Sysco Corporation (NYSE:SYY) dbAccess Global Consumer Conference June 3, 2025 5:15 AM ET Company Participants Lauren Silberman - Deutsche Bank Conference Call Participants Kevin Hourican - CEO Kenny Cheung - CFO Lauren Silberman All right. Thank you, everyone, for joining. I'm Lauren Silberman, the Equity Research Analyst at Deutsche Bank covering restaurants and food distributors. I am happy to be here today to introduce Sysco. We have Kevin Hourican, CEO; and Kenny Cheung, CFO. They'll start with some bri ...

Sysco (SYY) Conference Call Summary Company Overview - Sysco is the number one player in the food distribution space with approximately $81 billion in top-line revenue [2][3] - The company operates the largest number of tri-temperature distribution centers and trucks, allowing for the lowest cost to serve in the industry [3][4] - Sysco has a diversified customer mix, with two-thirds of its business coming from restaurants and the remaining third from recession-resilient sectors such as healthcare, education, and government [3][4] Industry Dynamics - The food away from home sector is consistently gaining market share from the grocery channel, with a notable trend observed over the past decade [5][6] - Sysco has grown 53 out of its 56 years in business, with an 11% compound annual growth rate (CAGR) since inception [6][7] - The total addressable market in the U.S. is $370 billion, with Sysco holding a 17% market share [9][10] Growth Opportunities - Sysco sees significant growth potential in its international business, specialty sectors, and local markets [7][8][29] - The company is expanding its specialty business, including produce and Asian foods, to increase market share [19][20] - Sysco's Sysco brand private label products account for over 50% of sales and are growing at an 11% CAGR [28][29] Financial Performance - Sysco has achieved strong financial performance with a 12% CAGR on sales and approximately 32% CAGR on EPS since FY 2021 [34][35] - The company maintains industry-leading gross margins of 18.5% and operating margins of 4% [36][37] - Free cash flow is around $2 billion annually, significantly higher than industry peers, allowing for investments and shareholder returns [38][39] Capital Allocation and Shareholder Returns - Sysco is committed to maintaining an investment-grade balance sheet while returning capital to shareholders through share repurchases and dividends [44][46] - The company has returned nearly $20 billion to shareholders since 2015, with a recent 6% increase in quarterly dividends [45][46] - Sysco's dividend payout ratio is expected to align with EPS growth over time, maintaining a 40-50% payout ratio [47] Strategic Initiatives - Sysco is focused on improving local case growth through initiatives like "Cisco Your Way," which enhances service delivery to local restaurants [18][59] - The company is investing in technology improvements, including CRM systems, to enhance sales force effectiveness [60][61] - Sysco is also exploring M&A opportunities to expand its specialty capabilities and market presence [78][84] International Expansion - Sysco's international business is growing faster than its domestic operations, with significant potential in markets like France, which has a $23 billion total addressable market [72][73] - The company has successfully improved profitability in its international operations, with EBIT margins increasing from 2% to 3.7% [75][76] - Sysco is strategically looking to enter new markets and enhance its capabilities in existing ones through M&A [86][87] Conclusion - Sysco is positioned as a resilient and growing company in the food distribution industry, with a strong balance sheet, diverse customer base, and clear growth strategies [50][88] - The management expresses confidence in achieving continued improvements in financial performance and market share expansion in the coming years [90][91]

It has been about a month since the last earnings report for Sysco (SYY) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Sysco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, e ...

LAUREL, Md., May 22, 2025 (GLOBE NEWSWIRE) -- The Coastal Companies is issuing a voluntary recall of 17 products that were produced from cucumbers grown by Bedner Growers, Inc. and distributed by Fresh Start Produce Sales, Inc. due to the potential for Salmonella contamination. These products were distributed by East Coast Fresh in Laurel, MD and Hearn Kirkwood in Jessup, MD. If you find any of the affected products listed below in your possession, please record the number of cases and DESTROY THE PRODUCT. ...

Sysco (NYSE: SYY ) presents an intriguing opportunity for investors as it is a steady, reliable and rationally traded business in a market where volatility and unpredictability have been the norm. As a market leader in the foodservice business domestically andI am a full-time data scientist by trade and I have a growing passion for utilizing data-driven analysis to identify stock picking opportunities for long-term generation of wealth. My goal is to build as large a nest egg as possible for my retirement a ...

Fiscal Q3 2025 Earnings Results April 29, 2025 It is important to note that actual results could differ materially from those estimated in or implied by such forward-looking statements based on numerous factors, including those outside of Sysco's control. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions. Risks and uncertainties include without limitation: the impact of geopolit ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-6544 ________________ Sysco Corporation (Exact name of registrant as specified in its charter) Delaware 74-1648137 (State or other jurisdiction of ...

Sysco (SYY) Q3 2025 Earnings Call April 29, 2025 03:29 PM ET Speaker0 Welcome to Sysco's Third Quarter Finance Fiscal Year twenty twenty five Conference Call. As a reminder, today's call is being recorded. We will begin with opening remarks and introductions. I would like to now turn the call over to Kevin Kim, Vice President of Investor Relations. Please go ahead. Speaker1 Good morning, everyone, and welcome to Sysco's third quarter fiscal year twenty twenty five earnings call. On today's call, we have Kev ...

Sysco Corporation (SYY) has delivered third-quarter fiscal 2025 results, wherein the top line increased and the bottom line remained flat year over year. Both sales and earnings lagged the Zacks Consensus Estimate.Sysco’s fiscal third-quarter results were impacted by external factors such as wildfires, adverse weather and softening consumer confidence, all of which weighed on restaurant foot traffic and led to results falling short of internal expectations. In response, the company is making progress on key ...

Sysco (SYY) came out with quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.80%. A quarter ago, it was expected that this food distributor would post earnings of $0.93 per share when it actually produced earnings of $0.93, delivering no surprise.Over the last four quarters, the company has surpass ...