Key Takeaways
- • Dan Loeb's Third Point LLC opened a new 675,000-share position in Performance Food Group (PFGC) and a new 580,000-share position in Sysco (SYY) as of June 30, per its 13F filing, worth about $75.5 million and $48 million respectively.
- • The combined value of the two new stakes is roughly $123.5 million, according to the publisher's own coverage.
- • Sysco's proposed acquisition of Jetro Restaurant Depot remains under FTC review after a second request for information issued May 27, with CEO Kevin Hourican expecting closing in early 2027.
- • Sysco financed the deal's cash portion with about $21 billion in new debt and hybrid debt, and closed notes offerings totaling $14.65 billion in USD and EUR 1 billion on Oct. 6.
- • Performance Food Group reported fiscal Q4 adjusted EPS of $1.59, a cent below estimates, and guided first-quarter revenue to $17.9–18.1 billion.
Summary
Dan Loeb's Third Point LLC opened new stakes in two of the largest U.S. foodservice distributors during the second quarter, according to its 13F filing with the Securities and Exchange Commission. The fund built a new 675,000-share position in Performance Food Group Co. (PFGC), worth about $75.5 million, and a new 580,000-share position in Sysco Corp. (SYY), worth about $48 million, as of June 30.
Sysco's pending acquisition of Jetro Restaurant Depot is the central near-term event for the company. Sysco said earlier this year it would finance the cash portion of the roughly $29 billion transaction with about $21 billion in new debt and hybrid debt. On May 27, the Federal Trade Commission issued a second request for information as part of its regulatory review. CEO Kevin Hourican told CNBC in August that he expects the deal to close in early 2027, though closing remains subject to regulatory approval and other conditions. The company's proposed 2015 acquisition of US Foods was blocked by a federal judge following an FTC antitrust challenge. On Oct. 6, Sysco closed notes offerings totaling $14.65 billion in U.S. dollar-denominated notes and EUR 1 billion in euro-denominated notes. On Oct. 15, it reached an agreement with Teamsters Locals 630 and 848 to end a strike at its Los Angeles facility. Sysco is scheduled to report first-quarter fiscal 2027 results on Nov. 3.
Performance Food Group, based in Virginia, reported fiscal fourth-quarter adjusted earnings of $1.59 per share in August, a cent below analysts' estimate of $1.60, and guided first-quarter revenue to $17.9–18.1 billion. Shortly afterward, it announced a transition in its lead independent director position and a board member's resignation. Analyst views are mixed: Morgan Stanley raised its price target from $131 to $136 and kept an Overweight rating, while TD Cowen cut its target from $115 to $110 and maintained a Buy rating.
As of the article's data, Performance Food Group had a market capitalization of about $15.35 billion, a 52-week range of $80.82–$117.48, and one-month performance of +6.86%. Sysco had a market capitalization of about $40.41 billion, a 52-week range of $68.19–$91.85, and one-month performance of +4.37%.
Sysco's pending acquisition of Jetro Restaurant Depot is the central near-term event for the company. Sysco said earlier this year it would finance the cash portion of the roughly $29 billion transaction with about $21 billion in new debt and hybrid debt. On May 27, the Federal Trade Commission issued a second request for information as part of its regulatory review. CEO Kevin Hourican told CNBC in August that he expects the deal to close in early 2027, though closing remains subject to regulatory approval and other conditions. The company's proposed 2015 acquisition of US Foods was blocked by a federal judge following an FTC antitrust challenge. On Oct. 6, Sysco closed notes offerings totaling $14.65 billion in U.S. dollar-denominated notes and EUR 1 billion in euro-denominated notes. On Oct. 15, it reached an agreement with Teamsters Locals 630 and 848 to end a strike at its Los Angeles facility. Sysco is scheduled to report first-quarter fiscal 2027 results on Nov. 3.
Performance Food Group, based in Virginia, reported fiscal fourth-quarter adjusted earnings of $1.59 per share in August, a cent below analysts' estimate of $1.60, and guided first-quarter revenue to $17.9–18.1 billion. Shortly afterward, it announced a transition in its lead independent director position and a board member's resignation. Analyst views are mixed: Morgan Stanley raised its price target from $131 to $136 and kept an Overweight rating, while TD Cowen cut its target from $115 to $110 and maintained a Buy rating.
As of the article's data, Performance Food Group had a market capitalization of about $15.35 billion, a 52-week range of $80.82–$117.48, and one-month performance of +6.86%. Sysco had a market capitalization of about $40.41 billion, a 52-week range of $68.19–$91.85, and one-month performance of +4.37%.
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