Performance Food Group Co

Previous wording

Based on the Company’s organizational structure and how the Company’s management reviews operating results and makes decisions about resource allocation, the Company has three reportable segments: Foodservice, Convenience, and Specialty. Our Foodservice segment distributes a broad line of national brands, customer brands, and our proprietary-branded food and food-related products, or “Performance Brands.” Foodservice sells to independent and multi-unit chain restaurants and other institutions such as schools, healthcare facilities, business and industry locations, and retail establishments. Our chain customers are multi-unit restaurants with five or more locations and include some of the most recognizable family and casual dining restaurant chains. Our Convenience segment distributes candy, snacks, beverages, cigarettes, other tobacco products, food and foodservice related products and other items to convenience stores across North America. Our Specialty segment distributes candy, snacks, beverages, and other food items nationally to vending, office coffee service, theater, retail, and other channels and utilizes third-party carriers to deliver direct to consumers for our supplier partners and to our customers whose order sizes are too small to be served effectively by our fleet network. We believe our diverse segments provide substantial opportunities for cross-segment collaboration to better serve our customers, including business development, procurement, operational best practices such as the use of new productivity technologies, and supply chain and network optimization, as well as shared corporate functions such as accounting, treasury, tax, legal, information systems, and human resources.

Current wording

Based on the Company’s organizational structure and how the Company’s management reviews operating results and makes decisions about resource allocation, the Company has three reportable segments: Foodservice, Convenience, and Specialty. Our Foodservice segment distributes a broad line of national brands, customer brands, and our proprietary-branded food and food-related products, or “Performance Brands.” Foodservice sells to independent and multi-unit chain restaurants and other institutions such as schools, healthcare facilities, business and industry locations, and retail establishments. Our chain customers are multi-unit restaurants with five or more locations and include some of the most recognizable family and casual dining restaurant chains. Our Convenience segment distributes candy, snacks, beverages, cigarettes, other tobacco products, food and foodservice related products and other items to convenience stores across North America. Our Specialty segment distributes candy, snacks, beverages, and other items nationally to vending, office coffee service, theater, retail, and other channels and utilizes third-party carriers to deliver direct to consumers for our supplier partners and to our customers whose order sizes are too small to be served effectively by our fleet network. We believe our diverse segments provide substantial opportunities for cross-segment collaboration to better serve our customers, including business development, procurement, operational best practices such as the use of new productivity technologies, and supply chain and network optimization, as well as shared corporate functions such as accounting, treasury, tax, legal, information systems, and human resources.

Previous wording

Our business, our industry and the economy are influenced by a number of general macroeconomic factors, including reduced demand for our products related to unfavorable macroeconomic conditions triggered by developments beyond our control, including geopolitical dynamics and other events that trigger economic volatility or negatively affect consumer confidence and discretionary spending. We continue to actively monitor the impacts of the evolving macroeconomic and geopolitical landscape, including rapidly evolving tariff and global trade policies and recent geopolitical events, on all aspects of our business. The Company and our industry may face challenges related to uncertain economic conditions and heightened uncertainty in the financial markets, inflationary pressure, an uncertain political environment, supply chain disruptions, and lower disposable incomes due to macroeconomic conditions. Although rapidly evolving tariff and global trade policies and geopolitical dynamics caused increased uncertainty throughout calendar year 2025, we saw little impact to our results in fiscal 2025 and the first half of fiscal 2026. However, the extent and duration of the tariffs and the resulting future impact on general economic conditions and our future financial position, liquidity, and results of operations remains uncertain. Sustained macroeconomic challenges, whether due to tariffs or otherwise, could negatively affect consumer discretionary spending decisions within our customers’ establishments, which could negatively impact our sales and profitability.

Current wording

Our business, our industry and the economy are subject to a number of macroeconomic conditions triggered by developments beyond our control, which can result in reduced demand for our products. The Company and our industry may face challenges related to geopolitical dynamics and other events, which can drive economic volatility, market uncertainty, inflationary pressure, supply chain disruptions, or lower disposable incomes, negatively affecting consumer confidence and discretionary spending. We continue to actively monitor the impacts of the evolving macroeconomic and geopolitical landscape, including rapidly evolving tariff and global trade policies and recent geopolitical events (such as the military conflict in the Middle East), on all aspects of our business. Although we have seen little impact from tariffs on our results during the first nine months of fiscal 2026, rapidly evolving tariff and global trade policies and geopolitical dynamics have continued to cause uncertainty throughout the first nine months of fiscal 2026. On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). Although U.S. Customs and Border Protection is developing refund procedures for tariffs previously paid under IEEPA, significant uncertainty remains regarding potential tariff refunds and replacement tariffs under other statutes. The timing and amount of any recovery are uncertain and, therefore, we are unable to estimate the financial effects of potential tariff refunds, if any, at this time. The situation continues to evolve, and further legislative, regulatory, or judicial developments may affect the ultimate outcome and the availability or timing of any refunds. The scope and duration of existing and new tariffs imposed under alternate authorities and the resulting future impact on general economic conditions and our future financial position, liquidity, and results of operations likewise remains uncertain. Additionally, recent hostilities and geopolitical tensions, such as the conflict in the Middle East, have contributed to significantly higher fuel prices. To the extent increasing fuel expenses are not able to be offset by (i) fuel collar derivatives and/or (ii) diesel fuel surcharges (which are generally recognized on a one-month lag behind changes in fuel prices), prolonged high fuel prices could adversely affect our business, financial condition, or results of operations. Further, sustained macroeconomic challenges, whether due to tariffs, rising fuel prices, or otherwise, could negatively affect consumer discretionary spending decisions within our customers’ establishments, which could negatively impact our sales and profitability.

Previous wording

Our ability to successfully execute our segment and corporate strategies and implement our initiatives. Our performance will continue to depend on our ability to successfully execute our segment and corporate strategies and to implement our current and future initiatives. The key strategies include focusing on independent sales and Performance Brands, pursuing new customers for our three reportable segments, expansion of geographies, utilizing our infrastructure to gain further operating and purchasing efficiencies, and making strategic acquisitions.

Current wording

Our ability to successfully execute our segment and corporate strategies and implement our initiatives. Our performance will continue to depend on our ability to successfully execute our segment and corporate strategies and to implement our current and future initiatives. The key strategies include focusing on independent sales and Performance Brands, pursuing new customers for our three reportable segments, expansion of geographies, utilizing our infrastructure and technology to gain further operating and purchasing efficiencies, and making strategic acquisitions.

Previous wording

Management measures operating performance based on our Adjusted EBITDA, defined as net income before interest expense, interest income, income and franchise taxes, and depreciation and amortization, further adjusted to exclude certain items that we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction, or other adjustment items permitted in calculating covenant compliance under our ABL Facility and indentures (other than certain pro forma adjustments permitted under our ABL Facility and indentures governing the Notes due 2027, Notes due 2029, and Notes due 2032 relating to the Adjusted EBITDA contribution of acquired entities or businesses prior to the acquisition date). Under our ABL Facility and indentures, our ability to engage in certain activities such as incurring certain additional indebtedness, making certain investments, and making restricted payments is tied to ratios based on Adjusted EBITDA (as defined in the ABL Facility and indentures). Our definition of Adjusted EBITDA may not be the same as similarly titled measures used by other companies.

Current wording

Management measures operating performance based on our Adjusted EBITDA, defined as net income before interest expense, interest income, income and franchise taxes, and depreciation and amortization, further adjusted to exclude certain items that we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction, or other adjustment items permitted in calculating covenant compliance under our ABL Facility and indentures (other than certain pro forma adjustments permitted under our ABL Facility and indentures governing the Notes due 2029, Notes due 2032, and Notes due 2034 relating to the Adjusted EBITDA contribution of acquired entities or businesses prior to the acquisition date). Under our ABL

Previous wording

Includes an increase in the LIFO reserve of $28.1 million for Convenience for the second quarter of fiscal 2026 compared to a decrease of $0.1 million for Foodservice and an increase of $17.9 million for Convenience for the second quarter of fiscal 2025. The LIFO reserve increased $1.7 million for Foodservice and $50.9 million for Convenience for the first six months of fiscal 2026 compared to increases of $0.8 million for Foodservice and $29.7 million for Convenience for the first six months of fiscal 2025.

Current wording

Includes an increase of $20.3 million for Convenience and a decrease of $1.9 million for Foodservice in the LIFO reserve for the third quarter of fiscal 2026 compared to increases of $8.2 million for Convenience and $0.2 million for Foodservice for the third quarter of fiscal 2025. The LIFO reserve increased $71.2 million for Convenience and decreased $0.2 million for Foodservice for the first nine months of fiscal 2026 compared to increases of $37.9 million for Convenience and $1.0 million for Foodservice for the first nine months of fiscal 2025.

Previous wording

Includes amounts related to favorable and unfavorable leases, litigation-related accruals, franchise tax expense, insurance proceeds due to hurricane and other weather related events, foreign currency transaction gains and losses, gains and losses on disposals of fixed assets, and other adjustments permitted by our ABL Facility. Additionally, for the three and six months ended December 27, 2025, Other adjustments includes $10.2 million and $20.1 million, respectively, of legal and professional fees incurred in connection with shareholder activism and the clean team agreement with US Foods Holding Corp.

Current wording

Includes amounts related to litigation-related accruals, professional fees related to the modification of debt, insurance proceeds due to hurricane and other weather-related events, gains and losses on disposals of fixed assets, franchise tax expense, favorable and unfavorable leases, foreign currency transaction gains and losses, and other adjustments permitted by our ABL Facility. Additionally, for the nine months ended March 28, 2026, Other adjustments includes $20.2 million of legal and professional fees incurred in connection with shareholder activism and the clean team agreement with US Foods Holding Corp.

Previous wording

Three and six months ended December 27, 2025 compared to the three and six months ended December 28, 2024

Current wording

Three and nine months ended March 28, 2026 compared to the three and nine months ended March 29, 2025

Previous wording

Net sales increased $806.5 million, or 5.2%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 primarily driven by an increase in cases sold, including a favorable shift in mix of cases sold, and an increase in selling price per case as a result of inflation. Net sales increased $2,466.9 million, or 7.9%, for the first six months of fiscal 2026 compared to the first six months of fiscal 2025 primarily driven by recent acquisitions, including the Cheney Brothers Acquisition, an increase in cases sold, including a favorable shift in mix of cases sold, and an increase in selling price per case as a result of inflation. Total case volume increased 3.4% and 6.4% during the second quarter and first six months of fiscal 2026, respectively, compared to the same periods of fiscal 2025. Total organic case volume increased 2.8% in both the second quarter and first six months of fiscal 2026, compared to the same periods of fiscal 2025. Total organic case volume benefited from an increase of 5.3% and 5.8% in organic independent cases sold during the second quarter and first six months of fiscal 2026, respectively, including growth in Performance Brands cases and growth in cases sold to Foodservice’s chain business. The overall rate of product cost inflation was approximately 4.5% for both the second quarter and first six months of fiscal 2026.

Current wording

Net sales increased $983.7 million, or 6.4%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026 primarily driven by an increase in cases sold, including a favorable shift in mix of cases sold, and an increase in selling price per case as a result of inflation. Net sales increased $3.5 billion, or 7.4%, for the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025 primarily driven by an increase in cases sold, including a favorable shift in mix of cases sold, acquisitions, including the Cheney Brothers Acquisition, and an increase in selling price per case as a result of inflation. Total case volume increased 4.4% and 5.7% during the third quarter and first nine months of fiscal 2026, respectively, compared to the same periods of fiscal 2025. Total organic case volume increased 3.7% and 3.1% in the third quarter and first nine months of fiscal 2026, respectively, compared to the same periods of fiscal 2025. Total organic case volume benefited from an increase of 6.5% and 6.0% in organic independent cases sold during the third quarter and first nine months of fiscal 2026, respectively, including growth in Performance Brands cases and growth in cases sold to Foodservice’s chain business. The overall rate of product cost inflation was approximately 4.5% for both the third quarter and first nine months of fiscal 2026.

Previous wording

Gross profit increased $138.6 million, or 7.6%, for the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 primarily driven by cost of goods sold optimization through procurement efficiencies, as well as a favorable shift in the mix of cases sold, including growth in the independent channel. Independent customers typically receive more services from us, cost more to serve, and pay a higher gross profit per case than other customers. Gross profit increased $391.0 million, or 10.9%, for the first six months of fiscal 2026 compared to the first six months of fiscal 2025 primarily driven by recent acquisitions, including the Cheney Brothers Acquisition, as well as the same drivers of the increase in gross profit for the second quarter of fiscal 2026.

Current wording

Gross profit increased $116.4 million, or 6.4%, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025 primarily driven by cost of goods sold optimization through procurement efficiencies, as well as a favorable shift in the mix of cases sold, including growth in the independent channel, which generates higher gross profit due to additional services provided. Gross profit increased $507.4 million, or 9.4%, for the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025 primarily driven by the same drivers of the increase in gross profit for the third quarter of fiscal 2026, as well as acquisitions, including the Cheney Brothers Acquisition.

Previous wording

Operating expenses increased $350.3 million, or 10.9%, for the first half of fiscal 2026 compared to the first half of fiscal 2025 primarily driven by recent acquisitions, including $156.4 million of additional operating expenses as a result of the Cheney Brothers Acquisition, a $129.7 million increase in personnel expenses related to wages and salaries, commissions, and benefits, a $29.1 million increase in depreciation and amortization expense mainly driven by an increase in transportation equipment under finance leases, and $20.1 million in legal and professional fees incurred in connection with shareholder activism and the clean team agreement with US Foods Holding Corp.

Current wording

Operating expenses increased $492.2 million, or 10.1%, for the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025 primarily driven by a $201.4 million increase in personnel expenses related to salaries and wages, benefits, and commissions, additional operating expenses as a result of acquisitions, including $156.4 million related to the Cheney Brothers Acquisition, a $44.9 million increase in depreciation and amortization expense mainly driven by an increase in transportation equipment and facilities under finance leases, $20.2 million in legal and professional fees incurred in connection with shareholder activism and the clean team agreement with US Foods Holding Corp., a $13.1 million increase in fuel expense due to higher fuel prices and miles driven as a result of new business, and a $10.6 million increase in insurance expense related to auto insurance and workers’ compensation.

Previous wording

Net income increased $19.3 million, or 45.5%, for the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 primarily driven by an increase gross profit, partially offset by an increase in operating expenses, income taxes, and interest expense. Net income increased $4.9 million, or 3.3%, for the first six months of fiscal 2026 compared to the first six months of fiscal 2025 primarily driven by increases in gross profit and other income, partially offset by increases in operating expenses and interest expense. The increases in interest expense were primarily the result of an increase in the average borrowings, including finance lease obligations, during the second quarter and first six months of fiscal 2026 compared to the prior year periods.

Current wording

Net income decreased $16.6 million, or 28.5%, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025 primarily driven by an increase in operating expenses, partially offset by increases in gross profit and other income due to unrealized gains on fuel collars. Net income decreased $11.7 million, or 5.6%, for the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025 primarily driven by increases in operating expenses and interest expense, partially offset by increases in gross profit and other income due to unrealized gains on fuel collars. The increase in interest expense for the first nine months of fiscal 2026 was primarily the result of an increase in the average borrowings, including finance lease obligations, during the first nine months of fiscal 2026 compared to the prior year period.

Previous wording

The Company reported income tax expense of $25.0 million and $52.9 million for the second quarter and first six months of fiscal 2026, respectively, compared to income tax expense of $14.3 million and $53.2 million for the second quarter and first six months of fiscal 2025, respectively. Our effective tax rates for the second quarter and first six months of fiscal 2026 were 28.8% and 25.4%, respectively, compared to 25.2% and 26.1% for the second quarter and first six months of fiscal 2025, respectively. The effective tax rate for the three months ended December 27, 2025 differed from the prior year period primarily due to a decrease in deductible discrete items related to stock-based compensation and an increase in foreign taxes as a percentage of income, partially offset by an increase in tax credits net of the valuation allowance established. The effective tax rate for the six months ended December 27, 2025 differed from the prior year period primarily due to an increase in tax credits net of the valuation allowance established and deductible discrete items related to stock-based compensation, partially offset by an increase in foreign taxes and non-deductible expenses as a percentage of income.

Current wording

The Company reported income tax expense of $14.2 million and $67.1 million for the third quarter and first nine months of fiscal 2026, respectively, compared to income tax expense of $20.2 million and $73.4 million for the third quarter and first nine months of fiscal 2025, respectively. Our effective tax rate for both the third quarter and first nine months of fiscal 2026 was 25.4% compared to 25.8% and 26.0% for the third quarter and first nine months of fiscal 2025, respectively. The effective tax rate for the three months ended March 28, 2026 differed from the prior year period primarily due to an increase in tax credits net of valuation allowance established, a decrease in state and foreign taxes as a percentage of income, and a decrease in non-deductible expenses, partially offset by a decrease in deductible discrete items related to stock-based compensation. The effective tax rate for the nine months ended March 28, 2026 differed from the prior year period primarily due to an increase in tax credits net of valuation allowance established, partially offset by a decrease in deductible discrete items related to stock-based compensation and an increase in foreign taxes as a percentage of income.

Previous wording

In the third quarter of fiscal 2025, the Company updated its operating segments to reflect the manner in which the business is managed. The Company continues to have three reportable segments: Foodservice, Convenience, and Specialty. Management evaluates the performance of these segments based on various operating and financial metrics, including their respective sales growth and Segment Adjusted EBITDA, which is the Company’s GAAP measure of segment profit. Segment Adjusted EBITDA is defined as net income before interest expense, interest income, income taxes, depreciation, and amortization and excludes certain items that the Company does not consider part of its segments’ core operating results, including stock-based compensation expense, changes in the LIFO reserve, acquisition, integration and reorganization expenses, and gains and losses related to fuel derivatives. The presentation and amounts for the fiscal quarter and six months ended December 28, 2024 have been recast to reflect these segment changes. See Note 13. Segment Informationof the consolidated financial statements in this Form 10-Q.

Current wording

Based on the Company’s organizational structure and how the Company’s management reviews operating results and makes decisions about resource allocation, the Company has three reportable segments: Foodservice, Convenience, and Specialty. Management evaluates the performance of these segments based on various operating and financial metrics, including their respective sales growth and Segment Adjusted EBITDA, which is the Company’s GAAP measure of segment profit. Segment Adjusted EBITDA is defined as net income before interest expense, interest income, income taxes, depreciation, and amortization and excludes certain items that the Company does not consider part of its segments’ core operating results, including stock-based compensation expense, changes in the LIFO reserve, acquisition, integration and reorganization expenses, and gains and losses related to fuel derivatives. See Note 13. Segment Informationof the consolidated financial statements in this Form 10-Q.

Previous wording

Corporate & All Other is comprised of unallocated corporate overhead and certain operations that are not considered separate reportable segments based on their size.

Current wording

Corporate & All Other is comprised of unallocated corporate overhead and certain operations that are not considered separate reportable segments based on their size. Corporate & All Other may also include capital expenditures for certain information technology projects that are transferred to the segments once placed in service.

Previous wording

Net sales for Foodservice increased $424.1 million, or 5.1%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 driven primarily by case volume growth, including growth in our independent and chain business, and an increase in selling price per case as a result of inflation. Net sales for Foodservice increased $1.9 billion, or 11.6%, from the first half of fiscal 2025 to the first half of fiscal 2026 driven primarily by the Cheney Brothers Acquisition in addition to organic case volume growth and an increase in selling price per case as a result of inflation. Cheney Brothers contributed $1.8 billion in net sales for the first half of fiscal 2026 compared to $825.0 million for the first half of fiscal 2025. Total case growth for Foodservice was 3.5% in the second quarter of fiscal 2026 and 9.3% in the first half of fiscal 2026, compared to the prior year periods. Total independent case growth was 6.7% and 13.0% for the second quarter and first half of fiscal 2026, respectively, compared to the prior year periods. Securing new and expanding business with independent customers resulted in organic independent case growth of 5.3% and 5.8% in the second quarter and first half of fiscal 2026, respectively, compared to the prior year periods. For the second quarter and first half of fiscal 2026, independent sales as a percentage of total Foodservice sales were 44.4% and 42.1%, respectively.

Current wording

Net sales for Foodservice increased $421.4 million, or 5.0%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026 driven primarily by organic case volume growth, including growth in our independent and chain business, an increase in selling price per case as a result of inflation, and recent acquisitions. Net sales for Foodservice increased $2.3 billion, or 9.4%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026 driven primarily by acquisitions, including the Cheney Brothers Acquisition, in addition to organic case volume growth and an increase in selling price per case as a result of inflation. Cheney Brothers contributed $2.8 billion in net sales for the first nine months of fiscal 2026 compared to $1.8 billion for the first nine months of fiscal 2025. Total case growth for Foodservice was 3.9% in the third quarter of fiscal 2026 and 7.5% in the first nine months of fiscal 2026, compared to the prior year periods. Total independent case growth was 7.3% and 11.1% for the third quarter and first nine months of fiscal 2026, respectively, compared to the prior year periods. Securing new, and expanding business with, independent customers resulted in organic independent case growth of 6.5% and 6.0% in the third quarter and first nine months of fiscal 2026, respectively, compared to the prior year periods. For the third quarter and first nine months of fiscal 2026, independent sales as a percentage of total Foodservice sales were 41.5% and 41.8%, respectively.

Previous wording

Adjusted EBITDA for Foodservice increased $7.0 million, or 2.5%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026. This increase was the result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Foodservice’s Adjusted EBITDA increased $78.7 million, or 6.5%, in the second quarter of fiscal 2026 compared to the prior year period primarily driven by a favorable shift in the mix of cases sold and growth in cases sold, including more Performance Brands products sold to our independent customers. Operating expenses impacting Foodservice’s Adjusted EBITDA increased $72.2 million, or 7.8%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026. Operating expenses increased compared to the prior year period primarily as a result of a $46.4 million increase in personnel expenses related to salaries, commissions, and benefits, a $8.4 million increase in insurance expense related to auto insurance and workers’ compensation, a $3.3 million increase in professional fees, and a $2.9 million increase in fuel expense due to higher fuel prices.

Current wording

Adjusted EBITDA for Foodservice increased $6.0 million, or 2.2%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026. This increase was the result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Foodservice’s Adjusted EBITDA increased $85.8 million, or 7.0%, in the third quarter of fiscal 2026 compared to the prior year period primarily driven by growth in cases sold, a favorable shift in the mix of cases sold, including more Performance Brands products sold to our independent customers, and recent acquisitions. Operating expenses impacting Foodservice’s Adjusted EBITDA increased $79.7 million, or 8.4%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026. Operating expenses increased compared to the prior year period primarily as a result of a $54.5 million increase in personnel expenses related to salaries, benefits, and commissions, $10.3 million additional operating expenses as a result of recent acquisitions, a $6.8 million increase in insurance expense related to auto insurance and workers’ compensation, and a $5.5 million increase in fuel expense due to higher fuel prices and miles driven as a result of new business.

Previous wording

Adjusted EBITDA for Foodservice increased $56.8 million, or 10.1%, from the first half of fiscal 2025 to the first half of fiscal 2026. This increase was the result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Foodservice’s Adjusted EBITDA increased $308.5 million, or 13.3%, in the first half of fiscal 2026, primarily due to the Cheney Brothers Acquisition, a favorable shift in mix of cases sold, and growth in cases sold, including more Performance Brands products sold to our independent customers. The Cheney Brothers Acquisition contributed an additional $142.8 million of gross profit impacting Adjusted EBITDA for the first half of fiscal 2026. Operating expenses impacting Foodservice’s Adjusted EBITDA increased $253.4 million, or 14.5%, from the first half of fiscal 2025 to the first half of fiscal 2026 primarily as a result of the Cheney Brothers Acquisition, which contributed an additional $123.5 million of operating expenses for the first half of fiscal 2026. Excluding the impact of the additional Cheney Brothers expenses, operating expenses impacting Foodservice’s Adjusted EBITDA increased primarily as a result of a $94.2 million increase in personnel expenses related to salaries and wages, commissions, and benefits, and a $15.2 million increase in insurance expense related to auto insurance and workers’ compensation, a $5.1 million increase in professional fees, and a $4.9 million increase in fuel expense due to higher fuel prices.

Current wording

Adjusted EBITDA for Foodservice increased $62.8 million, or 7.5%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026. This increase was the result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Foodservice’s Adjusted EBITDA increased $394.3 million, or 11.2%, in the first nine months of fiscal 2026, primarily due to acquisitions, including the Cheney Brothers Acquisition, growth in cases sold, and a favorable shift in mix of cases sold, including more Performance Brands products sold to our independent customers. The Cheney Brothers Acquisition contributed an additional $142.8 million of gross profit impacting Adjusted EBITDA for the first nine months of fiscal 2026. Operating expenses impacting Foodservice’s Adjusted EBITDA increased $333.1 million, or 12.3%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026 primarily as a result of a $148.7 million increase in personnel expenses related to salaries, benefits, and commissions, additional operating expenses as a result of acquisitions, including $123.5 million related to the

Previous wording

Depreciation and amortization of intangible assets recorded in this segment increased from $115.7 million in the second quarter of fiscal 2025 to $133.4 million in the second quarter of fiscal 2026 primarily due to an increase in transportation equipment under finance leases. Additionally, Foodservice depreciation and amortization of intangible assets increased from $200.9 million in the first half of fiscal 2025 to $263.7 million in the first half of fiscal 2026 primarily as a result of an increase in transportation equipment under finance leases and the Cheney Brothers Acquisition. The Cheney Brothers Acquisition contributed an additional $29.7 million in depreciation and amortization for the first half of fiscal 2026 compared to the prior year period.

Current wording

Depreciation and amortization of intangible assets recorded in this segment increased from $120.5 million in the third quarter of fiscal 2025 to $137.7 million in the third quarter of fiscal 2026 primarily due to an increase in transportation equipment and facilities under finance leases. Additionally, Foodservice depreciation and amortization of intangible assets increased from $321.5 million in the first nine months of fiscal 2025 to $401.4 million in the first nine months of fiscal 2026 primarily as a result of the Cheney Brothers Acquisition and an increase in transportation equipment and facilities under finance leases. The Cheney Brothers Acquisition contributed an additional $29.7 million in depreciation and amortization for the first nine months of fiscal 2026 compared to the prior year period.

Previous wording

Net sales for Convenience increased $363.5 million, or 6.1%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 and increased $586.7 million, or 4.8%, from the first half of fiscal 2025 to the first half of fiscal 2026 driven primarily by the addition of new chain customers, a recent acquisition, and an increase in selling price per case as a result of continued inflation. Total Convenience cases sold increased 6.8% and 3.6% for the second quarter and first half of fiscal 2026, respectively, compared to the prior year periods. Securing new chain customers resulted in an organic increase of 6.3% and 3.1% in Convenience cases sold for the second quarter and first half of fiscal 2026, respectively, compared to the prior year periods.

Current wording

Net sales for Convenience increased $501.5 million, or 8.7%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026 and increased $1,088.2 million, or 6.0%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026 driven primarily by case volume growth due to the addition of new chain customers and an acquisition completed in the fourth quarter of fiscal 2025 and inflation in selling price per case, partially offset by a revenue mix shift due to the decline in cigarette case volume. Total Convenience cases sold increased 8.8% and 5.2% for the third quarter and first nine months of fiscal 2026, respectively, compared to the prior year periods. Securing new chain customers resulted in an organic increase of 8.3% and 4.7% in Convenience cases sold for the third quarter and first nine months of fiscal 2026, respectively, compared to the prior year periods.

Previous wording

Adjusted EBITDA for Convenience increased $14.4 million, or 13.4%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026. This increase was a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Convenience’s Adjusted EBITDA increased $26.7 million, or 6.4%, for the second quarter of fiscal 2026 compared to the prior year period primarily due to inventory holding gains, an increase in cases sold, a favorable shift in mix of cases sold, and pricing improvements from procurement efficiencies. Operating expenses impacting Convenience’s Adjusted EBITDA increased $12.4 million, or 4.0%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 primarily as a result of an $8.3 million increase in personnel expense related to salaries and benefits to support case volume growth from the addition of new chain customers and a $2.4 million increase due to recent acquisitions.

Current wording

Adjusted EBITDA for Convenience increased $25.5 million, or 34.1%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026. This increase was a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Convenience’s Adjusted EBITDA increased $39.3 million, or 10.3%, for the third quarter of fiscal 2026 compared to the prior year period primarily due to pricing improvements from procurement efficiencies, inventory holding gains, an increase in cases sold, and income earned from manufacturers for distribution and related services. Operating expenses impacting Convenience’s Adjusted EBITDA increased $13.8 million, or 4.5%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026 primarily as a result of a $11.7 million increase in personnel expenses related to salaries and benefits to support case volume growth from the addition of new chain customers and $2.5 million additional operating expenses as a result of an acquisition completed in the fourth quarter of fiscal 2025.

Previous wording

Adjusted EBITDA for Convenience increased $30.1 million, or 14.2%, from the first half of fiscal 2025 to the first half of fiscal 2026. This increase was a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Convenience’s Adjusted EBITDA increased $49.3 million, or 5.9%, for the first half of fiscal 2026 compared to the prior year period primarily due to inventory holding gains, an increase in cases sold, a favorable shift in mix of cases sold, higher fees earned from manufacturers for distribution and related services, and pricing improvements from procurement efficiencies. Operating expenses impacting Convenience’s Adjusted EBITDA increased $20.0 million, or 3.2%, from the first half of fiscal 2025 to the first half of fiscal 2026 primarily as a result of an increase in variable operating expenses to support case volume growth from the addition of new chain customers, including an $8.2 million increase in personnel expenses related to salaries and benefits, and a $4.9 million increase due to recent acquisitions.

Current wording

Adjusted EBITDA for Convenience increased $55.6 million, or 19.4%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026. This increase was a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Convenience’s Adjusted EBITDA increased $88.6 million, or 7.2%, for the first nine months of fiscal 2026 compared to the prior year period primarily due to inventory holding gains, an increase in cases sold, pricing improvements from procurement efficiencies, and income earned from manufacturers for distribution and related services. Operating expenses impacting Convenience’s Adjusted EBITDA increased $33.8 million, or 3.6%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026 primarily as a result of a $19.9 million increase in personnel expenses related to salaries and benefits to support case volume growth from the addition of new chain customers and $7.4 million additional operating expenses as a result of an acquisition completed in the fourth quarter of fiscal 2025.

Previous wording

Net sales for Specialty increased $18.1 million, or 1.5%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 and increased $8.6 million, or 0.3%, from the first half of fiscal 2025 to the first half of fiscal 2026. The increases in net sales for the second quarter and first half of fiscal 2026 were primarily driven by an increase in selling price per case due changes in channel mix and growth in the vending and retail channels, partially offset by a decline in theater sales. Specialty cases sold for the second quarter and first half of fiscal 2026 decreased 1.3% and 1.9%, respectively, as growth in the vending, retail, office coffee service, and campus channels was more than offset by declines in theater compared to the prior year periods.

Current wording

Net sales for Specialty increased $59.8 million, or 5.3%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026, primarily driven by an increase in selling price per case due to inflation as well as changes in channel mix, with growth in the vending, campus, travel stores, and concessions channels, partially offset by a decline in sales in the value stores and office supply channels. Net sales for Specialty increased $68.4 million, or 1.9%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026, primarily driven by an increase in selling price per case due to inflation as well as changes in channel mix, with growth in the vending, retail, office coffee service, and campus channels, partially offset by a decline in sales in the theater channel. Specialty cases sold for the third quarter of fiscal 2026 increased 1.1% compared to the prior year period due to growth in the vending, campus, travel stores, and concessions channels, partially offset by declines in the value stores and office supply channels. Specialty cases sold for the first nine months of fiscal 2026 decreased 1.0% compared to the prior year period due to declines in the theater and value stores channels, partially offset by growth in the vending, retail, campus, and office coffee service channels.

Previous wording

Adjusted EBITDA for Specialty increased $6.3 million, or 6.7%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026. This increase was a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Specialty’s Adjusted EBITDA increased $7.8 million, or 3.4%, for the second quarter of fiscal 2026 primarily driven by a shift in channel mix, pricing improvements from procurement efficiencies, and inventory holding gains, partially offset by a decrease in cases sold. Operating expenses impacting Specialty’s Adjusted EBITDA increased $1.5 million, or 1.1%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 primarily due to an increase in variable operating expenses as a result of a shift in channel mix.

Current wording

Adjusted EBITDA for Specialty decreased $4.4 million, or 5.6%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026. This decrease was a result of an increase in operating expenses, partially offset by an increase in gross profit. Gross profit contributing to Specialty’s Adjusted EBITDA increased $6.0 million, or 3.0%, for the third quarter of fiscal 2026 primarily driven by pricing improvements from procurement efficiencies and a favorable shift in channel mix, partially offset by a decrease in inventory holding gains. Operating expenses impacting Specialty’s Adjusted EBITDA increased $10.4 million, or 8.4%, from the third quarter of fiscal 2025 to the third quarter of fiscal 2026 primarily due to a $6.9 million increase in personnel expenses related to wages and benefits and a $2.7 million increase in outbound freight expense.

Previous wording

Adjusted EBITDA for Specialty increased $17.1 million, or 9.7%, from the first half of fiscal 2025 to the first half of fiscal 2026 as a result of an increase in gross profit and a decrease in operating expenses. Gross profit contributing to Specialty’s Adjusted EBITDA increased $14.8 million, or 3.2%, for the first half of fiscal 2026 compared to the prior year period primarily driven by a shift in channel mix, pricing improvements from procurement efficiencies, and inventory holding gains, partially offset by a decrease in cases sold. Operating expenses impacting Specialty’s Adjusted EBITDA decreased $2.2 million, or 0.8%, from the first half of fiscal 2025 to the first half of fiscal 2026 primarily due to a decrease in variable operating expenses as a result of a shift in channel mix.

Current wording

Adjusted EBITDA for Specialty increased $12.7 million, or 5.0%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026 as a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Specialty’s Adjusted EBITDA increased $20.8 million, or 3.2%, for the first nine months of fiscal 2026 compared to the prior year period primarily driven by pricing improvements from procurement efficiencies and a shift in channel mix, partially offset by inventory holding gains. Operating expenses impacting Specialty’s Adjusted EBITDA increased $8.2 million, or 2.0%, from the first nine months of fiscal 2025 to the first nine months of fiscal 2026 primarily due to a $6.8 million increase in personnel expenses related to wages and benefits and a $4.3 million increase in outbound freight expense.

Previous wording

Depreciation and amortization of intangible assets recorded in this segment decreased from $13.3 million in the second quarter of fiscal 2025 to $13.1 million in the second quarter of fiscal 2026 and decreased from $27.7 million in the first half of fiscal 2025 to $26.1 million in the first half of fiscal 2026.

Current wording

Depreciation and amortization of intangible assets recorded in this segment increased from $13.4 million in the third quarter of fiscal 2025 to $14.4 million in the third quarter of fiscal 2026 and decreased from $41.1 million in the first nine months of fiscal 2025 to $40.5 million in the first nine months of fiscal 2026.

Previous wording

We are exposed to interest rate risk related to changes in interest rates for borrowings under our ABL Facility. To add stability to interest expense and manage our exposure to interest rate movements, we enter into interest rate swap agreements. These swaps are designated as cash flow hedges and involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments. As of December 27, 2025, $150.0 million of the outstanding ABL Facility balance is hedged under interest rate swaps which results in 70% of our total debt outstanding, including finance lease obligations, being fixed-rate debt.

Current wording

We are exposed to interest rate risk related to changes in interest rates for borrowings under our ABL Facility. To add stability to interest expense and manage our exposure to interest rate movements, we enter into interest rate swap agreements. These swaps are designated as cash flow hedges and involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments. As of March 28, 2026, $150.0 million of the outstanding ABL Facility balance is hedged under interest rate swaps which results in 72% of our total debt outstanding, including finance lease obligations, being fixed-rate debt.

Previous wording

On May 27, 2025, the Board of Directors authorized a new share repurchase program for up to $500 million of the Company’s outstanding common stock. This authorization replaces the previously authorized $300 million share repurchase program. The new share repurchase program has an expiration date of May 27, 2029. Repurchases of the Company’s outstanding common stock will be made in accordance with applicable securities laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions or otherwise, including pursuant to Rule 10b5-1 trading plans. The share repurchase program may be amended, suspended or discontinued at any time at the Board’s discretion, and does not commit the Company to repurchase any specified number of shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company’s stock price, general market and other conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness. As of December 27, 2025, $500 million remained available for share repurchases.

Current wording

On May 27, 2025, the Board of Directors authorized a new share repurchase program for up to $500 million of the Company’s outstanding common stock. This authorization replaces the previously authorized $300 million share repurchase program. The new share repurchase program has an expiration date of May 27, 2029. Repurchases of the Company’s outstanding common stock will be made in accordance with applicable securities laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions or otherwise, including pursuant to Rule 10b5-1 trading plans. The share repurchase program may be amended, suspended or discontinued at any time at the Board’s discretion, and does not commit the Company to repurchase any specified number of shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company’s stock price, general market and other conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness. During the three and nine months ended March 28, 2026, the Company repurchased and subsequently retired less than 0.1 million shares of common stock, for a total of $1.2 million or an average cost of $83.11 per share. As of March 28, 2026, $498.8 million remained available for share repurchases.

Previous wording

Our contractual cash requirements over the next 12 months and beyond relate to our long-term debt and associated interest payments, operating and finance leases, and purchase obligations. For information regarding the Company’s expected cash requirements related to long-term debt and operating and finance leases, see Note 6. Debt and Note 7. Leases, respectively, of the consolidated financial statements in this Form 10-Q. As of December 27, 2025, the Company had total purchase obligations of $273.2 million, which includes agreements for purchases related to capital projects and services in the normal course of business, for which all significant terms have been confirmed, as well as a minimum amount due for various Company meetings and conferences. Purchase obligations also include amounts committed to various capital projects in process or scheduled to be completed in the coming fiscal years. As of December 27, 2025, the Company had commitments of $129.3 million for capital projects related to warehouse expansion and improvements and warehouse equipment. The Company anticipates using cash flows from operations or borrowings under the ABL Facility to fulfill these commitments. Amounts due under these agreements were not included in the Company’s consolidated balance sheet as of December 27, 2025.

Current wording

Our contractual cash requirements over the next 12 months and beyond relate to our long-term debt and associated interest payments, operating and finance leases, and purchase obligations. For information regarding the Company’s expected cash requirements related to long-term debt and operating and finance leases, see Note 6. Debt and Note 7. Leases, respectively, of the consolidated financial statements in this Form 10-Q. As of March 28, 2026, the Company had total purchase obligations of $254.5 million, which includes agreements for purchases related to capital projects and services in the normal course of business, for which all significant terms have been confirmed, as well as a minimum amount due for various Company meetings and conferences. Purchase obligations also include amounts committed to various capital projects in process or scheduled to be completed in the coming fiscal years. As of March 28, 2026, the Company had commitments of $114.8 million for capital projects related to warehouse expansion and improvements and warehouse equipment. The Company anticipates using cash flows from operations or borrowings under the ABL Facility to fulfill these commitments. Amounts due under these agreements were not included in the Company’s consolidated balance sheet as of March 28, 2026.

Previous wording

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Current wording

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Previous wording

As of December 27, 2025, our cash balance totaled $49.5 million, including restricted cash of $8.5 million, as compared to a cash balance totaling $86.7 million, including restricted cash of $8.2 million, as of June 28, 2025.

Current wording

As of March 28, 2026, our cash balance totaled $56.1 million, including restricted cash of $10.2 million, as compared to a cash balance totaling $86.7 million, including restricted cash of $8.2 million, as of June 28, 2025.

Previous wording

During the first six months of fiscal 2026 and fiscal 2025, our operating activities provided cash flow of $456.0 million and $379.0 million, respectively. The increase in cash flow provided by operating activities in the first six months of fiscal 2026 compared to the first six months of fiscal 2025 was largely driven by higher cash-based operating income, partially offset by advanced purchases of inventory to take advantage of preferred pricing.

Current wording

During the first nine months of fiscal 2026 and fiscal 2025, our operating activities provided cash flow of $1,071.9 million and $827.1 million, respectively. The increase in cash flow provided by operating activities in the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025 was largely driven by higher cash-based operating income, improvements in working capital, and income tax refunds of $51.0 million received during the first nine months of fiscal 2026, partially offset by advanced purchases of inventory to take advantage of preferred pricing.

Previous wording

Cash used in investing activities totaled $251.6 million in the first six months of fiscal 2026 compared to $2,736.7 million in the first six months of fiscal 2025. These investments consisted of cash paid for acquisitions of $61.0 million in the first six months of fiscal 2026 compared to $2,535.5 million in the first six months of fiscal 2025, along with capital purchases of property, plant, and equipment of $192.3 million and $203.9 million for the first six months of fiscal 2026 and the first six months of fiscal 2025, respectively. For the first six months of both fiscal 2026 and fiscal 2025, purchases of property, plant, and equipment primarily consisted of outlays for warehouse improvements and expansion, warehouse equipment, transportation equipment, and information technology. The following table presents the capital purchases of property, plant, and equipment by segment:

Current wording

Cash used in investing activities totaled $656.9 million in the first nine months of fiscal 2026 compared to $2,875.1 million in the first nine months of fiscal 2025. These investments consisted of cash paid for acquisitions of $384.2 million in the first nine months of fiscal 2026 compared to $2,552.9 million in the first nine months of fiscal 2025, along with capital purchases of property, plant, and equipment of $265.9 million and $332.7 million for the first nine months of fiscal 2026 and the first nine months of fiscal 2025, respectively. For the first nine months of both fiscal 2026 and fiscal 2025, purchases of property, plant, and equipment primarily consisted of outlays for warehouse improvements and expansion, warehouse equipment, transportation equipment, and information technology. The following table presents the capital purchases of property, plant, and equipment by segment:

Previous wording

During the first six months of fiscal 2026, our financing activities used cash flow of $241.6 million, which consisted primarily of $118.0 million in net repayments under our ABL Facility as well as $114.1 million in payments under finance lease obligations.

Current wording

During the first nine months of fiscal 2026, our financing activities used cash flow of $445.6 million, which consisted primarily of the repayment of the $1.1 billion aggregate principal amount of the 5.500% Senior Notes due 2027, $271.5 million in net repayments under our ABL Facility, and $176.2 million in payments under finance lease obligations, partially offset by $1.1 billion in cash received from the issuance and sale of the Notes due 2034.

Previous wording

During the first six months of fiscal 2025, our financing activities provided cash flow of $2,348.7 million, which consisted primarily of $1,499.9 million in net borrowings under our ABL Facility and $1.0 billion in cash received from the issuance and sale of the Notes due 2032, partially offset by $84.8 million in payments under finance lease obligations.

Current wording

During the first nine months of fiscal 2025, our financing activities provided cash flow of $2,038.6 million, which consisted primarily of $1,229.7 million in net borrowings under our ABL Facility and $1.0 billion in cash received from the issuance and sale of the Notes due 2032, partially offset by $135.4 million in payments under finance lease obligations and $43.6 million in cash paid for repurchases of common stock.

Previous wording

The Company's financing arrangements as of December 27, 2025 are described in Note 6. Debtof the consolidated financial statements within this Form 10-Q. As of December 27, 2025, the Company was in compliance with all of the covenants under the ABL Facility and the indentures governing the Notes due 2027, the Notes due 2029, and the Notes due 2032.

Current wording

The Company’s financing arrangements as of March 28, 2026 are described in Note 6. Debtof the consolidated financial statements within this Form 10-Q. As of March 28, 2026, the Company was in compliance with all of the covenants under the ABL Facility and the indentures governing the Notes due 2029, Notes due 2032, and the Notes due 2034.

Previous wording

Total assets by segment discussed below exclude intercompany receivables between segments, and amounts as of December 28, 2024 have been recast to reflect the changes to our reportable segments that occurred in the third quarter of fiscal 2025.

Current wording

Total assets by segment discussed below exclude intercompany receivables between segments.

Previous wording

Total assets for Convenience increased $380.2 million from $4,182.2 million as of December 28, 2024 to $4,562.4 million as of December 27, 2025. During this time period, the segment increased its inventory due to advanced purchases to take advantage of preferred pricing and increased its property, plant and equipment through additional transportation equipment leases and a warehouse under finance lease. Additionally, the Convenience segment's accounts receivable balance increased compared to the prior year end. These increases were partially offset by decreases in intangible assets due to normal amortization and right-of-use assets. Total assets for Convenience increased $285.6 million from $4,276.8 million as of June 28, 2025 to $4,562.4 million as of December 27, 2025. During this time period, the segment increased its inventory due to advanced purchases to take advantage of preferred pricing and increased its property, plant and equipment through additional transportation equipment leases and a warehouse under finance lease. These increases were partially offset by decreases in accounts receivable, cash, and intangible assets due to normal amortization.

Current wording

Total assets for Convenience increased $257.2 million from $4,086.5 million as of March 29, 2025 to $4,343.7 million as of March 28, 2026. During this time period, the segment increased its inventory due to advanced purchases to take advantage of preferred pricing and increased its property, plant and equipment through additional transportation equipment leases and a warehouse under finance lease. Additionally, the Convenience segment’s accounts receivable balance increased compared to the prior year period. These increases were partially offset by decreases in intangible assets due to normal amortization and right-of-use assets. Total assets for Convenience increased $66.9 million from $4,276.8 million as of June 28, 2025 to $4,343.7 million as of March 28, 2026. During this time period, the segment increased its inventory due to advanced purchases to take advantage of preferred pricing and increased its property, plant and equipment through additional transportation equipment leases and a warehouse under finance lease. These increases were partially offset by decreases in intangible assets due to normal amortization, cash, and accounts receivable.

Previous wording

Total assets for Specialty decreased $69.8 million from $1,566.5 million as of December 28, 2024 to $1,496.7 million as of December 27, 2025. During this time period, this segment decreased its inventory due to sales in the normal course of business, right-of-use assets, and intangible assets due to normal amortization. These decreases were partially offset by an increase in accounts receivable. Total assets for Specialty decreased $90.2 million from $1,586.9 million as of June 28, 2025 to $1,496.7 million as of December 27, 2025 primarily due to decreases in inventory, accounts receivable, property, plant, and equipment, and right-of-use assets.

Current wording

Total assets for Specialty increased $24.6 million from $1,444.8 million as of March 29, 2025 to $1,469.4 million as of March 28, 2026. During this time period, this segment increased its accounts receivable and inventory, partially offset by decreases in right-of-use assets, property, plant, and equipment due to normal depreciation, and intangible assets due to normal amortization. Total assets for Specialty decreased $117.5 million from $1,586.9 million as of June 28, 2025 to $1,469.4 million as of March 28, 2026 primarily due to decreases in inventory due to sales in the normal course of business, property, plant, and equipment due to normal depreciation, accounts receivable, right-of-use assets, and intangibles assets due to normal amortization.