Performance Food stands by strategic focus as it faces Sachem Head board challenge

Performance Food Group PFGC said on Monday it stood by its current strategy as the food distribution company acknowledged that it faced a potential board challenge from activist investment firm Sachem Head Capital Management.

The Richmond, Virginia-based company confirmed that Sachem Head had communicated on August 21 that it would put forward Scott Ferguson, who runs Sachem Head, as well as David A. Toy, R. Chris Kreidler and Karen M. King as nominees for Performance Food's board at the next shareholder meeting, which has yet to be scheduled.

Sachem Head is pushing Performance Food to consider a merger with US Foods Holding USFD, or explore ways to improve its profitability, per the statement on Monday, which confirmed reports late last week about the hedge fund's intentions.

Performance Food said while it is open to measures which would boost stockholder value, including evaluating transaction proposals, it has not heard directly from US Foods in several months and has yet to receive any offer from US Foods which would benefit its shareholders.

Performance said it was continuing to implement its current 'PFG One' strategy, which aims to deliver consistent organic sales growth and use technology to expand profit margins, a focus that helped support its strong earnings performance in its 2025 fiscal year.

Performance currently has 12 board members.

Sachem Head has considerable experience in the food industry, having run a board fight and ultimately settled for seats at US Foods in 2022, with Ferguson and Toy among those given director seats.

Kreidler is a former chief financial officer of rival food services firm Sysco SYY, and King is a former McDonald's MCD executive who currently serves on the board of Aramark ARMK.