Food distributor Sysco hits quarterly expectations as US demand improves

– Packaged fresh food distributor Sysco defeated analyst estimates of revenue and profits for the fourth quarter on Tuesday, helping to improve its US business.

Supplied to chains such as KFC and subways, the company has been working to unevenly recover from traffic in the restaurant industry as the looming economic uncertainty has led consumers to cook more and more meals from home.

The largest business, Sysco’s US Foodservice segment, recorded revenue of $14.766 billion in the quarter ended June 28, up 2.4% year-on-year. This segment saw an increase of 0.7% in the last quarter.

The company is also seeking to reduce costs through measures such as renegotiating supplier contracts to procure raw materials at a lower price.

To reduce shipping costs, we have introduced programs such as “Sysco-to-Go.”

On an adjusted basis, on a fourth quarter, it scored $1.48 per share, breaking the average analyst estimate of $1.39 per share, according to data compiled by LSEG.

Sysco’s total revenue rose 2.8% to $2.14 billion, ahead of its estimated $21.03 billion.

The Houston, Texas-based company forecasts fiscal 2026 earnings adjusted for earnings per share from $4.50 to $4.60. Analysts were expecting a profit of $4.67 per share.

The company’s shares fell 3% in early trading.

(Becheti Sancheti Sancheti St.