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Performance Food Group to Serve Up Appetizing IPO Tomorrow

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Richmond, Virginia-based food distributor Performance Food Group priced its IPO today, and is expected to begin trade tomorrow, October 1 st . The company initially filed for its IPO September 9, 2015, and will offer 14.5 million shares at a price range of $22-$25 a share. Credit Suisse (CS) , Barclays (BCS) , Wells Fargo (WFC) , and Morgan Stanley (MS) will be serving as joint managers on the deal. The company will list on the New York Stock Exchange under the ticker "PFGC."

The Performance Food group distributes food and food related products throughout the U.S., operating 68 distribution centers that serve more than 150,000 customers that include chain restaurants, vending distributors, hospitals, big box retailers, and theatres, among other outlets. A few customers of the company include Outback Steakhouse, Cracker Barrel (CBRL) , Ruby Tuesday (RT) , and T.G.I. Fridays.

Performance Food Group is the third largest food distributor in the U.S., with Sysco and U.S. Food Services holding the top two spots. The company reported revenue of $13.69 billion in 2014 with net income of $15.5 million, and boosted those numbers up to revenue of $15.27 billion and net income of

$56.5 million in fiscal 2015.

Bottom Line

Performance Food Group's IPO will be a large one, and definitely could be one to watch, and possibly even invest in. The company has shown solid growth over the years that included a major jump in net income from 2014 to 2015. As the restaurant industry grows, it is likely that Performance Food Group could grow with it if it is able to continue enticing new customers to its products.

The company is set to begin trade tomorrow, and investors should be sure to check back with Zacks to see just how Performance Food Group ends up performing on its first day of trade.

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CREDIT SUISSE (CS): Free Stock Analysis Report

BARCLAY PLC-ADR (BCS): Free Stock Analysis Report

WELLS FARGO-NEW (WFC): Free Stock Analysis Report

MORGAN STANLEY (MS): Free Stock Analysis Report

CRACKER BARREL (CBRL): Free Stock Analysis Report

RUBY TUESDAY (RT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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