Financial Data and Key Metrics Changes - Sysco reported nearly $21 billion in total revenue for Q2, reflecting a growth rate of 3% year-over-year [5] - Adjusted EPS is expected to be at the high end of the previously provided guidance range of $4.50-$4.60, with a growth of 6.5% in Q2 [4][20] - Free cash flow grew by 25% year-to-date, indicating strong quality of earnings [20] Business Line Data and Key Metrics Changes - USFS local case volume increased by 1.2% in Q2, an improvement of 140 basis points compared to Q1 [5][6] - National contract business generated volume growth of 0.4%, with strong growth in food service management and healthcare, but softness in the national restaurant segment [7][8] - International segment sales grew by 7.3%, with local case growth of 4.5%, contributing to nearly 26% growth in adjusted operating income [10][24] Market Data and Key Metrics Changes - The overall restaurant traffic declined by more than 200 basis points year-over-year, yet Sysco managed to gain market share [6][8] - Sysco's performance improved relative to the industry, with a strong exit rate in December [42] Company Strategy and Development Direction - Sysco is focusing on enhancing its value tier product offerings to meet customer needs and improve profitability [9] - The company completed a tuck-in acquisition of Ginsberg's Foods, which is expected to enhance growth potential in the Northeast [17][24] - Continued investments in sales headcount and technology, such as the AI 360 CRM tool, are aimed at improving sales productivity [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least 2.5% local case growth in the second half of fiscal 2026, driven by improved sales colleague retention and productivity [19][36] - The company anticipates a stable macroeconomic environment, with growth primarily driven by internal initiatives rather than external factors [30][74] Other Important Information - Sysco's adjusted operating expenses were $3 billion for the quarter, reflecting planned investments in growth areas [28] - The company maintains a robust balance sheet with $2.9 billion in total liquidity [29] Q&A Session Summary Question: Variations in local case growth on a monthly basis and impact of winter storms - Sysco's performance strengthened each month of Q2, with January showing continued strength despite potential weather impacts [40][41] Question: Sales growth expectations for the second half of fiscal 2026 - Sysco anticipates at least 2.5% growth in local case volumes for Q3 and Q4, with expectations for improved performance compared to the previous year [50][76] Question: Contribution of new account wins versus existing account penetration - Growth is coming from both new account wins and improved penetration with existing accounts, with the spread between new and lost accounts widening [61][62] Question: Changes in sales force growth and hiring - Sysco is committed to growing its sales headcount in 2026, focusing on high-growth markets and optimizing training programs to enhance productivity [65]