US Foods Drops the Deal and Doubles Down on Itself

US Foods and Performance Food Group just called off what was shaping up to be the food-distribution industry’s big wedding — and then immediately announced they’re spending more time… on themselves. On November 24, the two companies said they’ve mutually agreed to terminate the information-sharing process they started in September to evaluate a potential business combination, and will no longer pursue a merger. The talks had been formalized under a “clean team” agreement to crunch synergy math and gauge regulatory risk, but after months of homework, both boards decided the best recipe was the one they were already cooking solo.

If that sounds like an awkward breakup, you're not wrong. US Foods is doing everything it can to keep it casual. Alongside the decision, the company rolled out a planned $250 million accelerated share repurchase under its existing authorization and a new $1 billion share repurchase program approved by its board — a very loud way of telling investors, “We’re still a catch.” Management also reaffirmed its fiscal 2025 outlook and its 2025–2027 long-range plan, which targets mid-single-digit net sales growth and faster gains in adjusted EBITDA and EPS over the period, reinforcing the idea that the standalone plan wasn’t just plan B, it was always the main course.

Performance Food Group, for its part, is putting a brave (and fairly confident) face on the end of talks too. The company told investors it had mutually agreed with US Foods to walk away after evaluating synergies and regulatory considerations, and it used the same moment to reiterate its fiscal 2026 financial outlook, stressing its own “standalone plan” as the path forward. In other words, both parties are claiming they dumped the deal, then immediately posted “still focused on our goals 💪” — just, you know, without the emoji in the SEC filings.

For the broader industry, this is the mega-deal that almost was- combining US Foods and Performance Food Group would have created a powerful number-two rival to Sysco, the long-time heavyweight in U.S. foodservice distribution. Instead, investors get something a bit more subtle but still market-friendly: two large distributors doubling down on efficiency, tech, and capital returns rather than trying to digest a massive merger under the watchful eyes of regulators. In 2025’s deal-hungry market, the “non-deal” might actually be the more grown-up, shareholder-friendly move — less flashy, more free cash flow, and a lot of buyback-powered comfort food for portfolios.

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