Sysco Corporation (NYSE:SYY)

My school uses their food.

With food scares in the distribution chain occurring more often, expect the FDA of this administration or the next to start clamping down hard on this sector. Tied in with this stock's current depressed state, it looks to be on the wrong side of performance.

My "liittle" (he's 6" taller) brother is an executive chef at a very classy restaurant. He loves the work, he loves the creativity, and he loves that he isn't dependent on sysco. Every other restaurant he's worked at, every chain, pretty much everywhere that gives people food for money....all use sysco.

At a time (the late 1990s) when tech stocks were on top of the world, and it seemed like everyone had heard of the big companies, I worked for cisco. When people asked me who I worked for, and I said 'cisco', most of them would follow up the original question with 'Oh, do you drive truck for them?". The sysco trucks are ubiquitious.

When people are in good times, they like to go out and eat.

When people are in bad times, they don't want to cook - so they order out, or go out to eat.

Sysco benefits.

Sysco Corporation through its subsidiaries distributes and markets food and related products in the United States and Canada. It distributes frozen foods, such as meats, fully prepared entrees, fruits, vegetables, desserts, canned and dry foods, imported specialties and fresh produce. The major customers of Sysco Products are restaurants, hospitals, schools, hotels, and industrial caterers, as well as regional and national hamburger, sandwich, pizza, chicken, steak, and other chain operations.

The restaurant industry, which is estimated to be $476 billion in 2005, is fast becoming more influential and important in the US economy. Americans are now becoming more convenience oriented and almost half of every dollar on food is spent on food away from home.

In September 2006, the company completed the acquisition of foodservice division of Bunn Capitol. This division of Bunn Capitol is one of the premier food service distribution firms in the central Illinois region. The acquisition will strengthen the company’s presence in Illinois and St Louis foodservice markets. The foodservice division distributes more than 8,000 fresh, frozen and packaged goods to restaurants, healthcare businesses, clubs and other customer concepts throughout Illinois.

The company plans to construct a foodservice facility in Longview, Texas, which is likely to be operational in early 2008. The east Texas market currently offers excellent growth opportunity and this unit will serve restaurants, hospitals, schools, colleges, retirement homes, hotels and other foodservice operations in that region and portions of Arkansas and Louisiana. Further this complex will also include 290,000 sq feet of refrigerated, frozen and dry warehouse space and administrative offices. With a sleek of initiatives, the stock is grabbing investor’s attention.

repick

Fantastic company, bascially a monopoly. Great ROE and huge stock buybacks which is the best use of a companies earnings. Stock is down over 6% for no reason, Mr.Market is offering you up a great pitch, knoch it out.

Slow Growth

Don't forget dividends

The food one NOT the tech one.

With Ahold divesting US Foodservice, this can do nothing but help Sysco. The confusion of the change in ownership and leadership will slow growth and create more obstacles to growth.

Don't sell Sysco short, they could be in the hunt for US Foodservice and take over #2 in the industry. There would be lots of real estate to sell, but the corporate staff is in place.

I've owned it for 19 years and I worked for them for 13 years. They are tops at what they do and I've enjoyed both the splits and dividends and still do today. It has outperformed anything else I own investment wise. I have a beautiful home on the lake to prove it. Its a no brainer. I will never sell and let the dividends buy me more shares.

MF said so.

Good dividend and strong market share.

flat for awhile and recently rallied nicely. Hot sector next year.

Largest supplier to an ever growing industry. Able to benefit from technology and logistic efficiencies.

SYY has performed reasonably well in a difficult environment. The company generates significant cash from operations and continues to invest in its infrastructure, which should generate continuing cost savings in the long term. This year, the company has generated solid top line growth, while EPS have been somewhat pressured by higher oil prices. Given the recent decline in oil prices as well as continuing execution by management, I believe investors will recognize the strength of SYY's business. Thus, while I like the stock for the long-term, I believe there is an opportunity for near-term (within 1 year) appreciation.

A leader in the restaurant supply business, is integrating aquisitions successfully

Sysco (SYY) is a major food distributor, they have had consistent growth for decades, and as long as we continue to eat, they will do well.

Delivers all those little things restaurants, colleges, and hospitals need to keep running, like napkins, plates, cups, etc. Even handles food. Has a very long and successful history of growth by acquisition. Slowly acquiring and consolidating the fragmented industry. However, Berkeshire bought a major competitor, US Foodservices, which says something for the competition. Still, this one has been a long term winner and will likely remain so.