Sysco Corporation (NYSE:SYY) shares gain ground Monday on announcing third-quarter results.
Operating income was $2.3 billion, an increase of $132.3 million, or 6.1%, compared to the same period last year. Adjusted operating income was $2.3 billion, an increase of $133.5 million, or 6.1%, compared to the same period last year.
In U.S. Foodservice Operations, gross profit increased 5.1% to $2.0 billion, and gross margin increased 18 basis points to 19.9%, compared to the same period last year. Food cost inflation was 2.3% in U.S. Broadline, as measured by the estimated change in Sysco’s product costs, primarily in the frozen potato, poultry, and meat categories.
Operating income was $765.4 million, an increase of $68.8 million, or 9.9%, compared to the same period last year. Adjusted operating income was $768.4 million, an increase of $70.0 million, or 10.0%, compared to the same period last year.
Said CEO Tom Bené, "Our results for the quarter show strong improved year-over-year growth and are in line with our expectations. Our continued focus on profitable growth and supporting our customers at a high level, balanced with managing expenses well, allowed us to deliver solid operating income growth this quarter."
Sysco claims to be the global leader in selling, marketing and distributing food products to restaurants, health-care and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the food service and hospitality industries.
Shares took on 65 cents to $71.17
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