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NEW YORK - Sysco Corporation (NYSE:SYY) shares fell 4.8% in premarket trading on Tuesday after the food distributor reported fiscal third quarter earnings and revenue that missed analyst estimates.
The company posted adjusted earnings per share of $0.96 for the quarter ended March 29, 2025, falling short of the $1.03 expected by analysts. Revenue came in at $19.6 billion, below the $20.12 billion consensus estimate.
Sysco said its results were negatively impacted by multiple factors including California wildfires, adverse weather, and weakening consumer confidence, which led to lower foot traffic at restaurants.
"Sysco’s Q3 results were negatively impacted by multiple factors: California wildfires, significantly adverse weather, and more recently, weakening consumer confidence," said Kevin Hourican, Sysco’s Chair and CEO. "Each of these variables had a negative impact on foot traffic to restaurants which led the quarter, in total, to fall short of our internal expectations."
For the full fiscal year 2025, Sysco now expects sales growth of approximately 3% and adjusted EPS growth of at least 1%. The company had previously forecast higher growth rates.
U.S. Foodservice volume decreased 2.0% in the quarter, while gross profit fell 0.8% to $3.6 billion. Operating income declined 5.7% to $681 million.
Despite the challenging quarter, Sysco said it remains focused on growth initiatives and cost savings measures. The company expects to deliver approximately $100 million in annualized cost savings that will carry into the next fiscal year.
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