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Sysco Corporation (SYY)

NYSE - NYSE Delayed Price. Currency in USD
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62.01+0.45 (+0.73%)
At close: 4:00PM EDT
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    P
    Trend Of ROCE

    When we looked at the ROCE trend at Sysco, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 10% from 21% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased.
  • J
    Jack
    $80+ per share around the bend. Vaccine! A lot of smart nimble restaurants are seating people outside. Wife and I had a very nice breakfast and coffee yesterday. Seems everyone was enjoying the SoCal sun shine and cool ocean breeze. SYY will do well with the pent up demand to dine out IMO.
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    Bottom Line

    We're a bit apprehensive about Sysco because despite more capital being deployed in the business, returns on that capital and sales have both fallen. But investors must be expecting an improvement of sorts because over the last five yearsthe stock has delivered a respectable 77% return. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.
  • J
    Jerry
    I think it’s going to $70
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    P
    Trend Of ROCE

    When we looked at the ROCE trend at Sysco, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 10% from 21% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased.
  • J
    Jack
    $80s per share (SYY) is around the bend... Went to B-fast with wife yesterday, and the family owned restaurant was packed. I went home pronto and added to my SYY position. Kaching!
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    P
    sales force turnover rate is alarming. hemoraging sales staff
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    Our total Sysco results for the fourth quarter include a sales decrease of 43% to $8.9 billion. Local case volume within US Broadline operations decreased 38.7% for the fourth quarter, while total case volume within US Broadline operations decreased 41.5%. As a result of the COVID-19 pandemic, we saw a significant decline in both volume and sales across all the business segments. Gross profit decreased 47% to $1.6 billion and gross margin decreased 159 basis points. Our gross margin for the fourth quarter was impacted by pricing to help move inventory and avoid spoilage and by a temporary shift in customer mix as a result of the current operating environment. These results were in line with our previous guidance as it relates to margins.
    Adjusted operating expense decreased 26% to $1.6 billion. It is important to note that we had $115 million of incentive pay accrual reversals that favorably impacted operating expenses and the run rate in Q1 of fiscal 2021 will be normalized when compared to Q4 fiscal 2020. With that said, the adjusted operating income run rate was profitable in June, even with -- even without the accrual reversal. Adjusted operating income decreased 104% to a loss of $34 million and adjusted earnings per share decreased 126% to a negative $0.29 for total Sysco. Across the business, our results were impacted by various financial certain items, which I will review before proceeding into individual segment results.
  • J
    Jeremy
    EPS beats by $0.02. We should see a sell off at the bell followed by a gain around lunch
  • R
    Rusty0601
    they must have done really well in their investment presentation this morning.

    either that or a cure for Covid was announced
  • S
    Sea
    They have gone through a serious cost cutting process to prepare for the possibility of prolonged recovery. Next stop $70.
  • S
    Silent Running
    Nasty drop, yet my opportunity to add. Thank you COVID panic sellers!
  • C
    Chris
    What's the news for the pump today?
  • E
    Edward
    Bought in March and sold couple of weeks ago. Made a nice profit. Don't see this going anywhere for a while. It will take the vaccine to get this thing upward. Better stocks to be in during this crisis, much better stocks!
  • c
    chuck
    Sysco will see $45 again when reporting comes out. It's a great company! Ruff times ahead, industry is down many closings, margins are tight, lines per drop way down, GP is well off, past dues are worrisome.
  • a
    alex
    @Jack - yes cap gains kill - BUT all my flipping done in our IRAs and this has been incredibly easy to trade since April. The neg Nellies on this board seem to ignore how much of the bad numbers are already priced in. Looking ahead - always
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    And no industry has been hit harder than the restaurant business.
    “The restaurant industry now reflects the highest total business closures, recently surpassing retail,” Yelp said in its report.
    “As of July 10, there have been 26,160 total restaurant closures, an increase of 2,179 since June 15. Of the all closed restaurants in July, 15,770 have permanently closed (60%), accounting for 2,956 more permanent closures, a 23% increase since June 15.”
  • B
    Bill
    sell now they are going to show horrible numbers.
  • R
    Ronnie
    That is fine, i am still short. they are trying to buy stocks to keep it out of the cellar... but when the numbers come out it is down, down, down... i am not beating on SYY... i just want to make money... short now and Buy when it hits bottom. With the bad credit and closures i think it should go to $38... but i dont think it will maybe $48... then look at buying... good company but bad times... Good Hunting... keep an open mind.
  • F
    FrankN
    SYSCO CORP sec form 4 filings insider trading, stock buying and selling.
    SYSCO CORP sec form 4 filings insider trading, stock buying and selling.
    www.secform4.com