Key facts
- Sysco's first-quarter net sales increased 4.4% to $20.48 billion, exceeding analyst estimates of $20.46 billion.
- The company reported first-quarter earnings per share of $1.09, missing the consensus estimate of $1.13.
- Gross profit margin declined by 27 basis points to 18.3% in the first quarter.
- Fourth-quarter sales rose 4.7% to $22.12 billion, surpassing the estimated 3.8% increase.
- Sysco reiterated its 2025 sales growth forecast of 4% to 5% and adjusted EPS growth of 6% to 7%.
Food distributor Sysco Corp reported first-quarter net sales of $20.48 billion, exceeding Wall Street estimates, driven by steady demand for its specialty seafood and fresh-cut meat products. Despite the sales beat, the company missed profit expectations, earning $1.09 per share against an estimated $1.13. Sysco's gross profit margin also fell by 27 basis points to 18.3%.
In its fourth quarter, Sysco's sales rose 4.7% to approximately $22.12 billion, surpassing analysts' expectations of a 3.8% increase. The company supplies a broad range of food products to institutions and restaurants, and has been offering low-cost menu alternatives to help clients attract customers amid broader industry struggles with weaker traffic and higher prices.
Sysco reiterated its full-year 2025 forecasts, projecting sales growth between 4% and 5% and adjusted earnings per share growth of 6% to 7%. CEO Kevin Hourican expressed confidence in accelerating local volume growth and margins in the second half of the year.