Welcome to our dedicated page for Sysco Corporation news (Ticker: SYY), a resource for investors and traders seeking the latest updates and insights on Sysco Corporation stock.
Sysco Corporation (NYSE: SYY) is the global leader in selling, marketing, and distributing food products to restaurants, healthcare and educational facilities, lodging establishments, and other customers who prepare meals away from home. Alongside its extensive food product lineup, Sysco also offers equipment and supplies for the foodservice and hospitality industries.
With a workforce of more than 72,000 employees, Sysco operates 334 distribution facilities globally, serving approximately 725,000 customer locations. In fiscal year 2023, which ended on July 1, 2023, Sysco generated sales exceeding $76 billion. The company's operations are divided into several segments: U.S. foodservice operations (70% of revenue), international (18%), quick-service logistics (10%), and other segments (2%).
As the largest U.S. foodservice distributor, Sysco holds a 17% share in the fragmented $350 billion domestic market. Sysco distributes around 500,000 food and non-food products to various sectors, including restaurants (62% of fiscal 2023 revenue), education and government buildings (8%), travel and leisure (8%), healthcare facilities (7%), and other locations (15%) where meals are prepared outside the home.
Sysco has been actively engaged in recent projects and partnerships to enhance its market presence and operational efficiency. Notably, Sysco has teamed up with iFoodDS to develop a proof-of-concept project aimed at complying with the U.S. Food and Drug Administration's (FDA) Food Safety Modernization Act (FSMA) 204 Food Traceability Rule. This partnership focuses on creating a flexible, scalable, and interoperable traceability solution that ensures food safety and boosts efficiency across its supplier network.
Furthermore, Sysco has introduced new sustainability initiatives, particularly in product packaging. The company is working with suppliers to reduce plastic waste and implement eco-friendly packaging solutions. For example, Sysco's Earth Plus Brand Agave Straw is commercially compostable and reduces plastic waste significantly. Additionally, Sysco's Fresh Direct business in Great Britain has transitioned berries to FSC-certified paper packaging, eliminating over 50 tons of plastic waste annually.
Sysco's commitment to sustainability extends to its own-brand packaging, shifting from white to kraft corrugate cases, saving energy and materials while enhancing recyclability. The company also hosts sustainability summits to collaborate with suppliers on reducing environmental footprints.
In leadership news, Kevin Hourican, Sysco's President and CEO, has been appointed as Chair of the Board of Directors, succeeding Edward D. Shirley due to personal health reasons. Hourican's vision includes enhancing Sysco's Recipe for Growth strategy, aimed at driving market growth through digital transformation, supply chain optimization, and customer-focused solutions.
Sysco's comprehensive growth algorithm emphasizes sustainable growth, operational excellence, and balanced capital return. The company also launched Sysco Marketplace, a digital platform allowing third-party suppliers to sell products directly to Sysco customers, enhancing the shopping experience and supporting smaller suppliers.
For further information on Sysco's sustainability initiatives, financial performance, and strategic developments, visit Sysco's investor relations at investors.sysco.com.
Sysco Corporation (NYSE: SYY) has announced an agreement to acquire Greco and Sons, a prominent Italian specialty distributor in the U.S. with annual revenues of approximately $800 million. Greco and Sons operates 10 distribution centers across 22 states and offers over 15,000 products to more than 8,000 customers, including restaurants and grocery stores. This acquisition aims to enhance Sysco's market presence in the Italian segment and will operate as a standalone division. The deal is pending regulatory approval.
Sysco Corporation (NYSE: SYY) has launched two new toolkits under its Foodie Solutions platform: the Labor & Hiring Toolkit and the Summer Solutions Toolkit. The Labor & Hiring Toolkit aids foodservice operators in hiring and retaining employees amidst a tight labor market, featuring insights from Sysco chefs. The Summer Toolkit offers creative strategies to enhance revenue and guest satisfaction during the summer season as pandemic restrictions ease. Sysco continues to support restaurant recovery with free marketing services and flexible delivery options.
Sysco Corporation (NYSE:SYY) has announced that it will hold its 2021 Investor Day presentation on May 20, 2021, at 11 a.m. Eastern Time. The event will be available for live streaming, and a replay will be accessible shortly after the presentation concludes. Sysco emphasizes the use of its investor relations website as a key channel for sharing important updates and disclosures with its investors. In fiscal 2020, Sysco reported over $52 billion in sales, serving more than 625,000 customer locations globally.
Sysco Corporation (SYY) reported Q3 fiscal 2021 results with sales of $11.8 billion, a 13.7% decline year-over-year. Gross profit fell 17.2% to $2.1 billion, while gross margin decreased to 18.0%. Despite challenges, operating income surged 291.4% to $235.9 million, and EPS rose to $0.17. Cash flow from operations was strong at $543.1 million, with free cash flow at $459.7 million. The company also reduced debt by $1.1 billion. Overall, while some metrics were down, demand is recovering, with a notable increase in independent customer accounts.
Sysco Corporation (SYY) announced the appointment of Ron Phillips as executive vice president and chief human resources officer, effective May 3, 2021. Kevin Hourican, CEO of Sysco, emphasized Phillips' 25 years of HR experience and his ability to lead transformative change through people-first strategies. Phillips previously held senior HR roles at CVS Health, Carnival Cruise Line, and New York Presbyterian Hospital System. This leadership change aims to enhance Sysco's global HR strategy and strengthen its position as an employer of choice.
Guest Supply, a subsidiary of Sysco Corporation (NYSE:SYY), has partnered with Volara to introduce Google for Hotels to U.S. customers. This initiative aims to enhance the guest experience with a contactless solution featuring Google Assistant on Google Nest Hub devices, allowing guests to access services via voice commands. Hoteliers can choose from budget-friendly pricing plans and various customizable options. This collaboration is viewed as essential for the hospitality industry's recovery, offering privacy-protected technology that addresses modern guest needs during the pandemic.
Sysco Corporation (NYSE:SYY) will hold a conference call on May 4, 2021, at 10 a.m. Eastern to discuss its Q3 fiscal year 2021 results. All interested parties can access the live webcast at investors.sysco.com, with a replay available shortly after. The company also plans to issue a news release and present a slide deck prior to the call. Sysco is recognized as a leader in selling and distributing food products, with over 57,000 associates and more than $52 billion in sales for fiscal 2020.
Sysco Corporation (NYSE: SYY) announced three new toolkits for its Foodie Solutions platform on March 18, 2021. These toolkits—Brunch, Protecting Your Business, and Turning Your Tables—aim to assist restaurant operators as they adapt to changing business environments post-COVID-19. The Brunch toolkit includes innovative ideas for popular brunch offerings, while the Protecting Your Business toolkit focuses on safe packaging for takeout meals. The Turning Your Tables toolkit emphasizes efficient table management to improve profitability and guest experience. Sysco continues to support its customers with exclusive services and resources.
Guest Supply, a subsidiary of Sysco Corporation (NYSE:SYY), has partnered with Corsicana Mattress Company to introduce Contourest® Copperbed mattresses. These self-sanitizing mattresses, designed for hospitality and education, leverage advanced copper technology for antimicrobial properties. Manufactured in Corsicana's U.S. plants, they offer various comfort options alongside a full suite of protective products. The partnership aims to enhance sanitation standards and customer safety in a critical market.
Sysco Corporation (NYSE:SYY) has successfully reduced its outstanding debt by a total of $1.1 billion. On March 9, the company paid off $700 million in borrowings from its revolving credit facility, while its UK subsidiary, Brake Bros Limited, repaid approximately $417 million of its commercial paper program debt. These payments, funded with cash on hand, are expected to decrease annual interest expenses by around $15 million. Sysco's CFO expressed confidence in a market recovery and emphasized ongoing investments in transformation efforts.
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