Sysco Corporation (NYSE:SYY) is included among the 16 Best Dividend Stocks with Rising Payouts.
On February 13, Guggenheim raised its price recommendation on Sysco Corporation (NYSE:SYY) to $95 from $91. It reiterated a Buy rating on the shares. The firm did not change its earnings estimates for 2026 and 2027. It said that Sysco’s “nearly unprecedented” 22% run relative to the S&P 500 so far this year has made near-term progress in local case growth more important to watch.
Earlier, on January 27, Sysco raised its full-year profit outlook after reporting second-quarter results that came in ahead of expectations. Strong demand for steaks, fillets, and frozen food helped drive the company’s performance, especially in its US business. The improvement was tied to steady restaurant traffic. More people continued dining out, and demand for foodservice products remained healthy. Higher-income consumers, in particular, kept spending despite ongoing uncertainty tied to trade policies. At the same time, lower-income households showed more caution, which created a mixed demand environment.
Sysco also focused on controlling costs. The company reduced shipping expenses, renegotiated supplier agreements, and tightened warehouse and inventory spending. These steps helped offset higher input costs and supported overall profitability. Its international business remained a bright spot. Sales in that segment increased 7.3%, and gross margin improved by 42 basis points to 20.8% in the quarter ended December 27. This showed continued strength outside the US market.
Sysco Corporation (NYSE:SYY) sells and distributes food products to restaurants, hospitals, schools, hotels, and other businesses that prepare meals away from home. The company also provides a range of non-food items to support its customers’ operations.
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