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Sysco (SYY) Fuels Recipe for Growth, Boosts Digital Platform
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Sysco Corporation (SYY - Free Report) is constantly focused on fueling its Recipe for Growth strategy. The company unveiled that its e-commerce platform, Sysco Shop, is now available in Spanish. Digital growth is a significant part of the company’s Recipe for Growth strategy, which is focused on enriching and modernizing customers’ experiences.
Sysco has made other upgrades to its digital platform, including simpler navigation, prudent product recommendations, enhanced search quality results, delivery tracking, personalized offers, and improved photos and product descriptions.
The abovementioned move highlights Sysco’s commitment to Spanish customers as well as its Recipe for Growth program. A day prior to this release, Sysco unveiled that its specialty produce company, FreshPoint, would take over BIX Produce, which again goes in tandem with the Recipe for Growth strategy.
Image Source: Zacks Investment Research
Recipe for Growth in Full Swing
Sysco has been focused on its Recipe for Growth, which is strengthening the company’s capacities across sales and the supply chain. The program involves five strategic priorities aimed at enabling SYY to grow 1.5 times faster than the market by FY24 end. The five 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.
Further, the company is focused on improving the supply chain to cater to customers efficiently and consistently with better delivery and omnichannel inventory management. Next, Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales.
The company also targets having team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments, alongside sponsoring investments via cost-saving initiatives. Sysco expects to witness continued gains from the Recipe for Growth plan and remains on track to grow more than 1.35 times the market in fiscal 2023.
Wrapping Up
Product cost inflation in the U.S. Foodservice unit has been hurting SYY for a while now. In the third quarter of fiscal 2023, this Zacks Rank #4 (Sell) company witnessed product cost inflation of 4.9%, which was measured by estimated changes in product costs, mainly in the dairy and frozen categories. Apart from this, adjusted operating expenses rose 9.3%. Sysco expects low-single-digit inflation in the fourth quarter.
Shares of the company have dropped 5.2% in the past three months against the industry’s growth of 1.1%. However, Sysco remains well-positioned for long-term growth with its Recipe for Growth strategy and diversified business.
Solid Staple Stocks
Some better-ranked consumer staple stocks are Nomad Foods (NOMD - Free Report) , McCormick & Company, Incorporated (MKC - Free Report) and Lamb Weston (LW - Free Report) .
Nomad Foods, a frozen food product company, currently sports a Zacks Rank #1 (Strong Buy). NOMD has a trailing four-quarter earnings surprise of 8.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nomad Foods’ current fiscal-year sales suggests growth of around 8% from the year-ago reported figures.
McCormick, which operates as a manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank #2 (Buy). MKC has a trailing four-quarter negative earnings surprise of 3.7%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings suggests growth of 6.4% and 3.6%, respectively, from the year-ago reported numbers.
Lamb Weston, which is a frozen potato product company, currently carries a Zacks Rank #2. LW has a trailing four-quarter earnings surprise of 47.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and earnings suggests growth of 30% and 117.3%, respectively, from the year-ago reported numbers.
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Sysco (SYY) Fuels Recipe for Growth, Boosts Digital Platform
Sysco Corporation (SYY - Free Report) is constantly focused on fueling its Recipe for Growth strategy. The company unveiled that its e-commerce platform, Sysco Shop, is now available in Spanish. Digital growth is a significant part of the company’s Recipe for Growth strategy, which is focused on enriching and modernizing customers’ experiences.
Sysco has made other upgrades to its digital platform, including simpler navigation, prudent product recommendations, enhanced search quality results, delivery tracking, personalized offers, and improved photos and product descriptions.
The abovementioned move highlights Sysco’s commitment to Spanish customers as well as its Recipe for Growth program. A day prior to this release, Sysco unveiled that its specialty produce company, FreshPoint, would take over BIX Produce, which again goes in tandem with the Recipe for Growth strategy.
Image Source: Zacks Investment Research
Recipe for Growth in Full Swing
Sysco has been focused on its Recipe for Growth, which is strengthening the company’s capacities across sales and the supply chain. The program involves five strategic priorities aimed at enabling SYY to grow 1.5 times faster than the market by FY24 end. The five 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.
Further, the company is focused on improving the supply chain to cater to customers efficiently and consistently with better delivery and omnichannel inventory management. Next, Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales.
The company also targets having team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments, alongside sponsoring investments via cost-saving initiatives. Sysco expects to witness continued gains from the Recipe for Growth plan and remains on track to grow more than 1.35 times the market in fiscal 2023.
Wrapping Up
Product cost inflation in the U.S. Foodservice unit has been hurting SYY for a while now. In the third quarter of fiscal 2023, this Zacks Rank #4 (Sell) company witnessed product cost inflation of 4.9%, which was measured by estimated changes in product costs, mainly in the dairy and frozen categories. Apart from this, adjusted operating expenses rose 9.3%. Sysco expects low-single-digit inflation in the fourth quarter.
Shares of the company have dropped 5.2% in the past three months against the industry’s growth of 1.1%. However, Sysco remains well-positioned for long-term growth with its Recipe for Growth strategy and diversified business.
Solid Staple Stocks
Some better-ranked consumer staple stocks are Nomad Foods (NOMD - Free Report) , McCormick & Company, Incorporated (MKC - Free Report) and Lamb Weston (LW - Free Report) .
Nomad Foods, a frozen food product company, currently sports a Zacks Rank #1 (Strong Buy). NOMD has a trailing four-quarter earnings surprise of 8.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nomad Foods’ current fiscal-year sales suggests growth of around 8% from the year-ago reported figures.
McCormick, which operates as a manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank #2 (Buy). MKC has a trailing four-quarter negative earnings surprise of 3.7%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings suggests growth of 6.4% and 3.6%, respectively, from the year-ago reported numbers.
Lamb Weston, which is a frozen potato product company, currently carries a Zacks Rank #2. LW has a trailing four-quarter earnings surprise of 47.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and earnings suggests growth of 30% and 117.3%, respectively, from the year-ago reported numbers.