Sysco Looking to Make Deals

Thanks to yesterday’s huge move from Sysco ($SYY), our Buy List gained 1.04% yesterday compared with 0.45% for the S&P 500. For the year, the Buy List is up 11.67% to the S&P 500’s 7.05%.

Sysco got as high as $32.76 yesterday but closed at $31.57. I was surprised by the magnitude of yesterday’s move, but sometimes the best stock to buy is the one you already own. Sysco also said that they’re looking to make acquisitions going forward.

“We are also committed to looking for acquisition opportunities both in and beyond the core,” DeLaney said on a conference call today. “We are doing this mainly through building a pipeline of high-quality potential domestic acquisitions and also by looking at adjacencies and new geographies.”

Sysco, which controls almost one-fifth of the restaurant- distribution industry’s more than $200 billion in sales, may look to Western Europe for growth as people there eat out more, said Jack Russo, an analyst at Edward Jones. Sysco has completed at least seven acquisitions in the past five years, the latest being the purchase of Nebraskan distributor Lincoln Poultry & Egg Co. last year.

Our Buy List continues to do well today. Both Jos. A. Bank ($JOSB) and Wright Express ($WXS) are at new 52-week highs.

Posted by on May 10th, 2011 at 10:54 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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