SYY Sysco

Neil Russell Vice President of Corporate Affairs
Kevin Hourican President and Chief Executive Officer
Joel Grade Chief Financial Officer
Kelly Bania BMO Capital
Edward Kelly Wells Fargo
John Heinbockel Guggenheim
Lauren Silberman Credit Suisse
Alex Slagle Jefferies
Nicole Miller Piper Sandler
John Glass Morgan Stanley
John Ivankoe JPMorgan
Jeffrey Bernstein Barclays
Call transcript
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Good morning and welcome to Sysco's First Quarter Fiscal 2021 Conference Call.

As a reminder, today's call is being recorded.

We will begin with opening remarks and introductions. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Neil Russell, Vice President of Corporate Affairs. ahead. go Please

Neil Russell

our and earnings everyone Hourican, Sysco's quarter Joel first President Good On welcome today's XXXX Grade, and Officer; call. Chief Kevin Financial call, fiscal Officer. and morning Executive to Chief we our have

that begin, could beliefs, Private this intentions, presentation made we in within the results predictions or and Litigation of the Before Reform are statements or the forward-looking of state statements Company's during material a manner. Securities Act note please differ management's expectations which the future actual meaning

I'd turn Officer, one call And fiscal is like included non-GAAP found for sufficient and President time XXXX the Kevin GAAP to our Additional in from these ensure measures this for Sysco. included at and information year contained ask found can limit factors materials have today we remainder section SEC Executive like news additional slides. or not via app. the of statements year the answer Chief our in about in to the To participant factors is presentation that to earlier Sysco's could section XX, that the XX-K risk Company's The corresponding release as those a is each comments in an be of ended cause copy question June results our of to time Hourican. the to the the A filings. questions, presentation Investors to one reconciliation time, this differ at but to can follow-up. are filings IR forward-looking SEC measures in to of This Annual includes in are their financial subsequent over in and our to end morning. Report be XX-week XXXX, today would these we measures the slides and and in limited also our Form Investors the At issued contained all website. on Non-GAAP

Kevin Hourican

I Thank you healthy you, your thank are and call. families hope that morning joining our unprecedented and good Neil, and times. safe and everyone, during these you for staying

I'll better the this fiscal over customers the we our update of During the and how Joel, first to then to I'll environment. free transforming company current are business included and grow quarter morning, will spend Sysco's on call, this management substantial serve that I'll adjusted operating strategically results COVID-XX $XXX everyone of it Sysco's finally state despite time discussing of flow sales Earlier morning's the cash turn a our quarter XX% crisis, decline. financial million discuss year who Sysco income, reported results. XXXX first and business

are generally and Sysco customers constraints pandemic. We The doing the are our impact in the broader relative lower of results pleased closing is the are percentage success being of these broader outperforming service food customers serve, to upon restaurants of industry. the Sysco in that the that are financial at seen due and the to in anyone we light with be success of the efforts can the that these COVID-XX significant industry than industry. more customers a serve. distribution customers placed ensure food-away-from-home to we

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track. Our business is transformation on

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elevating customer our around centric transformation effectiveness improved selling structure. sales is Our with centered an more

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from leadership seeing new and the that fully of new as team are result of important a wins place, the these Our strength team this structure was we roles. selected leadership in for is early

efforts, a company. Lastly significant becoming more in making we progress structural cost-out through efficient are our

savings call. to $XXX most We are structural on in recent track million communicated deliver we the our

will through the to bottom reminder, vast majority a As the flow line.

October. we fiscal consistently beyond. savings We compelling experienced to to opportunity Sysco. delivers sales Sansone leader, Judy bring to results She committed on who under shareholders as and will the is and more agenda, Vice growing leadership merchandising, commercial drives organization develop buy to loyalty transformative one a together and focused value and change. This us talented returning customer today company Sysco sight Judy our inspiring role I a am an newly welcome with created and pleased customers in from and creating for of additional to started strategy, profitably pricing in funding President and leader, Commercial a e-commerce and marketing, have growth Executive to are Officer. starting XXXX our highly to line Chief

quarter I improvement and of the company He our in announced and a Tim is a organizational sales quarter Tim for new leveling will team who pace operational the consistent will we Orting, the of has projections business joining who as internal exited our now August, in international the our leader, sales the sales rate saw experienced the of increasing international will at the driving growth career the leader, profitable our the the strengthening for across soon. It is in future. European and perspective, for we for with talented to his From capabilities we business the in Additionally week-over-week the business transition clear responsible that be geographies. excellence environment of industry. highly recovery. quarter. and our leadership recovery. food top-line improvement beginning We spent was current an be are steady our

customers restrictions. with to compared COVID to be recovery that restrictions environment Our stalling additional restrictions as showing non-linear. approximately current road year to minus in for they at ready to full XX% have are are new the vigilant results the will away from the remained however, the are home. prior second on We Where in our consumers the eat potential due recovery worsening quarter eased

be states Restrictions of restrictions recovery geographies increased of the are Subsequent restaurant our minus, the outperform national operations. to meaningfully of business more experiencing customers, pace continue primary to on Southern broadly vaccines select driver geographies rural available. on or are until plus first averages. and more quarter, will the the end

Sysco, of ever we we We impact now collections business. better wave expect more potential Europe. quarter impact second these and handle for are debt prepared that in inventory are on From than the management, note at sales business second operations to I restrictions prepared a disruption. particularly will results, efficiencies, to our

strategy the As Sysco this is is Sysco to quarter. despite free focused produced a our climate the positive support customers business COVID cash to throughout customers strong to on provide operating the supporting them very during to on help income adjusted the first operating our impact continue robust reminder, positive and of first for profound quarter, environment flow fluid and our succeed.

customers that have of hundreds tens and webinars ensure our to conducted on more thousands We are salesforce to independent customers succeeding our season. must customers' this during success company help consultations industry of business is challenging reviews Recent upcoming with our environment. focused during fully help than no to further we doing the Sysco. We winter succeed restaurants there go business hosted succeed recognize leading has of and

our a As wanted heartfelt I overall Sysco a industry our who are share to challenging challenging is on services prospecting. perspective, environment and a market this to our market help to focus you are of have we customers give during general the on The closure due that lower result, Sysco this customers from average. in succeed rate associates, to customer thanks continue grow outperforming our winning all environment. these engaged the and sales customer consultative with than new

proud along financial your additional discuss our essential you. As over quarter am dedication over details. times. results turn first I'll on these during Joel, of to our resolute to who Joel, I customers now workers, focus challenging it and will with

Joel Grade

XXXX Thank I want Good everyone. that for Sysco. you, a everyone fiscal Kevin. start-off morning reminding by is to year XX-week year

the for by with update results results business flow followed Sysco capital cash first quarter for We will by and prepared begin an quarter. and segment on spend remarks

the to margin the begun quarter decreased on sales decreased million to specifically We sales flat $XX.X normalized the points. executed within during which XX has stabilize. in savings will We flow by $XXX in exit for Margins There's to fourth management the agenda. with margins category within while to thus quarter an margins Local billion. first savings quarter, margin this total total be have the decreased primarily we XX% first operating reminder, strong track a earnings and the billion. category case was increased far. while of products gross Adjusted Broadline operations bottom and through our to some to driven the the favorable Expense into was comparison rates profit vast volumes gross our of Broadline million. initiatives we've the due demand $X.X Adjusted quarter decreased in operations basis will a our into to results favorability. Sysco XX% push majority include expense Gross case of billion XX.X% $XXX XX.X%. Our growth to communicated to relatively And these as structural savings that reinvested PPE now and paper cost operating XX% meet line, as PPE. XX% within income margin U.S. call. $X.X decreased remain a had driven disposables decreased in by decrease volume of for U.S. a impact

for lower and driven share by impacts of for it rate quarter to decreased favorable first non-GAAP is XX% which per usual, factors. Adjusted quarter. was was equity compensation Our tax XX.X%, $X.XX and the the earnings than other the

impact During the the of what estimate half represented to COVID-XX bad we amount fiscal pandemic. the XXXX, to due that at our the million of in charges of of expected recognized period debt best time. excess be $XXX Sysco expense primarily That second

first the customers experienced collections. to as resilience our collections we expected, work fiscal better stronger processes expected XXXX, During the than of both done local have improve tremendous than teams has our quarter around and been of

bad recorded debts first the in allowance a of As XXXX. quarter fiscal in million a our reduction we for $XX.X of result, net

saw to growth. specifically Regarding update compared local on the than customers, customer expected they're better performance total our as segments, we an growing at quarter customers from accelerated during independent customer rate an

Healthcare year the X first better including $X.X by Gross our quarter to seeing basis expected first improved offset we're starting of performed increased for industry. continued service XX% profits the gross versus XX% prior Brand a the food by our decrease shift throughout quarter, restaurants the was was for points decreased results performed the quarter the billion Food in $X.X and Additionally, the XX.X%. continued resiliency quarterly to basis XX first segments. business well Sales operations. I’ll sales period. SYGMA, Sysco performance hospitality margin increased by in local penetration throughout as to and customer of in categories. which in decreased management cases, which segment total XX.X%. transition than points With which U.S. weakness U.S. for now Brand were certain XX.X% was quarter Service points to first to driven XXX with quarter Sysco basis sales to cases, brand to mix U.S. in respect billion,

million. to gross segment decreased increased to $X.X expenses XX% XX% adjusted XX%, and Our operating billion Adjusted decreased International XX% expenses income adjusted decreased adjusted sales $XXX and $XX income Within million. decreased basis operating to operating points. decreased Foodservice Operations operating margin XX% gross XX% profits our and decreased X

business COVID. well considering throughout European performed quarter Our the first

restrictions to France, the However, In quarter. economies Panama. on-track Costa United within regulations performed Canada, reopened and of new changing business the the as Ireland America, Latin was continue be Rica expectations Mexico, slowly and throughout throughout cautious for business local Within and Kingdom. we

are remains to on Moving business. prior the to other drive-through to types $XXX billion continue increased to the million. increased period, for and gross sales adjusted X% levels. declined see our that lower Adjusted segment, operating thrive we XX% challenged SYGMA compared segment, Guest to winning by compared to hospitality the Worldwide, quarter, restaurant increased segment and year customers the expenses In business, rates to profit to occupancy in basis as increased and Gross as restaurants compared normal $XXX X continue $X.X operating hospitality quick-service margin to million to and $XX X% points. X% new million income other

as the during sold Cake, you recall, as choose focus. our quarter, non-core we narrow Lastly, business asset, to may a we

going forward. in be other will the As longer no such segments Cake

Turning to cash working flow and capital.

half cash quarter, year. flow substantially free fiscal than flow the year million; $XXX was of cash cash million, the first was the was last operations same flow first Sysco. provides the $XXX For for Historically, which period from lower higher

we However, a included capital of receivable and and a this working diminished both and use environment, accounts accounts cash a DSO payable year, positive saw inventory. from which in benefit

through have Net work to past pleased period. the we cash throughout XX tighten the the lower $XXX.X are CapEx first cycle million done We up compared well two to with This XXXX for to the supplier extensions. was the we terms includes new as prior work done weeks on to improve of fiscal as quarters. customers, sales term have

were substantially quarter. in directed you Kevin this year investments with reduced projects of expenditures to talked performance targeted capital pleased and our heard am a only his strategic earlier during that I that result about the strong flow As urgent cash remarks.

by quarter. the year, Looking offset year will free first free the anticipated the be to next initially to that will and fourth remainder building ahead, fiscal flat cash the That expected or ongoing full flow cash the is in in the decline of positive fiscal free end of flow to due of investments the slightly for for we quarter cash the business. quarter. anticipate compared generation inventory end for two to flow Free the cash the flow

proud balance Lastly, strong remains that sheet perspective. Sysco financially from to say I'm a

best have ensures flexibility us more billion liquidity, As interest are the the than of cash and that available of decisions make the November and we stability X, to company. XXXX, $X of which in

facility. the outstanding since the billion in strength. balance million revolving and redeemed in first crisis we this credit of $X This definitive and were senior flow with in September, the billion I in down a With outstanding $XXX $X.X position pandemic. our take we redemption generated the revolving of on into of We quarter. of the to for cash to Sysco a steps senior cash on leaves notes start the everyone our remaining able maintained million want our $XXX facility the liquidity continue that our credit Throughout the borrowings us paid position in with remind quarter, of our $X We available strong went free billion notes or said, have that early to balance sheet. fund

transformational well been presents it have environment changes. advantage have Although the of has that operating make and taken tough crisis opportunities the managed crisis bold we a through to

in this drive believe have customers for that we and associates, and And supporting Q&A. We our for continue with strategy value and operator growth future operating our prioritized will to dynamic our we ready environment, are shareholders now customers.


[Operator Instructions] Capital. first from question Kelly comes line BMO Bania Your the of from

Your line open. is

Kelly Bania

way; Joel about Hi, questions. good assumptions just especially the just the you more those our Kevin, for a flow morning. business? projections what cash in you I that for little Thanks light you're if was free of could bit right in now wondering maybe maybe fiscal talked and taking seeing talk in XXXX, about underlying

Joel Grade

question. of continued I Joel. we've Thanks Sure, flow modeling. Number Kelly. to that. to good done and couple I the have one, job cash important adding It's things think the of all our really remember talk categories positive of across take one are And as that really I'll specifically improvement capital that the of that that's free key Kelly. trends. about capital, working for different in points we working A the we've a think,

crisis, is our which our terms receivables, think our we cash better throughout collections I this about, important. overall on really talked payable has cycles Our and gotten as

do have but in again And way addition able efficiency. so so inventories is to terms really of a availability, working that being our a we've job to in also in capital managing done that, product good

point those there. trends So make of we to anticipate I'll but many continue, a do

capital business year-over-year As improve as anticipate areas and that's where of certainly sizeable the of going substantial I do build Sysco head going where as that's as do again of those to in we're a one think we has of significant to a the we things. this some quarter, the continuing fourth as are trends back back, things continues others fairly certainly investment. obviously And industry and the then comes with. a require to continues year some early struggle one our in a one about and we And working into this anticipating improvement, to cases a some to opportunity business talked and in crisis

as trends comes business back, is we'll able forecast As cash are investments, flow working about something going but that reflected capital think the you forward. in make those be to overall certainly that the that that

of think happened, couple you to I in are would things that I capital year. do not other the repeat quarter in addition see that something one a quick trends the to working necessarily point of things some There's first that the through the out.

cash pay that year First years. incentive quarter perspective payments from is our of that was previous clearly a and something had when this we less than typically we in

And of of we from in side not course had had allowed the of And second had and also QX, second a in anticipating prior taxes the expect the flip that that years year that for have things payment Houston into actually. the be years been cash to the in paid actually one payment half interest then normally have you year. our the in We're higher tax we we quarter doing year. number of deferrals factored will our would us floods the also have this then that that we've in On that of was is that may that, throughout delay recall that we've flow. a of this

to going as be a cash into detriment quarter. And if the you so, is there cash head tax second we to will

few So out those puts I'd call the Kelly. that takes of are and

end of I against And up we're we're the said, the where quarter. anticipate ended the in think flat-to-above first year managing again, pleased way the sizeable being we generally as capital's with working cash here speaking improvement again, we from the perspective. very

Kelly Bania

for year? about And CapEx think the just can you just help plans us

Joel Grade

of Sure, course.

mission targeted general to is we've in those some kind we'll and a sense, the but So And what of investments. can done call following. with back about, critical we do also continue talked And we've and have strategic cut that. made I'd specific, we a projects our CapEx of as what say again, to

talked terms of that I we in investing ways think the way the investing areas market. go about accelerating in those to tools, you've stock Kevin in growth, our enhancing the like truly some those and our are our investing really in that sales and that heard of think things platform, about organization areas pricing we

Some of making really important make we are those areas pieces are and in. investments strategic were to continuing

I Kelly, about. our that are the this from number as But continue certainly company make So be investments. think, in of end continue to investments growth year that cash use contributor certainly to been those future crisis flow during to obviously fund does of clearly those typically the we'll percent be the just at is this and going it this less to than have. a again, up lesser rate be we've CapEx talked a of to cash organization has will that continued a of as and our than sales we well. But It will also nonetheless, some priority we

over somewhere If between total to you of is total be certainly sales course below recall, we've X.X% as of run for number that we'll X.X% CapEx the well year. a the that as

Kelly Bania

Thank you.


question comes Wells Kelly line of the Your Edward Fargo. from next from

line open. Your is

Edward Kelly

talked you And trend a what Good you're stalling was I that hoping Hi, regions that? sales like these how I in and of out a could XX, there you standpoint, right winter about provide out now? fall look color more U.S. think, around you're from bit down international then it of Kevin, morning. that around guys. about, thoughts does seeing each around but just sort the how thinking within the and

Kevin Hourican

however, to is the I do a November, velocity significant. anticipate time would exit be at pretty are of good coming is to QX, States. of honest of restrictions slightly question. broadly overall quarter it there performance been to and in of is our reading going our is what That which expectations I'd Xth say also Europe. the was the quite didn't The Restaurant I as April. our some I it if was And in dining at our within, globe. out countries reading performance this different was March say the QX and all impact on to breaking increased regions been QX, out back what pleased open delivery. in want We've it remarks call detailed little on-prem that Happy down. different flattish in consistent nuances, is reasonably October would is what shutdown the been just a thank bit hard was than the What to did go Europe. you has for but a to all And in softening in happening soon the impact know Ed, more in perspective, in deeper than in prepared we're back United customers until Europe you in strength obviously was From July at in and in operating bit Europe take Europe, the a what's the tell the and operators the to results. not QX of happening QX closed back Its our are of or up beginning you've a about Europe with speak. met answer. we back that, our aggregate. from to late pandemic, Europe. in October Ken this here Europe thing. happening certainly remember little exceeded alluded versus fiscal restrictions beginning across in versus that want the It's restaurant is reasonably pandemic. too frankly, ours, our I I continued you but the about very there. we

really longer. Ed. particular and one It's We'll this in some be meaningfully but stated. and much roughly significant if dispersed the to the bend Lockdowns So fact in that crisis the reopen the in November holidays here desire to in that's of Europe is form lasted have what they're timeline, of leaders they've see a that What for substantially They time government entered of the at normalcy explicitly is the lockdown, fluid we time is to goal trying the earlier. second November. more know December. were most situation, desire a hard to month this curve lockdown pretty

a So the duration positive, now many doing, importantly, we've are because delivery, should takeout are two see restaurant this seven, which been more at and pieces doing them We'll bit operators quite of eight that's of shorter. the proving months. good capable be at of for case. if And

As States, state it's United I state. by you to the as know, pivot

state, United California performing Southern I well change. rural struggling. to now urban the and than the might substantially state on that operators. national directly are as a our that geographies States in Now placed being restrictions that by it's And remarks, state tied our quite in prepared are States, But major average, better for mentioned centers, the the our are

third mentioned that up it The and is dining. just cold lean on my that the here, into as impact We've been in which outdoor often working weather have that pending I'll piece, remarks. comes I for months, will on prepared

in outdoor again, and maximize Chicago, consultants of which by takeout, customers helping do maximize able are dining sales Our on-prem like not customer delivery. are enabling going to our an locations extension that customer by customer now dining patio

that running every are a And management keep my and from perspective, takeout second a during is have usable a really here don't certainly prepared more inventory control we and from delivery we're we're has biggest that phone wave. one. with their is leaning customer this if our I up and are mobile sure think make prepared intuitive. them to in partner, vibrant customers connecting delivery they the are logical website to And narrative that expense on and takeaway an more perspective, business

the we're to happen share can we on support and more these about I November basis are determined, to but going to So during future, restrictions doing difficult in wish maximize what's everything changing our of a I time. weekly customers be could the this

Edward Kelly

asked it but down is exit level sales gross Okay, And probably, Because seems for which maybe about good, gross little margin of with how that's bit maybe helpful. forward. because like the looking actually might encouraging, follow it had sort And right. just we sounds QX, not one a but EBIT that at going more performance Joel, XX%? a up flat complicated of flat you just on generate I you this your that be think margin rate, was do certainly

So you which be of are to been ramping as costs, in. how then kind that? about still And I'm may think cutting curious you've

of sort think around sales could performance down what help you us business the of to about how the anyway So, with total XX%?

Joel Grade

sure. to obviously Yes, in the be start levels Clearly, positive had a if at we've chime generated Kevin below he was couple down business. of I'll we'd anything certainly I have mean, again obviously is so $XXX on previously well note, A business ability wants. very of on – XX% where of we things million profitable been our certainly And obviously income could strong. and

puts I in couple a of to general. think and takes about that think

business out. of couple margin perspective, which actually restaurant in performing. a fact I customers, we was at is that from So are from those overall script is margin the that of is performing about our independent even local rate highest a a the would more that the And the business excess points perspective, that rate things our that business and our a call specifically of are one in mix talked

business. And dollars, overall margin of a We speaking the week. every well had often lower wins better in talked we've growth obviously day the I'll rate, slightly and independent businesses the that those than and had we the certainly so, national generate again rate, performing our gross again broadly about business, which but space account our when take profit

the side. a positive margin So that's on

to that we've a as are way. think that higher our about actually which are in think areas talked struggling actually about business fact that service about you are food is hospitality customers, lower margin of part management, margins our Another when the

that customer really mix So disposables there's mix some and talked about demand in I rate perspective, related from a parts how we're from lot some we anticipate that we there. from some expecting and the decent to to moderate fourth variance, our of during quarter, perspective, about think a of fact a the was our product think a I relatively it's overall there those just sold that margin. little perspective, year-over-year Ed; consistent. we From margin of But remaining overall bit, paper a think terms the products we

that the fact to thirds that be rest that the the XX% range that that fact of the as quarters. fast And be about our vast think our of we've we're where reminder think the about talked of expense year. for would actually the would From the We talked structure line. I next this is talked the couple on on about about we've million fixed. about should an bottom $XXX bottom variable track takeout, other is going to the that you majority of – So over about line. third perspective, two well cost of that for as going somewhere this that of would is the north

things performance, area, are done as continue we've are for to And the quarters. the are both on would those we've work [indiscernible] done I got EBIT we stuff our people a working sales aggressively so, in perspective, as takeout few in think all of which that we've Again head sales be finance think about these are next think that about track down. lots would our I has into as think, the the area, again, margin a this of those I from Again, things and discussed again, margin I good. think area, been cost there. I positive how some to that our continues obviously great work teams And our even we which generally

Edward Kelly

Great. helpful. That's Thank you.


line the next Your from from comes of Heinbockel John question Guggenheim.

open. is line Your

John Heinbockel

things. two just Hi,

with do start recovery? pricing of opportunity? when and can Kevin. Or COVID the maybe an service – broadly you is does one sort this sales During think one me product the that entail needle? The oriented move setting Let that up effort, what is speaking for for that segment

Kevin Hourican

is thank for exactly what It from question. you the articulated John, segment perspective. you a just

going to that's for specific but you So have working the that and call category. specialized sales is we customer introduced type across better want offers segment, serve can time because those customer have a declare, bound, before that introduce it's a not chosen are segment and customers specific pricing, promotional it that customers on tailored I'm dedicated profile we how to to to which marketplace, the we on broadly to team full today's our actually dedicated focus bundled customer then assortment tailored time are and that Sysco that through everything expert said, unique a in – and

national as I to So with lot of you how maximize team within serve have have understanding customer different because specific to that first, tied the type specific we do let's from history it's our dedicated type. working full-time really it, past a effort a given know we ability Sysco a and winning what's call on customer our

be during think COVID. will after it and So I

going can we We it Sysco this long-term. sectors, of is in and be going Italian, things our major and absorb what believe a can have doors find of we're we know Asian learn experts. in We the a an win different across or And of Mexican, the timely for I of can to be a of one lot We'll and from agile sectors, practice type COVID, to the opportunity this expand implement essentially take important unique about, to with one, which and of regional we to the recipe, nationwide. winning do the leadership segment. perspective, is the I that's segment, believe our we do we all but going best more formula, to we elements past And in that a structure, be will with expand able but penetration prepared chosen pilot find more that us a it post-COVID than out. the more a winning new first tailwind to winning John many. lot. We're help it During pilot believe customers when is in that the we've manner. the And And dedicated fall. piloting really it will increase will that and we to power Sysco. do it when this this that And the We're then many like. the

John Heinbockel

those think And you with gains higher share two to and then and then new thinking more maybe about right, you I'm share customers so about think customers right, both think local, you buckets. existing secondly, about you

them how areas? – of when one or or think either about outperformed As than what share couple gains share envisioned you of to thought the gains a ago, of months you other, other and lesser you those as maybe greater compared thought you those your in

Kevin Hourican

results. view And permanent often just restaurant a to must have Yes. that. different I Sysco's our is have closure I going a on headwind on

which rate and many to favorable is are less bankruptcy resilient than First be item. of restaurants modeled, think is had I the a all, showing what

second to in customers, were you an two the on perspective. of But the we through average future. are marketplace grow serve that independent even transformation. slightly have move Those there half data out substantial. from opportunity pie the points just More elements wallet to ability the XX% importantly Sysco has meaningful our a if two share John, that said, the the in way available smaller the today we in upward is And of meaningful a doors than independent our less for

– the with to our share have above average number today. we doors ability the serve of wallet And opportunity the grow of existing. meaningfully the we have increase on we have We unique XX% to

which the Winning is been question, the current lever been asked has lever? environment, has which new in customers bigger the John straightforward You the current this in bigger environment.

new prospecting model they're to at in to point pay having compensation paid get it. our our an more any outcomes by for behavior in do, do motivated other We We've than People time for it's updated they and that those what are doing actually and customer history. impact. sales

level up new new winning how the customers their industry the rate out on doing at And accelerated and do force trained an doors local role largest boots we're prior to with knocking play and street, been has going versus They're supervisors, up is our which the on skilled sales customer on prospecting. in so years. at the they're and

bigger say both customers. So long-term, currently John, them new of I for powerful wallet, the but winning be the share would punch. from lever it's will XX% pretty of pack a the

John Heinbockel

Thank you.


Your comes of Lauren line the next question from from Suisse. Silberman Credit

open. is line Your

Lauren Silberman


comp I now you're growth. acquisition with new share the doesn't customer to to relative last decline the like seeing impact are closures, And seem case much respect the it with of guess from right what restaurant So on just quantify side? wallet you a though local question, willing expansion follow-up

Kevin Hourican

One, the winter, permanently? out they communicate prefer today we the planning closed of some they a temporarily? geography, reopen that later their in Customers northern closing in but select Are weeks reopen. lot the parts there's people data. and closed on Are for then moving spring. Yes, to not two closure are got closing to side. they're We've break they

there time I at moving in driving that as little we prior believe at the clearly our $X.X we share. at the a that national communicate gets can sales articulate not wins continue. the will we the which have winning are that winning to data since still behaviors, are What work, new the local time we accelerate there's just the that level that net million better is through model type we worth we I of winning that billion posted sales sales national communicating since did new believe we spoke. COVID last will are share to So we and convey. beginning calls, share is I would We're is not prefer What of on level. over today, the spoke which of actually And compensation doing force $XXX

that than it's say digits, closures, in As heard substantially that. you've industry the digits, would were it single single whereas I reports high relates to higher

that point, prefer I'd into get more So to details. data not one beyond

Lauren Silberman

elevated helpful. just accelerated the margins. among margin, benefit you've customers. very And at really going the gross Okay, better PPE that's like some focus local sounds then on forward, growth from the talked It be about that'll

sales? gross So settle higher higher of this? do sustainably mix Should local of customer Sysco a see out percentage opportunity for at coming any you margins

Kevin Hourican


selling the I we have, new the believe that of the local compensation evidenced that at that of and strength yes, that over level, time we strengths over-index I by would One the model that continue And change will is referenced. Sysco intention local pursue customer a would much total we that not won't that the comes at as to that sales. independent But stated Sysco which of rate. higher national our in over the time does percentage business business, be of a increase as mean

B. tried can B. A times the it people I past, into, A or us It in have think to be at is and box

to So at capacity will And local as we're a the business that industry. the national we rate level believe flexibility going at we grow have win at lead and supply chain well. to level this the

on So, you rate we was in because in well. right mix. QX, supply in His that favorability point some PPE now, not concerns. gross margin we're of category, QX any the highlighting very In favorability we're some and have Joel business seeing because that expect covered margin come and would demand into normalized rate which is had specific a of time-based normal alignment. more run gross

Joel Grade

over pricing be Yes, if to from perspective for a Lauren, really through sorry. from that Again, to the category. that the also add two well investing to think of percentage we're add as percentage add that on you margin quick a in ability that customer the I a some local. I is – some will both I significantly that and beneficial as again the work will, believe do all we long-term growth work I'm of just even question would would just things mix, that your

that the space. other one in Kevin build we're thing it on national part So, believe certainly, just we do the interested growing not said, mean in to doesn't certainly

of recall dollars end day, like the better. margin the at think I percentages, always I I like even

dollars significant business. into drive do customers those – our the think I mean, I so, And gross profit

so, says your small relates something And to question. just as a Kevin just it builds on couple, again

Lauren Silberman

so you Thank helpful. Really much.

Kevin Hourican



comes the question from Alex from line Slagle Jefferies. of next Your

Your line is open.

Alex Slagle

morning. Thanks. Good

success Just innings you digital seems more and on activities about color margin and any little prospecting profiles talk could early your it's of looks accelerating business like still new customer and with what the platforms at? more like if wins wondering the new pipeline a

Kevin Hourican

digital haven't you I for I'll activities This the is start. the question. Kevin. call. thank Alex, the spoken on about yet

substantial then and end why really shop in We're digital pleased with our been. That's what's resonating kind XX% there customers the now of increase the that we're I'll that So difference. and a our and winning. And orders through first call I'll Sysco our on shop. answer it's communicated big forcing the are because a we're from not is that platform. today's we've winning too with we We placed we profile being progress go and with customers. why on have where margin That of I'll approximately

reduce the a our We're The opportunities, tool, point. are things you customers manual automating is tools as significant things, them really easier embrace or our more focused We is do be the also We unleashing automating also penetration order shop becoming force more following hand largest less your Sysco not changing you are through like sales to use, we here we customers everything means increase the entry force and and presence. order manual have, or keying if force force our on the with or and We've Click human buying vehicle in providing the remarks, get a is our industry That being suggestions. scaled force. and like very what be pricing. it time on powerful that on not Friday my this because our inspiring spend really consultative this you other from to like responding. the force as spent order every Brand of which will means more combination powerful sales prepared and activities. way. capital sales local design and options our view sales up sales on We buying, to leave are a menu a customers pricing that We're sales seeing a said digital time which value-added in are selling should the to believe, suggested it. next tool. in to truck. improvements digital this a I competition in as is need And It's that this menu our providing

really rate in two on We're an agile every really What moved in on our methodology. the the the short in with historical week equal on averages, We've resulted we're happening that's customer are So progress activity. outcomes. deploying a positive level. question. development order. the local an spent really question pleased that prospecting to and to answer margin To that's that both to we new national winning rate, code space That's the at new new answer level time is basis, more your that

have to the need couple doors of [indiscernible] have to it said, large. it's unleash they support level, that's can Joel at when and At many the confident local desire actually need, they of of what we've biggest national the never get and don't level. they to them on customers knocked just breadth capabilities these the that ability Sysco inventory Sysco are to we the they're the to serve of be coming strength the able we in that and didn't that and We or ship depth actually financial and available ship and understand industry happening have On things. That's then actually them. time be Sysco, sure. the in and in customers concerns as a stock on to us, is level for we're the why even winning not the their full, One that at at expressing national about before,

Some we the flexible maybe were And can small both support our Sysco can perceived and chain them. be so they that is big interested is in we do to reality and small, too profitably. for supply customers that

choosing do see bundle over a with to that's again accelerating we around they're So why and business Sysco, time. that

Alex Slagle

Helpful. you. Thank


next Piper from of line Miller Sandler. the comes Nicole Your from question

open. is line Your

Nicole Miller

update. detail thanks that I'll system. admit, And the Two that one level overall Thank and the you around so local than remember and performing nor just independent much the I commentary that quick first questions; and is good don't better on the of for morning performance frankly.

that of you less the it man Or it's they and did just locals competition? wondering standing occur for have time? was the of function think last because And essentially? I independents? so is that do when Is a And some pivot closures and

Kevin Hourican

you. It's percentages, with and not confidence a question, we can quote two two with these Thank break into the That's good and accuracy points. I'll we've publicly parts Kevin. Nicole. it communicated down but

those redesign, safe when eat of those one menu improvement be optimization dining. national lower on a there work menu night comes of a to was when their table. data for like our The delivery, at it a able there, comes Is would help and a first through quick feel third-party an to to it's chicken of rate bucket customers redesign touch to things out closure tens it we that I'll customers closing all to do Sysco are Those when customers we code to succeeded second the just egg? call lower customers takeout been engaged That's customers two, are them, our that services fight And the one what know not national website, on clear and of Saturday the make was. opportunity fact wave from Those one. believe success web safe second than with on-prem into on their them carrier chosen I I'll through. source, what internal QR things is value-added passive; because said, takeout, services. be cleanliness doing the it a experience ensure it customers single have based on be which those to of because a with just closure. And of every we've are data their perhaps of Point recently we're we our and on you've point delivery to average the point rate customers and rate so improve our I with we data. significant is with had at middle go of from with menus, the in-restaurant a – we've on outperforming and We'd objective or customers out more a contactless that closing to is thousands COVID us we've of have point that's than the do we the be connected those what – help on during the them that fact-based. have we've would that or very be value-added that meaningfully services, on with engaging average, engaged

up phone, code, picture menu. take of a take QR the contactless your brings Just a

You can order your waitress or meal waiter. without even speaking a to

can your You phone. mobile pay actually through

many, get and many card dining helped dining have that customers with or it's and that in up don't safe, and small that's regard. of experiences, it's clean, outdoor less thousands have it's payment customers you leave. sophistication comfortable our or your And it's where it's allowed You to device we've those credit touch even on-prem and

we've So for average. those that outperforming engaged this we're and very about meaningfully national being they're proactive

Joel Grade

– of question it's crisis on first about if address specifically the restaurant talking decided really of management service evolved. what actually, Nicole, about think as area that's this not as challenged. here. clearly only quarter been to we're sector been is one of the education obviously clearly been sort isn't an part as I that these new; we've your really just just industry the And remember, it ways. challenged have challenged. But area is out call here been has that's has The of in the this area an There's And could servicing it throughout hospitality sector parts we're this food

combine the come area a something seeing. as through mix reason that's industry of over-indexing has perspective, that in you're Kevin seeing are when so that we've the is you the starting what resilience this from to business the And talked and work about done you're with

Nicole Miller

points the of strength you very agree I I just question, will on appreciate about Thank finer second couldn't restaurant and the that. come much. And last the back. a and it more industry how

and the trying seeing guess, consolidation. pandemic I'm to well is this. restaurant I I'm still, past now during – before, think And what So again in

portfolios closure, There's that, consolidation, of it's and some it's putting together. strategic somebody it's but So not not bankruptcy. buying

distribution. so curious the see as about of happening, we I'm impact extremely And that

see getting Clearly, come I be we they brands that, more they're but when like so brands, to you bunch distributor? even better putting private, but back more to week of they what more happens or not doors, whether So or concepts a together public of deal? as big you're announcements the as push stores, could get a more you do also do this

Kevin Hourican

That the you as the that they're restrictions and are, pandemic are to get their customers it out that We optimism well a the quickly. experiencing experiencing and in see of out good abate It's gets able, we've one restrictions fewer there'd out doors what ready, meaningfully of a stronger? that's is been premises, this can a home have logical one the I your dining which varying States In I'll It's be because hypothesis. well so Neil can me the it's as outperforming. Yes. do eased, of and data. want and a see in go the that are I ability me, experience. as restrictions tell number start state-by-state, is they're their and to meaningful of think between And – back can they is restrictions is the fatigue food-at-home states is we and what says a people eat. begins with out gives question communicating What improving in a the while. to strong meal. not to home latency We reduction a their it know consumer data good food-away-from-home they're the real. it fatigue, for will soon and excuse There's the willing, see it. United We

doors fewer of As there aggregate. is the thing in yes, That it relates Sysco. doors, in for to would the good future number will a anticipate I be

both we consuming delivery. delivery on increases putting drivers selectors of in drop of and order ramp, the the the time the which will of And the door. as the part our opening getting is product efficiencies doing most stop, The actually to our our to size they're customer's the improve, of a Our truck, warehouses the for negotiations it can aggregate, size, overall say company. our key aggregate, but this that's as partners, with meaningful private in we'll this increase thing I benefit. number that partners. doors positive for company drop with that's to reducing keep And a positive key In would a relates

Joel Grade

I do Yes, think…

Nicole Miller

It's just going to portfolio. private. put Yes. finer Dunkin' a but question, into a speak, going interrupt, my sorry let me And just its point on be to right,

with good I'm clarify into growing, bunch the Dunkin' it's brands, a about put happens once if a on or know standalone Does those it distributor. you this saying portfolios up scale that the and happen? pitching had is don't It's right? Dunkin' So access don't getting beating not doors consolidation. easier portfolio part to long, is I brands? and close, get other the of So not. all they of they public-to-private, the day and a all that's the portfolio for didn't And standalone say, before private-to-private, now you and were – four I to but whole concepts are because company let's Or that of they're put scale. into

Kevin Hourican

Sysco in describing. would successful uniquely environment be I you're positioned to that the would be say

pivot a scale, a answer our them. And coast-to-coast like my by our I'm customer Our long-term, would and that's is vis-à-vis understand or into for margin I viewed that to discussion negotiations, this national prefer breadth, think get our positive being I ability say And company. you I but support depth, quick. to favorably not

Nicole Miller

the Yes, I interruption, the And right absolutely. I first I for apologize don't think time. asked the question

you. So thank

Kevin Hourican

for Thank problem. question. No Yes. the you

Nicole Miller

Thanks again.


John question Glass of next Morgan from Your the comes from line Stanley.

Your line is open.

John Glass

Thanks morning. good and

of would the we words, about fiscal that high but ask $XXX And that? the it's about if that end Thanks. in resident XXXX, through or does quarters? that that rate it First, think of should think can just to the it's at I in stays a this fully not this – year. I it saves? million in cost is contained quarter And Is XXXX. quarter like $XXX assume within it's does stays all in, a of about run other In million how that

Kevin Hourican

Sure. that's part have is of to we is cost would would we amount moving that look is above that I'll FY and of certainly forward. over last a contained that with an but line Yes, in sight the is emphasize I your start also what that at XXXX, question.

perspective. I would as pandemic, as you'll an But point. of of distribution think ramping decisive we borders some it up But certainly permanent it year. I really, and say speaking, a the is the important this say out cost action that's that the and both that the recall from really beginning consistent generally mean, is across relatively the we I of temporary So took go to would swift some cost and relates that, throughout since I

done that of headed million, structural into well leading And work cost as we the that on into so is underway was $XXX some this it year. we've

relatively talked would the we is also of well So going line, you, it bottom as it's down of into I the vast again tell but our as that go to reinvested be again, distributed. will majority on Again some about call, earlier well.

John Glass

have time? I visibility off since this Is sellers if we're time understand of on even just probably right the take an to tuck-in a greater but the Is time, and page, think domestically bottom, et may lot do that particular, business ask some buyers tenuous be this there's Or could there's anything then same of M&A and I to opportunity know early? outlook, in how is re-engaging? we and acquisitions? And start both too there, now on the also the about not a advantage I period about runway European is this the this you cetera. it of

Joel Grade

say couple I'd of Well, a Yes. things.

an from I a thing industry. all, has calls a Clearly continues re-struggles as longer, had have and there of continued been call drag relates this. that on fairly and the the evolved has on of this to First if inbound perspectives, clearly we level engagements both for it engagement significant perspective, would within from outbound

been of have And plenty so, there discussions.

in It I you necessarily the that true think we that's make sense I XXXX. has it that still us. so – of sell holding to I when were say like XXXX back they make sellers housing are to quite same and high this their the at in kind sense on sense or page, would has houses price. can site, I expectations buyers joke just we're crisis long think multiple how the said to for a in think – higher to idea People that that not and on it's about, always try

domestically. say And but is so we to relates that Europe priority Europe, it mean don't Europe in business. I discussions would there's at not for our point. of have And focus stabilize that that or business existing to first here as this our is eyes space in opportunities, primary our M&A it our in to I the happening think And I doesn't think some out continue in certainly

John Glass

you. Thank

Kevin Hourican

is I straight which another puzzle return. before, financial you one do right build do and just in the ill I higher the and piece said just a or business. over a competitor jump And we if no Kevin. one this could. I've customer is upon has wish their this buyer, business, This But win go to of

of and the Joel but it. Joel covered is win right, opportunities will average wins all So acquisitions where, year yes, some opportunity direct we've actually not our yes, business Sysco, It's we're the to the have they competitive, mean market bought to there And see way I this They historical availability modeling of rate. wins that it those inventory right we at with have have substantial there our is see business. more do but could is active confidence that. And right we're able the had to price cast regard. customer because in in and and win go that the perhaps the and it well growth. be a We're was ratios, buying we to ability things. the been the is if the and being And margin very real for effective and and cost company company, we're fund through

John Glass

you. Thank


John question of next Your Ivankoe JPMorgan. the line comes from from

line is open. Your

John Ivankoe

that think independent that lot very a was good said, There's serve. you. thank survivability and all average your restaurants I Hi, it color above around was of the you

customers guess even that's new some an increase thrive these And, me or about, just at thinking survive you already said. in rate I future. of So reiterating how it potentially help potentially could the what got you've and even customers

working and of does you soon. be And the its to Chicago could would consider York fact trend And So it dining terms into reducing medium that or could restaurants? at certain translate that on And going it anytime as I or Could to you that working tighter customers. the be to business prepared ongoing short-term whether it's XXX% or long-term the be for you facilities in in Sysco entering the cited that? other like that something that capital potentially potential make New you some did In it's would into or markets capital are the with direction? a sense enter and added other it quarters, independent does to and on-premise elsewhere whether back you. are or capacity go it's agreements potentially potentially Joel places months extending for periods, could restaurants different elaborate said could remarks hear new be that case

Kevin Hourican

work going talk the side. higher to just doing about to Joel going I'm Kevin. level, good is to John, I'm it's our toss Hi, his start at to specifically then and team on customer the payable

a more in we that customers? wakes day, question. we're ideas. bigger Trust that exact every is of Your have question like Sysco what our can to of more the employees up do success Sysco every about the meeting, whiteboard with than ensure everyday every a And room sitting thinking

even of lot many not to we're over doing how that example, turning in best ton about the things to Obviously, talk the we're about done I to want on on gas engaged aren't determine it rate. a and earlier that viewed small better exceptionally. know doing anyone percentage just can gave we a of things easy customers yet still have ensure do. that's there of haven't all them our that use, can't a help a on. that we tank of customers. but of I rock many, version that that have our close with That things we're partners work to to a work one independent So, that our yet And contactless we help partner cost-effective imperative restaurants let's delivery exceptionally. I as a can directly every do call app do to every mobile are There's menu, else. menu linked to at to public, delivery that I a a than

on proud Joel's the doing team over had we what a from quarter customers, and can both you what walk as said As it of relates of to P&L to to perspective, our he you. capital, a working also – and doing he actually we're collection Joel we're our through help receivables strong side I'm

Joel Grade

key here. Sure. couple Thanks, a Yes, of Kevin. points

receivables, make over pre-COVID even that pre-COVID the and of when are what anticipated those bad all, work the with we that continuing to payment plans receivables, our talk a we lowering collections, on significant and customers. do above of did, reserve, John, had us lot of those about you talked First debt about heard we're essentially that collections fact many we to with

to help used we we're really And capital how talking what working so when our that's say customers we our about.

them. place And good customers. It's with we've again, rate. helped certainly above And at a over and collected we're in those there again, so,

other a fact it you talking maybe have collections the helping and talking had into managed develop to along But, rolled about separate and and were moving year for about us I to technology again centralized them. customers predictive has I specific customers, bumps ability now would of new some as today forward The this if talked Kevin that to the a make essentially we point use, credit we different it's relates to we and out and way. ago, about thank the we each the because targeted day other recall that like, analytics wow, strategies what given about is goodness tiers essentially process

our where organization again that. So be to communicating we to organization and for centralized order in we needs feel tighter, terms actually, customers execute our fuel were between

opportunities do though help can that actually those we that. that we do For have to we continue so, do

will through been centralized us has that both that So have all, way technologies allow things improved there's again, predictive that no in continue process one to I that's fits us this work to of you the – to but and effective actually said. a think really the management's size allowed analytics do do

John Ivankoe

Very helpful color. Thank you.


from comes from question Bernstein of Barclays. the final Your line Jeffrey

is line open. Your

Jeffrey Bernstein

Great. you much, Thank very two questions.

$X up I from Just think wanted it's that dining you one mentioned, part casual wallet billion and it's color to ramp think previously, that. the pushing or but on you I penetration. capacity primarily the around would that's just But noted whether right, think your any you I on billion, quick-service and of expect the annualized perhaps new business confirm from XX% billion national, I noted that $X.X side, business theory to it's no dollars constraints, continue to you new $X.X

I So where have could XX% wondering ultimately. follow one go going am to maybe that up. I'm just

Joel Grade

sure. Yes,

wins. the prepared national is customer clear to tried now. $X.X in about I'm be more that even my On it but remarks, billion, be clear I'll

thing? And So there the $X.X is billion answer is you is asked more definite national. yes. a The

We but opportunities QSR, customers customers. new we is combination have robust that serve them a in net It's existing of with are QSR. pipeline we not could customer expand the of mostly a that we and where that pursuing. It's geographies

have we're we in We there growth with local have I as than that as not that winning share quoted market say the I mentioned, few to in capacity the margin the historically continue notable Sysco. fulfillment are healthcare levels. have business strong wins that buying not to and well. regard. other we're capacity that And transportation win And as to

believe because noise there's local restrictions ticket that say and than new with closures on-prem history, it other focused from, I a point to plus regard with and a fact confidence opportunity that at the lot more elevated for are level, that of significantly trying can way, we versus restaurant play local as compensation because that of it's any perspective, their as But rate on out dining. so prior restaurant we're overall in it with And the accelerating I being well. winning new at And we're Sysco's on years. role parse select business the mentioned, sales model leadership an down I there's in

national there to many toss And new it's you level, in the for which the is prospects opportunities business. ability your industry at from still an At the win I'll are follow-up. So about our to sales local sales level, available largest force perspective. the

Jeffrey Bernstein

well customers just to to? Okay. penetration necessarily then want eggs XX% basket. would it seems in like all And do what that wallet one don't can you mean, their think clarify, I to go actually put

protected giving having versus to guess share by customers more diversified a base. I So supplier are torn between being you

for that maybe XX%, where XX% larger based seen on that accounts would wondering, would you that much goal just today? than you've say be has So some that

Kevin Hourican

increase Investor one for our lever lever. John to components of back me that Heinbockel's the save strategy our current the to is He key will going I'm going versus how which of asked of question Day, wallet. bigger question. that because I'm our long-term is long-term, Yes. we for share the

lever and we For are the bullish long-term increasing that is biggest that. XX% on the

unveil this, key not point unpredictable. actually in restrictions more Investor strategy, work the public in are COVID take table much of with of prize strategy, and Our we restaurant us detail talk done that can will fact of is will how pandemic for we how we our the what the it we Day, is which you time, and explain math long size have where about long-term just at We've gone each for unpredictable unpredictable components math. this given put we'll some on yet the that at get articulate that and will it through to the that

that we believe meaningfully can move we higher. So number

that trust a more where than customers meaningfully pricing topic. more distributor the independent is customers, don't one with do to many us. the number to one It reasons of with and of number have to lack one customer transparency higher. double business reason that why chooses click and in is into they the We do Pricing is to comes point choose your back why

of that meaningful tool. customer strategic pricing We deployment our with on point will national progress pain the make

increase will transparency. We

significant that trust will items we which briefly by on We believe matter right that share lever on to increase Joel earlier. the price wallet, of improve mentioned being most. a is And very

best and to availability at fresh increase making be increase being access our capabilities. we significant wallet the is to fresh, and about confident internally and to of by to premium, Assortment protein increase to ability is something fresh efforts our share able topic and of availability we're at talk at and fresh in ability and our we're deliver better best and

supply third our save and that I'm Day. Investor would to one going for services, bucket chain The be upcoming

Jeffrey Bernstein

savings question on was to ability the with then and less. other Got just it. just And more your cost do

XX sales operating your quite how income despite was adjusted You highlighted down percent. plus strong

million savings year. starting And think to $XXX I some, you able mentioned would whether be reduced the next wondering just having on quantify level. set lot a I'm beyond you you So the of then breakeven said additional

out wondering are $XXX we're about smaller we what in or So I'm something to just pieces million now you. talking Thank years? about talking to similar magnitude

Joel Grade


would that not at I'm So [indiscernible] that we an event. point going to rollout further to be something investor Kevin's answer

Regarding the that something point, certainly I mean, we've about. is talked breakeven

we QX quarter, exited XX% from we've range. last recall, And business was again we flow in the positive was fact nearly and actually our if the down our again about which As fiscal the operating that cash perspective. you'll talked exited income an year, that

point moved XX% So, even the somewhere of breakeven our certainly to crisis. beyond than And that at been beginning clearly had has significantly it down. different the is

on that. that's So, you I'll color give the

Jeffrey Bernstein

of based for there Is Understood. is a on Investor date or this kind COVID? pending Day it

Kevin Hourican

Yes, pending.

Jeffrey Bernstein

you. Thank


of the you Thank call earnings today. everybody call. for Sysco joining quarter first Corporation XXXX concludes the That

You may now disconnect.