Sysco Earnings: Top-Line Growth Cools Amid Slowing Traffic; Shares Fairly Valued

Wide-moat Sysco delivered decent (March-ended) third-quarter fiscal 2024 results amid a challenging macroenvironmental backdrop. Sales increased nearly 3% year over year, with an adjusted operating margin of 4.1%, up about 22 basis points over the prior year. Amid slower restaurant foot traffic, the company trimmed its fiscal 2024 sales guidance to about $79 billion, down from $80 billion. However, its focus on cost management led the firm to maintain adjusted earnings per share guidance of $4.20-$4.40. This outlook compares with our earlier fiscal 2024 forecast of $79.8 billion and $4.31, respectively.