CHICAGO, November 24, 2025 —US Foods and Performance Food Group (PFG) have ended their discussions about a possible merger, leaving three broadline giants vying for the business of the food-away-from-home industry.
Foodservice distribution’s second and third-largest players, respectively, had been weighing the benefits and challenges of forming a new behemoth that would be larger than the sector’s current leader, Sysco. The possibilities of a merger had raised concerns within the food-away-from-home business that narrowing competition to two big broadliners would lead to higher food costs and less product choice.
The two would-be partners announced simultaneously Monday morning that the discussions had convinced each to remain independent and on track with their current business-building strategies.
To signal the negotiations were over for good, both parties reaffirmed the strategies they had aired to investors before and while the merger discussions were underway.
US Foods announced that it would proceed with a $250 million stock buyback, but with an additional $1 billion added to the purchasing pool.
PFG reaffirmed its financial guidance for fiscal 2026. The distributor had projected sales for the year to total between $16.4 billion to $16.7 billion.
The discussions of a merger had been conducted by what’s called a “clean team.” US Foods and PFG had both appointed individuals from outside their management structures to serve as proxies in evaluating a deal. The deliberations were held by design at arms-length from the companies themselves to lessen the chances of strategic intelligence being absorbed by a competitor.
Among the topics discussed by the clean team was the likelihood of federal regulators approving a merger of foodservice distribution’s second and third-largest operations. In 2013, US Foods agreed to be acquired by Sysco but the deal was called off 18 months later because the Federal Trade Commission ruled the resulting broadliner would control too much of the market.
US Foods was subsequently sold to the public.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.