v3.26.1
Segment Information
 12 Months Ended
Jun. 27, 2026
Segment Reporting [Abstract]  
Segment Information

19. Segment Information

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.

The Foodservice segment distributes a broadline assortment of products under national brands, customer brands, and our 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, alternative nicotine products, food and foodservice-related products and other items to convenience stores across North America. Our Specialty segment distributes candy, snacks, and beverages as well as fresh and frozen perishable foods and other non-food items nationally to vending and office coffee service distributors as well as direct to consumer locations, including retailers, entertainment venues, and theaters, and provides small parcel “pick and pack” capabilities, including fulfillment of ambient, frozen, fresh and temperature sensitive items, utilizing third-party carriers to deliver order sizes too small to be served effectively by our fleet network.

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.

Intersegment sales represent sales between the segments which are eliminated in consolidation.

The Company’s chief operating decision maker (“CODM”), our Chief Executive Officer, utilizes total sales and Segment Adjusted EBITDA, which is the Company’s GAAP measure of segment profit, to evaluate each operating segment’s financial performance and make decisions about resource allocation. 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 CODM reviews budget-to-actual and year-over-year variances for net sales and Segment Adjusted EBITDA each month when assessing segment performance and making decisions about allocating resources to the segments.

The Company’s significant segment expenses included in the measure of segment profit, Segment Adjusted EBITDA, and regularly provided to or easily computed from information regularly provided to our CODM are Segment Cost of Goods Sold and Segment Operating Expense. Accordingly, the Company’s significant segment expenses exclude the same items that are excluded from Segment Adjusted EBITDA. The following is a reconciliation of segment revenue and significant segment expenses to Segment Adjusted EBITDA:

 

 

Reportable Segments

 

 

Reconciling Items

 

 

 

 

(In millions)

 

Foodservice

 

 

Convenience

 

 

Specialty

 

 

Corporate
& All Other

 

 

Eliminations

 

 

Consolidated

 

For the year ended June 27, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

36,546.1

 

 

$

25,965.1

 

 

$

5,053.3

 

 

$

275.0

 

 

$

—

 

 

$

67,839.5

 

Inter-segment sales

 

 

14.2

 

 

 

0.1

 

 

 

3.3

 

 

 

728.9

 

 

 

(746.5

)

 

 

—

 

Total net sales

 

 

36,560.3

 

 

 

25,965.2

 

 

 

5,056.6

 

 

 

1,003.9

 

 

 

(746.5

)

 

 

67,839.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment cost of goods sold(1)

 

 

31,155.9

 

 

 

24,189.3

 

 

 

4,144.7

 

 

 

 

 

 

 

 

 

 

Segment operating expenses(2)

 

 

4,114.2

 

 

 

1,302.9

 

 

 

551.5

 

 

 

 

 

 

 

 

 

 

Segment other (income) expense, net(3)

 

 

(2.8

)

 

 

(2.4

)

 

 

—

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA

 

 

1,293.0

 

 

 

475.4

 

 

 

360.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

546.2

 

 

 

164.7

 

 

 

53.7

 

 

 

49.3

 

 

 

—

 

 

 

813.9

 

Capital expenditures

 

 

259.0

 

 

 

47.2

 

 

 

14.9

 

 

 

63.0

 

 

 

—

 

 

 

384.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended June 28, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

33,629.5

 

 

$

24,507.1

 

 

$

4,900.8

 

 

$

261.5

 

 

$

—

 

 

$

63,298.9

 

Inter-segment sales

 

 

16.6

 

 

 

0.4

 

 

 

4.2

 

 

 

693.5

 

 

 

(714.7

)

 

 

—

 

Total net sales

 

 

33,646.1

 

 

 

24,507.5

 

 

 

4,905.0

 

 

 

955.0

 

 

 

(714.7

)

 

 

63,298.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment cost of goods sold(1)

 

 

28,742.6

 

 

 

22,847.3

 

 

 

4,024.2

 

 

 

 

 

 

 

 

 

 

Segment operating expenses(2)

 

 

3,683.5

 

 

 

1,254.0

 

 

 

532.4

 

 

 

 

 

 

 

 

 

 

Segment other (income) expense, net(3)

 

 

(1.6

)

 

 

(1.1

)

 

 

0.2

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA

 

 

1,221.6

 

 

 

407.3

 

 

 

348.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

448.5

 

 

 

157.7

 

 

 

54.6

 

 

 

57.1

 

 

 

—

 

 

 

717.9

 

Capital expenditures

 

 

382.7

 

 

 

59.0

 

 

 

33.3

 

 

 

31.0

 

 

 

—

 

 

 

506.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended June 29, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

29,045.7

 

 

$

24,176.9

 

 

$

4,786.1

 

 

$

272.5

 

 

$

—

 

 

$

58,281.2

 

Inter-segment sales

 

 

15.8

 

 

 

0.1

 

 

 

3.7

 

 

 

636.7

 

 

 

(656.3

)

 

 

—

 

Total net sales

 

 

29,061.5

 

 

 

24,177.0

 

 

 

4,789.8

 

 

 

909.2

 

 

 

(656.3

)

 

 

58,281.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment cost of goods sold(1)

 

 

24,963.6

 

 

 

22,584.9

 

 

 

3,941.6

 

 

 

 

 

 

 

 

 

 

Segment operating expenses(2)

 

 

3,116.6

 

 

 

1,231.2

 

 

 

507.0

 

 

 

 

 

 

 

 

 

 

Segment other (income) expense, net(3)

 

 

(0.9

)

 

 

(2.7

)

 

 

0.6

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA

 

 

982.2

 

 

 

363.6

 

 

 

340.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

294.4

 

 

 

153.5

 

 

 

49.9

 

 

 

58.9

 

 

 

—

 

 

 

556.7

 

Capital expenditures

 

 

260.1

 

 

 

43.7

 

 

 

53.8

 

 

 

38.0

 

 

 

—

 

 

 

395.6

 
(1)
Reflects cost of goods sold included in Segment Adjusted EBITDA and excludes certain items that are included in cost of goods sold, such as the change in LIFO reserve, presented in the consolidated statements of operations. Refer to the table below for a reconciliation of Segment Adjusted EBITDA to consolidated income before taxes.
(2)
Reflects operating expenses included in Segment Adjusted EBITDA and excludes certain items that are included in operating expense, such as depreciation, amortization, and expenses associated with acquisitions, presented in the consolidated statements of operations. Refer to the table below for a reconciliation of Segment Adjusted EBITDA to consolidated income before taxes.
(3)
Reflects other income and expense, net included in Segment Adjusted EBITDA and excludes certain items that are included in other expense, net presented in the consolidated statements of operations. Refer to the table below for a reconciliation of Segment Adjusted EBITDA to consolidated income before taxes.

Segment Adjusted EBITDA for each reportable segment and Corporate & All Other is presented below along with a reconciliation to consolidated income before taxes.

 

 

Fiscal Year Ended

 

(In millions)

 

June 27, 2026

 

 

June 28, 2025

 

 

June 29, 2024

 

Foodservice Adjusted EBITDA

 

 

1,293.0

 

 

 

1,221.6

 

 

 

982.2

 

Convenience Adjusted EBITDA

 

 

475.4

 

 

 

407.3

 

 

 

363.6

 

Specialty Adjusted EBITDA

 

 

360.4

 

 

 

348.2

 

 

 

340.6

 

Corporate & All Other

 

 

(199.4

)

 

 

(210.2

)

 

 

(180.3

)

Depreciation and amortization

 

 

(813.9

)

 

 

(717.9

)

 

 

(556.7

)

Interest expense

 

 

(413.7

)

 

 

(358.4

)

 

 

(232.2

)

Change in LIFO reserve

 

 

(101.1

)

 

 

(88.1

)

 

 

(62.3

)

Stock-based compensation expense

 

 

(51.5

)

 

 

(47.8

)

 

 

(41.9

)

Gain (loss) on fuel derivatives

 

 

9.5

 

 

 

(0.2

)

 

 

1.8

 

Acquisition, integration & reorganization expenses

 

 

(40.0

)

 

 

(87.8

)

 

 

(23.7

)

Other adjustments (4)

 

 

(32.9

)

 

 

(7.9

)

 

 

5.7

 

Income before taxes

 

$

485.8

 

 

$

458.8

 

 

$

596.8

 
(4)
Other adjustments includes a $3.8 million gain on the sale of a Foodservice warehouse facility in fiscal 2025, amounts related to certain litigation-related accruals, professional fees related to the modification of debt, franchise tax expense, gains and losses on disposals of fixed assets, foreign currency transaction gains and losses, insurance proceeds due to hurricane and other weather-related events, favorable and unfavorable leases, and other adjustments permitted by our ABL Facility. Additionally, for the fiscal year ended June 27, 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.

Total assets by reportable segment and the reconciling items for Corporate & All Other, excluding intercompany receivables between segments, are as follows:

(In millions)

 

As of
June 27, 2026

 

 

As of
June 28, 2025

 

Foodservice

 

$

11,964.1

 

 

$

11,271.1

 

Convenience

 

 

4,461.5

 

 

 

4,276.8

 

Specialty

 

 

1,623.6

 

 

 

1,586.9

 

Corporate & All Other

 

 

799.9

 

 

 

746.4

 

Total assets

 

$

18,849.1

 

 

$

17,881.2

 

The sales mix for the Company’s principal product and service categories is as follows:

(In millions)

 

For the fiscal
 year ended
June 27, 2026

 

 

For the fiscal
 year ended
June 28, 2025

 

 

For the fiscal
 year ended
June 29, 2024

 

Cigarettes

 

$

14,993.9

 

 

$

14,529.5

 

 

$

14,390.8

 

Center of the plate

 

 

14,891.7

 

 

 

13,157.4

 

 

 

11,509.8

 

Canned and dry groceries

 

 

6,772.9

 

 

 

6,067.2

 

 

 

5,631.1

 

Frozen Foods

 

 

6,458.0

 

 

 

6,571.0

 

 

 

5,564.9

 

Candy/snack/theater and concession

 

 

5,765.7

 

 

 

5,371.9

 

 

 

5,211.4

 

Refrigerated and dairy products

 

 

5,145.5

 

 

 

5,154.5

 

 

 

4,441.3

 

Paper products and cleaning supplies

 

 

3,814.6

 

 

 

3,570.4

 

 

 

3,209.6

 

Beverage

 

 

3,774.2

 

 

 

3,492.3

 

 

 

3,053.2

 

Alternative nicotine products

 

 

3,750.6

 

 

 

3,424.0

 

 

 

2,857.9

 

Produce

 

 

1,583.7

 

 

 

1,429.3

 

 

 

1,346.3

 

Other miscellaneous goods and services

 

 

888.7

 

 

 

531.4

 

 

 

1,064.9

 

Total

 

$

67,839.5

 

 

$

63,298.9

 

 

$

58,281.2

 

Cigarette sales represented 22.1%, 23.0%, and 24.7% of net sales for the years ended June 27, 2026, June 28, 2025, and June 29, 2024, respectively. The Company’s significant suppliers include Altria Group, Inc. (parent company of Philip Morris USA Inc.) and R.J. Reynolds Tobacco Company, which, in the aggregate, represents approximately 19.0%, 20.4%, and 22.4% of products purchased for the years ended June 27, 2026, June 28, 2025, and June 29, 2024, respectively. Although cigarettes represent a significant portion of the Company’s total net sales and cost of goods sold, the majority of the Company’s gross profit is generated from the sales of food and food-related products.