Stephen Yacktman, Portfolio Manager at Yacktman Asset Management, says SYSCO Corporation (SYY) follows his principle of what makes a good business, and will increase its dominance in the food distribution industry when it combines with competitor US Foods.
“Sysco Corporation is the leading distributor of food products for restaurants, health care and educational facilities,” Yacktman said. “Sysco is combining with US Foods, one of its only remaining major competitors. And together, they will be the largest, by far, of any restaurant supplier.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Even though SYSCO experienced a pullback from the recession, it continues to have the prominent position in the industry, Yacktman says, which will only strengthen once the merger completes.
“During a recession, households struggle and people cut back on eating out. This pullback flowed through to Sysco, which saw margins compress and weak revenue growth. However, the company continues to have a dominant position in the industry, a position which will only increase if the proposed merger with US Foods is completed. It really follows our principles of what makes up a good business. We feel the management is fairly solid, and it sells at an attractive valuation,” Yacktman said.
SYSCO Corporation (NYSE:SYY) Consistently Grows 5% Per Year
February 02, 2017
3D Systems Corporation (DDD) Still Holds Dominant Share in Growing 3D Printing Market
April 27, 2015
Tyson Foods, Inc. (TSN) Developing Integrated Production in China to Overcome Food Safety Concerns
April 30, 2014
Food Inflation in 2007
February 13, 2008
Food Pick: Chiquita
February 15, 2008
