Core Insights - Sysco's recent Fiscal Q2 2025 earnings results will be analyzed alongside its historical fundamentals using the 9 Pillar Analysis [1] - The analysis will also cover Sysco's market position and potential investment opportunities based on its valuation [1] Financial Performance - The focus will be on Sysco's earnings results for Fiscal Q2 2025, highlighting key financial metrics and performance indicators [1] - Historical fundamentals will be evaluated to assess the company's long-term growth potential [1] Investment Perspective - The analysis is geared towards identifying undervalued companies with significant upside potential, particularly for long-term dividend investors [1] - The intention is to provide insights that could lead to investment opportunities in Sysco's shares [1]

Core Insights - Sysco Corporation has appointed Jennifer Kaplan Schott as Executive Vice President and Chief Legal Officer, effective April 1, 2025, to support its Recipe for Growth strategy [1][2]. Company Overview - Sysco is the global leader in foodservice distribution, serving various sectors including restaurants, healthcare, and educational facilities, with operations in over 10 countries and 340 distribution centers [4]. - The company generated sales exceeding $78 billion in fiscal year 2024, which ended on June 29, 2024 [4]. Leadership and Experience - Jennifer Schott brings over 25 years of legal experience, having previously served as Senior Vice President, General Counsel, and Secretary at Illinois Tool Works, a Fortune 300 company with a market capitalization of over $77 billion [2]. - Schott's prior roles include Deputy General Counsel at Caterpillar Inc. and various legal positions at Discover Financial Services, culminating in Vice President and Assistant General Counsel [2]. Responsibilities - In her new role at Sysco, Schott will advise executive leadership and the Board of Directors, overseeing teams responsible for Legal and Company Secretary, Ethics and Compliance, Communications, and Government Affairs [3].

Core Points - Sysco Corporation has recalled frozen supplemental shakes due to a Listeria monocytogenes outbreak and has halted purchases of other products supplied by Lyons Magnus from a specific facility [1][2] - The company is actively removing recalled items from its inventory and notifying affected customers while cooperating with relevant agencies [2] - Sysco emphasizes its commitment to food safety and quality assurance, stating that it continuously works with suppliers to meet rigorous safety standards [3][4] Company Overview - Sysco is a leading global foodservice distribution company, generating over $78 billion in sales for the fiscal year 2024, which ended on June 29, 2024 [5] - The company operates 340 distribution centers across more than 10 countries, serving approximately 730,000 customer locations with a workforce of 76,000 employees [5] - Sysco provides customized supply chain solutions and culinary support to help customers innovate and optimize their operations [6]

Core Points - Sysco Corporation will webcast its presentation at the CAGNY 2025 Conference on February 18, 2025, at 3:00 p.m. EST [1] - The company uses its investor relations website as the primary channel for public disclosure of key information [2] 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 [3] - The company operates 340 distribution centers across over 10 countries, employing 76,000 colleagues and serving approximately 730,000 customer locations [3] - Sysco generated sales of more than $78 billion in fiscal year 2024, which ended on June 29, 2024 [3] Services and Offerings - As the world's largest food-away-from-home distributor, Sysco provides customized supply chain solutions, specialty product offerings, and culinary support to help customers innovate and optimize operations [4] - The company acts as a trusted business partner, offering an industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment, supplies, and innovative culinary solutions [4]

Group 1 - Truist Securities analyst Jake Bartlett reiterated a Buy rating on Sysco Corp (SYY) shares and lowered the price forecast from $85 to $83 [1] - For the second quarter, adjusted EBITDA was $969 million, slightly below the analyst's estimate of $975 million and the consensus of $973 million, primarily due to operating costs [1] - Total sales reached $20.151 billion, close to the analyst's estimate of $20.218 billion and the consensus of $20.097 billion, while EPS of $0.93 exceeded both estimates of $0.92 [2] Group 2 - US Foodservice (USFS) case growth slowed to 1.4%, down from 2.7% in the first quarter, despite an improvement in restaurant traffic by approximately 200 basis points [2][3] - The analyst expects USFS case growth to improve due to macro tailwinds, enhanced sales team stability, and a stronger sales force [3] - Concerns have been raised about ongoing weakness in local case growth, which is critical for stock performance in the coming quarters [5] Group 3 - The analyst remains optimistic about Sysco's initiatives to boost sales and expand margins, which could drive accelerated EBITDA growth [4] - However, the company's relatively weak independent case growth compared to restaurant traffic trends limits expectations for significant stock upside [4] - The analyst anticipates a return to positive local case growth by the first half of 2026, aligning with investments in the sales force [6]

Financial Performance - Net earnings for the 13-week period ended December 28, 2024, were $406 million, compared to $415 million for the same period in 2023, reflecting a decrease of approximately 2.2%[58] - Basic earnings per share for the 13-week period ended December 28, 2024, were $0.83, slightly up from $0.82 in the prior year[58] - Comprehensive income for the second quarter of fiscal 2025 was $176 million, down from $552 million in fiscal 2024, indicating a decline of approximately 68%[59] - The total comprehensive income for the first 26 weeks of fiscal 2025 was $839 million, compared to $982 million for the same period in 2024, representing a decrease of about 14.5%[59] - Total operating income for Sysco was $712 million for the 13-week period ended Dec. 28, 2024, compared to $700 million for the same period in 2023, reflecting a growth of 1.7%[85] - Earnings before income taxes were $533 million for the 13-week period ended Dec. 28, 2024, compared to $545 million in the same period in 2023, indicating a decrease of 2.2%[85] Sales Performance - U.S. Foodservice Operations sales increased to $14,044 million for the 13-week period ended Dec. 28, 2024, compared to $13,494 million for the same period in 2023, representing a growth of 4.1%[85] - Total sales for Sysco reached $20,151 million for the 13-week period ended Dec. 28, 2024, up from $19,288 million in the prior year, marking an increase of 4.5%[85] - International Foodservice Operations reported sales of $3,728 million for the 13-week period ended Dec. 28, 2024, an increase from $3,597 million in the prior year, representing a growth of 3.6%[85] - SYGMA's sales increased to $2,116 million for the 13-week period ended Dec. 28, 2024, compared to $1,914 million in the same period last year, showing a growth of 10.6%[85] Shareholder Information - The weighted-average diluted shares outstanding for the 13-week period ended December 28, 2024, were 492,803,849, compared to 505,929,342 in the prior year[58] - Approximately 3,161,000 securities were excluded from the diluted earnings per share calculation for the second quarter of fiscal 2025 due to anti-dilutive effects[58] - In the first 26 weeks of fiscal 2025, the total share-based compensation cost recognized was $60 million, up from $53 million in the same period of fiscal 2024[75] - Sysco granted 466,716 performance share units (PSUs) in the first 26 weeks of fiscal 2025, with a weighted average grant-date fair value of $82.63[72] - The company expects to recognize $152 million of unrecognized compensation cost related to share-based compensation arrangements over a weighted-average period of 1.93 years[75] Other Comprehensive Income - Other comprehensive income (loss) for the 13-week period ended December 28, 2024, included a foreign currency translation adjustment of $(257) million[60] - The company reported a total other comprehensive income (loss) of $(222) million for the 13-week period ended December 28, 2024[60] - The total other comprehensive income for the 26-week period ended December 30, 2023, was $65 million, reflecting a significant improvement compared to the previous year[65] - The company experienced a foreign currency translation adjustment of $55 million for the 26-week period ended December 30, 2023[65] - As of December 28, 2024, the total accumulated other comprehensive loss was $1,396 million, an increase from $1,166 million as of September 28, 2024[67] Tax and Legal Matters - The effective tax rate for the first 26 weeks of fiscal 2025 was 23.8%, higher than the statutory tax rate of 21.0% due to state income taxes[76] - As of December 28, 2024, the gross amount of unrecognized tax benefits was $35 million, with related accrued interest of $13 million[78] - Sysco's legal proceedings are assessed as ranging from remote to reasonably possible, with management believing that the outcomes will not materially affect the company's financial position[82] Operating Expenses - Interest expense for Sysco was $160 million for the 13-week period ended Dec. 28, 2024, up from $150 million in the same period last year[85] - Sysco's Global Support Center incurred an operating loss of $240 million for the 13-week period ended Dec. 28, 2024, slightly improved from a loss of $247 million in the same period last year[85] Market Risks - There have been no significant changes to Sysco's market risks since June 29, 2024, which include interest rate risk, foreign currency exchange rate risk, fuel price risk, and investment risk[169]

Core Insights - Sysco Corporation reported strong second-quarter fiscal 2025 results, with both sales and earnings increasing year over year, surpassing the Zacks Consensus Estimate [1][4] Financial Performance - Adjusted earnings per share were 93 cents, in line with expectations, reflecting a 4.5% year-over-year increase [4] - Total sales reached $20,151 million, a 4.5% increase year over year, exceeding the consensus estimate of $20,102 million [4] - Gross profit rose 3.9% to $3.7 billion, although gross margin contracted by 11 basis points to 18.1% [5] - Operating income increased by 1.7% to $712 million, while adjusted operating income rose 5.1% to $783 million [6] Segment Performance - U.S. Foodservice Operations saw sales rise 4.1% to $14,044 million, with local case volumes down 0.9% [7] - International Foodservice Operations reported a 3.6% increase in sales to $3,728 million, with adjusted operating income growing 27.5% on a constant currency basis [8] - SYGMA's sales increased by 10.6% year over year, reaching $2,116 million [8] - The Other segment experienced a sales decline of 7.1% to $263 million [9] Future Outlook - Sysco reaffirmed its full-year guidance, expecting sales growth of 4-5% and adjusted EPS growth of 6-7% [3] - The company increased its share repurchase plan for the year to $1.25 billion from $1 billion [3] Financial Health - As of the end of the quarter, Sysco had cash and cash equivalents of $793 million and long-term debt of $11,393 million [11] - Cash flow from operations for the first 26 weeks of fiscal 2025 was $498 million, with free cash flow at $331 million [11] - Sysco returned $803 million to shareholders through share buybacks and dividends during the same period [12]

Core Insights - Sysco reported revenue of $20.15 billion for the quarter ended December 2024, reflecting a 4.5% increase year-over-year and a surprise of +0.24% over the Zacks Consensus Estimate of $20.1 billion [1] - The company's EPS for the quarter was $0.93, consistent with the consensus estimate, showing no EPS surprise [1] Financial Performance Metrics - International Foodservice Operations revenue was $3.73 billion, exceeding the average estimate of $3.64 billion, representing a +3.7% change year-over-year [4] - U.S. Foodservice Operations revenue reached $14.04 billion, slightly below the average estimate of $14.12 billion, with a year-over-year increase of +4.1% [4] - Other sales amounted to $263 million, falling short of the average estimate of $283.80 million, indicating a year-over-year decline of -7.2% [4] - SYGMA revenue was $2.12 billion, surpassing the average estimate of $2.03 billion, with a year-over-year growth of +10.6% [4] - SYGMA gross profit was reported at $163 million, exceeding the average estimate of $157.85 million [4] - Other gross profit was $65 million, below the average estimate of $73.22 million [4] - Operating income (GAAP) for SYGMA was $19 million, slightly below the average estimate of $19.48 million [4] - Operating income (GAAP) for Other was $4 million, significantly below the average estimate of $8.88 million [4] Stock Performance - Sysco shares returned +0.7% over the past month, compared to a +0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Sysco (SYY) came out with quarterly earnings of $0.93 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this food distributor would post earnings of $1.13 per share when it actually produced earnings of $1.09, delivering a surprise of -3.54%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Sysco, which belongs to the Zacks ...

SYSCO REPORTS SECOND QUARTER FISCAL YEAR 2025 RESULTS HOUSTON, January 28, 2025 - Sysco Corporation (NYSE: SYY) ("Sysco" or the "company") today announced financial results for its 13-week second fiscal quarter ended December 28, 2024. Key financial results for the second quarter of fiscal year 2025 include the following (comparisons are to the same period in fiscal year 2024): "Sysco delivered another quarter of disciplined financial performance fueled by top and bottom line growth that was consistent with ...