Join Sysco Chairman and CEO Kevin Hourican, elected officials and customers at the opening of the 6th operating facility in FloridaPLANT CITY, Fla., July 22, 2025 (GLOBE NEWSWIRE) -- Today, Sysco Corporation, the leading global foodservice distribution company, is inviting media to attend a press conference and tour celebrating the grand opening of our newest distribution center, Sysco Tampa Bay. WHAT: Sysco Tampa Bay grand opening, ribbon-cutting, press conference and tourTIME AND DATE: 9:30 a.m. EST on Ju ...

HOUSTON, July 21, 2025 (GLOBE NEWSWIRE) -- Sysco Corporation, global leader in foodservice distribution, invites media to join it in a grand opening celebration of its second Sysco To Go store —a retail store designed to meet the needs of independent restaurants, food trucks, caterers and small businesses in the heart of Houston’s medical, sports and entertainment hub. Strategically located in central Houston near various businesses and foodservice establishments, Sysco To Go expands access to well-priced, ...

Group 1 - Friedrich Global Research aims to identify the safest and best performing companies for stock investment, focusing on free cash flow, efficient capital allocation, and consistently superior results to find high-quality management teams [1] Group 2 - The founder of Bern Factor LLC has nearly 40 years of investing and analysis experience, with expertise in both quantitative and qualitative analysis, as well as technical analysis [2] - The founder has a diverse background, having worked in various sectors including retail, military, and management, which provides a broad perspective on macroeconomics and detailed operational insights [2]

Core Insights - Sysco Corporation (SYY) faced margin pressure in Q3 of fiscal 2025, with gross profit declining by 0.8% and gross margin contracting by 35 basis points to 18.3% [1][9] - The decline in volume was attributed to macroeconomic headwinds and reduced restaurant traffic, with national business outpacing local performance [2][5] - Strategic sourcing initiatives aimed at improving gross margin did not meet internal timelines, but management expects benefits from agreements finalized shortly after the quarter-end [3][4] Financial Performance - The company's gross profit per case improved, but overall margins were negatively impacted by a shift towards lower-margin national accounts and decreased penetration of Sysco-branded products [1][9] - Sysco's shares have increased by 8.5% over the past three months, outperforming the industry and broader Consumer Staples sector, which saw declines of 3.7% and 0.3%, respectively [6] - The stock is currently trading at a forward 12-month P/E ratio of 16.44, which is above the industry average of 15.97, indicating a premium valuation reflecting market expectations [12] Strategic Outlook - The company anticipates gross margin improvement from recently completed strategic sourcing agreements, which are part of a broader cost savings program [4][5] - Management is focused on enhancing the product mix by increasing Sysco-branded product penetration and revitalizing the local customer segment to restore margin quality [4][5] - Successful execution of planned cost-efficiency measures and rebalancing the business mix will be crucial for margin recovery in a competitive environment [5]

Core Viewpoint - The consumer staples sector is viewed as a safe investment during economic uncertainty, as it includes companies that produce essential goods that people need daily [1][5]. Group 1: Definition and Characteristics of Consumer Staples - Consumer staples stocks consist of companies that produce or sell basic goods, such as groceries and personal-care items [6]. - The Global Industry Classification Standard (GICS) categorizes the Consumer Staples sector as including food and staples retail, food and beverage production, and household and personal product manufacturing [7]. - These stocks are considered defensive, generating stable revenues and producing significant free cash flow, often returned to shareholders as dividends [8]. Group 2: Investment Rationale - Investors are drawn to consumer staples stocks because they provide a steady demand for necessities, making them less sensitive to economic fluctuations [8]. - Historical performance shows that consumer staples outperformed the S&P 500 during major downturns, such as the Great Recession and the COVID-19 crash [10]. - Despite their defensive nature, consumer staples may have limited growth potential during economic expansions, as demand for basic goods does not significantly increase [11]. Group 3: Identifying Quality Consumer Staples Stocks - A quality screen for consumer staples stocks includes criteria such as being part of the S&P Composite 1500, having a long-term estimated earnings-per-share growth rate of at least 5%, and having at least five covering analysts [12][13][14]. - Stocks should also have a consensus Buy rating of 2.5 or less and a dividend yield of at least 1.5% to ensure they provide better income than the S&P 500 [15][16]. Group 4: Recommended Consumer Staples Stocks - The following companies are highlighted as strong consumer staples stocks based on the outlined criteria: - Dollar General (DG): Long-term EPS growth of 6.5%, consensus rating of 2.39, dividend yield of 2.1% [16] - Tyson Foods (TSN): Long-term EPS growth of 19.6%, consensus rating of 2.29, dividend yield of 3.5% [16] - Kroger (KR): Long-term EPS growth of 6.1%, consensus rating of 2.16, dividend yield of 1.8% [16] - Sysco (SYY): Long-term EPS growth of 6.1%, consensus rating of 2.10, dividend yield of 2.6% [16] - Keurig Dr Pepper (KDP): Long-term EPS growth of 7.2%, consensus rating of 1.91, dividend yield of 2.7% [16] - Philip Morris International (PM): Long-term EPS growth of 11.4%, consensus rating of 1.88, dividend yield of 3.0% [16] - Coca-Cola (KO): Long-term EPS growth of 6.1%, consensus rating of 1.62, dividend yield of 2.9% [16]

Core Viewpoint - Sysco Corporation will host a conference call and webcast to discuss its fourth quarter and fiscal year 2025 financial results on July 29, 2025 [1] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to customers who prepare meals away from home, including restaurants, healthcare facilities, and educational institutions [4] - The company operates 340 distribution centers across 10 countries, employing 76,000 colleagues and serving approximately 730,000 customer locations [4] - Sysco generated sales of over $78 billion in fiscal year 2024, which ended on June 29, 2024 [4] Investor Relations - Interested parties can listen to the conference call and webcast online at investors.sysco.com, where a news release and slide presentation will also be posted [2] - Sysco uses its investor relations website as the primary channel for public disclosure of key information, which may include material and previously non-public information [3]

Industry Overview - The Zacks Food-Miscellaneous industry is experiencing challenges due to persistent inflation affecting consumer spending and a shift towards private-label products [1][4] - Rising input costs and operational expenses are squeezing profit margins across the sector [1][5] - The industry includes a variety of food and packaged food items, with sales primarily through wholesalers, distributors, and retail channels [3] Major Trends - The market landscape is tough, with consumers increasingly opting for lower-cost alternatives, impacting sales volumes for leading food brands [4] - Companies are adopting strategies focused on value marketing, promotional campaigns, and expanding affordable product lines to meet changing consumer demands [4] - Cost pressures are significant, with elevated prices for raw materials, labor, and transportation affecting profitability [5] Strategic Initiatives - Food companies are focusing on cost efficiency, product innovation, and portfolio diversification to navigate current pressures [2][6] - Established brands are leveraging customer loyalty and innovation to maintain market position and adapt to consumer preferences [6] - Companies are modernizing production capabilities and diversifying product offerings to ensure future growth [6] Industry Performance - The Zacks Food-Miscellaneous industry ranks 187, placing it in the bottom 24% of over 250 Zacks industries, indicating dull near-term prospects [7][8] - The industry's consensus earnings estimate has declined by 3.1% since April 2025, reflecting decreasing confidence in earnings growth potential [8] Comparative Analysis - Over the past year, the industry has underperformed the S&P 500, declining by 6.9% compared to the S&P 500's growth of 12.5% [9] - The industry is currently trading at a forward P/E of 15.85X, lower than the S&P 500's 22.43X and the sector's 17.39X [12] Company Highlights - Mondelez International is focusing on core categories and strategic portfolio reshaping, with a current EPS estimate of $3.02 [15][16] - Sysco Corporation is enhancing capabilities through its "Recipe for Growth" framework, with an EPS estimate of $4.38 [19][20] - McCormick & Company is leveraging innovation and brand marketing, with a current EPS estimate of $3.02 [23][24] - Celsius Holdings is rapidly growing in the beverage sector with a focus on health-conscious products, though its EPS estimate has declined to 81 cents [27][29]

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Core Insights - BRF (BRFS) is currently rated as a 2 (Buy) by Zacks Rank, indicating a positive earnings outlook, while Sysco (SYY) is rated 5 (Strong Sell), suggesting a negative earnings outlook [3] - Value investors are interested in various valuation metrics to determine if a company is undervalued, beyond just earnings estimates [3][4] Valuation Metrics - BRFS has a forward P/E ratio of 8.13, significantly lower than SYY's forward P/E of 17.33, indicating that BRFS may be undervalued [5] - The PEG ratio for BRFS is 0.20, while SYY has a PEG ratio of 2.46, further suggesting that BRFS has a more favorable valuation in terms of expected earnings growth [5] - BRFS has a P/B ratio of 1.36 compared to SYY's P/B of 19.14, reinforcing the notion that BRFS is undervalued relative to its book value [6] - Overall, BRFS has a Value grade of B, while SYY has a Value grade of C, indicating that BRFS is the better option for value investors at this time [6]

Core Insights - Sysco Corporation has announced a collaboration with the MICHELIN Guide in California, becoming the official wholesale food distributor for the prestigious culinary event [1][2] - The partnership will be highlighted at the 2025 MICHELIN Guide California Ceremony on June 25, showcasing Sysco's premium products and culinary expertise [1][2] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to customers in various sectors, including restaurants, healthcare, and educational facilities [6] - The company operates 340 distribution centers across over 10 countries, employing 76,000 colleagues and serving approximately 730,000 customer locations [6] - In fiscal year 2024, Sysco generated sales exceeding $78 billion [6] Partnership Details - Sysco's partnership with the MICHELIN Guide aims to honor chefs and celebrate culinary achievements that foster community connections through food [2][3] - Sysco will present the MICHELIN Guide Young Chef Award at the ceremony, emphasizing the importance of emerging culinary talent [4][5] - This marks Sysco's third collaboration with the MICHELIN Guide, following partnerships in Texas and Florida [5] Product and Service Offerings - Sysco provides customized supply chain solutions, specialty product offerings, and culinary support to help customers innovate and optimize their operations [7] - The company offers a diverse portfolio that includes fresh produce, premium proteins, specialty products, and sustainably focused items [7]