Performance Food Shuffles Fresh-Cut Ranks

The stock slides 8% as an analyst says the company's salad days are over.
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Performance Food

(PFGC) - Get Report

slumped 8% as weak results at the company's Fresh Express unit cost a top executive there his job.

The Richmond, Va., institutional food distributor said Monday afternoon that Tom Lovelace had stepped down as chairman of its Fresh-cut division. Performance Food said Mark Drever would take over as chief executive at Fresh-cut following Lovelace's departure.

"Tom has been an important contributor to PFG over the years," said Performance Food chief Bob Sledd. "His leadership has been instrumental in helping us grow our fresh-cut business. We are grateful for his service."

The move came on the same day that Deutsche Bank cut its rating on the stock, citing weak numbers at Fresh Express. Analyst Edouard Aubin downgraded the stock to sell from hold and slashed his price target to $19.50 from $26.

On Monday, Performance Food dropped $1.91 to $22.03.