Sysco cuts sales outlook as cyclospora outbreak hits restaurant demand
Sysco reported weaker-than-expected quarterly sales as a cyclospora outbreak hurt restaurant demand, and its shares fell nearly 8%. Source: Reuters.
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what happened
Food distributor Sysco, based in Houston, said on Tuesday that a cyclosporiasis outbreak worsened already weak restaurant demand in August. The company had halted sales and distribution of Taylor Farms iceberg lettuce from Mexico in July, after the US outbreak.
First-quarter net sales rose 2.8% to $21.74 billion, but fell short of the $22.02 billion analysts expected, according to LSEG data. Adjusted earnings of $1.19 per share were in line with estimates. CEO Kevin Hourican said the 2.7% volume growth already included the outbreak's roughly six-week impact.
The company now expects annual sales growth at the lower end of its 6% to 7% outlook range. It also said rising fuel costs and elevated freight expenses are pushing up supply chain and food input costs.
why it matters
The report is a gauge of US restaurant demand, and the combination of softer traffic and higher fuel and freight costs could weigh on food distributors' margins and earnings.
tags
instruments
sources
- Food distributor Sysco says cyclosporiasis outbreak hit Q1 sales — Reuters, 3 November 2026 at 17:57 UTC
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