Solid Operational Efficiency Image Source: Zacks Investment Research Further, Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales. The company also targets team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments, along with sponsoring investments via cost-saving initiatives. On its third-quarter fiscal 2024 earnings call, management highlighted that restaurant foot traffic has decl ...

Generally speaking, retirement income stocks tend to be boring, predictable affairs for a reason. At this point, you don't want to be rocking the boat. However, enterprises that are too boring can also be problematic because they may not be keeping pace with the times. On that note, it may be more advantageous to consider compelling enterprises that bring a healthy mixture of growth and dividends. Here's a rethink on the familiar narrative of retirement income stocks to buy. Sysco (SYY) Source: JHVEPhoto/Sh ...

The live webcast for the event can be accessed at investors.sysco.com. An archived replay of the webcast will be available shortly after the live event is completed. For more information contact: Kevin Kim Shannon Mutschler Investor Contact Media Contact kevin.kim@sysco.com shannon.mutschler@sysco.com T 281-584-1219 T 281-584-4059 For purposes of public disclosure, including this and future similar events, Sysco uses the investor relations portion of its website as the primary channel for publishing key inf ...

Sysco Corporation (SYY) continues to thrive in the growing food-away-from-home industry. Emphasizing efficiency improvements through supply-chain productivity and prudent cost containment, the company demonstrated strong discipline and adaptability by navigating a soft customer environment in the third quarter of fiscal 2024. Sysco is a diversified company that covers every part of the growing food-away-from-home industry. The food- away-from-home channel has been capturing market share from the grocery cha ...

Sysco Corporation (SYY) offered insights into its ongoing endeavors to enhance core performance and advance the Recipe for Growth strategy, aimed at sustaining growth. Introduced three years ago, this strategy focuses on fostering market expansion across five pivotal pillars — Digital, Products and Solutions, Supply Chain, Customer Teams and Future Horizons. The leading foodservice distributor also outlined detailed financial growth targets for the next three fiscal years, emphasizing sustainable growth, op ...

Core Insights - Sysco Corporation hosted its 2024 Investor Day to present updates on its growth strategy and initiatives aimed at enhancing customer service while ensuring consistent financial performance [1][2] Growth Strategy - The company is focusing on driving core business performance through local case growth and leveraging its merchandising and supply chain capabilities [2] - Sysco's 'Recipe for Growth' strategy, launched three years ago, aims to drive market growth through five pillars: Digital, Products and Solutions, Supply Chain, Customer Teams, and Future Horizons [2][3] Financial Outlook - Sysco outlined plans for significant top and bottom-line growth over the next three years, targeting sales growth of 4-6% annually, adjusted operating income growth of 6-8%, and adjusted earnings per share growth of 6-8% [3][7] - The company aims for a total return to shareholders of 9-11% per year through a growing dividend [7] Market Share Growth - Sysco plans to accelerate independent market share growth through Total Team Selling, which integrates specialists and sales teams from Broadline and Specialty businesses [3] - The company is leveraging its global footprint to enhance local growth internationally, including deeper penetration of Sysco Brand products and customer-focused programs like Sysco Your Way [3] New Offerings - The launch of Sysco Marketplace allows third-party suppliers to sell products on Sysco's digital platform, providing access to over 15,000 niche products to enhance customer menus [4]

Core Insights - Sysco Corporation hosted its 2024 Investor Day to present updates on growth strategies and initiatives aimed at enhancing customer service and financial performance [1][2] - The company emphasized its 'Recipe for Growth' strategy, which focuses on five pillars: Digital, Products and Solutions, Supply Chain, Customer Teams, and Future Horizons [2][3] Financial Performance and Growth Targets - Sysco outlined plans for significant financial growth over the next three years, targeting sales growth of 4-6% annually, adjusted operating income growth of 6-8%, and adjusted earnings per share growth of 6-8% [7] - The company aims for a total return to shareholders of 9-11% per year through a growing dividend [7] Market Share and Sales Strategy - Sysco plans to accelerate independent market share growth through a collaborative approach called Total Team Selling, integrating specialists from Broadline and Specialty businesses [3] - The launch of Sysco Marketplace will allow third-party suppliers to sell products on Sysco's digital platform, enhancing customer access to over 15,000 niche products [4] Operational Excellence - Sysco's growth algorithm emphasizes sustainable growth, operational excellence, and balanced capital return, maintaining an investment-grade balance sheet while investing in long-term business growth [3][7] - The company is leveraging its global footprint to drive local growth and enhance its merchandising strategies, including deeper penetration of Sysco Brand products [3]

Financial Performance - Net earnings for the 13-week period ended March 30, 2024, were $424.7 million, compared to $429.6 million for the same period in 2023 [66]. - Basic earnings per share for the 39-week period ended March 30, 2024, were $2.67, up from $2.04 for the same period in 2023 [66]. - Comprehensive income for the third quarter of fiscal 2024 was $383.2 million, compared to $473.5 million for the same quarter in fiscal 2023 [69]. - Operating income for the total segments for the 39-week period was $2.97 billion, compared to $2.81 billion in the prior year, marking an increase of 5.6% [101]. Pension and Retirement Obligations - Sysco recognized a one-time, non-cash pre-tax pension settlement charge of $315.4 million in Q2 of fiscal 2023 related to pension obligations [63]. - The U.S. Retirement Plan's net pension costs for the 39-week period ended April 1, 2023, totaled $349.6 million [64]. - The company transferred $695 million of defined benefit pension obligations to Massachusetts Mutual Life Insurance Company, covering approximately 10,000 participants [62]. - The net pension costs were not material for the third quarter and first 39 weeks of fiscal 2024 [64]. - The balance of pension and other postretirement benefit plans as of March 30, 2024, was $(1,231,221,000) [81]. - The company reported a net actuarial loss of $89,851,000 arising in the current year for the 39-week period ended April 1, 2023 [77]. Share Repurchase and Stock Compensation - The company entered into an accelerated share repurchase program to repurchase $500 million of its common stock, completing the program on March 28, 2024 [67][68]. - Share-based compensation costs recognized in operations were $76.7 million for the first 39 weeks of fiscal 2024, compared to $73.8 million in the same period of fiscal 2023 [89]. - A total of 1,135,537 restricted stock units were granted during the first 39 weeks of fiscal 2024, with a weighted average grant-date fair value of $74.50 [87]. - The company granted 524,164 performance share units (PSUs) during the first 39 weeks of fiscal 2024, with a weighted average grant-date fair value of $74.91 [86]. - As of March 30, 2024, there was $164.8 million of unrecognized compensation cost related to share-based compensation arrangements, expected to be recognized over 2.03 years [89]. Sales and Revenue Growth - Total sales for the 39-week period ended April 1, 2023, were $58.29 billion, an increase from $56.60 billion in the prior year, representing a growth of 3.0% [101]. - U.S. Foodservice Operations generated sales of $40.93 billion for the 39-week period, up from $39.94 billion, reflecting a growth of 2.5% [101]. - International Foodservice Operations reported sales of $10.77 billion, an increase of 8.7% compared to $9.91 billion in the previous year [101]. Comprehensive Income and Currency Adjustments - For the 39-week period ended March 30, 2024, the company reported a foreign currency translation adjustment loss of $12,935,000 [75]. - The total other comprehensive income for the same period was $31,277,000, net of tax [75]. - The company experienced a significant loss in cash flow hedges amounting to $24,356,000 before tax, with a net impact of $19,463,000 [75]. - In the previous fiscal year, for the 39-week period ended April 1, 2023, the foreign currency translation adjustment was a gain of $72,403,000 [77]. - The total other comprehensive income for the 39-week period ended April 1, 2023, was $246,279,000, net of tax [77]. Risks and Challenges - The company faces risks related to access to borrowed funds, which could adversely impact cash flow and liquidity [187]. - The level and terms of the company's indebtedness may negatively affect its business and liquidity position [187]. - Future labor disruptions could disrupt the integration of Brakes France and Davigel into Sysco France and operations in the EU [187]. - Technology disruptions or delays in implementing new technology could materially impact the company's business [187]. - Changes in the method of determining LIBOR may adversely affect interest expenses related to outstanding debt [187]. - The company may face increased funding requirements for its multiemployer defined benefit pension plans due to market declines [187]. - Capital expenditures may vary based on changes in business plans and the successful completion of acquisitions [187]. - The anti-takeover benefits of preferred stock may not be viewed as beneficial to stockholders [187]. - Exclusive forum provisions in the company's bylaws could limit stockholders' ability to obtain a favorable judicial forum [187].

Financial Data and Key Metrics Changes - For Q3 2024, Sysco reported a 2.7% growth in enterprise sales, with U.S. Foodservice growing by 3.4% and International by 4.5% [59] - Adjusted operating income increased by 8.4%, and adjusted EPS rose by 6.7%, both exceeding S&P 500 average profit growth for the quarter [15][30] - Gross profit reached $3.6 billion, up 5.2%, with gross margin improving to 18.6%, an increase of 44 basis points [28] Business Line Data and Key Metrics Changes - U.S. Foodservice volumes grew by 2.9%, while local case growth was 0.4%, indicating a need for improvement [14][45] - SYGMA experienced a decline of 3.5% in sales, attributed to exiting an unprofitable customer relationship [59][91] - International local volumes increased over 4%, contributing positively to overall growth [28] Market Data and Key Metrics Changes - Restaurant foot traffic was down year-over-year, with January seeing a high-single-digit decline, but February and March showed improvement to low-single-digit declines [13][14] - The food-away-from-home industry faced a decline in case volumes, contrasting with Sysco's growth, indicating market share gains [14][15] Company Strategy and Development Direction - Sysco is focusing on local case growth and expense management, with plans to hire approximately 400 new sales professionals by year-end [8][46] - The company aims to improve profitability through strategic sourcing and enhancing Sysco brand penetration [75][98] - Sysco's leadership emphasizes the importance of lowering food costs for restaurants to improve menu pricing and drive traffic [38][122] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a softer operating environment but expressed confidence in achieving annual EPS guidance and returning over $2.25 billion to shareholders [62][63] - The company is optimistic about the food-away-from-home industry's long-term growth potential, despite current challenges [52][53] - Management highlighted the importance of agility in operations and expense management to navigate market fluctuations [50][56] Other Important Information - Sysco announced a change in leadership, with Kevin Hourican taking over as Chair of the Board following Ed Shirley's resignation for health reasons [34] - The company is on track to generate over $120 million in cost savings for FY2024, which will help offset current market challenges [25][29] Q&A Session Summary Question: What is Sysco's opportunity to gain market share in the current environment? - Sysco gained market share in the food-away-from-home sector, but volume was less than anticipated. The company is focused on lowering food costs to help restaurants reduce menu prices [36][38] Question: How does Sysco view the expansion of its sales force? - Sysco plans to increase its sales force by a net of 400, which is expected to positively impact local case growth in FY2025 [79][80] Question: What is the current pricing backdrop in the industry? - The restaurant operators are seeking value due to increased labor costs, leading to more price shopping among distributors [85][86] Question: How is Sysco managing its SYGMA business? - SYGMA's sales were down, but profit margins increased by 20% year-on-year, indicating improved supply chain productivity [114] Question: What is Sysco's outlook for the California market? - The impact of recent wage dynamics in California is still being assessed, but there are indications of muted new door openings among national chains [122]

Statements made in this presentation that look forward in time or that express management's beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. 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 that may cause actual results to differ materially from current expectations. These statements include statements con ...