It has been about a month since the last earnings report for Sysco (SYY) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sysco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.Sysco Q2 Earnings Top Estima ...

Sysco Corporation (NYSE:SYY) is included among the 16 Best Dividend Stocks with Rising Payouts. Sysco (SYY) PT Lifted by Guggenheim as Firm Highlights Importance of Local Case Growth On February 13, Guggenheim raised its price recommendation on Sysco Corporation (NYSE:SYY) to $95 from $91. It reiterated a Buy rating on the shares. The firm did not change its earnings estimates for 2026 and 2027. It said that Sysco’s “nearly unprecedented” 22% run relative to the S&P 500 so far this year has made near-ter ...

分组1 - Zacks Premium offers various tools for investors, including daily updates, access to Zacks Rank and Industry Rank, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores rate stocks based on value, growth, and momentum, providing complementary indicators to the Zacks Rank for better investment decisions [2][3] 分组2 - The Value Score identifies undervalued stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, using factors like one-week price change and monthly earnings estimate changes [5] 分组3 - The VGM Score combines all three Style Scores, serving as a comprehensive indicator for selecting stocks with attractive value, growth potential, and momentum [6] - The Zacks Rank model, based on earnings estimate revisions, has shown a +23.86% average annual return for 1 (Strong Buy) stocks since 1988, outperforming the S&P 500 [7][9] 分组4 - Sysco Corporation, a foodservice distributor, serves approximately 425,000 customers, including restaurants and healthcare facilities [11] - Sysco has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of A, indicating a positive trend with a 16.1% increase in shares over the past four weeks [12] - Analysts have revised Sysco's earnings estimate higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.03 to $4.59 per share [12][13]

Core Insights - Sysco Corporation is launching a pilot program called Home Grown by Sysco to enhance the availability of locally sourced foods and artisan products [1][2] - The pilot program will feature approximately 10,000 locally sourced products and will initially operate in specific regions of the United States and Canada, with plans for expansion within the next year [2][3] Group 1: Program Details - The Home Grown by Sysco program is part of Sysco's sustainability strategy, aiming to bring locally sourced products to more consumers [3][8] - The definition of "locally sourced" includes items from geographic areas close to Sysco distribution centers, typically within the same state or province [3] - The pilot program is set to begin on February 24, 2026, covering the Great Lakes, Northeast, South Florida, Montreal, and British Columbia regions [2][4] Group 2: Market Demand and Commitment - The initiative responds to increasing customer demand for locally grown and artisan products, with two-thirds of diners indicating a preference for such offerings in table-service restaurants [4][6] - Sysco emphasizes its commitment to supporting small businesses, including independent restaurants and local suppliers, as part of the program's goals [6] Group 3: Operational Enhancements - The pilot will also focus on improving software and identifiers to enhance customer experience before scaling the program across North America [7] - Sysco operates 339 distribution centers across 10 countries, serving approximately 730,000 customer locations, and generated over $81 billion in sales for the fiscal year 2025 [8][9]

Company Overview - Sysco Corporation is a leading global distributor of fresh food and related products to the food-away-from-home industry [1] - The company generated approximately $81 billion in sales in fiscal year 2025 [2] - Sysco serves around 730,000 customer locations, with a balanced business model across various customer segments and geographies [2] Sales Distribution - 60% of Sysco's sales come from local restaurants, while the remaining 40% is derived from recession-resistant categories such as government, education, healthcare, and large campuses and office complexes [2] - The company holds leading market share positions in these recession-resistant categories [2] Leadership and Strategic Initiatives - Kevin Hourican, President, CEO, and Chairman, along with Kenny Cheung, CFO, are set to discuss the company's specific initiatives that are driving structural improvements [3] - These initiatives are aimed at unlocking durable and compounding performance, supporting Sysco's commitment to a steady return of capital to shareholders [3]

Sysco Corporation Conference Call Summary Company Overview - **Company**: Sysco Corporation (NYSE:SYY) - **Industry**: Food Service Distribution - **Fiscal 2025 Sales**: Approximately $81 billion - **Customer Locations**: Roughly 730,000 - **Sales Composition**: 60% from restaurants, 40% from recession-resistant sectors (government, education, healthcare, large campuses) [1][4][5] Core Business Insights - **Market Position**: Leading global distributor in the food away from home industry with the highest market share and profitability [4][29] - **Specialty Foods**: Number one specialty foods distributor with multiple brands exceeding $1 billion in sales, contributing over $10 billion annually [4] - **International Growth**: Nine consecutive quarters of double-digit profit growth in international markets, with a focus on expanding fulfillment capacity and product assortment [5][9][14] Growth Drivers - **Market Trends**: Food away from home continues to gain market share from grocery, driven by busy lifestyles, food innovation, and improved to-go experiences [6][7][8] - **U.S. Market Share**: Sysco holds approximately 18% market share in a $377 billion U.S. food service market, with the potential for further growth [8][9] - **Non-Commercial Segment**: This segment is growing faster than the restaurant business, indicating resilience against economic fluctuations [10] Financial Performance - **Sales Growth Guidance**: Reiterated guidance for FY 2026 with sales growth of 3%-5% and adjusted EPS growth of 1%-3% [30] - **Historical Performance**: Achieved CAGRs of 5% on the top line and 9% on the bottom line over the past four years [30] - **Operating Leverage**: Positive operating leverage with gross profits growing faster than operating expenses [31] Strategic Initiatives - **Sales Improvement**: Focus on improving sales consultant retention and productivity through training and technology [15][27] - **Merchandising Strategy**: Transitioning to a center-led merchandising strategy to optimize product assortment and supplier relationships [19][20] - **M&A Opportunities**: Continued focus on strategic acquisitions to drive growth, targeting an average contribution of 50 basis points from M&A [36] Capital Allocation and Shareholder Returns - **Dividend Growth**: Commitment to long-term dividend growth, with a target payout ratio of 40%-50% of EPS [44][45] - **Share Repurchase**: Plan to return approximately $1 billion to shareholders through share repurchases [44] - **Cash Flow Generation**: Generated approximately $1.8 billion in cash flow last year, demonstrating strong quality of earnings [34] Market Outlook - **Confidence in Growth**: Strong confidence in achieving at least 2.5% local volume growth in the second half of the fiscal year, supported by internal initiatives and M&A contributions [12][26] - **Resilience in Various Sectors**: Continued growth in travel, leisure, education, and healthcare sectors, which are generally recession-resilient [32] Conclusion - **Investment Thesis**: Sysco is positioned as a compelling investment opportunity due to its leadership in a growing industry, strong financial performance, and commitment to shareholder returns [46][48]

February 17, 2026 CAGNY 2026 Forward-Looking Statements Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions, including those outside of Sysco's control. Risks and uncertainties include without limitation: the impact of geopolitical, economic and market conditions and developments, including changes in global trade policies and tariffs and foreign conflicts; risks related to our bu ...

Core Points - A California jury awarded approximately $52 million to truck drivers and yard workers at Sysco for alleged retaliation after they raised safety, wage, and regulatory concerns [1] - The lawsuit was filed against Sysco Riverside Inc. and Sysco Corp., with claims of a culture of intimidation towards employees reporting unsafe practices [2] - The lead attorney indicated that the jury's verdict reflected overwhelming evidence of Sysco's legal violations and the company's inaction in response to complaints [3] Allegations of Unsafe Practices - Employees raised concerns about yard safety, excessive working hours, falsified time records, food safety violations, and retaliation for contacting regulators like Cal/OSHA [4] - Plaintiffs reported being pressured to move trucks quickly in unsafe conditions and to load perishable food into inadequately refrigerated trailers [6] Retaliation Claims - Central to the lawsuit were allegations of retaliation against workers who reported unsafe practices, including reduced hours, harassment, surveillance, and termination [7]

Company Overview - Sysco Corporation (NYSE:SYY) is a food distributor that supplies products such as meats, produce, and frozen meals to various sectors including restaurants, healthcare facilities, and schools. Additionally, the company provides kitchen equipment, tableware, and cleaning supplies [2]. Earnings Report Insights - Sysco's stock experienced a nearly 11% increase following its earnings report, which showed a modest beat on both the top and bottom lines. This performance is notable given the general pessimism surrounding the restaurant industry, which constitutes Sysco's core customer base [1]. - Management indicated a strong start to January, which is atypical for the industry, and revised their earnings expectations for fiscal 2026 to the high end of previous forecasts [1].

Industry Overview - The Zacks Food-Miscellaneous industry is facing challenges due to cautious consumer spending and persistent cost pressures, impacting volume growth and pricing flexibility [1][4] - Companies in this industry manufacture and sell a variety of food products, including cereals, sauces, and organic items, primarily through wholesalers and retailers [3] Current Trends - Consumer behavior is shifting towards value-oriented purchasing, with increased demand for private-label and lower-priced alternatives, affecting branded food manufacturers [4] - Elevated costs in raw materials, labor, and logistics continue to pressure margins, despite some pricing actions providing partial relief [5] - Health-focused innovation and portfolio modernization are key growth drivers, as consumers show interest in functional and premium food products [2][6] Performance Metrics - The Zacks Food-Miscellaneous industry currently ranks 187, placing it in the bottom 23% of over 250 Zacks industries, indicating dull near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 11.6% over the past year compared to the S&P 500's growth of 17.3% [10] - The industry is trading at a forward P/E of 15.02X, lower than the S&P 500's 23.24X and the sector's 17.27X [13] Company Highlights - **Mama's Creations**: This company benefits from strong demand for premium meal solutions, with a Zacks Consensus Estimate for EPS rising 18.2% to 13 cents, indicating 44.4% growth year-over-year [16][17] - **J&J Snack Foods**: With a diversified portfolio, this company has seen its EPS estimate rise by a penny to $4.46, suggesting 4.5% growth from the previous year [19][20] - **Sysco Corporation**: This global distributor is focusing on productivity and supply-chain optimization, with an EPS estimate increase of 0.7% to $4.59, indicating 2.9% year-over-year growth [23][24] - **Celsius Holdings**: This company has a strong multi-brand portfolio and has seen its EPS estimate rise by a penny to $1.49, suggesting 18.8% growth year-over-year [27][28]