Sysco Defines Plans at 2024 Investor Day to Improve Core Performance, Advance Recipe for Growth Strategy, Increase Shareholder Value
May 22 2024 - 3:30PM
Today, Sysco Corporation (NYSE:SYY), the world’s largest
foodservice distributor, hosted its 2024 Investor Day at the New
York Stock Exchange (NYSE) to present an update on the company’s
growth strategy and highlight initiatives that improve how the
company serves its customers while delivering consistent financial
performance.
Kevin Hourican, Sysco’s Chair of the Board and CEO, and other
senior executives discussed how the company is driving core
business performance through local case growth, and leveraging the
scale of its merchandising and supply chain capabilities. In
addition, Sysco shared the evolution of the company’s ‘Recipe for
Growth’ strategy which initially launched three years ago to drive
market growth through five pillars: Digital, Products and
Solutions, Supply Chain, Customer Teams and Future Horizons.
"Today we outlined plans to improve core performance and advance
our Recipe for Growth initiatives, helping fuel consistent growth
as the leader in the large and growing food-away-from-home market,”
said Hourican. “These plans include financial growth targets with
significant top and bottom-line growth over the next three years to
create sustainable long-term value for Sysco stakeholders. No one
else can match the breadth and depth of our product range, nor our
ability to meet customers' needs through our portfolio of specialty
companies, our international market growth and our investments in
salesforce and supply chain."
Sysco also provided a comprehensive financial outlook for the
next three fiscal years based on the company’s new growth algorithm
which focuses on delivering sustainable growth, operational
excellence and balanced capital return, including:
- Sales growth of 4-6% per
year through both organic and inorganic initiatives;
- Adjusted operating income
growth of 6-8% per year which includes positive operating
leverage;
- Adjusted earnings per share
growth of 6-8% per year; and
- Total return to shareholders
of 9-11% per year through a growing dividend.
“Sysco’s growth algorithm was built upon a balanced approach to
capital allocation –maintaining our investment grade balance sheet
and returning value to our shareholders all while investing in the
business for the long-term,” said Kenny Cheung, Sysco
executive vice president and chief financial officer. “These
factors, combined with our actions to drive performance in the core
of our business, will further position Sysco to deliver compelling
financial results.”
Sysco also used its Investor Day to discuss how it plans to
accelerate independent market share growth through Total Team
Selling, which brings specialists and sales teams from Broadline
and Specialty businesses together. “Our teams are collaborating,
learning about each other’s capabilities and offering
customer-focused solutions to win share,” said Hourican. He
continued, “We’re also leveraging our global footprint to fuel
local growth internationally. Our efforts include scaling
merchandising strategies, including deeper penetration of Sysco
Brand products, as well as customer-focused programs, like Sysco
Your Way, which provide customers the flexibility they need to
grow.”
The company also announced at the event the launch of Sysco
Marketplace, a new offering that enables third-party suppliers to
sell products on Sysco’s digital shopping platform, Shop, and ship
products directly to Sysco customers.
“Through Marketplace, we’re able to streamline the shopping
experience with a one-stop-shop solution that gives our customers
access to over 15,000 niche products such as grocery, canned, and
dry categories to help enhance their menus,” says Neil Russell,
Sysco Chief Administrative Officer. “Marketplace complements our
Broadline and Specialty offerings to fully serve our customers’
needs and enables us to support smaller suppliers so we can use our
scale for good.”
Investor Day Webcast Replay
An on-demand replay of the event will be
available at investors.sysco.com. An accompanying investor
presentation is also available on the Events & Presentations
page on the Sysco investor relations website.
To become a customer or to learn more about how
Sysco can support the growth of your business, visit sysco.com.
Forward Looking Statements
Statements made in this news release that look forward in
time or that express management’s beliefs, expectations or hopes
are forward-looking statements under the Private Securities
Litigation Reform Act of 1995. 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 that may cause actual results to differ
materially from current expectations. These statements include
statements concerning: our expectations regarding future
improvements in productivity; our belief that improvements in our
organizational capabilities will deliver compelling outcomes in
future periods; our expectations regarding improvements in
international volume; our expectations that our transformational
agenda will drive long-term growth; our expectations regarding the
continuation of an inflationary environment; our expectations
regarding improvements in the efficiency of our supply chain; our
expectations regarding the impact of our Recipe for Growth strategy
and the pace of progress in implementing the initiatives under that
strategy; our expectations regarding Sysco’s ability to outperform
the market in future periods; our expectations that our strategic
priorities will enable us to grow faster than the market; our
expectations regarding our efforts to reduce overtime rates and the
incremental investments in hiring; our expectations regarding the
expansion of our Sysco Driver Academy and our belief that the
academy will enable us to provide upward career path mobility for
our warehouse colleagues and improve colleague retention; our
expectations regarding the benefits of the six-day delivery and
last mile distribution models; our plans to improve the
capabilities of our sales team; our plans to refine our engineering
labor standards; our expectations regarding the impact of our
growth initiatives and their ability to enable Sysco to
consistently outperform the market; our expectations to exceed our
growth target by the end of fiscal 2024; our ability to deliver
against our strategic priorities; economic trends in the United
States and abroad; our belief that there is further opportunity for
profit in the future; our future growth, including growth in sales
and earnings per share; the pace of implementation of our business
transformation initiatives; our expectations regarding our balanced
approach to capital allocation and rewarding our shareholders; our
plans to improve colleague retention, training and productivity;
our belief that our Recipe for Growth transformation is creating
capabilities that will help us profitably grow for the long term;
our expectations regarding our long-term financial outlook; our
expectations of the effects labor harmony will have on sales and
case volume, as well as mitigation expenses; our expectations for
customer acquisition in the local/street space; our expectations
regarding the effectiveness of our Global Support Center expense
control measures; and our expectations regarding the growth and
resilience of our food away from home market.
It is important to note that actual results could differ
materially from those projected in such forward-looking statements
based on numerous factors, including those outside of Sysco’s
control. For more information concerning factors that could cause
actual results to differ from those expressed or forecasted, see
our Annual Report on Form 10-K for the year ended July 1, 2023, as
filed with the SEC, and our subsequent filings with the SEC. We do
not undertake to update our forward-looking statements, except as
required by applicable law.
About Sysco
Sysco is the global leader in selling, marketing and
distributing food products to restaurants, healthcare and
educational facilities, lodging establishments and other customers
who prepare meals away from home. Its family of products also
includes equipment and supplies for the foodservice and hospitality
industries. With more than 74,000 colleagues, the company operates
334 distribution facilities worldwide and serves approximately
725,000 customer locations. For fiscal year 2023 that
ended July 1, 2023, the company generated sales of more
than $76 billion. Information about our Sustainability
program, including Sysco’s 2023 Sustainability Report and 2023
Diversity, Equity & Inclusion Report, can be found
at www.sysco.com.
For more information, visit www.sysco.com or connect
with Sysco on Facebook at www.facebook.com/SyscoFoods. For
important news and information regarding Sysco, visit the Investor
Relations section of the company’s Internet home page
at investors.sysco.com, which Sysco plans to use as a primary
channel for publishing key information to its investors, some of
which may contain material and previously non-public information.
In addition, investors should continue to review our news releases
and filings with the SEC. It is possible that the information
we disclose through any of these channels of distribution could be
deemed to be material information.
For more information contact:
Investor Contact |
Media Contact |
Kevin Kim |
Shannon Mutschler |
Kevin.Kim@sysco.com |
Shannon.Mutschler@sysco.com |
281-584-1219 |
281-584-4059 |
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