Core Insights - Sysco Corporation (NYSE:SYY) is recognized as a top choice for a dividend stock portfolio, being a Dividend King with 55 consecutive years of dividend growth [4] - The company is the largest foodservice distributor in North America, serving a diverse range of clients including restaurants, hospitals, and schools [2] Industry Overview - The US foodservice market is highly fragmented and valued at $360 billion in 2023, with Sysco controlling approximately 17% of this market [3] - Success in the foodservice distribution industry relies on maintaining and expanding market share, with key factors including supply chain efficiency, competitive pricing, and regulatory compliance [3] Company Performance - Sysco offers a quarterly dividend of $0.54 per share, resulting in a dividend yield of 2.62% as of September 21 [4] - The company invests in employee retention, technology, customer service, and international growth strategies to enhance its market leadership [3]

Core Insights - Sysco Corporation (SYY) is leveraging its diverse portfolio, product innovations, and strategic expansion to enhance its market position [1] - The company is focusing on the food-away-from-home segment, with growth from SYGMA and the "Sysco To Go" pilot stores [1][11] - Strategic acquisitions, such as Ready Chef and Campbells Prime Meat, are vital for strengthening Sysco's distribution network and expanding its customer base [2][4] Financial Performance - Sysco's shares have increased by 6.9% year-to-date, contrasting with an 8.2% decline in the industry [7] - The forward price-to-earnings ratio for Sysco is 17.52X, compared to the industry average of 13.57X [8] - The Zacks Consensus Estimate indicates a year-over-year earnings per share (EPS) growth of 2% for fiscal 2026 and 8.9% for fiscal 2027 [9] Operational Strategies - The company is enhancing operational efficiency by cutting costs, simplifying processes, and expanding distribution capacity to counteract external pressures like soft restaurant demand and inflation [3][11] - In the fourth quarter of fiscal 2025, restaurant foot traffic decreased by 1% year-over-year, leading to a 0.3% decline in total case volume and a 1.5% drop in local case volume within U.S. Foodservice [3] Growth Initiatives - Sysco aims to strengthen its leadership in global food distribution through customer-focused merchandising and marketing solutions [4] - The integration of Campbells Prime Meat's offerings with Sysco's broadline expertise is expected to create a strategic platform for total team selling across the region [2]

Core Insights - Sysco is recognized as the leading player in the food service industry both in the U.S. and in international markets [1][2] Group 1: Company Overview - Sysco's leadership is represented by Chairman and CEO Kevin Hourican and CFO Kenny Cheung [2] - The company is actively participating in the Wells Fargo Consumer Conference, indicating its engagement with investors and stakeholders [1] Group 2: Conference Context - The conference is hosted by Wells Fargo, with a focus on the Staples Retail and Food Service sectors, highlighting the importance of Sysco's role in these industries [1]

Sysco (NYSE:SYY) FY Conference Summary Company Overview - Sysco is the leading player in the food service industry in the U.S. and internationally, generating $81 billion in revenue for the fiscal year ending June 30, 2023, with 60% from restaurants and 40% from non-commercial sectors such as hospitals and education [3][4] Key Points and Arguments Industry Performance - The food away from home sector consistently gains market share from grocery channels, with a strong performance noted in the summer and early fall of 2025 [5][6] - Sysco's international business, which accounts for 20% of its revenue, has shown double-digit profit growth for seven consecutive quarters [6][7] Financial Performance - Sysco has the highest operating income margin and return on invested capital in its industry, with a history of raising dividends for 56 consecutive years [4] - The company reported a positive start to the fiscal year, with sequential growth observed in local business performance [7][8] Demand and Market Outlook - Sysco expects the market environment to remain stable, with slight improvements in foot traffic noted [9][10] - The non-commercial segment continues to perform well, with significant growth in education (15%), healthcare (7%), and travel and leisure (18%) sectors [10] Internal Initiatives and Workforce Management - Sysco has implemented a new compensation program aimed at improving colleague retention and productivity, with retention rates currently at an all-time high [13][14] - The company plans to grow its sales force by approximately 4%, adding around 1,000 colleagues over the next two years [15][16] Customer Engagement and Service Enhancements - Sysco is enhancing its customer service through the Perks loyalty program, focusing on independent restaurants, which represent a significant portion of sales and profit [30][31] - The introduction of AI 360, an AI-empowered CRM tool, aims to improve sales force productivity by providing actionable insights and prioritizing customer interactions [35][36] International Growth and M&A Strategy - Sysco's international segment has shown strong growth, with a focus on local case growth and strategic sourcing to enhance profitability [44][45] - The company is open to M&A opportunities, having successfully integrated recent acquisitions in Ireland and Great Britain [46] Capital Allocation and Automation - Sysco maintains a disciplined approach to capital allocation, investing in growth while returning approximately $2 billion to shareholders through dividends and stock buybacks [49] - The company is investing in automation technologies to improve efficiency in delivery and warehouse operations, focusing on robotics and routing software [52][53] Additional Important Insights - Sysco emphasizes the importance of colleague health as a primary driver for growth, with a focus on retaining and enhancing the productivity of its workforce [28][29] - The company is confident in its ability to navigate competitive pressures without compromising profitability, maintaining a disciplined pricing strategy [26][27] This summary encapsulates the key insights from Sysco's FY conference, highlighting the company's strong market position, growth strategies, and commitment to enhancing operational efficiency and customer service.

Company Overview - Sysco Corporation, headquartered in Houston, Texas, is a leading player in the global foodservice distribution industry, providing a wide range of food products, kitchen supplies, and cleaning solutions to various institutions involved in meal preparation [1] - The company has a market capitalization of $39.19 billion, categorizing it as a "large cap" stock, and it maintains a strong logistics network to ensure timely delivery of goods [2] Stock Performance - Sysco's stock recently reached a 52-week high of $83.17 on September 5, and it is currently down only 3.6% from that peak. Over the past three months, the stock has gained 6.2%, outperforming the Consumer Staples Select Sector SPDR Fund (XLP), which saw a 2.3% decline [3] - Over the past 52 weeks, Sysco's shares have increased by 2.2%, and they are up 4.9% year-to-date, while the XLP has dipped 4.4% over the past year [4] Financial Performance - For the fourth quarter of fiscal 2025, Sysco reported a 2.8% year-over-year revenue growth to $21.14 billion, exceeding Wall Street's expectations of $21 billion. Adjusted net earnings rose by 6.5% to $1.48 per share, surpassing the expected $1.40 per share [5] - For fiscal 2026, Sysco anticipates sales growth of approximately 3% to 5%, projecting revenues between $84 billion and $85 billion, with adjusted EPS growth expected to be around 1% to 3%, reaching $4.50 to $4.60 [6] Competitive Landscape - While Sysco is outperforming its sector ETF, it faces competition from other industry players. For instance, US Foods Holding Corp. has gained 35.4% over the past 52 weeks and 15.4% year-to-date, indicating that some rivals are performing better [7]

Company Overview - Sysco Corporation is the global leader in selling, marketing, and distributing food products to restaurants and other customer locations [3] - The company services 730,000 customer locations from 340 distribution facilities [3] - Sysco generated $81 billion in sales in the most recent year, with over 60% of sales attributed to restaurants [3] Event Context - The presentation is part of a consumer discretionary conference, which includes other restaurants and foodservice distributors [2] - The conference is scheduled to take place in New York from December 2 to December 4 [2]

Financial Data and Key Metrics Changes - Sysco Corporation reported $81 billion in sales for the most recent year, with over 60% of revenue coming from restaurants, indicating a strong market position [2][4] - The company achieved a gross margin of 18.4%, which is 1.3 times higher than the average core peer, showcasing its competitive advantage [38][43] - Adjusted EPS growth is projected to be between 1% to 3%, with an adjusted EPS growth of 5% to 7% when excluding incentive compensation [37][80] Business Line Data and Key Metrics Changes - Sysco's U.S. Broadline business has shown positive inflection, with expectations for continued growth in Q1 [16][17] - The specialty business, which includes produce and protein, presents a $10 billion growth opportunity, with less than 10% market share currently [11][24] - The U.S. Foodservice (USFS) business is improving, although it is expected to take longer to reach positive growth due to a recent business exit in the FreshPoint segment [18][56] Market Data and Key Metrics Changes - Sysco's international business is growing faster than its domestic operations, with a significant opportunity estimated at over $10 billion [12][13] - The company has improved its market share in every country it operates in, indicating strong international performance [14] - The local case growth is currently in the mid-single digits, reflecting positive momentum in the local market [62] Company Strategy and Development Direction - Sysco aims to leverage its size and scale to maintain industry-leading profitability and expand its market share across various segments [10][12] - The company is focused on enhancing its local business and specialty offerings through strategic initiatives and investments in workforce and technology [21][24] - Sysco is committed to a balanced capital allocation strategy, prioritizing growth investments, maintaining an investment-grade balance sheet, and returning value to shareholders through dividends and share repurchases [48][80] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the overall consumer health, noting improvements in foot traffic to restaurants and positive performance in local business [71][73] - The company is not relying on macroeconomic improvements but is focused on self-help strategies to drive growth [67][70] - Sysco's management is confident in achieving its fiscal year 2026 guidance, supported by strong momentum in local case growth and international business [37][51] Other Important Information - Sysco has implemented new initiatives such as the "Perks 2.0" loyalty program and AI360 sales tool to enhance customer service and sales productivity [27][32] - The company has a robust free cash flow generation profile, producing approximately $2 billion annually, which is 2.5 times higher than the average core peer [45] Q&A Session Summary Question: Can you elaborate on the local case growth and the momentum you're seeing? - Management highlighted that local business performance is improving faster than the overall market, with positive growth expected in the U.S. Broadline business for Q1 [55][56] Question: What is the confidence level in the fiscal 2026 guidance? - Management expressed confidence in the guidance based on self-help initiatives and momentum in local case growth, alongside strong performance in other business segments [66][70] Question: How is the current state of the consumer and the local restaurant industry? - Management noted that consumer health is holding steady, with improvements in foot traffic and performance in non-commercial sectors like government and education [71][73]

Financial Data and Key Metrics Changes - Sysco reported $81 billion in sales for the most recent year, with over 60% of revenue coming from restaurants, reflecting a 3% year-on-year growth in the restaurant segment [2][41] - The company expects FY 2026 sales growth of 3% to 5% and EPS growth of 1% to 3%, with adjusted EPS growth projected at 5% to 7% [38][50] - Sysco achieved a gross margin of 18.4%, which is 1.3 times higher than the average core peer, and an adjusted operating margin of over 4%, approximately 1.5 times higher than peers [45][46] Business Line Data and Key Metrics Changes - Sysco's specialty business, valued at $9 billion, is more than three times the size of its next biggest competitor in that space [5] - The U.S. Broadline business has shown positive inflection, with expectations for continued growth in Q1 [17][60] - The FreshPoint produce business experienced a drag due to exiting a business line, impacting the overall U.S. Foodservice (USFS) performance [18][56] Market Data and Key Metrics Changes - Sysco's international business is growing faster than its domestic core business, with a significant opportunity for expansion valued at over $10 billion [12][13] - The company has seen double-digit growth in its international segment for seven consecutive quarters [71] - The local case growth is improving, with Sysco's local business performing better than large national chains [56][64] Company Strategy and Development Direction - Sysco aims to leverage its size and scale to maintain its market leadership and drive profitability across various segments [4][40] - The company is focused on expanding its specialty business and enhancing its operational efficiencies through strategic sourcing and total team selling [45][46] - Sysco is committed to a balanced capital allocation strategy, investing in growth while maintaining an investment-grade balance sheet [48][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving FY 2026 guidance based on self-help initiatives and momentum in local case growth [68][70] - The overall consumer health is stabilizing, with improvements in foot traffic to restaurants noted [74][75] - Sysco is cautiously optimistic about the full year, expecting to grow by taking market share profitably [76][78] Other Important Information - Sysco has implemented new initiatives such as the Perks loyalty program and AI360 sales tool to enhance customer service and sales productivity [28][34] - The company plans to invest approximately $1 billion in share repurchases under current market conditions [83] Q&A Session Summary Question: Local case growth and momentum - Management highlighted that local business is outperforming national chains, with positive expectations for USBL in Q1 [56][60] - The retention and productivity of the sales workforce have improved, contributing to the positive momentum [57][61] Question: Confidence in FY 2026 guidance and consumer health - Management emphasized that guidance is based on self-help initiatives and momentum across various business segments, including international growth [68][70] - The consumer health is stabilizing, with improvements noted in restaurant traffic and performance in non-commercial sectors [74][76]

September 3, 2025 Barclays Global Consumer Staples Conference 2025 Kevin Hourican CHAIR OF THE BOARD AND CHIEF EXECUTIVE OFFICER 3 Forward-Looking Statements 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. These statements concern, among other things, our future financial performance and results, business strategy, plans, goals and objectives, ...

Core Insights - Sysco Corporation (SYY) is a leader in the global foodservice industry, enhancing its customer base through digital solutions and retail-style formats [1] - The company's 'Recipe for Growth' strategy focuses on digital transformation, supply-chain strength, customer-centric initiatives, and innovation to expand sales and earnings while maximizing shareholder value [2] - Sysco's acquisitions, including Ready Chef and Campbells Prime Meat, are crucial for enhancing its distribution network and growth prospects [3] Business Strategy - Sysco is implementing cost-cutting measures, simplifying processes, and expanding distribution capacity to improve operational efficiency [4] - The company aims to provide customer-oriented merchandising and marketing solutions to strengthen its leadership in global food distribution [5] Market Performance - Sysco's shares have increased by 5.2% year-to-date, contrasting with a 5.6% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 17.42X, higher than the industry average of 15.9X [9] Earnings Estimates - The Zacks Consensus Estimate for Sysco's fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 2% and 8.9%, respectively [11] - Current estimates for the upcoming quarters show a slight increase in EPS, with a year-over-year growth estimate of 2.75% for the current quarter [12]