Sysco Lowers Sales Forecast Amid Weak Restaurant Traffic

First-quarter revenue reached $21.7 billion, missing Wall Street estimates of $22.02 billion. While the company's international operations saw a 5.1% increase in sales, the U.S. foodservice division grew by a more modest 2.4%. These results prompted a 4.5% slide in share price, bringing the stock down to $78.05 during premarket trading.

Despite the revenue shortfall, Sysco maintained its adjusted earnings per share growth guidance of 9% to 11%. Fiscal first-quarter profit rose to $526 million, or $1.09 per share, up from $476 million in the same period last year. Chief Financial Officer Brandon Sewell noted that the firm is leveraging artificial intelligence to streamline operations and mitigate the impact of a volatile market, focusing on cost-cutting measures to stabilize performance.