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Sysco Buys Doerle Food Services to Widen Distribution in US
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Sysco Corporation (SYY - Free Report) has acquired Doerle Food Services — a Louisiana-based food service distributor — to widen its US distribution network. This buyout is expected to capitalize on Sysco’s growth opportunities, thus strengthening its core business and maximizing customers’ value. However, the financial terms of the deal remained under covers.
Doerle Food Services, which generates nearly $250 million as yearly revenues from foodservice distribution, is a family-owned business serving parts of Oklahoma, Texas, Arkansas, Louisiana, Mississippi and Alabama. Also, this distributor has to its credit a solid reputation of serving customers with the top-class quality products. Notably, Doerle Food Services business’ executive management team will be retained by Sysco. Furthermore, Doerle Energy & Marine will not form part of the deal.
Meanwhile, Sysco has been carrying out various acquisitions over the years to grow its distribution network and customer base, and boost long-term growth. These acquisitions are expected to boost the company’s revenues as well as enhance its presence in international markets. In the long term, management expects to achieve 0.5–1% sales growth through acquisitions.
Recently, Sysco also inked a deal to buy Kent Foods (a leading foodservice provider in the U.K.), which is expected to bolster its U.K. and European business bandwagon. In an earlier development, the company acquired Hawaii-based HFM FoodService to add it to its U.S. Foodservice segment. Again, Sysco bought the remaining 50% stake in Mayca Distribuidores of Costa Rica, which should enhance its international business.
Stock Performance
In the last six months, shares of this Zacks Rank #2 (Buy) company have rallied 17.3% against the industry’s decline of 2.3%.
This outperformance can be attributed to Sysco’s solid brand portfolio, digital initiatives and focus on buyouts. Also, the company is on track with its cost-savings plan and key goals for 2020.
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McCormick & Company, Incorporated (MKC - Free Report) has a long-term earnings growth rate of 9.4% and a Zacks Rank #2. It has delivered an average positive earnings surprise of 4.3% in the last four quarters.
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Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
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Sysco Buys Doerle Food Services to Widen Distribution in US
Sysco Corporation (SYY - Free Report) has acquired Doerle Food Services — a Louisiana-based food service distributor — to widen its US distribution network. This buyout is expected to capitalize on Sysco’s growth opportunities, thus strengthening its core business and maximizing customers’ value. However, the financial terms of the deal remained under covers.
Doerle Food Services, which generates nearly $250 million as yearly revenues from foodservice distribution, is a family-owned business serving parts of Oklahoma, Texas, Arkansas, Louisiana, Mississippi and Alabama. Also, this distributor has to its credit a solid reputation of serving customers with the top-class quality products. Notably, Doerle Food Services business’ executive management team will be retained by Sysco. Furthermore, Doerle Energy & Marine will not form part of the deal.
Meanwhile, Sysco has been carrying out various acquisitions over the years to grow its distribution network and customer base, and boost long-term growth. These acquisitions are expected to boost the company’s revenues as well as enhance its presence in international markets. In the long term, management expects to achieve 0.5–1% sales growth through acquisitions.
Recently, Sysco also inked a deal to buy Kent Foods (a leading foodservice provider in the U.K.), which is expected to bolster its U.K. and European business bandwagon. In an earlier development, the company acquired Hawaii-based HFM FoodService to add it to its U.S. Foodservice segment. Again, Sysco bought the remaining 50% stake in Mayca Distribuidores of Costa Rica, which should enhance its international business.
Stock Performance
In the last six months, shares of this Zacks Rank #2 (Buy) company have rallied 17.3% against the industry’s decline of 2.3%.
This outperformance can be attributed to Sysco’s solid brand portfolio, digital initiatives and focus on buyouts. Also, the company is on track with its cost-savings plan and key goals for 2020.
Looking For Solid Consumer Staples Stocks? Check These
The Boston Beer Company, Inc. (SAM - Free Report) with a long-term earnings growth rate of 5% has pulled off an average positive earnings surprise of 63.4% in the last four quarters. Also, it flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
McCormick & Company, Incorporated (MKC - Free Report) has a long-term earnings growth rate of 9.4% and a Zacks Rank #2. It has delivered an average positive earnings surprise of 4.3% in the last four quarters.
Church & Dwight Co., Inc. (CHD - Free Report) , a Zacks Rank #2 stock, has a long-term earnings growth rate of 10.4%. Further, the company’s earnings have surpassed the Zacks Consensus Estimate with an average beat of 6.6% in the trailing four quarters.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>