BUSINESS INFORMATION
The Company operates as one operating segment. The Company markets, sells, and distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the U.S. The Company uses a centralized management structure, and its strategies and initiatives are implemented and executed consistently across the organization. The Company uses shared resources for sales, procurement, and general and administrative activities across each of its distribution facilities and operations. The Company’s distribution facilities form a single network to reach its customers; it is common for a single customer to make purchases from several different distribution facilities. Capital projects, whether for cost savings or generating incremental revenue, are evaluated based on estimated economic returns to the organization as a whole.
The Company’s consolidated results represent the results of its one operating segment based on how the Company’s chief operating decision maker (the “CODM”), the Chief Executive Officer (the “CEO”), views the business for purposes of evaluating performance and making operating decisions.
The CODM utilizes the U.S. GAAP measurement of consolidated net income to assess financial performance and allocate resources. This financial metric is used by the CODM to make key operating decisions, such as allocation of budget between net sales, cost of goods sold, distribution costs and selling and administrative costs. The measure of segment assets is reported on the Company’s Consolidated Balance Sheets as total consolidated assets. In addition, the measure of capital expenditures, depreciation and amortization is reported on the Company’s Consolidated Statements of Cash Flows. The following table presents selected financial information with respect to the Company’s single operating segment for the fiscal years ended 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| | December 27, 2025 | | December 28, 2024 | | December 30, 2023 |
| Net sales | | $ | 39,424 | | | $ | 37,877 | | | $ | 35,597 | |
| Cost of goods sold | | 32,560 | | | 31,343 | | | 29,449 | |
| Distribution costs | | 2,638 | | | 2,578 | | | 2,387 | |
| Selling and administrative costs | | 2,994 | | | 2,834 | | | 2,730 | |
| Restructuring activity and asset impairment charges | | 33 | | | 23 | | | 14 | |
| | | | | | |
| Other expense (income)—net | | (4) | | | 6 | | | (6) | |
| Interest expense—net | | 305 | | | 315 | | | 324 | |
| Loss on extinguishment of debt | | — | | | 10 | | | 21 | |
Recognition of net actuarial loss for pension settlement | | — | | | 124 | | | — | |
| | | | | | |
| Income tax provision | | 222 | | | 150 | | | 172 | |
| Net income | | $ | 676 | | | $ | 494 | | | $ | 506 | |
No single customer accounted for more than 2% of the Company’s consolidated net sales in fiscal year 2025, 2% of the Company’s consolidated net sales in fiscal year 2024 and 2% of the Company’s consolidated net sales in fiscal year 2023. However, customers who are members of one group purchasing organization accounted, in the aggregate, for approximately 14% of the Company’s consolidated net sales in fiscal year 2025, 14% of the Company’s consolidated net sales in fiscal year 2024 and 14% of the Company’s consolidated net sales for fiscal year 2023.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.