By Connor Hart
Sysco reported a lower profit in its fiscal third quarter, during which the food-supplies giant grew its sales and continued work toward its acquisition of Jetro Restaurant Depot.
The biggest U.S. food distributor to restaurants, hospitals and schools on Tuesday posted a profit of $340 million, or 71 cents a share, for its three months ended March 28, compared with $401 million, or 82 cents a share, in last year's comparable quarter.
Adjusted earnings, which strip out exceptional costs and one-off items, were 94 cents a share, in line with analyst expectations, according to FactSet.
Sales climbed 4.7% to $20.52 billion, compared with Wall Street models for $20.56 billion.
"We are encouraged by the progress, results and momentum across each of our business segments," Chief Executive Kevin Hourican said. He added that Sysco's roughly $29 billion deal to acquire Jetro Restaurant Depot positions the company "to grow profitably, deepen our relationships with more local customers, and create incremental value for our shareholders."
The transaction remains subject to regulatory review and is expected to close by Sysco's third quarter of fiscal 2027.
During the recent quarter, product cost inflation was 2.8%, primarily driven by the dairy, meat and seafood categories. Positive volumes, strategic sourcing efficiencies and effective management helped offset the higher costs.
Looking ahead, the company backed its outlook for adjusted earnings at the high end of its previously projected range of $4.50 to $4.60 a share. Analysts are looking for adjusted earnings of $4.59 a share.
Shares fell 1.9%, to $73.90, in premarket trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 28, 2026 08:31 ET (12:31 GMT)
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