US Foods Ends Mega Merger Talks With Performance Food—What’s Next?

US Foods and Performance Food Group have officially ended their merger discussions, closing the door on what could have been the most consequential consolidation event in modern food‑distribution history. After months of due diligence and information‑sharing, both companies independently concluded that pursuing their standalone strategies would create greater long‑term shareholder value than combining into a $30 billion foodservice powerhouse capable of rivaling Sysco. The decision follows heightened regulatory considerations, diverging strategic priorities, and each company’s confidence in its independent business trajectory. For US Foods Holdings, the announcement came alongside stronger‑than‑expected third‑quarter results, accelerating independent‑restaurant case growth, expanded profitability, and updated full‑year guidance. Leadership reaffirmed its commitment to a balanced capital allocation strategy—including a newly authorized $1 billion share repurchase program—while underscoring confidence in the company’s long‑range algorithm. Meanwhile, Performance Food Group also reiterated its own strategic confidence.