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Sysco's (SYY) Cutting Edge Solutions Products to Fuel Growth

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Sysco Corporation SYY has been committed toward enriching the experience of its customers. Progressing along these lines, the marketer and distributor of several food and related products made the countrywide launch of eight innovative concepts through its Cutting Edge Solutions platform, solely for customers.

These unique products will offer foodservice operators trendy menu choices, including plant-based ingredients, alongside providing innovative to-go solutions. We note that Sysco’s Cutting Edge Solutions platform enables its customers to keep pace with the changing trends and stand apart in the foodservice space by providing innovative offerings for dine-in; takeout or delivery, alongside offering labor-saving solutions.

Management stated that the company’s Cutting Edge Solutions products for fall 2021 are available now. These include innovative and take-out friendly options like Sysco Classic Tamper Evident Fry Containers and SAVRpak; comfort foods such as Sysco’s Imperial Mashup Desserts; on-demand plant-based choices like Sysco Simply Plant-Based Sprouted Hamburger Buns, Sysco’s Simply Plant-Based Protein and Sysco Simply Plant-Based Cauliflower Tortillas; environment-friendly and sustainable products including Sysco’s Earth Plus 100% Recycled Hot Cups; as well as the Sysco’s Classic Sous-Vide Sirloin Steak menu option, which will help operators save labor costs.

Zacks Investment Research
Zacks Investment Research


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Sysco Focused on Growth

Sysco has been focused on transforming into a more growth-oriented, customer-focused and innovative company. To this end, the company unveiled its Recipe for Growth in May 2021, which involves five strategic priorities aimed at enabling Sysco to grow 1.5 times faster than the market by the end of fiscal 2024. Sysco is progressing well with its Recipe for Growth and is on track to generate cost curtailments of $750 million for the period from fiscal 2021 to fiscal 2024. Notably, Sysco exceeded its cost-saving target of $350 million in fiscal 2021.

The five above-mentioned strategic pillars include enhancing customers’ experience via digital tools. In this regard, the company’s Sysco Shop platform and the new pricing software are working well. Moving on, the company is focused on improving the supply chain to cater to customers efficiently and consistently, on the back of better delivery and omnichannel inventory management. Next, Sysco aims at providing customer-oriented merchandising and marketing solutions to boost sales. The company also targets having team-based selling, with emphasis on the important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments, alongside sponsoring investments via its cost-saving initiatives.

Such growth efforts along with gains from acquisitions have been driving the company, which raised its earnings per share guidance for fiscal 2022, when it reported the fourth-quarter fiscal 2021 results. Robust fourth-quarter sales along with stringent management of inflation and costs encouraged management to raise its earnings view. Management now envisions earnings per share to come in the range of $3.33-$3.53 in fiscal 2022, up from the earlier projection of $3.23-$3.43.

Clearly, Sysco’s constant growth efforts, such as the latest launch under its Cutting Edge Solutions platform, are likely to keep the company well positioned. The Zacks Rank #2 (Buy) stock has rallied 9.4% so far this year, outpacing the industry’s rise of 2.2%.

3 Other Delicious Picks

The Zacks #1 (Strong Buy) Ranked J&J Snack Foods’ JJSF bottom line has outpaced the Zacks Consensus Estimate by a wide margin in the preceding four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Darling Ingredients DAR, also sporting a Zacks Rank #1, has a trailing four-quarter earnings surprise of 39.1%, on average.

Medifast, Inc. MED, currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of around 16%, on average.


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