First-quarter revenue reached $21.7 billion, missing Wall Street estimates of $22.02 billion. While the company's international operations saw a 5.1% increase in sales, the U.S. foodservice division grew by a more modest 2.4%. These results prompted a 4.5% slide in share price, bringing the stock down to $78.05 during premarket trading.
In section Market Quotes
Sysco Lowers Sales Forecast Amid Weak Restaurant Traffic
A persistent decline in restaurant foot traffic combined with rising fuel costs forced Sysco to temper its annual sales expectations. The food distributor now anticipates growth at the lower end of its previously projected 6% to 7% range, signaling a cooling inflation environment that complicates the company's fiscal trajectory.
Despite the revenue shortfall, Sysco maintained its adjusted earnings per share growth guidance of 9% to 11%. Fiscal first-quarter profit rose to $526 million, or $1.09 per share, up from $476 million in the same period last year. Chief Financial Officer Brandon Sewell noted that the firm is leveraging artificial intelligence to streamline operations and mitigate the impact of a volatile market, focusing on cost-cutting measures to stabilize performance.
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