Core Points - Sysco Corporation will webcast its presentation from the 2025 Deutsche Bank Access Global Consumer Conference on June 3, 2025 [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, and educational facilities [3] - The company operates 340 distribution centers across 10 countries, employing 76,000 colleagues and serving approximately 730,000 customer locations [3] - Sysco generated sales of over $78 billion in fiscal year 2024, which ended on June 29, 2024 [3] Services and Offerings - As the 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 a portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment, supplies, and innovative culinary solutions [4]

Core Insights - Sysco (NYSE: SYY) is positioned as a stable and reliable investment opportunity in a volatile market, being a leader in the foodservice industry domestically [1] Company Overview - Sysco operates as a market leader in the foodservice business, indicating strong market presence and operational stability [1]

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 ...

Financial Data and Key Metrics Changes - Sysco reported sales of $19.6 billion, an increase of 1.1% on a reported basis and 1.8% excluding the divestiture of Mexico [9][34] - Adjusted operating income was $773 million, down 3.3% year-over-year, while adjusted EPS remained flat at $0.96 [9][34] - Gross profit was $3.6 billion, down 0.8%, with a gross margin of 18.3% [37][41] Business Line Data and Key Metrics Changes - The USFS national sales business experienced flat volume growth and 2.3% sales growth, both below expectations [11] - Local business volume declined by 3.5%, a step down from Q2 performance [11] - The Sigma segment achieved 9.5% sales growth, driven by strong customer wins [12] Market Data and Key Metrics Changes - Foot traffic to restaurants decreased by 3.1% overall, with January down 1.3%, February down 5.7%, and March down 2.3% [5] - The International segment posted double-digit profit growth for the sixth consecutive quarter, with local volume increasing by 4.5% [22][36] Company Strategy and Development Direction - Sysco is focused on improving local business performance through hiring and retention of sales consultants, with a target of 4% growth in headcount by the end of Q4 [56][64] - The company is expanding fulfillment capacity with new facilities in key markets, including a new distribution center in Tampa [19][31] - A pilot program for cash and carry stores, called Sysco To Go, is being introduced to capture the growing market segment [29][31] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 performance due to adverse weather and declining consumer confidence, but noted stronger performance in April compared to March [7][9] - The company is cautiously optimistic about Q4, expecting improved volume performance and continued momentum from cost-saving initiatives [46][51] - Management highlighted the importance of maintaining a strong balance sheet to navigate uncertain macroeconomic conditions [28][42] Other Important Information - Sysco's tariff management task force is actively working to mitigate the impact of tariffs on costs and supply chain [25][27] - The company has repurchased $700 million in shares and paid out $752 million in dividends year-to-date, with a 6% increase in the quarterly cash dividend [33][34] Q&A Session Summary Question: Local business sales headcount investments and their impact - Sysco expects to end the year with approximately 4% growth in sales consultant headcount, with strong performance from new hiring cohorts [56][58] Question: Local restaurant industry performance compared to national - National restaurants faced a tough quarter, with local performance consistent with industry trends, but certain sectors like food service management remained stable [68][70] Question: Clarification on local case growth and EPS guidance - Sysco's local case growth was consistent with market performance, and the company is confident in its guidance despite recent challenges [79][81]

Financial Data and Key Metrics Changes - Sysco reported sales of $19.6 billion, an increase of 1.1% on a reported basis and 1.8% excluding the divestiture of Mexico [9][34] - Adjusted operating income was $773 million, down 3.3% year-over-year, while adjusted EPS remained flat at $0.96 [9][34] - Gross profit was $3.6 billion, down 0.8%, with a gross margin of 18.3% [37] Business Line Data and Key Metrics Changes - The US Foodservice (USFS) segment experienced a 2% decrease in total volume, with local volume down 3.5% [35][11] - The national sales business had flat volume growth but achieved a sales growth of 2.3% [11] - The Sigma segment delivered a sales growth of 9.5%, with year-to-date growth of 9% in top line and 17% in bottom line [12] Market Data and Key Metrics Changes - Foot traffic to restaurants declined by 3.1% overall, with January down 1.3%, February down 5.7%, and March down 2.3% [5][6] - The Michigan Consumer Confidence Survey indicated one of the lowest levels of consumer confidence in approximately 20 years, raising concerns for future performance [6][27] Company Strategy and Development Direction - Sysco is focusing on improving local business performance through strategic sourcing and logistics efficiency, with a target of $100 million in profit improvement [10][28] - The company is expanding fulfillment capacity with new facilities in Allentown, PA, and Tampa, FL, as well as internationally in Sweden and Ireland [19][22] - A pilot program for cash and carry store locations called Sysco To Go is being introduced to capture the fast-growing segment of value-seeking customers [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 performance but noted stronger trends in April compared to March, indicating cautious optimism for Q4 [7][51] - The company is preparing for a challenging environment due to tariff uncertainties and consumer confidence issues, while maintaining a focus on disciplined cost management [28][46] - Sysco's strong balance sheet is viewed as a competitive advantage, allowing continued investment in growth opportunities [33][28] Other Important Information - Sysco's international segment posted double-digit profit growth for the sixth consecutive quarter, with local volume increasing by 4.5% [10][22] - The company has repurchased $700 million in shares and paid out $752 million in dividends year-to-date, with a 6% increase in planned quarterly cash dividends [33][34] Q&A Session Summary Question: Local business sales headcount investments and their impact - Management expects to end the year with approximately 4% growth in sales consultant headcount, with strong performance from new hiring cohorts [56][58] Question: Local restaurant industry performance compared to national - National restaurants faced a tough quarter, with local performance consistent with industry trends, but certain sectors like food service management remained stable [67][68] Question: Clarification on local case growth and fiscal 2025 guidance - Management is confident that local performance was consistent with the market, and the guidance reflects cautious optimism due to macro uncertainties [79][91]

Core Viewpoint - Sysco Corporation reported third-quarter fiscal 2025 results with an increase in sales but flat earnings year over year, both of which fell short of the Zacks Consensus Estimate [1][4]. Financial Performance - Adjusted earnings per share were 96 cents, missing the Zacks Consensus Estimate of $1.03 [4]. - Sales reached $19,598 million, a 1.1% year-over-year increase, but below the consensus estimate of $19,969 million. Currency headwinds negatively impacted sales by $117 million [4]. - Gross profit declined 0.8% year over year to $3.8 billion, with a gross margin decrease of 35 basis points to 18.3% [5]. - Operating income dropped 5.7% year over year to $681 million, while adjusted operating income fell 3.3% to $773 million [6]. Segment Analysis - **U.S. Foodservice Operations**: Sales rose 0.7% year over year to $13,800 million, missing the consensus estimate of $14,205 million. Total case volume declined 2% [7]. - **International Foodservice Operations**: Sales decreased 1.1% year over year to $3,457 million, lagging the consensus estimate of $3,517 million. Adjusted for constant currency, sales increased by 2.2% [9]. - **SYGMA Segment**: Sales were $2,084 million, exceeding the consensus estimate of $2,047 million [10]. Financial Health - The company ended the quarter with cash and cash equivalents of $1,527 million and long-term debt of $12,234 million [14]. - Cash flow from operations for the first 39 weeks of fiscal 2025 was $1,317 million, with free cash flow amounting to $954 million [14]. - Sysco returned $1.5 billion to shareholders through share buybacks and dividends during the first 39 weeks of fiscal 2025 [15].

Core Viewpoint - Sysco reported quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $1.03 per share, representing an earnings surprise of -6.80% [1][2] Financial Performance - Sysco's revenues for the quarter ended March 2025 were $19.6 billion, missing the Zacks Consensus Estimate by 1.86%, compared to $19.38 billion in the same quarter last year [2] - Over the last four quarters, Sysco has surpassed consensus EPS estimates only once and has topped consensus revenue estimates three times [2] Stock Performance - Sysco shares have declined approximately 7.9% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current Zacks Rank for Sysco is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $21.26 billion, and for the current fiscal year, it is $4.56 on revenues of $81.86 billion [7] - The trend of estimate revisions for Sysco is mixed, which could change following the recent earnings report [6] Industry Context - The Zacks Industry Rank for Food - Miscellaneous is in the top 34% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

https://files.reportify.cc/media/production/SYY1da7c26fb2e62f4a9cc2d2a74616c560.jpg SYSCO REPORTS THIRD QUARTER FISCAL YEAR 2025 RESULTS HOUSTON, April 29, 2025 - Sysco Corporation (NYSE: SYY) ("Sysco" or the "company") today announced financial results for its 13-week third fiscal quarter ended March 29, 2025. Key financial results for the third quarter of fiscal year 2025 include the following (comparisons are to the same period in fiscal year 2024): "Sysco's Q3 results were negatively impacted by multipl ...

HOUSTON, April 29, 2025 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE: SYY) ("Sysco" or the "company") today announced financial results for its 13-week third fiscal quarter ended March 29, 2025. Key financial results for the third quarter of fiscal year 2025 include the following (comparisons are to the same period in fiscal year 2024): "Sysco's Q3 results were negatively impacted by multiple factors: California wildfires, significantly adverse weather, and more recently, weakening consumer confidence. Each ...