Core Insights - Kyndryl has been recognized as Sysco's inaugural Tech Partner of the Year for its excellence in delivering a multiyear ERP upgrade and modernization of Sysco's IT environment, enhancing reliability and efficiency in Sysco's distribution operations [1][3][4] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to customers who prepare meals away from home, operating 339 distribution centers across 10 countries and serving approximately 730,000 customer locations [5][6] - In fiscal year 2025, Sysco generated sales exceeding $81 billion [5] Partnership Impact - The partnership with Kyndryl aims to create a simpler and more flexible technology foundation, ensuring uninterrupted delivery of food and supplies to various customers, including restaurants, hotels, and hospitals [2][3] - Kyndryl's contributions have allowed Sysco to accelerate its IT roadmap while reducing operating costs, demonstrating a collaborative approach rather than a vendor-client relationship [3][4] Future Outlook - Kyndryl expresses commitment to continue supporting Sysco in delivering exceptional experiences across the foodservice and supply chain industry, focusing on critical innovations and operational efficiency [4]

Group 1: Kingdom Capital Advisors Performance - Kingdom Capital Advisors reported a portfolio recovery in Q3 2025, achieving a composite return of 20.78% (net of fees), outperforming the Russell 2000 TR (12.39%), S&P 500 TR (8.12%), and NASDAQ 100 TR (9.01%) [1] - Since inception, the portfolio compounded at 21.06% (net of fees), significantly higher than the Russell 2000 TR (4.60%), S&P 500 TR (11.46%), and NASDAQ 100 TR (13.48%) [1] Group 2: United Natural Foods, Inc. (UNFI) Highlights - United Natural Foods, Inc. (NYSE:UNFI) demonstrated a one-month return of 42.11% and a 52-week gain of 98.65%, closing at $41.34 per share with a market capitalization of $2.404 billion on October 13, 2025 [2] - The company faced a cyber-attack that impacted its distribution network for over 10% of the recent quarter, yet management exceeded sales guidance, showcasing strong execution under pressure [3] - Management's guidance for FY26 anticipates $300 million in free cash flow from operations and an additional $150 million from cyber insurance and asset sales, with UNFI trading below 6x EV/EBITDA, indicating a discount compared to peers [3] Group 3: Hedge Fund Interest and Investment Outlook - United Natural Foods, Inc. was held by 27 hedge fund portfolios at the end of Q2 2025, an increase from 26 in the previous quarter, indicating growing interest [4] - Despite the potential of UNFI as an investment, certain AI stocks are considered to offer greater upside potential and lower downside risk [4]

Market Overview - Mid-cap stocks advanced in Q3, with the Russell Midcap Index returning 5.3%, driven by monetary policy shifts and stabilizing earnings [2] - Value stocks outperformed growth stocks, with the Russell Midcap Value Index returning 6.2% compared to 2.8% for the Russell Midcap Growth Index [2] Policy and Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty [3] - Earnings estimates stabilized, particularly in technology and AI sectors, despite some economic segments remaining weak [3] Portfolio Performance - The ClearBridge Mid Cap Strategy outperformed its benchmark, with strong stock selection in consumer staples and health care [4] - Performance Food Group and Casey's General Stores were key contributors, benefiting from strategic initiatives and strong execution [4] Sector Contributions - Health care was a significant driver of outperformance, with companies like argenx and Alnylam Pharmaceuticals showing strong results [5] - AppLovin's stock rallied due to excitement around its new e-commerce business, indicating potential for cash flow growth [6] Challenges - Stock selection in consumer discretionary and materials sectors posed challenges, with Chewy and Crown Holdings underperforming [7][8] New Positions - A new position was initiated in QXO, a building materials distribution platform, expected to consolidate the industry and improve efficiency [9] - Bio-Techne was also added to the portfolio, capitalizing on recent weakness and offering durable revenue streams [10] Exits - The position in ATS Corporation was exited due to leadership changes raising concerns about future performance [11] Outlook - The outlook for mid-cap equities remains constructive, with expectations for selective stock picking amid potential volatility [13] - The focus will be on businesses with competitive advantages and resilient cash flows [14] Portfolio Highlights - The ClearBridge Mid Cap Strategy saw contributions from 10 of 11 sectors, with IT and industrials being the largest contributors [16] - Stock selection in consumer staples, IT, and health care sectors positively impacted performance, while consumer discretionary and materials sectors detracted [17]

Core Insights - Heartland Advisors reported a 10.04% gain for the Heartland Value Fund in Q3 2025, while the Russell 2000® Value Index returned 12.60% during the same period [1] Company Overview - Calavo Growers, Inc. (NASDAQ:CVGW) is a prominent distributor of avocados and other perishable foods, with a market capitalization of $445.798 million as of October 10, 2025 [2] - The stock of Calavo Growers, Inc. experienced a one-month return of -9.03% and a 52-week decline of 11.17% [2] Investment Strategy - Heartland Value Fund began accumulating shares of Calavo Growers, Inc. in early 2024 after identifying an improving outlook through research calls, despite the company undergoing a management transition at that time [3]

Core Insights - Archer Daniels Midland Company (ADM) is focused on optimizing its organizational and operational structure across Human and Animal Nutrition, managing productivity and innovation while addressing food security, health, and wellbeing trends [1][2] - The company is making targeted investments to bolster growth and differentiation, including plant digitization and decarbonization solutions [4][5] Financial Performance - In Q2 2025, ADM's Nutrition segment saw a 4.5% increase in revenues year over year, with a 5% rise in operating profit, driven by strong growth in Flavors and Animal Nutrition portfolios [3][10] - The Zacks Consensus Estimate for ADM's 2025 earnings per share (EPS) indicates a year-over-year decline of 15.8%, while 2026 shows a growth of 21.3% [11] Strategic Initiatives - ADM is expanding its alternative protein capabilities and adapting to changing consumer nutritional preferences as part of its strategic pillars [2] - The company aims to achieve $500-$750 million in cost savings over the next three to five years through operational improvements and efficiency initiatives [5][10] Market Position - ADM's shares have gained 24.5% year to date, outperforming the industry's growth of 6.7% [8] - The company trades at a forward price-to-earnings ratio of 13.5X, slightly below the industry average of 13.84X [9]

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Core Points - Sysco Corporation will host a conference call and webcast to discuss its first quarter fiscal year 2026 financial results on October 28, 2025 at 10 a.m. EDT [1] - Interested parties can listen online at Sysco's investor relations website, where a news release and slide presentation will also be available [2] - Sysco uses its investor relations website as the primary channel for public disclosure of key information [3] 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 [4] - The company operates 337 distribution centers across 10 countries, employing 75,000 colleagues and serving approximately 730,000 customer locations [4] - Sysco generated sales of over $81 billion in fiscal year 2025, which ended on June 28, 2025 [4] 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 [5] - 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 [5]

Core Insights - Innovative Food Holdings, Inc. (IVFH) announced a leadership transition to align with its three-phased strategy aimed at restoring financial health, building a scalable platform, and accelerating long-term growth [1] - Gary Schubert has been appointed as the new CEO, succeeding Bill Bennett, who will transition to a consulting role [2][4] Leadership Transition - The Board of Directors appointed Gary Schubert, the current CFO, as CEO and Director, emphasizing his focus on growth, operational excellence, and shareholder value creation [2][5] - Bill Bennett, the outgoing CEO, will continue to support the leadership team in a consulting capacity until March 31, 2026, ensuring continuity during the transition [3][4] Strategic Focus - Schubert highlighted opportunities to expand IVFH's specialty food platform by growing the item portfolio, increasing distribution points, and leveraging technology for efficient scaling [3] - The company aims to integrate its owned warehouse assets with its drop-ship vendor network to enhance service reliability and operational excellence [3][6] Company Performance - Under Bennett's leadership, IVFH stabilized the company by streamlining operations, exiting non-core businesses, and achieving three consecutive years of positive adjusted EBITDA for the first time in over a decade [4][6] - The Board expressed confidence in Schubert's ability to execute the company's strategy and transition from stabilization to a growth-focused platform [5][6] Company Overview - Innovative Food Holdings is a specialty food platform that delivers high-quality, unique food products to professional chefs and consumers nationwide through direct-to-chef and e-commerce channels [7]

Core Insights - Sysco Corp. is the leading distributor of food and related products to the food-away-from-home industry, serving restaurants, healthcare facilities, and lodging establishments [1] Financial Performance - Sysco is set to report its Q3 2025 earnings on October 28, with analysts expecting an EPS of $1.12, an increase from $1.09 in the prior-year period. Quarterly revenue is anticipated to be $21.05 billion, up from $20.48 billion a year earlier [2] - In Q4 2025, Sysco reported an adjusted EPS of $1.48, surpassing the analyst consensus estimate of $1.36, with quarterly sales of $21.14 billion exceeding the expected $21 billion [3] - For the full year 2026, Sysco expects adjusted EPS to be in the range of $4.50 to $4.60, which is below the analyst estimate of $4.68. Projected sales are between $84 billion and $85 billion, compared to the consensus of $84.34 billion [4] Stock and Dividend Information - Sysco's stock price has ranged from $67.12 to $83.47 over the past 52 weeks. The company has a dividend yield of 2.59%, having paid $2.16 per share in dividends over the last 12 months [2] - To earn $100 per month from Sysco dividends, an investment of approximately $46,332 is needed, which equates to around 556 shares at a price of $83.27 each [4][5]

Core Viewpoint - United Natural Foods (UNFI) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding the earnings prospects of United Natural Foods is leading to higher estimates, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.39 per share, reflecting a year-over-year increase of +143.8%, with a 39.29% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, the expected earnings are $1.90 per share, indicating a year-over-year change of +167.6%, with a similar positive trend in estimate revisions [7]. Zacks Rank and Performance - United Natural Foods has achieved a Zacks Rank 1 (Strong Buy), supported by strong agreement among analysts in raising earnings estimates, which historically correlates with stock price performance [3][8]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][8]. Stock Performance - The stock has gained 38.5% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, suggesting it may be a good addition to investment portfolios [9].