Financial Data and Key Metrics Changes - Net sales increased by approximately 8.4% to $1,035 million from $954.7 million in Q2 2024 [10] - Gross profit increased by 11.1% to $254.3 million, with gross profit margins rising approximately 59 basis points to 24.6% [12] - GAAP net income was $21.2 million or $0.49 per diluted share, compared to $15.5 million or $0.37 per diluted share in Q2 2024 [13] - Adjusted EBITDA was $65.4 million for Q2 2025, up from $56.2 million in the prior year [14] Business Line Data and Key Metrics Changes - Specialty sales grew by 8.7% year-over-year, driven by unique customer growth of approximately 3.6% and placement growth of 8.7% [7] - Center of the Plate pounds were approximately 4% lower than the prior year, but excluding the impact of the Texas commodity protein program, growth was 5.8% [8][33] - Adjusted operating expenses increased by 9.3% year-over-year, representing 18.25% of net sales for Q2 2025 [13] Market Data and Key Metrics Changes - Net inflation was reported at 7.2%, with 5% inflation in the specialty category and 10.8% in the center of the plate category [11] - Excluding the impact of attrition from the commodity poultry program, net inflation in the center of the plate category was 4.1% [11] Company Strategy and Development Direction - The company is focused on integrating Hardee's operations in Texas with its legacy operations to drive top-line and bottom-line improvements [6] - The strategy includes shedding non-core programs to enhance distribution capacity and profitability [7][35] - The company aims to grow its business in Texas to over $500 million through cross-selling and expanding its customer base [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their customer base and the ability to gain market share despite industry challenges [19][20] - The company raised its full-year guidance for 2025, estimating net sales between $4 billion and $4.06 billion [17] - Management noted that the second half of the year is expected to show typical seasonality, with a projected 6% revenue growth [66] Other Important Information - The company achieved the Great Place to Work certification for the fourth consecutive year, highlighting its focus on employee culture [6] - Total liquidity at the end of Q2 was $260.3 million, including $96.9 million in cash [14] Q&A Session Summary Question: Are there any pockets of weakness or elevated restaurant closures? - Management noted some choppiness but overall expressed satisfaction with market share gains and customer resilience [19] Question: Have you seen an uplift in business dining with return to office policies? - Management indicated a net positive impact on lunch business in major cities but noted a balance with local markets [21] Question: How is summer travel impacting demand? - Management observed a good July, suggesting a rebalancing of tourism and restaurant spending [28][30] Question: What is the expected impact of Hardee's planned attrition on reported case growth? - Management expects continued impacts from the attrition, particularly in high-volume, low-margin programs [35][39] Question: What is the outlook for inflation in the second half? - Management indicated moderate inflation expectations, with potential unforeseen impacts from tariffs [46] Question: Can you elaborate on gross margin performance? - Management acknowledged moving parts affecting gross margin but highlighted improvements from various operational initiatives [52] Question: What is the outlook for M&A activity? - Management remains opportunistic regarding M&A, with ongoing evaluations of potential tuck-in acquisitions [72][75] Question: Are the 2028 goals contributing to current results? - Management confirmed that several initiatives related to the 2028 goals are contributing positively to current performance [80]

This presentation also contains the non-GAAP financial measures "EBITDA", "Adjusted EBITDA", "Adjusted Operating Expenses", "Net Debt Leverage" and "Free Cash Flow" on a historical basis. Management believes that EBITDA, Adjusted EBITDA, Adjusted Operating Expenses, Net Debt Leverage and Free Cash Flow are each a measure commonly reported by issuers and widely used by investors as indicators of a company's operating performance. These non-GAAP financial measures, while providing useful information, should n ...

Core Insights - The Chefs' Warehouse reported a strong second quarter for 2025, with net sales increasing by 8.4% to $1,034.9 million compared to $954.7 million in the same quarter of 2024, driven by effective pricing and strong unit volume growth [4][9][10] - The company achieved a gross profit of $254.3 million, reflecting an 11.1% increase from $229.0 million in the prior year, with gross profit margins rising to 24.6% [5][9] - The effective tax rate decreased to 28.0% from 30.0%, contributing to a net income of $21.2 million, or $0.49 per diluted share, compared to $15.5 million, or $0.37 per diluted share, in the second quarter of 2024 [8][9] Financial Performance - Net sales for the second quarter of 2025 were $1,034.9 million, an increase of 8.4% from $954.7 million in the second quarter of 2024 [4][9] - Gross profit rose to $254.3 million, up 11.1% from $229.0 million year-over-year, with gross profit margins improving by 59 basis points [5][9] - Selling, general and administrative expenses increased by approximately 9.7% to $213.8 million, primarily due to higher compensation and benefits costs [6][9] - Operating income increased to $40.2 million from $33.9 million in the prior year, with operating income as a percentage of net sales rising to 3.9% [7][9] - Adjusted net income per share was $0.52 for the second quarter of 2025, compared to $0.40 in the same quarter of 2024 [10][27] Operational Highlights - The company experienced a 3.5% increase in organic case count in its specialty category, with unique customer and placement increases of 3.6% and 8.7%, respectively [4] - The center-of-the-plate category saw a decrease of approximately 4.0% in organic pounds sold, attributed to the exit from a non-core commodity poultry program [4] - The Chefs' Warehouse achieved the 'Great Place to Work' certification for the fourth consecutive year, highlighting its focus on employee culture [3] Guidance and Future Outlook - The company provided full-year financial guidance for fiscal 2025, projecting net sales in the range of $4.0 billion to $4.06 billion, gross profit between $964 million and $979 million, and adjusted EBITDA between $240 million and $250 million [15][30]

Sysco started paying its salesforce smaller salaries and more bonuses last year, sending some employees and their clients out the door. Those that stayed are making more money and keeping Sysco’s customers on board, according to the company’s CEO. https://t.co/S3EXLJT6ts ...

Consumers are cutting back on restaurant spending as they cope with economic uncertainties, causing Sysco to forecast annual sales at the lower end of its target range, CEO Kevin Hourican said https://t.co/Pv3hAIZ5Tq ...

Company Performance - Cisco reports a beat on both top and bottom lines with a 61.5% earnings per share growth [2] - Cisco is guiding a 3% to 5% sales growth in fiscal year 2026 [7] Market Trends & Dynamics - Overall marketplace conditions are improving, with restaurant foot traffic showing improvement from Q1 to Q2 of the calendar year [3][5] - Restaurant foot traffic was down approximately 35% in Q1, improving to approximately 15% down in Q2, a 200 basis point improvement [5][6] - The company anticipates the restaurant foot traffic run rate to be around -15% going forward [6] - Travel and hospitality business is performing well, with Cisco winning share in the non-commercial sector, which constitutes about a third of the business [8][9] - Cisco holds number one market share in travel and hospitality, sporting venues, and office complexes within the non-commercial sector [9] Food Inflation & Supply Chain - Overall food inflation for restaurants is approximately 25% across 13 merchandise categories [10] - Beef costs are elevated, with inbound food costs to Cisco being approximately 10% higher, a condition expected to persist due to supply and demand imbalances [11][12] - Elevated beef prices are anticipated to continue for the foreseeable future, offset by decreases in other categories like produce [13]

Core Insights - Sysco reported revenue of $21.14 billion for the quarter ended June 2025, marking a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate by 0.65% [1] - The earnings per share (EPS) for the same period was $1.48, up from $1.39 a year ago, representing a surprise of 5.71% over the consensus estimate of $1.40 [1] Revenue Breakdown - International Foodservice Operations generated $3.93 billion, surpassing the average estimate of $3.88 billion, with a year-over-year change of 3.6% [4] - U.S. Foodservice Operations reported $14.76 billion, slightly above the estimated $14.72 billion, reflecting a 2.4% increase compared to the previous year [4] - Sales from Other operations were $288 million, below the average estimate of $297.6 million, showing a year-over-year decline of 7.1% [4] - SYGMA sales reached $2.16 billion, exceeding the estimated $2.13 billion, with a year-over-year increase of 5.9% [4] Operating Income and Gross Profit - Operating income for Other operations was reported at -$82 million, significantly lower than the average estimate of $18.01 million [4] - SYGMA's operating income was $27 million, slightly above the average estimate of $24.92 million [4] - Gross profit for Other operations was $69 million, below the average estimate of $79.64 million, while SYGMA's gross profit was $170 million, marginally exceeding the estimate of $169.27 million [4] Stock Performance - Sysco's shares have returned 6.1% over the past month, outperforming the Zacks S&P 500 composite's 3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Sysco reported Q4 sales of $21.1 billion, an increase of 2.8% on a reported basis and 3.7% excluding the divestiture of the Mexican business [6][26] - Adjusted operating income for the quarter was $1.1 billion, up 1.1% year-over-year, with adjusted EPS growth of $1.48, reflecting a 6.5% increase compared to last year [6][25] - The company achieved a gross profit of $4 billion, up 3.9%, with gross margins expanding by 19 basis points to 18.9% [30][25] Business Line Data and Key Metrics Changes - The international segment experienced 3.6% top-line growth on a reported basis and 8.3% growth excluding the divestiture of Mexico, with adjusted operating income increasing by 20.1% [7][29] - The U.S. Foodservice segment saw a 1.3% volume growth, with gross profit growing almost three times faster than volume due to improved profitability efforts [8][25] - Sigma business achieved top-line growth of 8.3% and bottom-line growth of 12.5%, marking a record year [10] Market Data and Key Metrics Changes - Restaurant traffic improved throughout the quarter, with a decline of 1.1% overall, which was an improvement of approximately 190 basis points compared to Q3 [5][6] - The company noted that the industry is stabilizing after a challenging start to the year, with traffic trends showing a gradual recovery [5][6] Company Strategy and Development Direction - Sysco plans to focus on improving local business performance and enhancing sales colleague productivity through training and retention initiatives [15][41] - The company is implementing strategic sourcing initiatives and expanding its international supply chain capacity, with a new facility set to open outside London [13][14] - Sysco aims to leverage its competitive advantages, including geographic diversity and a wide product assortment, to capture a larger share of the food away from home market [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver positive and profitable local case growth in fiscal 2026, driven by stabilized colleague retention and improved productivity [15][41] - The leadership team highlighted the importance of colleague retention in reducing customer loss rates and improving overall business performance [40][41] - Sysco anticipates continued strong performance in the international segment and expects to maintain momentum into fiscal 2026 [7][29] Other Important Information - Sysco repurchased $1.3 billion in shares and paid out $1 billion in dividends during fiscal 2025, demonstrating a commitment to shareholder returns [26][37] - The company expects reported net sales growth of approximately 3% to 5% for fiscal 2026, with adjusted EPS growth projected at 1% to 3% [34][36] Q&A Session Summary Question: On local case growth momentum and market share - Management noted that while Q4 showed improvement, the stabilization of colleague retention will significantly impact customer loss rates in 2026, leading to positive growth [48][50] Question: Broader industry trends and sustaining momentum - Management attributed recent improvements to a stabilization in consumer confidence and expects to sustain growth through new customer wins and improved retention strategies [60][62] Question: International growth momentum and specific drivers - Management expressed confidence that international growth will continue, driven by increased sales resources and strategic sourcing initiatives [75][79] Question: Sales force growth and local case growth relationship - Management plans to increase sales professional headcount by approximately 4% in fiscal 2026, expecting this to lead to positive local case growth [86][88] Question: Financial implications of price agility initiative - Management clarified that the goal of the price agility initiative is to improve volume profitably without sacrificing margin rates, emphasizing the importance of sales colleague training [94][96]

Financial Highlights - Fiscal Q4 2025 revenue grew by 2.8% year-over-year to $21.1 billion[9, 27] - Gross profit increased by 3.9% year-over-year to $4.0 billion[9, 27] - Adjusted EPS increased by 6.5% year-over-year to $1.48[9, 28] - International segment adjusted operating income grew by 20.1% year-over-year to $197 million[9, 41] - SYGMA's net sales increased by 5.9% year-over-year to $2.2 billion[44] Segment Performance - U S Foodservice (USFS) net sales increased by 2.4% year-over-year to $14.8 billion[37] - USFS local volume declined 1.5% year-over-year, showing a 200 basis point sequential improvement from Q3[9, 29, 39] - International sales increased by 3.6% year-over-year to $3.9 billion[41] - SYGMA's net sales increased by 5.9% year-over-year to $2.2 billion[44] Fiscal Year 2025 Results - Net sales increased by 3.2% year-over-year to $81.4 billion[47] - Gross profit increased by 2.5% year-over-year to $15.0 billion[47, 49] - Adjusted EBITDA increased by 2.4% year-over-year to $4.3 billion[49] - Adjusted EPS increased by 3.5% year-over-year to $4.46[49] Fiscal Year 2026 Guidance - Sales growth is projected to be between 3% and 5%[68] - Adjusted EPS growth is projected to be between 1% and 3%, but 5% to 7% excluding incentive compensation headwind[68]

Core Insights - Sysco Corporation reported financial results for the fourth fiscal quarter and the fiscal year ended June 28, 2025, showing improved performance driven by company-specific initiatives and increased restaurant industry traffic [1][2]. Financial Performance Summary - **Fourth Quarter Results**: - Total sales increased by 2.8% to $21.1 billion [5][33]. - Gross profit rose by 3.9% to $4.0 billion, with a gross margin of 18.9% [6][8]. - Operating income decreased by 9.0% to $889 million, while adjusted operating income increased by 1.1% to $1.1 billion [6][10]. - Net earnings fell by 13.2% to $531 million, but adjusted net earnings increased by 3.3% to $716 million [6][10]. - EBITDA decreased by 6.5% to $1.1 billion, while adjusted EBITDA increased by 1.8% to $1.3 billion [6][10]. - Diluted EPS decreased by 10.6% to $1.10, while adjusted EPS increased by 6.5% to $1.48 [6][10]. - **Fiscal Year Results**: - Total sales for the fiscal year increased by 3.2% to $81.4 billion [19][33]. - Gross profit increased by 2.5% to $15.0 billion, with a gross margin of 18.4% [19][33]. - Operating income decreased by 3.6% to $3.1 billion, while adjusted operating income increased by 1.2% to $3.5 billion [19][21]. - Net earnings decreased by 6.5% to $1.8 billion, but adjusted net earnings increased by 0.8% to $2.2 billion [19][21]. - EBITDA decreased by 1.2% to $4.0 billion, while adjusted EBITDA increased by 2.4% to $4.3 billion [19][21]. Segment Performance - **U.S. Foodservice Operations**: - Sales increased by 2.4% to $14.8 billion, with total case volume decreasing by 0.3% [11][23]. - Gross profit increased by 2.8% to $2.9 billion, with a gross margin of 19.5% [11][23]. - Operating income decreased by 2.0% to $1.0 billion [12][24]. - **International Foodservice Operations**: - Sales increased by 3.6% to $3.9 billion, with a constant currency increase of 1.0% [15][25]. - Gross profit increased by 7.6% to $847 million, with a gross margin of 21.6% [16][26]. - Operating income increased by 26.1% to $145 million [18][28]. Cash Flow and Capital Management - The company reported cash flow from operations of $2.5 billion and free cash flow of $1.8 billion for the fiscal year [30][44]. - Sysco returned approximately $2.3 billion to shareholders through $1.3 billion in share repurchases and $1.0 billion in dividends [30][38]. Outlook - Sysco expects sales growth of approximately 3% to 5% for fiscal year 2026, targeting sales of $84 billion to $85 billion [2]. - Adjusted EPS is projected to grow by approximately 1% to 3%, aiming for $4.50 to $4.60 [2]. - The company plans to reward shareholders with approximately $1 billion in dividends and $1 billion in share repurchases for FY26 [2].