Sysco Corp. (NYSE: SYY), Houston, TX, reported sales for the fiscal first quarter ended September 28 of $11.7 billion, an increase of 5.7 percent compared to the same period a year ago. Profit decreased 0.4 percent to $285.6 million.
Food cost inflation was 2.1 percent during the quarter as measured by the estimated change in Sysco's product costs, driven mainly by inflation in the poultry category. Sales from acquisitions (within the last 12 months) increased sales by 2.3 percent.
Bill DeLaney, president and CEO, said the market environment remains very challenging for many of its customers, especially for those in the casual dining restaurant segment. "While overall sales growth compared to the prior year was solid, gross profit growth was modest," he said.