has seen consistent market share gains in independent restaurants for 18 consecutive quarters, indicating strong performance in this segment [35] - The Pronto initiative is expected to significantly contribute to revenue growth, with projections raised to $1.5 billion over the midterm from $1 billion [39] Market Data and Key Metrics Changes - The consumer backdrop remains stable, with expectations for a stronger consumer environment in 2026 due to potential tax refunds and lower interest rates [5][6] - Independent restaurants have been outperforming chain restaurants, a trend that is expected to continue [9] Company Strategy and Development Direction - The company is focused on three core customer types: independent restaurants, healthcare, and hospitality, which are the fastest-growing and most profitable segments [16] - The company is actively pursuing tuck-in M&A opportunities to enhance local market scale and improve delivery efficiency [22][23] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, citing strong momentum and a clear focus on profitable segments [51][52] - The company is confident in its ability to sustain improvements in EBITDA margins and overall earnings through process improvements and technology enablements [48] Other Important Information - The company is transitioning to a 100% commission compensation model, which is expected to align incentives and enhance sales effectiveness [24][30] - The company has not experienced increased turnover during the pilot phase of the new compensation model, indicating positive reception among the sales force [28][34] Q&A Session Summary Question: How is the company viewing the health of the consumer? - Management believes the consumer backdrop is stable, with hopes for improvement in 2026 due to lower interest rates and potential stimulus [5] Question: What is the company's strategy regarding M&A? - The company is focused on tuck-in acquisitions that align with its existing strategy, while remaining open to larger opportunities if they make sense [22] Question: How does the company plan to balance new account growth and penetration growth? - The company is actively working on both fronts, with a focus on minimizing lost business and generating new accounts [36] Question: What are the key initiatives driving margin improvements? - Strategic Vendor Management is highlighted as a significant initiative, along with other technology and process improvements [47]

Core Viewpoint - Colabor Group Inc. has entered into protection under the Companies' Creditors Arrangement Act (CCAA) to facilitate its restructuring efforts, with an initial order granted by the Superior Court of Quebec [1][2]. Group 1: CCAA Proceedings - The Superior Court of Quebec has issued an initial order granting Colabor and its subsidiaries protection under the CCAA, allowing for a stay of proceedings against the company and its subsidiaries, including a stay of creditor claims [1][2]. - Raymond Chabot Inc. has been appointed as the Monitor to assist Colabor with its restructuring and to report to the Court [2]. - The initial order includes approval for debtor-in-possession financing (DIP Financing) from The Toronto-Dominion Bank, The Bank of Montreal, and the Bank of Nova Scotia, which will support the sale and investment solicitation process and the company's operations during restructuring [2][3]. Group 2: Management and Operations - The Court has approved a Sale and Investment Solicitation Process (SISP) to allow interested parties to submit proposals for the best possible transaction for Colabor and its stakeholders [3]. - Management will continue to oversee day-to-day operations while under CCAA protection, with oversight from the Monitor [3]. - Mr. Marc-Antoine Daoust has been appointed as Chief Financial Officer, succeeding Mr. Yanick Blanchard, who will now serve as Chief Restructuring Officer [4]. Group 3: Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [7].

Core Viewpoint - Colabor Group Inc. has entered into protection under the Companies' Creditors Arrangement Act (CCAA) to facilitate its restructuring efforts and manage its financial obligations [1][2]. Group 1: CCAA Proceedings - The Superior Court of Quebec has issued an Initial Order granting Colabor and its subsidiaries protection under the CCAA, which includes a stay of proceedings against the Company and its subsidiaries [1][2]. - Raymond Chabot Inc. has been appointed as the Monitor to assist Colabor with its restructuring and report to the Court [2]. - The Initial Order allows for debtor-in-possession financing (DIP Financing) from The Toronto-Dominion Bank, The Bank of Montreal, and the Bank of Nova Scotia to support the Company's operations during the restructuring process [2]. Group 2: Sale and Investment Solicitation Process - The Court has approved a Sale and Investment Solicitation Process (SISP) to enable interested parties to submit proposals for the best possible transaction for Colabor and its stakeholders [3]. Group 3: Management Changes - Mr. Marc-Antoine Daoust has been appointed as Chief Financial Officer, succeeding Mr. Yanick Blanchard, who will now serve as Chief Restructuring Officer [4]. Group 4: Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [7].

Core Viewpoint - Groupe Colabor Inc. and its subsidiaries are seeking initial court protection under the Companies' Creditors Arrangement Act (CCAA) to restructure and facilitate a formal sale and investment solicitation process [1][2]. Group 1: Court Proceedings and Financial Restructuring - The company is requesting an initial order to approve a formal sale and investment solicitation process to allow interested parties to submit proposals for the best possible transaction [2]. - The request also aims to suspend creditor claims and certain contractual rights, and to approve temporary debtor-in-possession financing from major banks to support the restructuring process [2]. - Raymond Chabot Inc. is proposed to be appointed as the monitor to oversee the CCAA proceedings and report to the court, while the company's management will remain responsible for day-to-day operations under the monitor's supervision [2]. Group 2: Financial Obligations and Stock Trading - This announcement follows a previous disclosure on December 15, 2025, indicating that the company failed to meet its obligation to provide non-binding letters of intent for refinancing its credit facilities and raising a minimum of $15 million [3]. - Trading of the company's common shares on the Toronto Stock Exchange (TSX) has been halted, and the TSX is reviewing the potential delisting of its securities under an accelerated review process [4]. Group 3: Company Overview - Colabor is a distributor and wholesaler of food products serving the hospitality, restaurant, and institutional markets in Quebec and Atlantic provinces, offering a range of specialized food products including meats, fish, and seafood [5].