Billionaire Investor Dan Loeb’s Third Point Bought Stakes in Two Food Distributors in One Quarter — Here’s What’s Happening at Both

Dan Loeb‘s Third Point LLC opened new stakes in two of the largest U.S. foodservice distributors during the second quarter.

The companies are Sysco Corp. (NYSE:SYY) and Performance Food Group Co. (NYSE:PFGC). Foodservice distributors provide food and supplies to restaurants, hospitals, schools, and other businesses that prepare and serve meals outside the home.

Third Point built a new 675,000-share position in Performance Food Group and a new 580,000-share position in Sysco, as of June 30, according to its 13F filing, a quarterly report of investment holdings that must be submitted to the Securities and Exchange Commission. The stakes were worth about $75.5 million and $48 million, respectively.

Sysco’s $29 Billion Deal Awaits FTC Review

Earlier this year, Sysco said it would finance the cash portion of its proposed acquisition of Jetro Restaurant Depot with about $21 billion in new debt and hybrid debt. The deal has not yet closed. On May 27, the Federal Trade Commission issued a second request for information as part of its regulatory review.

Sysco CEO Kevin Hourican said to CNBC in August that he expects the deal to close in early 2027, although the transaction remains subject to regulatory approval and other closing conditions. Sysco’s proposed 2015 acquisition of US Foods was blocked by a federal judge following an FTC antitrust challenge.

Sysco has also been active on other fronts. On Oct. 6, the company closed notes offerings totaling $14.65 billion in U.S. dollar-denominated notes and €1 billion in euro-denominated notes. On Oct. 15, Sysco reached an agreement with Teamsters Locals 630 and 848 to end a strike at its Los Angeles facility. The company is scheduled to report first-quarter fiscal 2027 results on Nov. 3.

Boardroom Changes at Performance Food Group

Virginia-based Performance Food Group reported fiscal fourth-quarter adjusted earnings of $1.59 per share in August, a cent below analysts’ estimate of $1.60. The company guided for first-quarter revenue of $17.9 billion to $18.1 billion. Days later, it announced a transition in its lead independent director position and a board member’s resignation.

Wall Street has been divided on the stock lately.

On Thursday, Morgan Stanley (NYSE:MS) raised its price target for Performance Food Group from $131 to $136, while TD Cowen lowered its target from $115 to $110. Both firms maintained their existing ratings, with Morgan Stanley retaining its Overweight rating and TD Cowen maintaining its Buy rating.

Trading Metrics

Metric	Performance Food Group	Sysco
Market capitalization	$15.35 Billion	$40.41 Billion
52-week range	$80.82–$117.48	$68.19–$91.85
1-month performance	+6.86%	+4.37%

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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