Good morning, everyone. Thank you for joining us. Hope everyone had a chance to grab breakfast in the room. Hello to everyone out in the webcast. My name is Jeff Bernstein, I am the restaurant and Foodservice Distribution Analyst here at Barclays. To be clear, I do have plans to retire at the end of actually this month after 25-plus years in the role. I am officially the outgoing analyst, with the next analyst to be named hopefully shortly. I did want to welcome all to day three of the 19th Annual Global Consumer Conference. We have had 14 restaurant and foodservice distribution companies here with us between Tuesday, Wednesday, Thursday. We had BJ's, The Cheesecake Factory and Chuy's on Tuesday. Bloomin' Brands and Dine Brands, First Watch Restaurant Group, Restaurant Brands International, Sysco, Texas Roadhouse, Inc., The Wendy's Company, US Foods, Yum! Brands, and Wingstop yesterday.
We are excited to have one company today, which is Performance Food Group. We hope you have found the conference a good use of time. At this point, I would love to introduce our final presenting company for the day, at least for me, which is Performance Food Group. With us this morning from Richmond, Virginia, we have Scott McPherson to my immediate right. He is the CEO. Patrick Hatcher to his right, who is the CFO. By way of background, for those not familiar, bless you, Performance Food Group is one of the largest foodservice distributors in North America. They have 150+ locations. They deliver food and related products to 350,000 or more locations, including independent and chain restaurants, schools, business and industry locations, vending and office coffee service distributors, retailers, convenience stores and theaters.
Clearly a very broad swath of foodservice distribution. We want to thank Performance Food Group for joining us this morning. I have got a slew of questions on the broader consumer and industry, then lots of specifics on Performance Food Group. With that said, again, we want to thank Performance Food Group, and specifically Scott and Patrick and Bill in the front row. With that said, we will kick it off. Thank you again.
Very good. Thank you.
We wanted to start with just a few higher-level questions about the consumer, since you see presumably a lot of them across the country. Maybe you could start by just providing your thoughts on the state of the food away from home operating environment more broadly.
Yeah, certainly. You mentioned the consumer. The consumer's been, I'd say, on a little bit of a roller coaster over the last handful of years when you think about tariffs and inflation and fuel price. F or us, I think the consumer's been very resilient. We have a great vantage point on that. We obviously look at Black Box when we think about the consumer, and that traffic is in pressure, but fairly consistently. We look at Circana data, which is all transaction data, which gives us really good insight. Then obviously we have a great handle on the independent consumer as well. For us, we really focus on the controllables. For us, it's been growing share and really excited to be in all three of our segments growing share, as we actually did this year, and have really good momentum.
As far as the broader food away from home space, I think it's been a bit of an evolution. Food away from home has been growing for a couple of decades. Certainly coming out of COVID, there was some interesting trends. I mean you saw coming out of COVID, food inflation went kind of crazy. We saw menu prices kind of hold. Coming out of COVID, the consumer was flooding to restaurants. Over time, those menu prices crept up and food away from home got a little pricey. Now I think we've reached that equilibrium, and I think that's really good for us. We're looking forward to the future.
Being that we're at a staples conference, well, staples and discretionary now, we're proud to have merged, but there are a lot of staple peers right on the other side of this wall who would say that food at home is primed to be taking share. We have had a thesis for decades that food away from home, like you said, continues to take share. I am just wondering, do you feel like the more recent restaurant industry's return to a little bit more aggressive value will allow the food away from home segment to retain the upper hand? How do you believe the restaurant industry is positioned as they do battle food at home?
Sure. Well, I think you hit the key word. I think it is value. I think when you have a pressured consumer, they are looking for value options, and I think about the food away from home space. I think about the independent restaurant, which from our perspective has been outperforming for some time. I think the reason they have been able to accomplish that is really their flexibility. They can shift on a dime, whether it be shifting their menu, shifting the menu pricing, and the offer that they have. So they can create value. They really understand their customer well, and I think that is how they have been very successful.
We see it in the convenience store space as well, where we see shifts in how people are pricing in store and the food offer that we see in convenience and that we bring to convenience, that we think brings great value to the consumer. So, I feel really good about the food away from home space being able to fight for that consumer share of wallet.
Yep. Right. As you sit through investor meetings, and you will do lots of those today, but in recent months, what questions do you get from investors that will either surprise you that you are getting the question or surprise you that you are not getting the question that perhaps they should be asking?
Sure. Patrick, you want to?
Jeff, why don't I jump in? First of all, I just want to say congratulations on your retirement.
Yeah, absolutely.
It's been a pleasure to work with you.
Thank you very much.
I think one of the questions we get a lot of times is how we get compared. People think of us just as a large foodservice distributor. I n reality, and we talked a little bit about this at Investor Day, we actually have three distinctive segments. Foodservice, obviously by far our largest and most important in the company, but we also have a very large segment in convenience. In your intro, you talked about how we could cover convenience stores and then specialty covers a broad array of channels, including theater.
We think it is such a powerful diversification and gives us such a broad footprint in terms of food away from home, almost, you said it is a staples conference, but in a sense, we are talking about food away from home, and since we are a staple or we are similar to one in that everyone has to eat, right? We cover such a broad food away from home category. Then also our customers are public and private restaurants, public and private convenience stores. So we just think it is a really good diversification story. Very durable.
Yeah.
Yeah, Jeff, one of the things I told you before we started was, as I look back over the last four years and how the company has performed, I think about this last year, convenience had a great year. The year before that, foodservice really outperformed. The year before that, it was specialty. I think that just shows, over the course of three years where the consumer has been pressured, that they tend to shift their behaviors, and we have been able to really capture the best part of that in our three segments.
One question we get a lot, although it has its ups and downs, is around GLP-1s. As people think about the future of food away from home, it feels like this is a greater risk than we have seen in past diet plans or whatnot, because it is more readily available and it is becoming lower cost, and it just seems like it is gaining more and more traction. How do you see that impact? Are operators asking you for help in changing their menu because of it? Or do you think in a couple of years we will be talking about a different strategy?
I think as GLP-1 started to emerge, it is probably been over a year ago when you started to hear about it actively. I think everybody thought maybe it was a trend. I do not think it is a trend. I think it is a real shift in behavior, and we have seen that across all three of our segments. I think about the word I hear the most is protein. Probably secondly is around fresh food. T he one thing that folks that are using GLP-1 behaviorally, indulgence has not gone away either. I think that is one of the things about the independent restaurant is their flexibility. We have seen them already shift to more protein-focused menus to make sure that they have dessert options on the menu, fresh food. They can adapt portion size really easily. We see it in the convenience space too.
If you go in convenience stores now, you see whole sections that are protein-focused. I think, across the food away from home space for decades, food away from home has been adapting to consumer behavior. Really, to me, this is just a shift in consumer behavior. People are not quitting consuming food at all. So, I think it is really good for us. People want to be out, and we are in an industry that can adapt to that change.
Yep. Just lastly, from a high-level perspective, as we wrap up on calendar 2026, which is hard to believe, but looking to calendar 2027, what are you most excited about as we think of the next year? Clearly, you are relatively new to the CEO role, and next calendar year, have a full year. Is there anything in particular that you are most excited about?
Yeah. I think what's most important in any business is just momentum. For us to exit this last year and enter fiscal 2027 for us with great top-line momentum across all three segments, with really solid margin momentum. We've talked about our procurement initiative that we have going, how we're shifting mix and convenience by selling foodservice. So feel really good about the top half of the income statement. Then on the bottom half, we've talked a lot about uses of technology, and I feel really good about initiatives that we have going on around fleet utilization, fleet efficiency, and in our warehouse as well. So, feel great about how the company's positioned for 2027.
We talked about the resilience of the foodservice model, like you said, different segments outperforming in different years. What do you see are the primary differences between yourself and your largest peers, and just as importantly, between the whole rest of the industry that is so much more fragmented?
Yeah. I think, the largest peers, we all have differences in how we go to market. Certainly, I think our investment in our sales organization, the consistency that we've had there from a compensation structure standpoint. I think structurally, we give our salespeople full authority to price, product selection. I think they would tell you one of our biggest levers is our exclusive brands. We use that across all of foodservice, and it's now spilling into convenience and specialty as well. So we think we have really good levers in the independent space. I look at the chain space in foodservice and feel like we've done a great job optimizing that portfolio. We talked about some new wins in that space that will come on second half of the year, kind of Q3, Q4. So gaining share there as well.
I think what we've been doing has resonated. It is a fragmented space, so certainly part of our growth algo will be M&A and has been in the past, and that pipeline remains robust.
You mentioned M&A, which gets talked about a lot, but when I think about just broader market share, I think investors look at this as a roll-up story where the big keep getting bigger.
Sure.
I am just reminded of the fact that the big three still have collective. As well as you have differences, you collectively pull in the same direction, and you only have 35%-37% market share between the three of you. Where do you expect that trend to go over time? It seems like even if the industry of restaurants was relatively flat, there is just an opportunity for you guys to continue to gain market share.
Yeah. You want me to jump in?
Yeah, go ahead, Patrick.
Well, it is interesting. When we look at how our independent case growth has been going specifically, we think there is ample room for market share gains. We get this question a lot, "You guys are growing market share. Where are you taking that from?" If you look at the industry, we talk about the big three, but there are lots of large regionals, and even below that, there are lots of specialty distributors. We do not really know where the market share gains come from, but we have been consistently, quarter after quarter, generating very consistent market share gains. Even as we exited the last quarter, the last two quarters, really, what had us a little exciting for us, is that we started to see more penetration. Most of our independent case growth was coming from new account growth.
Then last two quarters, we actually saw relatively around 100 basis points of that growth. Call it 5.8% was total independent case growth. About 100 basis points of that came from penetration, where we are selling more to our current base. That again shows us taking market share with our current customers and also gaining market share by expanding our customer base.
One other add there is just, compared to the other three, we have a lot of white space. Obviously, our acquisition in Florida, we had a lot of white space in Florida. We only had three distribution centers. A couple of those were subscale in Florida. That really filled out Florida and the Carolinas. Obviously in the West, we have a lot of white space. That is our fastest-growing region. We continue to look for opportunity in that market. Beyond just the organic, we certainly have some M&A opportunity in some areas that we can fill in geography.
First and foremost, on the organic side, as we think about your business before M&A, how do you think about the balance of further penetrating existing accounts versus adding new accounts? Maybe just because we talk about it a lot, maybe share your mix of chain versus independent. How do you think about your business? We look at all the big chains, but often times we're reminded that they might have mediocre results of some chains, but then the independents are doing so much better. So how do you think about your business?
Right now, our mix is, we're a little higher than 40% on independent. That has been growing consistently, and that's where we continue to gain more share. But right now, we're 60/40-ish mix chain and independent. I'm really comfortable with that. I think that's a good blend. Somewhere in that 50/50 space. I would say we're very similar in convenience as well. As I think about penetration, obviously, that's the most profitable thing to do, is to sell more to every unit that we have. When you have a challenging macro, that's tough. Like Patrick just said, it was great to see us have almost 100 basis points of penetration over the last couple of quarters. I think one of the big game changers there over time is going to be technology.
We've invested a lot of time and effort and resources into our sales-facing and customer-facing tools. I think the AI enablement that we've embedded there now is really important in us being able to gain share within, or share of wallet, essentially, share within a restaurant. I think those have started to come to bear. I think there's a long roadmap there to continue to improve, but I really look for that technology to play a big role. Obviously, at the end of the day, though, it's our investment in our salespeople, and that's something that we're really proud of.
Right. Thinking about your different business lines, again, foodservice distribution to restaurants is the big one. It gets the most attention.
Your confidence in that kind of mid-single digit independent case growth. How do you reverse the negative trend with national accounts? Is there things you could do, or is that just the broader macro that is taking its toll?
The 6% gets talked about a lot. That is kind of our internal target, has been for decades. The way we have gotten there the last few years is, I would say, has been the hard way. It is just net new accounts. When the same store growth is not there. Really proud of the sales organization's ability to continue to gain net new and gain some penetration. Last year, we finished at 5.9% and change. I was frustrated. We were like a tick away from getting to 6%. Finished last quarter at 5.8%. So certainly internally, that is always our target and something that we continue to strive for. Our salespeople, if you ask them internally, like, "What are you shooting for?" They always want to grow 6% or more. That is just culturally how we think about it. The second half of your question? I am sorry.
Just more on the national account side.
Oh, yeah.
It seems like it's been a challenge for all of the big distributors, and that's tough when it's 60% of your business.
It is. We had, I'd say over the last couple of years, we did a great job of what I'd say optimizing our portfolio. We've partnered with some of the more progressive foodservice players in the space. Certainly, same-store comps in chain has not been great. It's not been quite as good as independent. But bringing on partners like Jersey Mike's here coming this year, who's doing a great job from a same-store comp standpoint. We have a number of other progressive retail groups in the foodservice space. So we feel good about the portfolio we have today. If the macro gets better, we feel really good about it.
We're all hoping for that.
Yes. Don't lie. Yeah.
When you talk about 5.8%, 5.9%, I think if you just subtly change it from 6% to mid-single digit, you would be able to say, you know.
If you had any same store accretion to that would be a really good number.
For sure. Then maybe shifting to the convenience segment, which is really where you are differentiated, and we find some investors love that differentiation and others say, "Oh, I do not really love convenience." It depends on who you are talking to.
Yeah.
But why do you believe in that channel so much? Obviously, I should just be clear, you came from that channel.
Yeah.
I am guessing you believe in it and the advantages you think it brings to PFG.
I think when PFG made that acquisition, there were certainly some people that doubted, that weren't sure that was the right avenue to go. I think five years later, I don't think there's a lot of doubters. If you look at the top-line revenue growth, if you look at the EBITDA dollar and percentage growth over five years, and really for that space, it's been more than five years. I think history would say that segment's performed really well. They're positioned really well in 2027 and beyond. I think they've become one of the leaders in the space. I think a lot of that comes from a couple of things. I think the connectivity of PFG, or the PFS segment, and really bringing foodservice to convenience is a big driver. I think that's resonated.
It's been a key part in us picking up market share and that segment's clearly share over the last few years. They continue to drive foodservice performance in that segment. Whether it's turnkey solutions or just adding branded items. They're really starting to differentiate themselves in the foodservice space and convenience. So have a lot of confidence in their ability to continue to grow both top-line, but also from a margin and EBITDA standpoint.
I found it most interesting when the combination happened, as George used to say, just the opportunity to some of your foodservice accounts had convenience, and now you can service them and some of your convenience accounts are moving into foodservice. Can you just talk about how you try and bring those together, which would seemingly give you a tremendous benefit versus peers?
It's really interesting. We are growing our foodservice and convenience at a really great clip from both avenues. Our broadline foodservice, PFS, is growing high single digit. Even had quarters of double-digit growth into convenience. They really focus on the convenience stores that have a broader, almost restaurant offer, that would be more expansive than what a traditional core market convenience wholesaler would carry. In those cases, we kind of partner. We've picked up a lot of chains working together. T hen just with your independents, your smaller chains, our regular convenience group has done an incredible job of growing foodservice. We hit it at two angles. One of the things you bring up is really, in my mind, just the food away from home space.
The number of times now that we present to customers with all three segments in the room is very frequent. That's served us really well. We've gained a lot of market share by presenting as one united force and leveraging two platforms to service a customer.
Being that the headline every other day is gas prices, I often get the question of just gas prices being so elevated. People think of convenience often times tied with gas stations at times, and is that a meaningful headwind when gas prices are elevated? I feel like I've learned more recently that sometimes the consumer doesn't necessarily fill up their car with a full tank. They just go-
Yeah.
-with smaller amounts at a time to make it more affordable, and therefore they might be in the convenience store more often. How do you think about gas prices' impact on convenience?
I agree with what you just said. I think there's a point where as fuel prices rise, people tend to not fill up as much, which means they could return to the store more frequently over the course of a week or over the course of a month. I think there's also an inflection point. Once fuel price gets to a certain point, then you're talking more about pressure on the consumer and discretionary income. I think there's a balance there. We've grown in convenience by gaining share and growing foodservice and alternative nicotine, and that's served us very well and that continues to be our focus.
I saw a headline yesterday that gas prices are going to come down right after the midterms. If you can just be patient for a couple of months, everyone will be happy.
Everybody will be happy in two months?
Yes.
Okay. I'm going to quote you on that.
Yep. We think about specialty and Vistar. Strong growth acceleration. I am just wondering if you could talk about what you think are the specific drivers and the new verticals and how they kind of all fit together.
Sure. I am going to toss that to Patrick.
Yeah. Maybe I will jump in, Jeff. S o specialty, they have been such a unique business because they always are finding those new verticals. Recently we talked about how now they are getting into grocery, which is great for them. They have got a couple of great opportunities there. They have also spent the last so many months working with a lot of their key customers and securing those businesses going forward. We have a lot of excitement about them getting some new business, opening up some new geographies, which is really exciting with their current base. We have talked about the e-commerce. This is really a B2B opportunity, but it is also a B2C opportunity. When you talk about some of those things, you are mainly talking about foodservice and convenience. Scott mentioned we bring all three segments to meet with these customers.
Vistar on their e-commerce platform is now distributing small wares to a foodservice customer of ours. We're trying to bring all these different solutions to our customers and it's really working.
Got it. Scott, you mentioned AI subtly, and it feels like that's always a topic du jour.
Yeah.
Can you talk about how that is infiltrating your business, what you're most excited about over the next few years in terms of how that could really benefit the business?
Yeah, AI, Patrick and I spend a lot of time. We've stood up a group in our organization that is solely focused on that. I'll just hit maybe three or four topics. We talked about our sales-facing technology, so I won't dig too much more into that. F eel like that will be a big driver for penetration, for new account growth. Beyond that, warehouse-wise, we have two technologies that we've signed enterprise agreements with. One of them is, you think about inventory counting. There's really two options. You can have robots on the floor or drones in the air. We've gone the drone route. About eight months ago, we started testing drone technology. That drone technology now we're expanding to multiple facilities, and like I said, have signed an agreement that allows us to expand.
Doesn't fit in every facility just based on box configuration, but basically what it does is count all your back stocks in the building. It's been incredibly effective. Over time, that will allow us to reduce the number of folks that we have in the buildings counting inventory on a regular basis. We have one other warehouse technology that we're excited about, and it's really around safety. If you know distribution, you know that workers' comp cost, insurance cost is a big number. We have another technology called Voxel, and Voxel basically sits on top of your camera system and identifies unsafe behavior in the warehouses. It's all AI-enabled, and it gives us a daily report that talks about safety behavior. The performance we've had in the buildings that have tested has been really impressive.
We started to roll that out across a broader platform and warehouse. Trans, I think we've talked a lot about trans routing technology. I think everybody in the space is using three or four or five of the big players. We use Descartes and Roadnet. Both of them have AI-enabled tools now that we're training on for all of our routers across the network. Obviously route optimization's a huge part of cost efficiency. The last tool I'll touch on quickly is really more enterprise-facing. We've partnered with an external company on two big initiatives that Patrick and I and our whole team are involved in. One of them is around, we'll call it data synthesis.
If you think about our three segments, and you think about how we've grown through acquisition, being able to have all your item set up, all your vendors set up, all on one platform, and us to be able to look at that data holistically, allows us to do a lot of things. The second part of that is really around procurement. It allows us to look at how we procure within the box, how we procure within the segment of the business, and then we can look across all three segments. The future beyond that is, how do you think about all the inbound? As you buy things, getting product into your buildings more efficiently drives cost out of the system. We're really excited about all the initiatives we have going.
It's something that we spend a lot of time on, our board spends a lot of time on, and it makes me excited for the future of our business.
Well, we look forward to hearing more about that. It seems like this industry is prime for some cost-saving benefits, as distribution is so manual.
Yep.
You mentioned M&A earlier. Of the big three at least, it seems like you have the greatest opportunity where you don't yet have a national footprint to the same degree that others might, and therefore that would seem like a big opportunity. Can you just talk about whether it's harder or easier today, you think, to get deals done versus several years ago? Maybe how you think about the M&A opportunity and valuations and things like that.
Yeah. I would say the M&A pipeline, we are always active in discussion with a number of people across primarily the foodservice industry, but we've also acquired in the convenience and specialty industry as well. We keep an active pipeline there. Obviously, timing's everything. Certainly, valuations, I would say every deal is different. Obviously for great assets and a great company, you're going to pay a little more. For one that needs a little more help, the multiples are obviously going to be smaller. We think that's going to be a key part of our growth algo as we think about the next couple of years and beyond. As you mentioned, certainly we have white space that acquisition would help us in. I think today's environment is tough on independent broadline.
You think about what they face today, with technology and the investments you have to make there, I think that there's big decisions for independents to make over the next handful of years. I think that brings good opportunity for us.
I would think if I was a small distributor, the idea would be daunting to try and take on some of the things you just talked about, and therefore the gap would be so much wider.
Yeah.
Why not join up?
Yeah, there's really two things. To me, it's technology. Then, we think one of our biggest competitive advantages is our brand portfolio. For an independent to be able to create a brand portfolio is next to impossible. Those two things, we feel like, give us a competitive advantage. To your point, it's going to be tough for the independent down the road, I think.
Right. I know George is always thought of as kind of a legend in the industry-
Yeah.
-and always having relationships. You are still in regular contact, speaking to George about the opportunities there and how he sees it, kind of a-
Yeah.
-liberation of minds?
George and I are both early risers, so I usually get the first text about 4:00 A.M.
That is good.
But yeah, George and I are very close friends. He's obviously our chairman, and we talk multiple times a week. And I would say 90% of the time it's about-
Okay.
-relationships and opportunities.
4:00 A.M. That's a-
He is. I don't get up as early as he does.
No.
Yeah.
That's great. Maybe just thinking about when you guys do M&A, it seems like you have a different approach. I feel like you are more hands-off and let each individual segment run themselves. How do you think about your strategy versus others and how that might benefit you?
I think you're right. I think we're a little slower out of the gates. I think we're thoughtful about, number one, the biggest asset in any acquisition is the people. To really understand their culture, what makes that business work well and not destroy that, disrupt that, harm that in any way. Secondarily, I think if you just jump right in and take over, you miss some of the value they can bring to the broader company. I'll give a great example in Cheney, we've talked a lot about brands and putting our brands into Cheney. The first brand that has been launched was launched the other way. Cheney had an incredible line of deli meats and soups for sandwiches and whatnot, and we've now launched that across all of Performance Food Service.
So, really, spend the time to be thoughtful about where's the value in this acquisition to us in the long run. Then I would say over the first 12-24 months is really where we start to connect in a broader way and figure out how we extract value. I think that's worked well for George. It's the same approach I've taken for years in acquisitions, and I think that's one of the reasons that we're looked at as a very favorable acquirer.
Right. You talk about brands. Just maybe just a little insight into how you think about your private label, because clearly that is a way of differentiating yourself versus more competitor distributors. How's that business evolved? What's the mix of that? Where do you see that going?
Like I said, I think it is one of our most powerful levers that we have today. We have 85 different brand families and about 25,000 brand SKUs across the company. We use those in all three of our segments now. It is something we continuously develop new brands. We are launching, I think last year we were 650, 700 new brand items. So it is a brand machine, and you think about how hard that is to replicate. We are about 54% of our sales to independents are brand cases. We will kind of reset that with the Cheney and Cash-Wa acquisitions. That kind of pulls us back down to 50 overall. But it is something that we will continue to grow and continue to use as a big lever.
We talk a lot about from a sales perspective, but just from an OpEx perspective, as you think about how you can drive those margins, maybe just talk about the long-term spend as a percentage of sales or a percentage of total costs and maybe the key self-help initiatives you think you have to further reduce from an expense standpoint.
I think we certainly have a big opportunity in OpEx efficiency. I think we looked at it in our three-year plan, and we called out 50 basis points to 60 basis points of margin enhancement over the three years, and that is really a combination of a couple things. It is our procurement initiative and really happy with how that has progressed. I said on the last earnings call that we are really comfortable at the high end of that range, which was $125 million. The other piece is around leveraging the technologies I talked about in fleet. I think fleet and fleet utilization is going to be a big lever for us. Then obviously, we talked about a couple technologies in the warehouse as well. All of those contribute to that 50 basis points to 60 basis points of margin enhancement.
Right. Lastly, with our final minute or so, when you talk to restaurants, you have to talk about inflation, and presumably you are selling the products that tend to have the greatest volatility in inflation. Just wondering how you think about the inflation outlook over the next 12 months, where you think relief could come from, what you envision is just the ideal rate of inflation.
Yeah, I guess I'll wrap this up. It's interesting. We even talked about at the last call that as we went into July, we saw foodservice inflation dip again, so we were running less than 1%. That's really being driven by beef has been in the high teens of inflation. It's recently come down into the high single digits. Cheese and poultry for us have been consistently deflationary for many, many months. Again, consistently is important. What we don't like to see is spikes going up and down either way. But overall, inflation's actually running a little lower than what we would expect. We were expecting more like in the 2% range. So now it's sub 1%. For the full year, we would expect it still to be in that low single digit, 1% or 2% range.
Then on our other two segments, just real quick, convenience, we expect it to be very. Let's just start with specialty. We expect that to be mid-single digits. Then convenience, a couple points higher than that, which is very typical of them.
Yep. Great. Well, I think we've exhausted our time. We wanted to thank Performance Food Group very much for joining us, specifically Scott and Patrick. Hope everyone gets a chance to see management, and otherwise, hope everyone has a great day. Thank you very much.
Thanks, Jeff.