Thanks, Bill. Good morning, everyone, and thank you for joining our call today. It has been a busy beginning to fiscal year 2025 as we have built business momentum, particularly in our Foodservice segment while closing two excellent acquisitions. This morning, I will discuss the early progress we have made on both coasts, Santiago and changing Brothers and then review some highlights from our fiscal first quarter. Patrick will then discuss our financial results and outlook for fiscal year 2025. I will then provide some closing comments before taking your questions. We are proud of how our organization has performed over the past three months. Our three segments have executed our strategy very well and produced strong results. The consumer landscape has provided some challenges, but I am pleased to report that we have started to see signs of stability that we believe could put us on a solid foundation for the release under the fiscal year. Before getting into more specifics on our business, I wanted to say a few words about our acquisition activity. As we discussed in August, we acquired Jose Santiago early in the fiscal year position. Santiago is a leading broadline food service distributor in Puerto Rico with good growth momentum in attractive margins. Over the past three-plus months, we have worked diligently to integrate their business into PMT's foodservice operations. This process has gone extremely well due largely to the hard work by the teams at both Jose Santiago and PFG. The team in Puerto Rico is proving to be an excellent cultural fit and as already contributed nicely to PFG's business results in the fiscal first quarter and early October, we closed the changing Brothers acquisition. I'd like to thank the team that change for others as well as PFG for the long hours put in to get this deal across the finish line, we are ready for the early close raising 1 billion through the issuance of new notes during September, which allowed us to pay down a portion of our ABL facility and provided us with additional borrowing capacity to fund the acquisition. Patrick will discuss the financial details shortly. Well. It has only been one month since the close of the change deal. We have already made great deal of progress onboarding Chinese organization. We welcome the roughly 36 hundred associates from training process to PFT. The Southeast region, representing the majority of Chinese operations has experienced a difficult few months due to the hurricane activity. Focus of our organization has been firm most and foremost, when the well-being of our associates as a food service distributor. We also play an important role in the food supply chain. As an organization, we have been able to ship much needed food supplies across the Southeastern United States and Puerto Rico. While it will take some time for these areas to fully rebuild our businesses are fully operational and continuing to service our customers. I'm proud of the active role our company and associates played in assisting areas impacted by the storms. In addition to supporting organizations like the American Red Cross, Mercy chefs and World Central Kitchen associated stepped up to help each other and the communities where they live and work by volunteers going to provide supplies food and meals to first responders. And those impacted. Looking ahead, we are incredibly excited about the opportunity change Brothers brings to PFG. As discussed in August, changes operations complement our legacy business. Changing strength in Florida, particularly with broadline independent customers enhances our existing business in the region, which skews more towards the specialty area of the business. Can you grow this distribution facility in North Carolina, rounds out the portfolio, providing us with additional scale across the Southeastern United States. Jamie Brothers assets, particularly their distribution facilities, are exceptionally high quality and state-of-the-art. It is rare to find an asset that is operating at scale but still has room to grow changes. Excess capacity should enable us to accelerate growth, build scale and route density across the Southeast region. In August, we provided data showing the positive demographic profile of this region, which is available on our website. Kenny Brothers. High exposure to independent restaurant is reflected in constant sales growth, high profit per case, an EBITDA margin well above PLDs corporate average. At the same time, we believe the Chinese relatively low private brand penetration provides a very attractive option opportunity to enhance both top line growth. Margins are legacy foodservice operations have been incredibly successful at expanding our performance brand offerings to independent restaurants. In fiscal year 2014 performance brands represented just over 39% of independent brand share in the most recent quarter. Performance Brands represented nearly 53% of many familiar with the Reinhart acquisition and the value created from that transaction. Similar to change. The reinhart was underpenetrated in private brands for in the years. Since we have owned the operation, we have been able to expand reinhart private brand portfolio penetration to levels that are similar legacy Performance Foodservice. We believe the private brand opportunity it, Jamie, is even larger. In fact, our integration strategy for chain is very similar to that Orion, or we believe we have acquired a very high quality asset business and excellent growth trajectory. Our initial efforts were focused on integrating the organization while minimizing any impact to change these associates, customers and suppliers overtime, we will share best practices across the two organizations and expect to accelerate sales and profit growth as a combined entity. Patrick will discuss some of our specific financial goals from the transaction in a moment. The change from this transaction fits nicely with our total PFT. strategy to continue to build upon a leading position in the food away from home space changes another high-quality growth asset in the foodservice space, and we are excited to add this organization to PFG. Foodservice is an important piece of the total P & G's portfolio. However, what defines us are the additional avenues for growth, including Vistar and Core-Mark. The combination of these three units provides a powerful offering that we believe appeals to customers across the food away from home landscape. As organization continues to grow both organically and through targeted M&A opportunities. PFG is increasingly a leader in the food-away-from-home space in late October to held its national championship event in Orlando, Florida. The event honored some of the industry safest associates, allowing them to compete in a range of skill competitions. PFT. had a fantastic showing including 95 associates at over 300 PFT. attendees, including family and friends. To support the event, PMT's associates accepted a number of awards across multiple categories within warehouse and transportation events for of our competitors, children were recognized for their assays detailing why they're PFG parent was there hero. It's a great event, and PFG. is proud of because in leading the industry forward in October, our Core-Mark business, despite its strength in the convenience space at the National Association of Convenience Stores, conference Core-Mark's offerings not only in traditional center, the store, convenience and foodservice products tailored to the convenience landscape set PFG apart. Our three segments are working together and to create cross-selling opportunities that we believe will produce additional market share opportunities. Technology is an increasingly important part of our cost segment, collaboration and selling one platform that we are particularly excited about is our customer purchase digital ordering application. We began discussing this initiative at our June 2022 Investor Day. Since then, we have expanded the offering across the organization are seeing excellent progress at PFG. We believe that our sales force should always be at the frontline of our selling efforts of key competitive advantage image that has allowed our company to consistently gain market share. At the same time, we have continued to provide our sales team and our customers with the tools, resources and knowledge to help them grow their businesses. Importantly, customer first will eventually be rolled out across all three business segments, allowing cross-selling opportunities that we believe will further enhance our value proposition. Overall, I am proud of our organization's performance and believe that we are well positioned to continue executing our growth strategy. I'll now turn it over to Patrick, who will review our financial performance and outlook. I will then return with some final comments on our quarter from the business environment. Patrick.
Thank you, George, and good morning. PFG off to a strong start in fiscal '25 with net sales results at the upper end of our previously disclosed guidance range and adjusted EBITDA just above the midpoint of our previously disclosed guidance range. We're very pleased with the top line momentum, which has slightly accelerated early in the fiscal second quarter, providing a high degree of confidence in our 2025 outlook. Before discussing our fiscal 2025 plan, let's review some highlights from our first quarter. P & G's net sales grew 3.2% in the fiscal first quarter, a one point acceleration compared to the fourth quarter of 2020. For our top line performance remains balanced between volume improvement and net price realization. Total case volume increased 2.6%, including a 7.8% increase in total independent restaurant volume. Excluding acquisitions, our total volume increased 1.2% and the fiscal first quarter, including a 4.3% gain in our independent restaurant cases. As we enter the fiscal second quarter, we are seeing a slight acceleration in both total and independent case for us, which we believe is a reflection of our customers driving foot traffic and signs of stabilization from the consumer. For total company cost inflation was about 5% for the fiscal first quarter. First survey cost inflation was 3.8% in the quarter, an acceleration from the end of fiscal 2024 due to double digit year-over-year inflation and poultry and cheese cost inflation. The convenience segment was 7%, consistent with the trends seen in the fiscal fourth quarter. First, ours cost inflation continued to do Telerate sequentially and was up 1.9% in the fiscal first quarter. On a year-over-year basis, inflation was slightly more than anticipated in the quarter, particularly in the foodservice segment. So we believe we are well equipped to manage the price volatility as a normal course of business. Total Company gross profit increased 6.1% in the fiscal first quarter, representing a gross profit per case increase of $0.23 in the first quarter as compared to the prior year's period. We have continued to see excellent cost control, once again led by an outstanding profit performance from foodservice and convenience segments. Both foodservice and commands produce double digit adjusted EBITDA growth in the quarter increasing 13.8% and 11.2% respectfully. First, our did see a modest adjusted EBITDA decreased, driven by continued lower foot traffic and solve our customers' channels. The balance across our three segments. Despite our strong diversification strategy, we anticipate Vistar's results to improve towards the back half of the fiscal year. We expect to build upon the strong profit results as we move through fiscal 2025, which I will address in a moment. When I review our guidance in the first quarter of fiscal 2025, PFG reported net income of $108 million. Adjusted EBITDA increased 7.3% to approximately $412 million above the midpoint of the guidance we announced last quarter. Diluted earnings per share in the fiscal first quarter was $0.69, while adjusted diluted earnings per share was $1.16, 8.9% improvement year over year. Our effective tax rate of 26.5% and the first quarter was up slightly compared to the 26.1% rate in the last year's comparable period. Turning to our financial condition and cash flow performance in the first three months of fiscal 2025, PFG generates $53.5million of operating cash flow. This includes a sizable investment in candy and tobacco inventory during the quarter. In anticipation of future potential price increases, we often invest in increasing the inventory of these two categories because of manufacturer price activity, which allows us to generate a holding gain profit. We believe that this is a very efficient use of our balance sheet and cash flow position, generating a high rate of return and future periods. We also increased our capital spending in the quarter to $96.5 million. We have been actually building new capacity and state-of-the-art warehouse facilities as well as growing our fleet to support our long-term growth. Some of the capital spending is a catch-up from delays and building and fleet purchases due to disruption in the global supply chain. Paul, the pandemic. In fact, we expect over 10 new building projects to come online over the next 12 months. We believe these new facilities will not only support our consistent top line growth, but also incorporate designs and technologies to provide long-term cost efficiencies. Our balance sheet remained healthy, supporting our capital projects in M&A activity. Our debt balances increased during the fiscal first quarter, reflecting the ABL borrowings used to finance the Jose Santiago acquisition for the our leverage just above the midpoint of our 2.5times to 3.5 times target range. As you know, we closed the Cheney Brothers acquisition early in the fiscal second quarter. As a result, we expect our net leverage to be above the top end of our target range. When we closed the second quarter. We expect to use available cash flow to pay down our ABL facility and bring our leverage back to within our target range over the next several quarters. We feel very comfortable with our debt balance at this time and have historically operated well above our current leverage. With that said, we believe our 2.5 times to 3.5 times target range provides future opportunities to use our balance sheet to finance reinvestment, including capital spending, M&A and share repurchases. On the topic of share repurchases. During the fiscal first quarter, we paid $29.5 million to acquire $0.4 million shares of our Company at an average price of $74.69. There's about $181 million remaining on the $300 million share repurchase authorization station. All our share repurchase activity remains active. We may execute lower levels of buybacks due to the early closing of the Chinese acquisition as we look to reduce our leverage in the short term. With that said, our share repurchases reflects several factors, including market conditions, our share price and relative valuation, or we may become more active with our share repurchases depending on those conditions. Turning to our guidance for fiscal 2025. For the full year, we expect net sales to be within the $62.5 billion to $63.5 billion range. We expect adjusted EBITDA to be in a range of 1.7 to $1.8 billion. We increased both our net sales and adjusted EBITDA outlook with the close of the changing acquisition in early October. These ranges include estimated change results, representing approximately 12 of the 13 weeks in the fiscal second quarter and full year's benefit from Jose Santiago. We feel very comfortable with our net sales and adjusted EBITDA targets have become increasingly optimistic due to improving industry trends. For the second fiscal quarter of 2025, we anticipate net sales to be in a 15.2 to $15.6 billion range with adjusted EBITDA and a $400 million to $420 million range. As a reminder, the Cheney acquisition will only impact 12 weeks versus 13 weeks of the quarter's financial results. Our guidance includes the expected benefits from the Cheney acquisition that we discussed in August, notably, $15 million in annual run rate synergies by the third full fiscal year following closing and accretion to adjusted diluted EPS by the end of the first full fiscal year, including year one synergies. To summarize, we are very pleased with our start to fiscal 2025, our underlying businesses on a strong footing setting us up well for the future. Meanwhile, we have closed two excellent acquisitions since the beginning of the fiscal year, and both are expected to add nicely to our growth and margins. Our balance sheet is healthy, and we intend to continue to use our financial position to create shareholder value through reinvestment in our businesses, along with selective M&A, share repurchase activity and leverage reduction of capital allocation decisions are always based on marketplace conditions, but at this time, we would expect to emphasize debt reduction due to the timing of changing a close. I would now like to turn it back to George, who will close with some thoughts about our results and industry.
George Holm
As Patrick mentioned, we are excited about the future of our business. All three of our operating segments are executing well despite the challenging external environment. Our Foodservice segment has continued to build market share and grew cases ahead of the industry trends. Convenience continues to pick up momentum. Despite industry declines and convenience, our business outperformed all major categories was able to increase sales and profit nicely. And as we look out across the landscape, we are starting to see a better backdrop. Distort continues to experience a challenging macro economic environment, but we are pleased with the progress they have made on several emerging channels and are confident that they will resume the strong top and bottom line momentum that we are accustomed to seeing. As we look across the landscape, we are pleased to report that over the past few weeks, we have seen an uptick in our volume performance, particularly in independent restaurants and expect our fiscal second quarter to improve sequentially. Keep in mind, we experienced a very strong December in fiscal 2024, but as we enter the back half of the year, we're increasingly confident that we will experience an acceleration in our top and bottom line trends. Our results, both with our underlying businesses and the new opportunities that to me and Jose Santiago, our due to the hard work of our associates across the country. I believe we have some of the best talent in the foodservice industry, and I'm confident that we will continue to build upon our position as a leading food service distribution company in the United States. Before opening the line to take your questions, I wanted to take a moment to recognize Pat Hagerty ahead of this upcoming retirement. Pat has been part of this store organization for over 30 years, most recently serving as P & G's Chief Commercial Officer. Pat has been an integral part of our company's success for decades in 2018 was named President and CEO of the store and went on to shape that organization into whether it has become today from the time that took the helm as this store through the end of fiscal 2020 for the organization has expanded into a number of new channels, growing the top line by over 240% and become the highest margin contributing segment to performance. Food Group's bottom line. I would like to personally thank Pat for his decades of service and dedication to our organization. I wish him the best in retirement. Thank you for your time today. We appreciate your interest in Performance Food Group. And with that, we'd be happy to take your questions.
Operator
[Operator instructions] And looking at our first question from Mark Carden with EBS.
Mark Carden
Hi, good morning, guys. Thanks so much for taking the question. And so to start just on a sales force, are you guys seeing much of a normalization on your pace of hiring at this point and has compensated as competition pretty tired shifted at all just given the tough macro? Thanks.
George Holm
Yes, we've been fairly consistent with the growth of our sales force were running in the 5% to 6% range, and that's about where our growth has been running of late. So we feel good about what we're doing there and really no big changes from a comp standpoint. Our people are commissioned salespeople. So they, to some degree, write their own paycheck.
Mark Carden
Okay, great. And then just the interim, Dave, on your independent case growth and obviously ticked up a little bit from July, completely exited the quarter and a high note. How does it play out throughout the quarter from a cadence perspective? And then are you seeing any surprising pockets of strength or weakness from a category standpoint? Just in your business?
George Holm
Yes, we're seeing anything I point to two point increase better than we ran in the first quarter so far, but I want to caution that the second fiscal quarter last year for us, we had 8.7% independent case growth and December was 10.9%, a strong kind of parties season and the calendar fell very well as far as the amount of time between Thanksgiving and Christmas. So that said, each week actually has gotten better since we've gotten into the second quarter. So we're real confident and particularly confident about the back half of the year. And we're continuing to add people. We would like to get a little bit above that range. We're at right now that five to six and more and to the seven plus percent, the increase in sales people. And we're determined to get there. We just have to find the right people
will take our next question from Kelly Bania with BMO Capital. Your line is open.
Kelly Bania
Good morning and thanks for taking our questions. As towards to as Wondering if you can just kind of elaborate on the signs of stability. I mean, you talked about a little acceleration here. I think it sounds like with independents, but can you maybe go channel by channel and what you're seeing in consumer their behavior, what you think is changing? And then I just had a quick follow up with respect to the Caney if we have time.
George Holm
Okay. At this point. I don't know that I did how much of our increase that we're experiencing so far this quarter is just doing a better job or the market itself. I think we'll get a better feel for that as we get some of our market share numbers. But our ability, I guess, gain share in the independent has been quite consistent. It's just that the market has been down from what we see it somewhere in that 3% negative to the previous year. If you if you look at last year, though, is we got through our fiscal second quarter, I'm sure everyone remembers that January was really top. So we expect to see some better increases that we get further into it. As far as where that growth is coming from for us, it certainly has not come from casual dining chains. We have some that are really struggling there. We've seen some fast food chains to supply do better, but there are more at the high end of the QSR. And then our independent business is really more towards the high end. And I think that the hub there's challenges probably in may be the bottom 20% of income, and we're still seeing those. I would, I would say, more price sensitive QSR chains. We're seeing them continuing to be challenged dismiss this year's numbers versus last year's numbers.
Kelly Bania
Can you talk a little bit about convenience and [Vista] and the same note?
George Holm
Sure. I think that there's an adjustment going on there in convenience with price increases. I mean, they're used to price increases. As we've said earlier, they have a 5% inflation rate, which U.S. is still high. And I think the consumers just adjusting to that and we're running mid single digit same store sales declines in that business. As far as the stock goes out, we have some challenges in the theater part of our business. Number one, it being somewhat soft. And number two, we have some competitive challenges there. In retail. We've seen the same thing as far as the traffic, not being there, the value stores more so not being there. And then we've had several closings of accounts where we had the I guess I would call it the impulse buy business. The product is that the cash register and then we've seen it in value stores where there's been some some fairly heavy closings.
Kelly Bania
That's helpful. And just wanted to ask about Caney on the integration time line. Has anything changed with how you have hopes of integration of acquisitions of that size? And I guess particularly I was wondering if you have any color on the cadence of the synergies that you expect kind of year one year to year three.
George Holm
Yes, with the integration, I guess it depends on how you define integration, but we're doing our best to only do the things that we need to do. We put them through a lot. As you can imagine, with due diligence, they spent some long hours were just getting the integration done that we need to get done. And I guess as a public company probably be a good way to put it. And then as far as synergies, I think a lot of those will develop in the second and 3rd year. We don't look at getting synergies from the people part of the business. They're running intact. And that's what we want. They're doing very well. By the way. I know it's only one month, but their sales growth has been really pleasing and a lot of it will come from brands as we mentioned. But with those brands to Ball, we need to figure out what brands they have today that we would adopt as a company and consider them to be our brands. And as we offer the product up to them, that's their decision as to whether or not they use our branded products and that typically takes time. But no different than Reinhart situation or Core-Mark or merchants will get the synergies. They may come quick. They may come slow or not. And I mean that they could it could be either way. It just depends on what they want to adopt and what's more important than when we get those synergies is how the Company continues to perform as part of our company. And sometimes you can get so far focused on getting those synergies that has a negative impact on the company and going from a private company where they can pick up their cell phone and call the owner and have a conversation to being part of a of a large public company. We want to make that as seamless as possible for the people. So we're not overly focused right now on synergies, but we're very confident that those will develop.
Thank you. We'll take our next question from John Heinbockel with Guggenheim. Your line is open.
John Heinbockel
Hey, guys, wanted to start with the, um, the 10 new buildings, right. So can you tell us sort of talk through what segments there in? Are they net new facilities or the replacements automation. Right. And have you been capacity constrained? Not from a sales person standpoint, but from a physical standpoint?
George Holm
yes, we have physical constraints. That is for sure, we don't necessarily have 10 new buildings, okay? We have one that's a replacement building. We have several that are additions to existing buildings where we have these projects going up there. Almost all in foodservice. We do have a new distribution center for Core-Mark, which will be in use in Texas. And I'm I have to turn to Pat on this. I think that's the only one we have that is not to service those invest our expansion.
I would put it out, make sure we're clear at this. So we have 10 what we would call major projects going on, but not 10 new buildings.
John Heinbockel
Okay. And then maybe the other thing where you hope you've had good success, I think over the past six months in all three segments of picking up chunky business. Right, Doug, as you know, non independent, what's your outlook here right for the next Fed on oh six to 12 or 18 months along those lines? Similar opportunity in those three and in particular. Right core, Mark, I know there's a chunky stuff out there in RFPs, um, that is at what do you how do you size that over the next year or two? Or is it potentially much bigger than what we've what we've gotten recently?
George Holm
We have plenty in the pipeline. We typically don't respond to RFPs. We have a couple within that segment that we are we would be showing some excellent growth in Core-Mark if the same store sales weren't as negative as they are. So we're feeling very good there. We have business that we've already signed that we have coming in that we're not shipping yet, and we're experiencing double digit growth in the foodservice part of not only our Core-Mark business, but of the business that we do in the convenience stores out of Performance Foodservice. And they've come a long way. Thank you. Yes, our pipeline and food service is also a fairly good. But our focus right now is heavily on the independent customer. We've got some great national account customers that are new, how we're continuing to be in conversation with people, but that part of our business, we do have some accounts that are showing some pretty serious Dick declines. And I think it's great that we've been able to overcome that.
And team will take our next question from Lauren Silberman with Deutsche Bank. Your line is open.
Lauren Silberman
Thank you very much and congrats on the quarter. I wanted to ask about the EBITDA guide raising about $100 million for Caney inter-quarter. I think you have closer to $159 million and as you can basically now entertain your expectation for the core business as a relative conservatism in terms of timing expectation for any additional color there would be helpful.
Patrick Hatcher
Yes, Lauren, this is Patrick, and thanks for the question. Yes, when we look at the increase in the guidance on your numbers are correct on the obviously, we're going to get about 38 weeks of of Cheney. And but we feel very confident on how the core has been performing. And as we talked about, we've seen a good Q1. And then we've progressed nicely since Q1 on some of our key metrics, like independent cases, we've it's been very early. We just closed Cheney just about a month ago, as George mentioned, we've seen some early numbers in there. They look good, Jose Santiago is performing exactly where we want them to be. So yes, as I mentioned, we see a lot more confidence as we go throughout the progressing of the year. But down, yes, if you look at that guidance range, we gave you a feel like it's ample room on both sides here.
George Holm
I'm going to make a comment on that as well. At the time that we put that guidance out, we were dealing with the hurricane and another one came after, and that's basically had some effect on the entire distribution area for Cheney. So I thought it made a lot of sense for us to be cautious about that. They are performing extremely well and we'll be looking at our guidance as we go through the year very closely. We also have this the deal with the spars. We're seeing our growth accelerate. And we had such a big December last year, as I mentioned earlier, so trying to be cautious about that. But as these weeks have been clipping down, we've just seen continued improvement. And we haven't seen much of an impact on changing from these hurricanes. They've done real well all the way through it. So we'll keep looking at the business will continue to be cautious, but low will update our guidance when we find it to be appropriate
Lauren Silberman
.Very helpful. Appreciate that. Just a follow-up on the private label penetration that you discuss how PFG. that adding 53%, whereas Cheney running currently and difficult, right? Or is there a scenario where it was right when you first acquired it relative to where it's running now?
George Holm
Well, reinhart is a different situation than changes from China to too much time with this. But reinhart increase their penetration by about 10%. So they were in the 40s, very low 40s, but they were in the 40s. And we've kept a good bit of their portfolio in place and adopted that as our branded products. And then over time, they have made some pretty substantial moves into our product offering with Cheney. We're not in a position where we really know what percentages because we don't know what those brands that we're going to adopt now, Craig Hopkinson, Joe, David and myself. So three of our people went to a recent food show that they had. And we saw a lot of product that we felt would be a good fit, continued work with them on that. But I want to emphasize again that it's their choice. one of our brands they adopt and is our opcos legacy performance once choice if they adopt some of the ones that are stuff that changing. But we have to get our arms around exactly what they have and what we want to offer up to them because you don't want to do too much at one time. And quite frankly, as they should be there, very proud of the brand offerings that they had. And we don't want to disrupt that. So I really can't give you a number as to what throughout now by the time we have this next call, you can ask that question again, and we'll have it will have a good answer.
Thank you. We'll take our next question from Alex Slagle with Jefferies. Your line is open.
Alaxander Slagle
Thanks. Good morning. As a follow-up on if you could comment on the magnitude of impact in the hurricanes that there was any it sounds like you're pretty happy with how things progressed. And then just on Cheney, how fast that closed on the SaaS and we expect? And are there certain dynamics that allowed for that? How did that play out?
George Holm
Well, that if you look at our position, particularly in Florida, we've stayed pretty specialized. So bulk of our business in Florida is a piece of business and then chain business and on There's other parts of the country will prepare pretty cognizant about kind of sticking to what we can do well with our current facilities and our current position in the marketplace. And I think that led to us being able to get this done quickly. And then as far as the impact from the hurricanes, it, it has been very little now we're putting the numbers together as far as the number of accounts that we totally lost and it's fairly substantial. But what often happens is it just helps the average unit volumes for the people that are still open. And because the biggest impacts are right on the coast, that tends to be a higher percentage of independent restaurants versus chain restaurants. So we're seeing greater in the independent world, not material dollars, surprisingly, not material. They just did a great job of working their way through this
Alaxander Slagle
Got it and the teams inflation, what's your visibility look like on that for the year ahead? And is there any potential implications tiers or I guess anything else?
George Holm
Cheese is still inflated over the previous year, but sequentially, cheese has been going down for a got a couple of months now, sir?
Thank you will take our next question from Andrew Wolf with CL King. Your line is open.
Andrew Wolf
Thanks, good morning. This question versus for George, just looking at the two acquisitions combined Cheney and Jose Santiago, this not as big as reinhart, but they're big and it's approaches in size. So in a general sense, do you see these as similar to be sort of catalysts for growth, both market share in an otherwise in the way that right now?
George Holm
It was yes, I think both on there's been a very good impactful acquisitions. If you put the two together, it does represent more EBITDA than reinhart did at the time now, reinhart EBITDA has doubled and I don't expect that to see that happen either more matured from a funding standpoint. And actually the Cheney is very similar EBITDA margins that to what we have and what we call our full broadline companies, very similar. But there is a big difference and that's that they've been a better grower to some of our big companies have been. I think that the other impact that will get from changing and that's why it could prove to be the best one that we've done in spite of the incredible earnings growth at Reinhard has put out is I think it's going to have a great impact on our existing distribution centers in that area will run them as kind of two separate go to market. But we do now have the opportunity to broaden our offerings in the distribution centers that we have that overlap with them. And we have a lot of experience and overlapping not as much experience where we purchase someone that was bigger than us in the markets, but we had some of that. And reinhart the upper Midwest. It was a weak area for us, reinhart did extremely well. We have coexisted and with slightly different brand offerings and very different total product offerings. And I think that's the same thing that will happen with changing. We will coexist. We'll add at least one more Cheney distribution center. And I just have just great, great feelings about where changes going ahead for us. Great management team. I'm going to their show I was shocked at how many people that I met their that I've worked with in the past or that are currently at Cheney. So I think day to some degree know us and we know them and it's going to be a good mix.
Andrew Wolf
Okay. So that color, Patrick, I wanted to ask about your CapEx pointing out the CapEx and projects in different phases, if you will. You did ramp up CapEx spending last year to nearly $400 million a dip in running in the 200 millions. So was that obviously that must have been spending in IT to go. It's had some of these projects. Could you just talk about what the CapEx kind of budget is for me is going to stay around that 400 or so?
Patrick Hatcher
Yes, Alex, thanks for your question. On your right, we did ramp it up a little bit last year. I'm sorry, Andrew Alex, Andrew and the type of product holiday and most I apologize. Yes, we did ramp it up last year. And these are multiyear projects and on some of them are catch up from our ability to get construction done post pandemic, where materials or availability of workers was harder to find. We're seeing that improve a lot lately, which is good. So that's also driving some of the additional expense as these projects start to move on along a little faster. And we would expect that, you know, as we go through the year, we'll see that taper off a little bit. But Yes, we have, as we've been describing on a lot of opportunities for growth across all three segments, but particularly on food service. So we're going to continue to evaluate each one of our locations and determine if we need to expand them or in some cases, even though the new building on one thing we didn't touch on much as we are adding a lot of free airtime automation into these buildings, we're building into more state-of-the-art facilities when we do greenfield facilities and that it provides a lot of efficiencies as well for us. So we would take a lot of different things into consideration when we look to add or expand buildings.
Andrew Wolf
Got it. All right. So one of the takeaways there is the increase in the run rate spending some of its catch up, but there's a lot of opportunities. So I'm sorry, I'll work with that. Thank you.
We'll take our next question from Jeffrey Bernstein with Barclays. Your line is open.
Jeffrey Bernstein
Great. Thank you very much. two questions. First one is just on the current trends. George, you're seeing increasingly optimistic in fiscal '25 node and the improving trends in recent weeks. And I would assume that's already reflected in today's guidance. So it's not as if you're expecting upside to that. But just trying to reconcile, I guess, of the independent case growth was 7.8% growth in the first quarter. It seems like you've already seen an acceleration in the fiscal second quarter, so presumably higher single digit. But I'm just trying to juxtapose that it against I think you made a comment that you're growing in line with the sales force, which is more like 5% to 6%. So I'm just trying to flush out some of the differences in those numbers in terms of what your outlook is for independent case going forward from here, whether it's the sales force number is going to accelerate or the independent case growth is going to pull back or how we should interpret those two comments? And then I had one follow-up.
George Holm
Yes. When I look at our current organic independent growth were running somewhere between 1% and 2% over what we ran in Q. one and it's accelerated each week. It's gotten slightly better. So that gives us some good confidence. We recognize that we're up against tougher comparisons as we get into the end of November and the month of December. But we also recognize we're up against very easy. I guess what the way to put it comparisons in January, unless there's just some extreme weather situations. So it makes it a little bit tough for us to project. As far as Bob, the growth in the sales force right now, it is running about the same as our growth in that 5% to 6% range. That's not used in Q1 organic that's using where we're at so far in fiscal Q2, and those numbers are without changing. And with that out. Jose Santiago,
Jeffrey Bernstein
Scott, it's Rob. So as I'm exaggerating, I guess, threat the independent case growth of 7.8%. You're saying if you just looked at the organic component of that, would that number be 43, four, four 5% catch up if you're seeing a 1% to 2% increase of about 4.3, which would put you in?
and that's roughly where they run it from a sales force perspective.
George Holm
Exactly.
Understood. Thank you for the clarification. And then in terms of the, um, the cash usage outlook, Patrick, I know you said them well with changing now your leverage is north of 3.5. I'm just curious if you quantify what is your timeframe to get back within that 2.5 times to 3.5 times? It sounds like I think you said a couple of quarters. I wasn't sure if that wasn't implying you be within that range at that time. So that's the case. I think last call you said you still plan to exhaust. What is now I guess $181 million left to share repurchase authorization by year end fiscal '25, which we now assume as you're focused more on debt, that you wouldn't necessarily exhaustive authorization this year anymore. But how should we think about that cash usage and the leverage level?
Patrick Hatcher
Yes. As I mentioned, the leverage level is exceeding our 3.5 times. I said several quarters will be back as well. We're projecting into that 3.5 or less on times leverage as far as the share repurchase goes by Yes, as I mentioned as well, since we did close Cheney in October on which is a little earlier than what we had originally modeled, we'll probably focus. I mean, we will focus on debt reduction and the share repurchase program will probably see less activity as a result.
Jeffrey Bernstein
Got it. And just to clarify, for fiscal '25 the interest expense and D&A guidance, I know the interest expense Corcel of thought, but obviously you've got moving pieces with your leverage levels. So any directional color interest expense and D&A for '25?
Patrick Hatcher
Yes, we don't give guidance for what's going on. The interest expense is really a function of, obviously, financing, Jose Santiago, but that was more than offset by the EBITDA, but also capital leases on in addition to investing in buildings. We also have been investing in our fleet and that goes through cap leases, and that does come in as interest expense and then just overall borrowings and then on depreciation is also really a function of growth. It's again, these new buildings coming online, and that's primarily the two drivers of those things.
Jeffrey Bernstein
We should assume what we saw in the fiscal first quarter as more of a reasonable run rate going forward? Or was there some unusual that drove that higher?
Patrick Hatcher
Now? It's we're at we're experiencing somewhat similar way. As I mentioned, the building densely on there are some backlogs due to availability of tractor trailers in units. We're seeing that Supply Chain & Freight now. So we are seeing delivery of large number of units. So there will be a catch up here and there should again taper off.
We'll take our next question from Brian Harbour with Morgan Stanley. Your line is open.
Brian Harbour
Thanks. Morning, guys. Real quickly, you commented on fees, but is your food inflation outlook any different for this year? Or do you think it is more towards kind of the higher end or you spoke about
George Holm
now I would really honestly no food inflation. It's was a little higher in the quarter, but we're already seeing it taper off a little bit from there. And I would expect that we're going out on sees low single digits for food, similar for Westar and convenience will be a little bit more elevated, but probably mid-single digits.
Brian Harbour
Okay. Thanks. Mr. I know there's sort of year-over-year margin pressure. I don't know if that was partly the business that was acquired. Are the kind of the channel mix that you alluded to? Could you sort of talk more about that? Just with regards to margin progression and also kind of what you think drives some of the improving sales trends in the second half?
George Holm
Yes. It's a lot to do with channel mix on and also just the consumer trends that are out there and working with our customers. And so that's what's driving some of the margin pressure with first are what we see in terms of even the balance of this quarter. But going into the second half is there's they are going to see some recovery in theaters. We mentioned that was one of the things that was softer earlier. And then I'm going forward, we do believe that did have a lot of things are working on. They have a lot of potential new channels that they're exploring new customers, and that's what's going to drive their improvement in the back half of the year. Knowing that a bit too, we're experienced some mix change with that business. Our green rebate businesses is quite high on the gross margin area because we don't take possession of a lot of the product that we sell. And that's a business that were real serious about. We'd like to get distribution center such that we can get to almost all the country in one day. So that's another one of those things down the road here that we'll be spending. Some more money on our theater business has been weak, but that is the lowest gross margin business that we have in this dollar and the value business that has been week, our gross margin is okay on it. But the gross profit per case, because the case cost is so low is also on the low end of what we do in distortion to there's a whole lot of noise going on with it. But the mix is always going to have an impact there.
Thank You. will take our next question from Edward Kelly. Your line is open.
Edward Kelly
Hi morning, guys. I was just curious on the yes, on the convenience business on, could you maybe talk a little bit about on your ability to grow EBITDA in that business on units decline you're seeing in case volumes? And then how do you think about the outlook for the rest of this year or if volumes are going to remain soft, the drivers to potentially continuing to grow EBITDA if that's possible in that backdrop?
George Holm
Yes. I mean, I don't I don't have a great crystal ball and Nissan, but I'll give you what where I think I see us going. Our ability to grow EBITDA in spite of low sales growth has been because of mix. Once again, I guess is my favorite word today, but our foodservice business is growing very well. It's at a higher margin. The tobacco business is experiencing about double the declining did it had for several years. I think part of that is just that we got through that COVID period of time and the volumes did not go down during the the heavy stay at home periods. And I think they're making up, I guess, a little bit for lost time. So as far as an outlook, we have more new business coming on. We're doing much better in independent within convenience. We're doing much better in foodservice. The volumes, I think we'll come back as people get used to a little higher price point. And I guess the only potential headwind is that we made great progress as far as our expense ratios and our productivity in both warehouse and delivery. And I think we're going to continue to do that. But from a comparison standpoint, not at the rate that we did last year. So I see us continuing to do well on the EBITDA line. It will come more from growth in the future here and it will come less from expense ratio declines.
Edward Kelly
Just a follow-up on on independent case volumes. So you know, it seems like momentum in the business is improving. Just curious as to how you think about getting back to that 6% to 10% organic independent case volume growth and new to add that tougher December, our comparable or coming off an election and then comparisons look like they get quite a bit easier to get into the back half of this year. Just curious as to how you're thinking about that target George
George Holm
for the way I model it out, okay, which is a little bit back of the envelope, but last year, we will hit our 6% just barely and it was front-end loaded. And this year I see us getting to that. Again, it will just be a little bit more back-end loaded. But of late, I have developed a lot of that six to 10 because we don't have that much ground to make up and we're experiencing some nice increases.
Thank you. [Operator instructions] We'll take our next question from Peter Saleh with BTIG. Your line is open.
Peter Saleh
Hey, great. Thanks for taking the question. George, I wanted to ask you just elaborate a little bit more on digital ordering tool on how broad-based it is today and maybe the penetration and adoption today and what you're expecting as you go through to 2025 or fiscal 2025 and just some of the benefits that you can hire and some of those would be helpful. Thank you very much.
George Holm
Yes, I'm going to just give you a couple of comments. I'm going to turn that over to Patrick Israel closer to it than I am. We continue to see a higher percentage of our food service independent customers that want to enter their own orders. We were probably a little late to the game as far as getting the right digital program in place. But we feel real good about what we're doing. And if you go to our other businesses, they are getting close to having everybody on the system. So on, it's really been beneficial for us to save some time for the salespeople. We make sure they are still out there and still doing their job. And it's really been helpful in this store part of the business. So that kind of have you given maybe some better numbers.
Patrick Hatcher
Yes, that's a little more color on why don't you go to, again, we track in multiple different ways. one, we're converting off of older legacy systems, each of our segments. And then we're also tracking how many new customers that weren't ordering on some of the one of our platforms are now converting to the platform. And we've been really pleased, especially around this are the, if converted almost 100%, they're just waiting for some additional capabilities to the I. two systems so they can convert the balance of their customers that were traditionally on the system. And then there are continuing to add more and more new customers every day with the downloads we're seeing from the mobile offer very pleasing. And then on the foodservice side, it's very similar story. They've done an excellent job of converting. The independent customers are ordering on one of our legacy systems. They are also converting other regionals and nationals as well. And we can attain to see more and more adopt the new system. And we expect convenience to go live with their on their platform, which is all of our Customer First on in Q1. And the difference of those two, is there just adding some additional capabilities on the convenience side that don't exist currently in place arm for best our food service. But all in all, we're really pleased with the progress. The feedback from customers has been very positive, and we will continue to just continue to add capabilities based on customer feedback and salespeople's feedback.
Peter Saleh
can I just follow up to does this change have its own digital ordering tool or will they be adopting yours?
George Holm
They have their own. They're somewhat similar to us in that their salespeople control a good bit of the ordering process. But today, just to give you how why the differences Jan's, where I've talked to a sales person to 100% of his orders come in through the digital program generated by the customer, and we have several digits, 0%. So our salespeople have a little different go-to-market strategies. What I see over time is a slow but steady adoption of the customer using the system and placing their order digitally.
Peter Saleh
Thank you very much.
Thank You. And it appears that we have no further questions at this time. I will now turn the program back over to Bill Marshall for any additional or closing remarks.
Bill Marshall
Thank you for joining our call tonight. If you have any follow-up questions, please contact us at Investor Relations.
Operator
That concludes today's teleconference. Thank you for your participation. You may now disconnect.