Topic: How To Invest

Q: Hi, Pat. What is your current thinking about Sysco Corp. (New York symbol SYY)? Thanks!

Article Excerpt

A: Sysco Corporation, $71.61,symbol SYY on New York (Shares outstanding: 514.0 million; Market cap: $37.0 billion; www.sysco.com), is the largest global distributor of food products to restaurants, schools, health-care facilities, and lodging establishments. With more than 67,000 employees, the company operates about 330 distribution facilities worldwide and serves more than 600,000 customer locations. The company’s primary operations are located across North America and Europe with headquarters in Houston, Texas. Sysco’s product line includes frozen, canned, and dry foods; fresh meats, seafood and produce; dairy products; beverages; and a variety of non-food items, including tableware, cookware, restaurant equipment and cleaning supplies. Of the company’s total revenue, 62% is from sales to restaurants, 9% to health-care facilities, 8% to schools and government, 8% from the travel industry, and the remaining 13% of sales were to a variety of other customer types. Sysco continues to expand its business through acquisitions. For example, in fiscal 2018, the company completed several purchases, including HFM Foodservice (HFM), a Hawaii-based distributor…