Performance Food 8-K Results of Operations and Financial Condition

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	John Austin
Director, Corporate Communications	SVP and Chief Financial Officer
(804) 484-6273	(804) 484-7753

PERFORMANCE FOOD GROUP REPORTS NET EPS OF $0.37
FROM CONTINUING OPERATIONS
FOR SECOND QUARTER 2007

• Street sales increased approximately 11% over prior year quarter

• Net earnings from continuing operations increased approximately 8% versus prior year quarter to $13.1 million

• Net EPS from continuing operations increased to $0.37

RICHMOND, VA. (Aug. 7, 2007)— Performance Food Group (Nasdaq/NGS:PFGC) today announced results for the second quarter ended June 30, 2007.

“We exceeded our expectations for the second quarter,” commented Steve Spinner, president and chief executive officer of Performance Food Group. “Our improvements in earnings and sales reflect the solid progress we continue to make in our core productivity and growth initiatives. PFG is committed to these strategies, and we believe they will continue to build the foundation for our company’s long-term success.”

Second Quarter Financial Highlights:

• Consolidated net sales in the second quarter were approximately $1.6 billion, an increase of 8.1%, compared to the prior year quarter. Inflation was approximately 4.8% for the quarter.

• Net earnings from continuing operations in the second quarter amounted to approximately $13.1 million, which was an increase of 7.5% compared to the same quarter in the previous year. Net earnings were impacted by stock compensation expense of $1.2 million in the 2007 second quarter, an increase of $0.01 per share diluted compared to prior year quarter.

• Net earnings per share from continuing operations in the second quarter increased 5.7% to $0.37 per share diluted, compared to $0.35 per share diluted from continuing operations in the prior year quarter.

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Performance Food Group Reports Second Quarter Earnings
Page 2
August 7, 2007

Year-to-Date Financial Highlights:

• Consolidated net sales were approximately $3.1 billion, an increase of 6.1% as compared to the same period in 2006. Inflation was approximately 3.7% year-to—date.

• Net earnings from continuing operations were $20.0 million, an increase of 11.8% as compared to the same period in 2006.

• Net earnings per share diluted from continuing operations were $0.57, an increase of 11.8% as compared to the same period in 2006.

“In our customized segment, net sales increased 4.5% in the second quarter and 3.3% year-to-date, as compared to the same periods in the prior year. Inflation was approximately 1.2% for the quarter and nominal for the year,” added Mr. Spinner. “Consistent with our growth strategies, we have added approximately $250 million of annualized new business in our customized segment, including our previously announced relationship with O’Charley’s. We anticipate the rollouts of this business to occur primarily in the fourth quarter.”

“In the broadline segment, our net sales increased 10.5% for the quarter and 8.0% year-to-date, as compared to the same periods in the prior year. Our higher margin street sales also increased 11.2% in the second quarter versus the same quarter in 2006. Our expanded broadline street sales force is continuing to improve our mix of higher margin street sales, and we have seen a sequential improvement in real sales growth compared to the first quarter. Inflation amounted to approximately 7.1% in the quarter and 6.1% year-to-date, primarily due to inflationary trends in dairy, meat and poultry.”

Mr. Spinner concluded, “We are extremely pleased with our results for the second quarter. Performance Food Group remains committed to driving continued improvements throughout our business. Our balance sheet remains exceptionally strong. Free cash flow was approximately $7.6 million for the quarter, representing a slight increase compared to the prior year quarter. Given current operating trends and the expected roll-out of new customized business, we anticipate net earnings per share from continuing operations for the third quarter of 2007 to be in the range of $0.36 to $0.40 per share diluted and the full year to be in the range of $1.35 to $1.42 per share diluted.”

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

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Performance Food Group Reports Second Quarter Earnings
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August 7, 2007

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.

Performance Food Group Company
Condensed Consolidated Balance Sheet (Unaudited)
June 30, 2007
(In thousands)

	June 30, 2007		Dec. 30, 2006
Assets
Cash and cash equivalents	$	115,488	$	75,087
Accounts and notes receivable, net, including retained interest in securitized receivables		211,909		226,058
Inventories		314,130		308,901
Other current assets		38,010		35,419
Total current assets		679,537		645,465
Property, plant and equipment, net		285,025		291,947
Goodwill, net		356,509		356,509
Other intangible assets, net		45,850		47,575
Other assets		19,587		18,279
Total assets	$	1,386,508	$	1,359,775
Liabilities and Shareholders’ Equity
Checks in excess of deposits	$	84,089	$	88,023
Trade accounts payable		275,498		269,590
Current installments of long-term debt		61		583
Other current liabilities		140,895		146,524
Total current liabilities		500,543		504,720
Long-term debt, excluding current installments		9,562		11,664
Deferred income taxes		50,766		48,582
Shareholders’ equity		825,637		794,809
Total liabilities and shareholders’ equity	$	1,386,508	$	1,359,775

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Performance Food Group Reports Second Quarter Earnings
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August 7, 2007

Performance Food Group Company
Condensed Consolidated Income Statement (Unaudited)
June 30, 2007
(In thousands, except net earnings per common share)

	Three Months Ended										Six Months Ended
	June 30, 2007					July 1, 2006					June 30, 2007					July 1, 2006
Net sales	$	1,564,652		100.0	%	$	1,448,027		100.0	%	$	3,094,396		100.0	%	$	2,917,520		100.0	%
Cost of goods sold		1,358,124		86.8	%		1,254,824		86.7	%		2,692,462		87.0	%		2,537,063		87.0	%
Gross profit		206,528		13.2	%		193,203		13.3	%		401,934		13.0	%		380,457		13.0	%
Operating expenses		183,489		11.7	%		171,673		11.8	%		366,049		11.8	%		348,205		11.9	%
Operating profit		23,039		1.5	%		21,530		1.5	%		35,885		1.2	%		32,252		1.1	%
Other income (expense):
Interest income		861					390					1,703					862
Interest expense		(524	)				(370	)				(1,099	)				(724	)
Loss on sale of receivables		(1,922	)				(1,862	)				(3,748	)				(3,499	)
Other, net		58					66					79					153
Other expense, net		(1,527	)	-0.1	%		(1,776	)	-0.1	%		(3,065	)	-0.1	%		(3,208	)	-0.1	%
Earnings before income taxes from continuing operations		21,512		1.4	%		19,754		1.4	%		32,820		1.1	%		29,044		1.0	%
Income taxes		8,431		0.6	%		7,586		0.6	%		12,866		0.5	%		11,202		0.4	%
Earnings from continuing operations, net of tax		13,081		0.8	%		12,168		0.8	%		19,954		0.6	%		17,842		0.6	%
(Loss) earnings from discontinued operations, net of tax		(246	)				13					(194	)				(18	)
Net earnings	$	12,835				$	12,181				$	19,760				$	17,824
Weighted average common shares outstanding:
Basic		34,744					34,191					34,639					34,298
Diluted		35,312					34,797					35,110					34,858
Earnings per common share:
Basic net earnings (loss) per common share:
Continuing operations	$	0.38				$	0.36				$	0.58				$	0.52
Discontinued operations		(0.01	)				—					(0.01	)				—
Net earnings	$	0.37				$	0.36				$	0.57				$	0.52
Diluted net earnings (loss) per common share:
Continuing operations	$	0.37				$	0.35				$	0.57				$	0.51
Discontinued operations		(0.01	)				—					(0.01	)				—
Net earnings	$	0.36				$	0.35				$	0.56				$	0.51

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Performance Food Group Reports Second Quarter Earnings
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August 7, 2007

Performance Food Group Company

2007 Compared to 2006
Second Quarter
Segment Disclosure

							Corporate &			Total Continuing
2007	Broadline			Customized			Intersegment			Operations
Second Quarter
Net external sales	$	953,950		$	610,702		$	—		$	1,564,652
Intersegment sales		321			48			(369	)		—
Total sales		954,271			610,750			(369	)		1,564,652
Operating profit		22,641			8,469			(8,071	)		23,039
Operating profit margin		2.37	%		1.39	%		—			1.47	%
Interest expense (income)		864			1,143			(2,344	)		(337	)
Loss (gain) on sale of receivables		2,556			743			(1,377	)		1,922
Depreciation		4,826			1,697			63			6,586
Amortization		747			—			—			747
Capital expenditures		12,153			2,655			20			14,828

							Corporate &			Total Continuing
2006	Broadline			Customized			Intersegment			Operations
Second Quarter
Net external sales	$	863,463		$	584,564		$	—		$	1,448,027
Intersegment sales		101			53			(154	)		—
Total sales		863,564			584,617			(154	)		1,448,027
Operating profit		21,123			7,891			(7,484	)		21,530
Operating profit margin		2.45	%		1.35	%		—			1.49	%
Interest expense (income)		5,852			1,571			(7,443	)		(20	)
Loss (gain) on sale of receivables		2,454			735			(1,327	)		1,862
Depreciation		4,670			1,559			79			6,308
Amortization		845			—			—			845
Capital expenditures		11,596			1,697			167			13,460

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

	June 30, 2007		Dec. 30, 2006
Broadline	$	854,258	$	901,752
Customized		266,605		261,975
Corporate & Intersegment		265,645		196,048
Total Assets	$	1,386,508	$	1,359,775

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Performance Food Group Reports Second Quarter Earnings
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August 7, 2007

Performance Food Group Company

2007 Compared to 2006
Six Months YTD
Segment Disclosure

							Corporate &			Total Continuing
2007	Broadline			Customized			Intersegment			Operations
Six Months YTD
Net external sales	$	1,869,601		$	1,224,795		$	—		$	3,094,396
Intersegment sales		632			98			(730	)		—
Total sales		1,870,233			1,224,893			(730	)		3,094,396
Operating profit		34,180			16,847			(15,142	)		35,885
Operating profit margin		1.83	%		1.38	%		—			1.16	%
Interest expense (income)		1,763			2,418			(4,785	)		(604	)
Loss (gain) on sale of receivables		5,446			1,674			(3,372	)		3,748
Depreciation		9,807			3,319			131			13,257
Amortization		1,561			—			—			1,561
Capital expenditures		16,324			5,433			47			21,804

							Corporate &			Total Continuing
2006	Broadline			Customized			Intersegment			Operations
Six Months YTD
Net external sales	$	1,731,949		$	1,185,571		$	—		$	2,917,520
Intersegment sales		269			120			(389	)		—
Total sales		1,732,218			1,185,691			(389	)		2,917,520
Operating profit		31,326			15,764			(14,838	)		32,252
Operating profit margin		1.81	%		1.33	%		—			1.11	%
Interest expense (income)		10,887			2,959			(13,984	)		(138	)
Loss (gain) on sale of receivables		5,011			1,559			(3,071	)		3,499
Depreciation		9,022			3,129			159			12,310
Amortization		1,706			—			—			1,706
Capital expenditures		22,655			2,633			213			25,501

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

	June 30, 2007		Dec. 30, 2006
Broadline	$	854,258	$	901,752
Customized		266,605		261,975
Corporate & Intersegment		265,645		196,048
Total Assets	$	1,386,508	$	1,359,775

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Performance Food Group Reports Second Quarter Earnings
Page 7
August 7, 2007

Performance Food Group Company
Non-GAAP Reconciliation

Free Cash Flow

Quarterly	Q2 2007			Q2 2006
Net income from continuing operations	$	13,081		$	12,168
Add back:
Stock compensation expense		1,911			1,478
Amortization expense		747			845
Amortization of deferred issue costs		82			82
Depreciation expense		6,586			6,308
Subtract:
Capital expenditures		(14,828	)		(13,460	)
Free Cash Flow	$	7,579		$	7,421

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