Sysco Corp is about to release earnings. Ponder the Bear Case Scenario and see if the long position is still justified.
Sysco is subjecting itself to a major re-organization. This has been painful and problematic and un-ending. As this continues the changes will continue to distract management and not create shareholder wealth.
60% of sales are driven by the restaurant sector. Restaurants are not expected to surge in volume and therefore will not be profit drivers for Sysco.
Energy prices are volatile and affect distribution costs and packaging. Sysco may need to become smarter are some basic housekeeping issues.
George Gutowski writes from a caveat emptor perspective.