Back within the fall of 2007, I stated a number of bullish issues about wholesale meals distributor
Back within the fall of 2007, I stated a number of bullish issues about wholesale meals distributor Sysco (NYSE: SYY).
I began with the fundamentals, telling readers how the corporate used the nation’s largest personal trucking fleet to hand-deliver recent meat, fruit and greens to prospects like faculty cafeterias and quick meals retailers.
On the time, it had tight relationships with 400,000 shoppers that hauled in $34 billion in annual gross sales. That made the agency bigger than its 4 greatest opponents mixed. And that is positively an business the place measurement issues.
Highly effective economies of scale and an environment friendly distribution community had allowed Sysco to undercut rivals — making it the Walmart (NYSE: WMT) of meals distribution.
For sure, these low costs had been attracting prospects. Actually, natural gross sales progress was operating double the business common and the agency nonetheless had the widest working margins within the enterprise. Earnings had been climbing at a wholesome +17% tempo for a number of years. Trying…