USFD - Food supplier stocks rally after Sysco results impress

The food supplier sector had a strong day on Tuesday after Sysco Corporation (NYSE:SYY +8.5%) smashed estimates on the revenue, EPS, and adjusted EBITDA lines. Sysco (SYY) CEO said the food giant's share gains in the U.S. and international segments continue to accelerate and demonstrate the impact of the Recipe for Growth strategy. Significant improvements in operating expenses leverage were noted, as well as lower snap back costs, encouraging progress in operations productivity performance and continued re-investments to drive profitable growth. Argus analyst John Staszak noted that Sysco (SYY) is working to offset lower food sales to restaurants and hotels by cutting costs and focusing on sales to grocery stores, which are seeing stronger sales. "Although the pandemic has raised concerns about the liquidity of foodservice distributors, we believe that Sysco has sufficient liquidity and access to credit to survive the current downturn," he added. Argus raised its price target

For further details see:

Food supplier stocks rally after Sysco results impress