Performance Food 8-K Performance Food Group Reports Net Eps of $1.23 from Continuing Operations In 2006

Exhibit 99.1

12500 West Creek Parkway
Richmond, VA 23238
Phone (804) 484-7700
FAX (804) 484-7701

NEWS RELEASE

FOR MORE INFORMATION:

Media Contact:	Investor Contact:
Cheryl Moore	Kevin Collier
Director, Corporate Communications	Director, Investor Relations
(804) 484-6273	(804) 287-8109

PERFORMANCE FOOD GROUP REPORTS NET EPS OF $1.23
FROM CONTINUING OPERATIONS IN 2006

• Net EPS from continuing operations increased 29% to $1.23 per share diluted for 2006

• Net EPS from continuing operations increased 6% to $0.37 per share diluted in the fourth quarter

• Street sales for 2006 increased 8% over prior year

RICHMOND, VA. (Feb. 27, 2007)— Performance Food Group (Nasdaq/NGS:PFGC) announced results today for the fourth quarter and fiscal year ended December 30, 2006.

“Our fourth quarter results reflect solid gains in our core productivity and growth initiatives,” commented Steve Spinner, president and chief executive officer. “Our efforts to further standardize our operational platform and invest in higher margin sales to independent operators helped drive strong quarterly results and will provide us with the foundation for long-term margin growth.”

Fourth Quarter Financial Highlights:

• Consolidated net sales from continuing operations in the fourth quarter were approximately $1.5 billion, an increase of approximately 3%, compared to the prior year quarter. Inflation was approximately 1% for the quarter.

• Net earnings from continuing operations in the fourth quarter amounted to approximately $12.9 million, which was unchanged compared to the same quarter in the previous year. Net earnings include the impact of pre-tax stock compensation expense of approximately $1.3 million, or $793,000 after tax, for the quarter, compared to pre-tax stock compensation expense of approximately $312,000, or $197,000 after tax, in the prior year quarter.

• Adjusted for the impact of stock compensation expense, net earnings from continuing operations in the fourth quarter amounted to approximately $13.7 million, an increase of approximately 4% versus the prior year quarter.

• Net earnings per share from continuing operations in the fourth quarter increased approximately 6% to $0.37 per share diluted, compared to $0.35 per share diluted

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Performance Food Group Reports Fourth Quarter Earnings
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in the prior year quarter, on approximately 7% fewer shares outstanding. Excluding stock compensation expense in the 2006 quarter, net earnings per share were approximately $0.39 per share diluted.

Year to Date Financial Highlights

• Consolidated net sales from continuing operations for the full 2006 year were approximately $5.8 billion, an increase of approximately 2% from the prior year period. Inflation was approximately 1% for the year.

• Net earnings from continuing operations for the full year increased approximately 3% to approximately $42.9 million compared to approximately $41.8 million in the prior year. Net earnings for the year include the impact of pre-tax stock compensation expense of approximately $4.9 million, or $3.1 million after tax, compared to prior year pre-tax stock compensation expense of approximately $999,000, or $622,000 after tax.

• Adjusted for the impact of stock compensation expense, net earnings from continuing operations for the full year amounted to approximately $46.0 million, an increase of approximately 8% versus the prior year period.

• Net earnings per share from continuing operations for the full year increased approximately 29% to $1.23 per share diluted, compared to $0.95 per share diluted in the year earlier period, on approximately 21% fewer shares outstanding. Excluding stock compensation expense, net earnings per share in the 2006 period amounted to approximately $1.32 per share diluted.

“In our customized segment, sales increased approximately 5% in the fourth quarter and full year as compared to the same periods in the prior year,” added Mr. Spinner. “Our overall sales growth was driven by growth with existing customers. We also successfully leveraged our new capacity in the customized segment to drive efficiencies and improve service to our existing customers.”

“In the broadline segment, our higher margin street sales increased approximately 8% in the quarter and full year versus the same prior year periods. Overall internal sales in broadline increased approximately 1.5% in the fourth quarter and remained unchanged for the full year compared to the same prior year periods. Broadline sales growth for the quarter and year reflect the impact of our previously announced exit of certain lower margin multi-unit business and moderate industry growth. Broadline segment results were impacted in the quarter and year by the investment in our expanded sales force, our investment in information technology and by higher fuel costs, partially offset by favorable trends in insurance costs. Our expanded broadline street sales force continues to favorably impact our mix of higher margin sales and we expect continued productivity from our new sales team in the coming year.”

Mr. Spinner concluded, “Our balance sheet remained very strong with a debt to capital ratio of approximately 1.5% at the end of the fourth quarter, excluding $130 million of interests in accounts receivable sold under an accounts receivable purchase facility. Free cash flow was approximately $23.3 million for the year, compared to the use of free cash flow of approximately $7.7 million in the prior year, reflecting lower capital expenditures

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Performance Food Group Reports Fourth Quarter Earnings
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in the 2006 year. Based on the current economic environment and our current business trends, we expect net earnings per share for the first quarter of 2007 to be in the range of $0.17 to $0.20 per share diluted and for the full year to be in the range of $1.34 to $1.42 per share diluted. We remain committed to moving our current initiatives forward to drive solid long-term returns for our shareholders.”

On June 28, 2005, the Company completed the sale of its fresh-cut segment to Chiquita Brands International, Inc. All amounts pertaining to the Company’s fresh-cut segment are accounted for as discontinued operations.

Performance Food Group markets and distributes more than 68,000 national and private label food and food-related products to over 41,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. For more information on Performance Food Group, visitwww.pfgc.com.

     Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are based on current expectations and management’s estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to, general economic conditions, including consumer spending trends; the Company’s ability to achieve projected operational efficiencies and increase sales, particularly higher margin street sales; the Company’s ability to add new customers, particularly in its customized segment; the relatively low margins and economic sensitivity of the foodservice business; the Company’s reliance on major customers; the ability to identify and successfully complete acquisitions of other foodservice distributors; the Company’s ability to successfully develop, produce and market new products and management of the Company’s planned growth, all as detailed from time to time in the reports filed by the Company with the Securities and Exchange Commission.

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Performance Food Group Reports Fourth Quarter Earnings
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February 27, 2007

Performance Food Group Company
Condensed Consolidated Income Statements (Unaudited)
December 30, 2006
(In thousands, except net earnings per common share)

	Three Months Ended										Twelve Months Ended
	Dec. 30, 2006					Dec. 31, 2005					Dec. 30, 2006					Dec. 31, 2005
Net sales	$	1,479,447		100.0	%	$	1,440,050		100.0	%	$	5,826,732		100.0	%	$	5,721,372		100.0	%
Cost of goods sold		1,279,622		86.5	%		1,247,820		86.7	%		5,052,097		86.7	%		4,973,966		86.9	%
Gross profit		199,825		13.5	%		192,230		13.3	%		774,635		13.3	%		747,406		13.1	%
Operating expenses		177,078		12.0	%		170,752		11.8	%		699,525		12.0	%		676,928		11.9	%
Operating profit		22,747		1.5	%		21,478		1.5	%		75,110		1.3	%		70,478		1.2	%
Other (expense) income:
Interest income		484					931					2,164					4,651
Interest expense		(614	)				(409	)				(1,732	)				(3,246	)
Loss on sale of receivables		(1,949	)				(1,576	)				(7,351	)				(5,156	)
Other, net		77					33					351					365
Other expense, net		(2,002	)	-0.1	%		(1,021	)	-0.1	%		(6,568	)	-0.1	%		(3,386	)	0.0	%
Earnings before income taxes from continuing operations		20,745		1.4	%		20,457		1.4	%		68,542		1.2	%		67,092		1.2	%
Income taxes		7,862		0.5	%		7,534		0.5	%		25,642		0.5	%		25,328		0.5	%
Earnings from continuing operations, net of tax	$	12,883		0.9	%	$	12,923		0.9	%	$	42,900		0.7	%	$	41,764		0.7	%
Earnings from discontinued operations, net of tax		—					—					—					18,499
Gain (loss) on sale of fresh-cut segment, net of tax		36					5,278					(114	)				186,875
Total earnings (loss) from discontinued operations, net of tax		36					5,278					(114	)				205,374
Net earnings	$	12,919				$	18,201				$	42,786				$	247,138
Weighted average common shares outstanding:
Basic		34,428					36,791					34,348					43,233
Diluted		34,735					37,262					34,769					43,795
Earnings per common share:
Basic net earnings per common share:
Continuing operations	$	0.37				$	0.35				$	1.25				$	0.97
Discontinued operations		—					—					—					0.43
Gain on sale of fresh-cut segment		—					0.14					—					4.32
Total earnings from discontinued operations		—					0.14					—					4.75
Net earnings	$	0.38				$	0.49				$	1.25				$	5.72
Diluted net earnings per common share:
Continuing operations	$	0.37				$	0.35				$	1.23				$	0.95
Discontinued operations		—					—					—					0.42
Gain on sale of fresh-cut segment		—					0.14					—					4.27
Total earnings from discontinued operations		—					0.14					—					4.69
Net earnings	$	0.37				$	0.49				$	1.23				$	5.64

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Performance Food Group Reports Fourth Quarter Earnings
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February 27, 2007

Performance Food Group Company
Condensed Consolidated Balance Sheets (Unaudited)
December 30, 2006
(In thousands)

Assets	Dec. 30, 2006		Dec. 31, 2005
Cash and cash equivalents	$	75,087	$	99,461
Accounts and notes receivable, net, including retained interest in securitized receivables		226,058		190,481
Inventories		308,901		303,073
Other current assets		33,152		29,188
Current assets from discontinued operations		2,267		10,115
Total current assets		645,465		632,318
Property, plant and equipment, net		291,947		255,816
Goodwill, net		356,509		356,597
Other intangible assets, net		47,575		51,213
Other assets		18,279		16,346
Total assets	$	1,359,775	$	1,312,290
Liabilities and Shareholders’ Equity
Checks in excess of deposits	$	88,023	$	100,335
Trade accounts payable		269,590		258,791
Current installments of long-term debt		583		573
Other current liabilities		141,162		122,885
Current liabilities from discontinued operations		5,362		6,540
Total current liabilities		504,720		489,124
Long-term debt, excluding current installments		11,664		3,250
Deferred income taxes		48,582		43,399
Shareholders’ equity		794,809		776,517
Total liabilities and shareholders’ equity	$	1,359,775	$	1,312,290

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Performance Food Group Reports Fourth Quarter Earnings
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Performance Food Group Company

2006 Compared to 2005
Fourth Quarter
Segment Disclosure

							Corporate &			Total Continuing
2006	Broadline			Customized			Intersegment			Operations
Fourth Quarter
Net external sales	$	881,741		$	597,706		$	—		$	1,479,447
Intersegment sales		129			45			(174	)		—
Total sales		881,870			597,751			(174	)		1,479,447
Operating profit		21,735			7,847			(6,835	)		22,747
Operating profit margin		2.46	%		1.31	%		—			1.54	%
Interest (income) expense		(1,407	)		1,409			612			614
Loss (gain) on sale of receivables		1,949			734			(734	)		1,949
Depreciation		5,129			1,585			67			6,781
Amortization		789			—			—			789
Capital expenditures		17,596			1,516			77			19,189

							Corporate &			Total Continuing
2005	Broadline			Customized			Intersegment			Operations
Fourth Quarter
Net external sales	$	868,513		$	571,537		$	—		$	1,440,050
Intersegment sales		170			63			(233	)		—
Total sales		868,683			571,600			(233	)		1,440,050
Operating profit		20,861			6,635			(6,018	)		21,478
Operating profit margin		2.40	%		1.16	%		—			1.49	%
Interest expense (income)		4,826			1,362			(5,779	)		409
Loss (gain) on sale of receivables		382			673			521			1,576
Depreciation		4,384			1,434			77			5,895
Amortization		869			—			—			869
Capital expenditures		15,073			5,815			3			20,891

Total assets by reportable segment and a reconciliation to the condensed consolidated balance sheets were as follows:

	Dec. 30, 2006		Dec. 31, 2005
Broadline	$	901,752	$	858,211
Customized		261,975		250,397
Corporate & Intersegment		193,781		193,567
Discontinued Operations		2,267		10,115
Total Assets	$	1,359,775	$	1,312,290

Note: 2005 segment disclosure has been reclassified to reflect the reallocation of certain corporate costs to the broadline segment to be consistent with the 2006 presentation.

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Performance Food Group Reports Fourth Quarter Earnings
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Performance Food Group Company

2006 Compared to 2005
Twelve Months YTD
Segment Disclosure

							Corporate &			Total Continuing
2006	Broadline			Customized			Intersegment			Operations
Twelve Months YTD
Net external sales	$	3,478,206		$	2,348,526		$	—		$	5,826,732
Intersegment sales		527			212			(739	)		—
Total sales		3,478,733			2,348,738			(739	)		5,826,732
Operating profit		71,619			30,736			(27,245	)		75,110
Operating profit margin		2.06	%		1.31	%		—			1.29	%
Interest expense (income)		15,436			5,864			(19,568	)		1,732
Loss (gain) on sale of receivables		9,937			3,038			(5,624	)		7,351
Depreciation		18,969			6,294			294			25,557
Amortization		3,312			—			—			3,312
Capital expenditures		48,206			5,172			310			53,688

							Corporate &			Total Continuing
2005	Broadline			Customized			Intersegment			Operations
Twelve Months YTD
Net external sales	$	3,480,793		$	2,240,579		$	—		$	5,721,372
Intersegment sales		653			223			(876	)		—
Total sales		3,481,446			2,240,802			(876	)		5,721,372
Operating profit		71,723			24,981			(26,226	)		70,478
Operating profit margin		2.06	%		1.11	%		—			1.23	%
Interest expense (income)		16,998			2,963			(16,715	)		3,246
Loss (gain) on sale of receivables		7,832			2,849			(5,525	)		5,156
Depreciation		17,341			5,174			303			22,818
Amortization		3,562			—			—			3,562
Capital expenditures		29,212			48,252			112			77,576

Total assets by reportable segment and a reconciliation to the condensed consolidated balance sheets were as follows:

	Dec. 30, 2006		Dec. 31, 2005
Broadline	$	901,752	$	858,211
Customized		261,975		250,397
Corporate & Intersegment		193,781		193,567
Discontinued Operations		2,267		10,115
Total Assets	$	1,359,775	$	1,312,290

Note: 2005 segment disclosure has been reclassified to reflect the reallocation of certain corporate costs to the broadline segment to be consistent with the 2006 presentation.

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Performance Food Group Reports Fourth Quarter Earnings
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February 27, 2007

Performance Food Group Company
Non-GAAP Reconciliations

Impact of Stock Compensation on Diluted EPS

Three Months Ended December 30, 2006	Net Earnings		Shares		EPS
Amounts reported for diluted EPS from continuing operations	$	12,883		34,735	$	0.37
Stock compensation, net of tax(1)		793		34,735		0.02
Adjusted diluted EPS from continuing operations excluding impact of stock compensation	$	13,676			$	0.39

⁽¹⁾ Amount calculated using continuing operations effective tax rate of 37.9%.

Twelve Months Ended December 30, 2006	Net Earnings		Shares		EPS
Amounts reported for diluted EPS from continuing operations	$	42,900		34,769	$	1.23
Stock compensation, net of tax(2)		3,055		34,769		0.09
Adjusted diluted EPS from continuing operations excluding impact of stock compensation	$	45,955			$	1.32

⁽²⁾ Amount calculated using continuing operations effective tax rate of 37.4%.

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Performance Food Group Reports Fourth Quarter Earnings
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February 27, 2007

Performance Food Group Company
Non-GAAP Reconciliations

Free Cash Flow

Quarterly	Q4 2006			Q4 2005
Net income from continuing operations	$	12,883		$	12,923
Add back:
Stock compensation expense		1,275			312
Amortization expense		789			869
Amortization of deferred issue costs		82			88
Depreciation expense		6,781			5,895
Subtract:
Capital expenditures		(19,189	)		(20,891	)
Free Cash Flow	$	2,621			(804	)

Year-to-Date	2006 YTD			2005 YTD
Net income from continuing operations	$	42,900		$	41,764
Add back:
Stock compensation expense		4,880			999
Amortization expense		3,312			3,562
Amortization of deferred issue costs		324			686
Depreciation expense		25,557			22,818
Subtract:
Capital expenditures		(53,688	)		(77,576	)
Free Cash Flow	$	23,285			(7,747	)

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