SYY - Earnings call transcript Q3 2021

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Operator

Good morning, and welcome to Sysco's Third Quarter Fiscal 2021 Conference Call.

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

We will begin with opening remarks and introductions. I would like to turn the call over to Neil Russell, Senior Vice President of Corporate Affairs and Chief Communications Officer. Please go ahead.

Neil Russell

welcome Third and Earnings Fiscal everyone, Call. morning, to Quarter Sysco's XXXX Good we our Officer. Kevin Executive today's have On call, Hourican, Aaron our Officer; Alt, President Chief Financial and Chief and

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

could these results filings. in copy in limited The earlier in and website. at to sysco.com. to are XXXX, that but those factors GAAP included financial XX-K the the measures forward-looking release contained factors news from our materials Investors the found can section not about in is in measures on slides XX, Form also the the subsequent the the Investors end for our information Additional SEC contained morning. cause report to, this issued A risk is This presentation and the be our filings differ annual section June and statements year at SEC found of non-GAAP be company's presentation in are measures Non-GAAP of today includes, these in our in of can included corresponding the of comments reconciliation slides. ended

will we reminder, be hosting XX. Sysco's a on As Day Investor May

I'd our discuss over turn He and Sysco's then Sysco's will will to results. discussing on then start call recent Hourican. Kevin Officer, to business an For President Kevin the this to Instructions]. by over At financial quarter Aaron, turn Chief the will and call, Executive recovery. time, [Operator performance update like today's third provide it environment who will

Kevin Hourican

for call points. performance our staying families Good I our you, I and X and you that important your safe with everyone, summarize third joining today. quarter are hope and thank you healthy. Thank Neil. morning, would

business is our pace of COVID recovery especially recovery industry's is here, the the First, our business. in accelerating, U.S. and domestic

excellent our in business making differentiate are serve our we from to better transformation and Second, progress our competition. customers

national were market Third, market our quarter sales light we are local of strong third financial at management. customer mostly Fourth, in for and results and due to the the share level. expense conditions, disciplined improved winning the

As we have upon we placed in sector. eased, that our our demand restrictions food-away-from-home the see previously business pent-up customers are communicated, improve. quickly performance our can results see once tremendous in We data

results restrictions times in have that within eager eat Strong reduced. Our sales long consumers are soon data are and are to wait restrictions. as geographies confirms restaurants common limited that at as operating restaurants

The can difficult aptly third at and end. robust is the at be described the quarter beginning

by Our storm a In tight our our exceeded affected performance restrictions recovery winter business January indicator performance in COVID March period the meaningfully our our was substantial negatively bodes customers sales winter and sector. February, In as strong on within lockdown. a for domestic the strongest well markets. expectations during impacted the our adversely contrast,

predicted. from positive in still remain In restrictions and markets as sector mostly levels exceeding is that however, come the in third surpassed in exited the improvement restaurant the markets industry to local warmer notable easing to are in States, that regions independent things Europe, reopened of harbinger reopened independent levels met, These reduced then and As positive the where benefit XXXX quarter in place a generating outcome restrictions trends. the with are restaurant sales is third today. and The place. performance Southern firmly we in The restrictions important the rebound in sector. promising than most the results Northern The strong timing of quarter, is a sales begin a late results. faster are result, had United weather XXXX results

countries European stronger U.S. experiencing those in XXXX. are even in than April experienced restrictions of the Our

XXXX We in quarter. reflect to to sales meaningfully down Europe in begin of compared and fiscal results latter those confident in expect markets half our restrictions in our remain tight the the ability fourth improvement European remain levels. and Our to succeed

In addition business down. foodservice softer travel, to our remain the in European the sectors management performance, and hospitality

results in management other Our and to full business penetration of Europe is creating lingering our select the foodservice recovery delay distributors. in a pre-COVID in comparison business in

our are core their that recovery at slower pace confident but sectors will will recover, restaurant these We be a sector. than

grow to when XX.X% add we and years a for result, a fully more Sysco's quarter. told, geographies us delivered and sustainability segments strength sales in to these will recover, the come. As and All it quarters of giving fuel of recovery, decrease

second running sector of were the third above that many another sales partners our local well down reflect an industry is over performing was signal is is fiscal XX%, the sales to The independent of outcome quarter compared most with improvement results increases which compared compelling as quarter While we to clear recovering. XXXX. that restaurant decline exited restaurant the our the quarter, expectations our XXXX,

share I a While prior our the in $XXX report demand, our the quarter, overall overall to quarter. of can to share growth am foodservice compared success for progress profitable results gained year, down the our third reflecting that delivering of restaurants the foodservice distribution which recent ensure we throughout the of industry of adjusted than million investments. to in be seen doing return quarter the the Sysco versus industry, market pleased once were Sysco was rest anyone EBITDA. the fiscal more and of prepare again delivered market

customers customers Our and during existing sales their recovery this maximize business period. teams engaged are actively new with helping

business to level. and contract national sales the We win at continue

over calls, net quarter of writing another start of said profit billion pandemic posted contracts of at on since have the the new with are strong I've $X.X the now are wins we We signed. contracts new margins. historic prior

business the and chain supply are service our due winning We to our new capabilities.

new the at you After of recent industry. strongest XX% before wins we can than better top associate that industry during customers on pandemic industry quarter when serving posting Sysco, to local model, compensation X third we than we of the see XXXX. report Fueled in that this Slide permanent program Restaurants customer most ever that the predicted fiscal the customers that contract the more confirmed by The to experts than is levels number and onboarded growth our national had customers new we addition local more ever was is our the In XXXX closures. to sales new down wins, fully now line we closure local quarter. due for sales during recovered. XX% fact our have well are number of increased approximately the local bodes future restaurants our XX% for The Rising serve did

to business the XXXX customer Our increased count to us our fiscal take the market in share beyond. sector food-away-from-home well and positions as returns

As for we will preparation discussed quarter the the throughout our increased in investments on continue and in recovery. we These last fiscal quarter. our investments call, making several business began strategic third fourth

on people, have demand. our our position customers, and have our We technology inventory, community. foodservice the the helped investments investments our focused return Sysco These our curve of of our for ahead

campaign, including strengthen their future. for in Our and to our for Restaurants our easier customers, business the Rising succeed make it investments restaurants

do by environment, business to uncertain business During scheduled delivery Sysco it minimums customers with waiving for we have easier our regularly delivery this on made days.

second the right we including in advance in the of to hire people, the be investments customers. on our We over right the to and recovery are fiscal able our associates locations to proactively people the time at efforts have business staff increasing to of to full making expect right our curve ensure X,XXX At our in year. time half we ship to number in in Sysco, of

full a in supply, challenge. We have industry, court hiring is hiring press drivers. warehouse our selectors a Throughout are drivers and on indeed short and

pulling to targets. hiring ensure our are lever We every meet we

While that term, investment over short operational our will in expenses is Sysco help business maximize to this increase hiring share recovery. it gains able the long the ensure will term, during the our

our making before are on support We crisis inventory position in demand. also properly has COVID position is inventory greater than Currently, customer amount Sysco inventory to hand in combined on warehouses the our a and that order investments began. to

volume strongest in makes ability ensure of sheet, balance to in and faster on uniquely inventory ship period to during distributor accelerate in to are element product the is industry. to strong Due recovery. the we core what we the be able overall growth make of recovery upcoming positioned our Our investments Sysco broadline time can full the a to than

and pressure known as we seeing and levels. struggle have chain business We an in more are bullwhip view supply this suppliers been rebound. than select with market opportunity effect constraint the We Sysco, seen supply conditions partnering with is and coming take our inventory as as increased chain meeting XX additional top suppliers At at This our constraints as demand the this warehouses. grow for to market share. days our to pre-position have

improve our experience. customer continuing strategic our are We investments technology the to in

Our technology customers we platform we for Sysco it implementing are a improved We're to easier through meaningfully our order platform, pricing so making best-in-class can better products Shop serve is and our being that our software. customers.

in both Investor our at We will discuss topics of detail these Day.

social XXXX Lastly, initiatives are our in responsibility corporate goals well. progressing

across efforts pillars and standard of CSR care are and product progress people, industry-leading planet. for X setting Our the

This our communities confidence, of to across to benefits We grazing also along Sysco, with Wildlife faster are to helps effort Fish working Cargill, acres ranchers business promote great industry. with to as their evidenced improve good are X our and At in table. Sysco health, with which bring progress is partnership, of we strides customers the for National maximize by storage very making the environmental the safeguard opportunity a than Foundation as This increase serve. on our to important biodiversity the grassland. critical work, can announcement buy million and carbon sustainable our this which the social is recent product recover and we soil practices and knowing livelihoods and improve we

compelling gain an strength financial have business and share transformation. We given opportunity our our to market

dedication now call who with to discuss help third details. financial their Alt, our grow give our you I'll of over customers to this and you. quarter challenging that Investor virtually of will will Aaron, environment. distributor growth who and We continue of additional invite the success heartfelt XX, we XX proud provide logistics. Sysco environment. we any meeting, May for the Aaron this am succeed strategic a all will Sysco. associates the success in are that our of important to on May compelling to our deliver results. customers' plan plan more plan to our business join provide with growth I do to generate details and to how you than customers the us other dynamic would ensure with over want I results Please industry along to will service operating in Day. I will during turn thanks details our food to and financial prepared the everyone like our and At to

Aaron Alt

Thank a sales flow, those and key are good strong cash Improving and you, Kevin, morning. trends, profitable headlines. quarter our

presented of foodservice quarter countered us the business our States, beginning in third international recovery of parts United fiscal restaurant a the disruption the Our and by portfolio. in with continued management

the million line; on inventory, we totaling fiscal so in COVID dividend of mitigate transformation; reduction to ahead strategic the to year. shareholders careful $XXX capabilities the return As cost investments purposeful financial X of to in technologies continued impact course, team our the tactical balanced and and investments of a this to advance through equipment bottom indebtedness; recovery; result, priorities, our business our capital get far of environment payments, and of control

and the see to more is the the today the we of view had we As like the strong will Kevin as quarter, impacting position of the sheet. move up delighted in income at called and I our on were are balance emphasis cash the $X.X progress strength statement end would cash. recovery trends of shortly. on the how Recall, I improving speak billion with curve that profit, we start the to out, an on flow sales and second and we

made cash capital the investment, even During of inventory from of quarter payables free increase we excellent in the on course We on balances with receivables we leaving pre-COVID customers exceeding positive the quarter us also of of $XXX offset capital million, And positive operations though at started customers with in as Working the flow normal inventory. significant And was we quarter third our quarter, Kevin more. payment incremental for us million as a quarter for we heavily $XXX But cash source generated net both benefited a third purchasing obtaining inventory from third cash invested order levels. and end. $XX and on saw million. pointed by pre-COVID in out, from our post-COVID on hand bills. rising ended progress we timely

lower million cash X-month flow $X.X billion we COVID-XX, this was free even generated of and combination year, we $X.X forecast flow. higher of billion forecast strong For the of capital profit, ended working the impressive with than hand. earlier sales an CapEx quarter. in approximately in by All period, cash $XXX the the third first benefit the than back in, This and face driven cash quarter Sysco better had on

will is quarter. in expected fourth payables, the working EBITDA third benefit due also as bring we come the with the in continued to invest quarter, bring on line. quarter and that the investments It expect in capital We us fourth the to as continue inventory which provided progress in

to billion leaving billion. are with forecasting cash free a us the cash we As result, free of fourth the for $X.X quarter, for year flattish $X.X approximately flow

that by cash will the in our quarter, of we date subsequent outstanding this program. continuing billion third $X.X commercial and And U.K. end strategy XXX optimism which since quarter, of see year. the remaining on the the third that Investor GBP an amount to the will not $X.X our balance you debt leverage levels. discussion levels yet business and our funded in Stay in reducing that the we million tuned of balance later will million Given early hand, by program, additional $X.X and see of will, in the for paper billion week, debt we quarter down on strong on the announced approximately we is the What start financials. that you the our down our third at sheet, generation that down fiscal recovery, of process the change We paid on off our third quarter financials billion for bring cash of pay our our GBP a this capital start by reflected repaid allocation XXX were Day. since

Okay.

the statement. income to turn Let's

XXXX shape of recovery curve, the the comparisons for fiscal disclose in Given fiscal will next XXXX. and quarters, sales the interest of couple the both COVID-XX we against

with in the quarter Third and the XXXX, the monthly decrease the impact XX% in weeks sales billion, COVID February XX.X% the XX.X% the progression, quarter of fiscal last reflecting storm the and the Indeed, sales February crisis. fiscal quarter, we against fiscal the 'XX, but lap X during of but of January, February. onset were the March, in been COVID-XX the looking began at same decrease would same our quarter. of across impact of from down XXXX measured and last important a that $XX.X the in a of from were to better XX% week quarter U.S. in have the the for winter qualification

XXXX. to sales also up prior fiscal are were disclosing billion, a from We and our basis $X.X on April approximately onetime XXX.X% today that from improving down year X.X% only

XX% as the versus increase in in eased was XXXX, States in traffic United orders X.X% Our were foodservice the XXXX, sales U.S. fiscal the and lockdowns fiscal up restaurant U.S. SYGMA versus down the and segment reflecting

to progress In a into now and continue benefit of fiscal early international progress regressed fourth reopening carry contrast, quarter will expected as may some in Canada of will end and quarter America slower quarters to in U.S. vaccination the continue recovery continue of Latin until lockdowns advances. results slower by and strict We as on cases vaccination. the in XXXX, May a Europe, as result impact are depending our result that third The to the of country.

Kingdom. taking the place in news recent the good United see in we reopening However,

Here additional couple of are a metrics.

decreased within total case decreased volume case volume U.S. U.S. For Broadline operations local while the XX.X%. X.X% Broadline operations within quarter,

of sales a on had results. rates positive our points impact Foreign XX basis exchange

down P&L, move gross driven gross Most same XX.X% in was to in profit of billion due XXXX. third the fiscal we in quarter, decreasing $X.X the As profit versus lower volumes by quarter decline COVID. was the

is versus XX primary fiscal touch the did of just The margin rate of basis gross the in business roughly a reason in mix. XX%. XXXX dilution for points came margin as shy gross we However, see at level the dilution enterprise our same period modest

margin were Along sales at at Our generally lines, European so gross the same in the were lower-margin down, SYGMA our enterprise. so lower up, our sales and margin enterprise. business margin gross the business lower our higher

expense in just of with a We to year. shift, mix modest business we varying lower billion, leverage, operating between under prior and product expense passing timing also with even Adjusted interplay from saw improvement market $X.X our decreased to causes of margin by each and initiatives. sales the dilution segments saw inflation along the a modest operating of transformation implementing XX.X% the

good profile cost-out our recovery reflected our investments against of agenda. balanced for investments expense the and the the achievement, transformation curve counterweights Our against

part this, cost significant increased we of As targeted savings. achieved and

track are surpass to fiscal We cost on savings. million goal $XXX of of our XXXX

help drive Investor savings more I X continued growth topic We our agenda, to at opportunities expect future fuel cost to weeks. Day a will in discuss

enterprise income at adjusted Finally, decreased million. the level, XX% to $XXX operating

the customers decrease For rate the record environment, quarter, $X was with of quarter. rapidly few U.S. again say tax favorably XX.X% of the the prior a by Operations. acquired teams we was business option hit period. for deployed driven per the digital Sales third In results impact $X.XX by evolving segment, and were business stock XX.X% versus as which Foodservice billion, earnings streets, non-GAAP year our number to a XX.X% third the quarter of decreased Adjusted tools. sales new a I'll on exercises. words share of starting our our the

also This business, saw moving customer our national rapidly. curve We is business, up recovery COVID biggest the accounts growth in base. our

of come and adjusted customer to healthy sales The mix was with quarter. billion case, XX.X% local product 'XX XXX driven to categories prepackaged profit which the takeaway-ready Sysco U.S. points for Regaining versus to XX.X% a year, business, $X.X to XX.X%, Sysco decreased basis U.S. income X.X% deflationary U.S. levels them brand X.X% foodservice for Product XXXX. XX.X% decreased fiscal was decreased product in Sysco by segment's for shift. focus $XXX be quarter will adjusted cost for $X.X driven into basis the brand margins With the by brand million. and by mix shift respect decreased the and decreased total that products. and prior driven sales inflation expenses the points to XXX Within third fiscal Gross operating beyond. cases, to billion, and operating sales

SYGMA to segment. Moving the

increased billion, quarter, traffic. XXXX third increase quickservice quarter For over XX.X% fiscal and during the the restaurants drive-thru the servicing sales fiscal consecutive third over by XXXX, increase to national fiscal driven regional success of $X.X a a X%

pleased efforts SYGMA agreements and is team as are the carefully business, COVID, it we customers. with our with While efforts that during lowest-margin particularly team's is to calibrating segment, our relates negotiating our in

transition As focusing regional away profitable a result, opportunity an will a quarter, customer. meet freeing on our starting profile, we be and be from capacity customers. fiscal to of The up during for that relationship do large preferred fourth financials we taking not more will existing our

forward, the XX.X% our all in diligent operating quarter million contract basis across operating gross increased to $XXX process review the down income to to for profit at the prior $XXX be was XX.X% year. $XX while to approval and adjusted SYGMA. and Adjusted compared Going million, increased expenses to million increased will points margin we continue XX XX.X% Gross enterprise.

segment. international the to Moving

The Latin Foodservice was mix, our customer International decrease to segment earlier, and mix points. The As XX.X%, of and decreased European, continue margin $X.X businesses XXX country Operations while of gross a basis American I product sales mix. by profit decreased decline XX.X% saw billion, COVID and a gross result mentioned impacted Canadian of margin gross lockdowns. be

operating segment, leading of adjusted international adjusted XX.X%, decreased expenses $XX the loss million. an to operating For

for be international that a significant our company opportunity confident in are We recovery fiscal XXXX. will

compared COVID which levels. the Our year Worldwide includes other our business, low segment, blocks recovery hospitality Guest starting as remains rates prior in remain occupancy to

profitability the during in the quarter. third While still its improved mode, underlying turnaround business

concludes be Worldwide my prepared Guest hospitality new recover. beneficial substantial remarks very the as travel That Additionally, segment will signed quarter a sectors the business to during the quarter. customer on that third our contract the and

providing further carefully. to not our the fourth quarter, other to than for continue are guidance that we We operating environment monitor observe

reopen. we challenges our on key operational seeing are the coast customers, many demand While south. are markets and business in remain the core for excellent we And the center in the as seeing shoots in of green our markets

across Let's progress and upswing fiscal has clear. continued largest portfolio of the parts The in begun, quarter. fourth expect we our be the

building Our team customer-centric managing long-term remains accelerate focused to the and on our businesses, driving aggressively growth. resolutely business recovery capabilities

in people deploy curve As continue we sheet in and our ahead technology the while invest the of to recovery to to stay quarter, inventory, we our did third our will also reducing indebtedness. balance

X XXXX Day growth transformation perspective and executive specifics During for and our our leadership team in the beyond on will more offer Kevin detailed the efforts. weeks, and on our business, provide Investor further fiscal on plans

in will organic we're seeing on your allocation investment Operator, for ready plans, Thank participate are forward post-COVID We strategy, for capital now the our We and inorganic that shareholder and to further and thinking debt event. about look we our attention. depth including reduction continued breadth you comment you of questions. virtual for plans how our returns.

Operator

[Operator Instructions].

first comes with from Slagle Our Jefferies. question Alex

Alex Slagle

wins. remarkable. on the case growth Question local be customer It continues to new the and

driver or you the want if a something delivery what think to was; top Just quarter, and specifically, drivers, if you during dive shifting a change see keep that's line you meaningful the then temporary biggest around could impacted the the you think behind could the shortly. deeper that margins back wondered minimums how first, you you two, if driver little in dimensionalize

Kevin Hourican

the you for thank Alex, question.

we're Just very those on prospecting, the of proud new results. customer

As of wins I ever single the in my in quarter the remarks, new largest history a said company from perspective. customer prepared

We in in thing we that QX. the actually upped For said those QX. performance posted that the score, keeping just are same I

X on record pretty expect focus We're we big The why the what and things we our that priority force. sales upon. straightforward: made of it we a, a we have measure, we've prospecting. impact levels is manage got quarters company what and manages consecutive So for customer we a we of that new

compensation spoken of openly prior that pretty second in removed in a as about, barrier I've got our we The program prospecting. the is, way

late it our took It for sales that really we a going the compensation in level get get last it's us, the to components or program. because it's and And kick we've understanding good So for that our and summer. X them change now to good to beneficial changed management equally. of prospect of financially consultant and a key for consultants now of sales for quarter made

premises, We're We're So two a reasonably measuring made it. basic simple we've is tracking which it. it priority.

specifically sales them We win consultant the time. financial rewards grow it have rewards goals by on are new and able obviously customer prospecting activity. company compensation profitably we new that our And as over and to for business

top going As XXXX. customer into because us prepared total and we in it's for fiscal of accelerate then on remarks country, are as QX are those visible wins this this less I new well, further restrictions. begins there restaurant many cities dividend recovery But fruit as now to and that are our in pay our part to significant my said in still in line a

So we're it. with really pleased

part of big Rising which in Do was the way in Rising. be yes, that our would an I morning on Day. and be would We minimums. Second make not it barrier. to Restaurants a about the XX Sysco. that continue? stay? Investor was rigorous May got this more pretty expect coming customer announcement wins? my that about we barrier it to new strict that driver that delivery regard. a previously eliminated of And We'll point would over and we've #X, ready And Restaurants say for question the a had Will was talk days I'm to that

Aaron Alt

it's to Alex, well. thing Aaron that I'd Alt. add as one

news business, about don't our other gained expect in calls time large display the the out as they the or business, results further not The during to hardest is spend Europe doors, the management is is large foodservice in Guest getting door part. particular, the teams to where, a has contracts these in in happens, have is bring on which crisis, the indeed, much kicked in are and there, the we on our good sales our well. While customer. it's and Oftentimes, the again, goodness as we yet the but goodness gained Worldwide talking as recovery segments that that open whether U.K. there

Operator

Edward next Kelly Your Fargo. is Wells question from with

Edward Kelly

ask overall to wanted volumes. post-COVID mix you, I about Kevin, customer and

on think business world Just curious, much won higher do we independent be you to for? the how what volume contract about like? does looking think that And up side. your the case business you've kind how How seen wins than how kind too higher? with be independent end the your when mix actually do the on Is normalizes thinking the XXXX? side, won of all curious to -- you've could about independent you've it that. possible that mix Is much you're ask Just of as will

Kevin Hourican

significantly couple of down of one, our to be higher hospitality, are recovery Yes, a about; and thank independent slower management, factors: and our for you for for expect number we're foodservice did we prepared the say the travel question. I would say wins remarks, talking curve. for a in fiscal two, 'XX, have pretty that would I this mix still

would sectors, strongest that the would business. fact because year dilutive factors this be margin shifting. of our the total that SYGMA. indicate to So of our SYGMA side in sector, to SYGMA's rate least side counterpoint is And by we're One prior I our of that rate that increases balance put profitable think one running those is X double-digit is our

as So to headed Ed. a Aaron we're prepared can about May on company, He's more talk where that talk XX. about

tracked, levels. We're our If which versus that curve, schedule the point over going to Technomic those will and a to fiscal What of I occur. sectors for we've from Technomic term, of beyond. XXXX. we comments the of positive recover businesses actually which each will different is is is in predict each ahead longer to They're optimism of said what's perspective what using are data those recover predicted, each of and look expectation harbinger the that on is So we had when pre-COVID to in we've a XXXX come a mapped. play fiscal

those of of each sectors. That's the in kind of sentence. best a end of share putting take at way to expect We the period my

how strategies We those for of win in have in to growth each place sectors.

So X I years now, sale years recovers it's will as and will be to the balance now predict Day, hard if sectors now, from there'll take share, balance wouldn't you're grow. from what hopefully, would the X from say X post-Investor suggest will by asking that. precise I each sector of customer, see we each a me meaningfully that. sale But different And years of more be. of clarity to we

Edward Kelly

quick a that. And then on follow-up just

in some about talk How will to pressure margins about recovery and little on on does when you did impact And your P&L? that? drivers, investment post-COVID have it the Can a that dust ability any impact just EBIT settles? warehouse higher drive the talk bit workers. You about

Kevin Hourican

question a -- industries. availability regards great are that challenges industry across being the to the faced across labor It's in frankly, all

then obviously operate. the countries struggling and short frankly, which You've their in particular, within much they're multiple themselves restaurants how in we about nationwide, And with drivers, and jobs. in read filling are supply

Sysco it, meaningful difference of point between in, the restaurant. let's call one Here's

do nation do wage Our pressure a have Even in challenge. not that have went wage jobs not challenge. are $XX excellent paying if a minimum the regard. jobs. not minimum, to we a We We have do

driver paying positions. jobs, are attractive they're benefits, jobs Our strong excellent

to you to spoke I today call what and issue awareness creating the jobs. Our on is those

had we're to retention create and advertising increase bonuses. things to in, bonuses, referral we've to do some We've to in this awareness. in So do QX the bonuses, create QX, -- quarter had sign-on to quarter things,

than that would to incremental permanent were I the dilute that ilk was increases expenses more wage, referring to structural the margin. So which of

a half and our a the there So of in transitory are to activity over within country X,XXX little And doing people we're I view really actually create that some things second of as this year. of pockets our select to needing jobs. fiscal are our hire more bit where we're tight, awareness

So we're ratio the profit in confident to in improve future. our ability our

XX. previously in million cost any said and substantial. out will we've see wage. something We program business, $XXX cost have takeout that's in would detail May a of pressures we that help of our permanent is Aaron offset more That will talk We've also about that that taken on structural

Operator

question Bania, is the from of line Capital. next BMO Your Kelly

Kelly Bania

in go I $XXX was the curious if back structural cost million you to savings. could

up a was that, if if target. maybe to finding you you're better you're was And mention forward. to I move that just could think talk incremental as being there's potential or feeling any where about surpass savings that increase you of there about set curious where

Aaron Alt

question. Great

our We effort. cost are savings progress excited quite about against our

'XX in of Just $XXX to go had million for well COGS back as through combination we for was savings fiscal second, a a cost what operating as and of out expense. targeted

there. they're might beat the the that it target million we sales obvious well, point see quarters. a our our and I'm the they're that And ahead of to us go up call expect savings excited thought, impact are could today how as an at I in opportunity the can just kind been savings or will the respect, in have so sake math the We view, we simple we for we be forecast cleaner visible our are certainly illustrate particularly $XXX I real, in everyone prove distracting and of quarter point meet have having some to to this because do than And out more 'XX. previous of a that have of the fiscal and more there. bit, we're on on back particular, P&L they

second, this. we've points decimal our math. was the QX It simple actually $X.XXX bear going given walk go some for To like I'm you So to talking with starts fiscal levels we're in OpEx through there billion, year, but a me 'XX, adjusted back the a about. sorry

sales were the our XX.X%. This comparison down quarter, period,

So Joel about million. OpEx did, have been of we they're guided $XXX you costs were X/X the structure should that X/X our past we variable assumed down fixed for sake argument, -- if and the in not, our But fully variable. that but cost if is

at been $X.XX right, So have Everyone's million would still have billion, would And the absolute That me. stranded under we costs as us cost million that million. hopefully just actions. suffered continue have ahead. push simple to $XXX from of we fixed savings $XXX should put the of variable math $XXX with just cost

though, go which sales, for $XXX OpEx of billion, out costs, quarter, is we did the of not fixed whole million but down consistent adjusted also able $X.XXX out cost this that. $XXX nice And down, able are quarter-over-quarter reduce the be fixed being of thing able to show effort, variable quarter only about took and Our structure. meaning before the the to the was cost-out right, our right, cost investments, to is this take sales we point million, with we're

out well. point other of should things I Now as a couple

other going $XX million of million weren't benefits use done. can't investments for is are against the against the see made those our the onetime We're structure. million first good against We've in $XX some committed are the good is going $XX transformation cost-out we OpEx we purposeful that call to savings That's agenda. that we you as the What of offset of that advance we've always The quarter to that to part guys invest of to or well. recovery it, business. what guys get, the did

as we of good out. we that have coming from carry is example from cases really et discipline forward. will show Kevin how us that cost-out of Investor headlines cost we've where coming from really, business helping trends it it the we or and of question And culture to how the about, your regionalized Day, that insisting our coming This it's offset employee or how core some Kelly, part business, is I would point talk cost-out. of inflation, investments it's more from, can how the it's to showing our and and a quarter leading, your of just as cetera, ahead, restructured coming the want gives to push how a us on will it's you way works of frugality around prioritizing the say On -- math, about

but thanks the I a hope question, long answer, So for that's helpful.

Kelly Bania

Very appreciate helpful. I detailed that answer.

wanted seeing feel accelerate, ask what seeing inflation on. if also passing about how you quarter, into just and so do those can fourth just about to maybe far those costs food just Just you're you're your I if

have some But seeing you maybe think update I new tools on there. what and software that. manage you're to just

Kevin Hourican

you more at Certainly, for seeing what's QX becoming happening but We not QX the but the a inflationary. day. economics happening a of happening. Kelly, economy was more Basic industry. in it than definitely accelerating, every It's this would the We're industry just say all read I thank play question. are here. inflation paper is fiscal in that's every

We there well-known have significantly increasing demand, unfortunately, are food simultaneous out with industry. that the in some supply pretty challenges

is sales the of So impact We are increasing. that? what seeing

on a GP however, to hopefully, a dollars, mode, to on would And but We impact dilutive in in customers. QX determined ability growth through rate. to see our our will be most this likely pass margin be slightly our inflation

restaurants to a So we're actually showing seeing, a themselves, ticket. willingness higher here's are what to the are consumers, people pay who going

restaurant talk think people cover heard other that that. I personally about you've you

restaurant menu on and now increases teach part the to does. experiencing. that and could very basis working providing seeing increase we're food-away-from-home cost. the a we retail the We alternative what of suggestions of consult on competitive grocery. right with we the providing We with take are a partners price And on some product Sysco notable suggestions versus And willing price on Important them prices, offset though we're That's on educate menu we all place. point, them, their inflation where being impact is on them. to we're also, are them, the COGS a

And eliminated anymore, promos this didn't grocers running I because them they good year, that a you did job managing double-digit and last comps. essentially know all think are retail time they they their business. need

of had year-over-year within cost. actually the So a of the down reestablishment on COVID a XXXX gone getting we're have was. retail if have during where been crisis I would year we grocery the to actually seeing restaurant. actually and think this of been prices menu is we're this And at basis. say of Squawk wouldn't was what heard Prices it on gone term, I back deflationary, have morning which kind someone reinflation, some last now kind up

the a for expect meaning to we're I'll doing I and So me, we're they'll suppliers decrease. will talk closely, we're then call pressure this. time, doing is smart demand. that normalize know let's then how about it's customers. catch-up. for closely with over Last our be just And going I equation this therefore, do point inflation managing What will up to what supply-to-demand take. of and ramp some long don't

specific, deploying sales I providing contracts. types our think fixed you many to COGS be it, have contracts these or on we're To of it's greatly by we local spread your help if done manual. percent things. us And we of independent system a it's know COGS. also, will we to manual, but not mostly Periscope that we the on contracts, do teams. contracted, Kelly, have it's today, how And where it's are guidance manage a to customers many point, have that where that's And

the much showing and pass we by We still more want what Unfortunately, call the specific customer. we middle on know, of Shop scientific will choices in guarantee through want be on in through and how up then it is front in we you to Sysco don't we're to category of what specific we rollout. and as can pass that

beginning And to We're rollout. half expanded quarter, we're, the we've going In that the rollout. Since of in in calendar complete fact, last year, X that second Periscope additional to middle. part of we're the this not regions. in

environmental will exactly of Periscope to Good types a future. be tool. need why these yes, the benefit So asking. It's Thank the we question. you tremendous in conditions for

Operator

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

John Heinbockel

Kevin, one COVID right that drive vendor did thing existing account is consolidation.

to So with that what existing account in seeing sort Is seeing vendors? are are more are restaurants Are you you gains? your share markets? behaving? what back reopened And dealing going How of with they sticking? then

Kevin Hourican

during definitely of took all distributor Probably those company bit little gain it. be My this Yes, share be, that for was market the winners goal still And of we consolidation our will for goal that soon too keep that COVID. will tell. experienced. question. thank the were I'm to you place a during a John, have that sure yes, There

the be can you're the just players How those that you're biggest space question and marketplace. share, net total this -- I'll beginning you're the big the true if than have share can Together it been I and other saying the say winning that you of pretty in winners is X how are we're true? the bluntly, of market companies less be companies. combined, asked asking, X in have half this saying been of think point I've since pandemic. blank, And is, what Kevin,

like to So button. Day we've no is penetration we you remains accurate becoming that those provide customers, of there gained. our share on back and we biggest suggested like Investor I currently during to offers are buying the retain the have reorder increasing the Sysco orders, market of that the gold Other think talk thesis we this the giving on environment, doing to easy that following that are things, we we're Shop to with tool to strongest the customers much say. use, easier intentions succeeding the They're and the that specifically customers. towards Things targeted calling relevance them work something we're customers personalization going There's improve in hills, as we're about serve. players

further even intend in to and of the this have our space. again, the players offers us customer to customers. wallet scale get better on promotional believe increase being we provide as our We economies, of chain our smarter, and biggest and increase We largest our so the share retention. purchasing we successful, And economies, we been can supply leverage

John Heinbockel

of ramp-up come your process? above-average And secondly, Or have average customers sense, XX% have your Is on where they increase of they average the good in terms them? a sort in share or do of below 'XX, So they're in average? a you it independent with fall since terms share?

Kevin Hourican

that's apologize, are. does that Independent And you are them? Staten our book I saying compare in the business? me, Island. normal to we I name But My our apologies slip. you how for it have, customer right. of of what is I Excuse know John. share you wins new Yes. know live who

John Heinbockel

they're compared come to up more where Is say with -- to is tenured behaving, higher going those? that how average ramp-up they XX%, picked if they because a since right, was and your 'XX, I No, Or process below the you've share on COVID, are actually accounts? of there are right?

Kevin Hourican

lines what Yes. and first you They cases, to come the It's number in of earn and thank We for smaller. right question. half. time X you John, the it. Yes. on over the said win increase then we

again, be we plowing we historical through in around true. So the room. in fact, pattern that because to And industry fact remains that succeed selling can, we're know

win So do with we then plate, introduce if center center we produce, If that. can around of win can we plate. the confident And we can plate. of sell we're we

stop So tend new as of per the profit It's number -- case is win, per to be cases indicated. are lower fine. unique just the for you a customer

Operator

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

John Glass

of wanted about you're it you've been I couple out that more of I pricing that the to that, the rolled result your Kevin, follow-up on because but a pricing? Or much of is not just a you after that going has is force evidence tool about, types. wins? new Or be broader not it's talked similarly, was cuisine you're independent know gets strategy simply How One these sharper new this this you was of transparency, that sales to that? pricing on is net that and a And on refashioned? wins going yet, comment, just quarter cuisine ways. in in because or just individual the talked

Kevin Hourican

I both. John, great them love Yes. question.

that through in serving digestible clear, strategy to promotional existing that both customers, put and force. selling strategy them talk selling to customers. program c, the to activity of program one, be the innings a about up customers. looks up compensation new that how first marketing it our our provided I We're out. is majority of percent customer would to more: day. is which a serve be we And able Sysco coming relevant be improving is customers It's bucket. that for what of thousands the say a, work, share be on both that you I digital being would we made early prospecting doing to cogent capital. best selling, I And coherent, we're XX, we're what b, those that are into cuisine-based cuisine-based customers. The roll of category will that. customers, what our selling the of May then serve extensively our to look we the and offers wins and from those of serve with a clear. restaurant to to teeing those going would kind in just thousands priority; very the because quite manner, change; Asian sales much and merchandising, Shop with on view program Mexican Italian and And like, third customers, And them forward We upside cuisine-based our the still that in cuisine-based to as opportunity and human

John Glass

part Okay. just on that I'm pricing. was sorry, the the second of

customer a maybe You given pricing the pricing tool? sharpening just that -- was it transparency to Or create vehicle block? a that is new that the of acquisition is

Kevin Hourican

great. Yes,

reasonably items, clear known be it to able KVIs. the of primary over lower our which we offset making on the put margin for assortment rate, to increase to price, to into to one, those we're As our on we our items, prices result on at the right dollars being or GP will increases is to we've investments lower for on opportunity this the what price a software the pricing right which tail inelastic need which We need to is been in call nominally on sharper flows be level, the bank. SKUs relates our Simultaneously, have strategy, on be the slightly be we through to at price to sales item price. point customer which actually means KVIs, value

one know And in will a because is we've sharper right trust we the margin customer we is, need gain growth to the is head And it opportunity for value leaves a on. distributor that known for sales this of tackle So on how items. pricing. flat number and price, are we the most pricing that And rate fairness as be in described in constant. part, aggregate us why reason on

Operator

from of line Bernstein. Your Jeffrey the next question comes

Jeffrey Bernstein

terms about distribution know with last just following in kind of more talking discussion a specifically to number peers of together doing leading whatever of up, prior Actually, when and Great. upside on. profitability. of strength, But about as heard presumably less bringing to, you I that, EBITDA margin, prior your wondering how some operating guess, think do you We've restaurants you or your sales full to recover focus the the talk the especially up term, lowering business, which I lower SYGMA which pricing And tools, talked wondering picking I'm maybe just near margin. chain you're about, you in raising more about some, others. how and one And quarters presumably EBITDA I coming get or beyond. years when you sales not if operating full about then back post-COVID think margin do had your to follow-up. in strength, is

Kevin Hourican

Sure.

to we give increase our Let broad grow answer our profitability me you the sales which over aspiration, expect time. of is and to

click that transformation, cost a business. we are course, is, taking in while the Now the and we of significant also the out portfolio down are from against investing of

weeks, together. how you as since I'm and with as Investor so our any X At of to us ask investing one relationship take as weeks, X these the give time. don't a over the to other any And we'll we SYGMA I of as than patient factors well at want rapidly have intent longer-term Investor of points you visibility to going grow is pieces in fiscal far about in to profitability indicative grow we which on be algorithm our our Day to come you more our as in view all 'XX, think Day approaching sales

Jeffrey Bernstein

times, of stockpile with of your then And a do it. Got I the questioning over few going quarters, what people you mentioned cash. were past know debt which paydown, couple you're follow-up. to the Aaron,

how time talked But cash implies on about that there's how your whether and we any the of what that terms for a usage? think your usage. a and frame a your cash Just in of the what -- wondering used directionally whether should in you paydown, debt about know priorities goal for the or speaking, to cash you couple about talking I that debt weeks. change goal time just prioritize frame are has to thoughts

Aaron Alt

led debt see Sure. paid with we significant can the have over X Well, debt you that in as we in the in last well. fact as months, QX, paydown QX indeed, you back QX. paydown And is down look what

pretty As our and overall back profile the what expense. the balance the of in the our during the have the we in not that over done you And we hiding increasing we're but cash, should by capital focus can exactly of here good given going. generate, we I take the we of longer-term signal that business cash I'll from -- have have the face profitable the and add-in on of did look to structure. -- we've strong details we where profitability opportunity Investor on optimize unknown what give profile a as Day, sheet I'm saying business, the crisis, we you

Operator

Your comes from Silberman Lauren next with question Crédit Suisse.

Lauren Silberman

little XX% industry The bit follow-up sales more we're gains, seeing share improved to John's of local customers' same-store growth broad A question. a restaurants. wallet among and

help then recovery independents? for dimensionalize share amongst how what gains the So offsetting with And respect declines versus same-store chains to are sales new existing overall, you can are wallet customers you much seeing just and customers?

Kevin Hourican

Lauren, you bit. question up a of were little first breaking in your the half

I'll sandwich going what is all space know publicly, of and food the the with fire. I that start on the -- you QSR chicken was universe covered I'm independents. is the to spirit think The I'll been local think Certainly, fast your So question, I a answer to versus has with ending, but Anything data. fire. chain try chains on prolifically which pretty been end has

in geographies still that are a about our That to exceeds I are increases XX year be the surprise pleasant exceeds that reflects to customer fully perspective. accelerating the sector prior from by the frankly. XXXX. Technomic's local strength The months, that. is just above and QX in our SYGMA about independent want major expectations. prediction reopened Our closed. QX markets, still there of clear that it's our are double-digit That producing in sales results then But

Boston, Chicago, California is York, with still confronted restrictions. New major most of

is with Our still major dealing European business restrictions.

XX% our the just the about in an versus what And health that of doors customer. overall combine our of you curve with recovery that unique number XX% performance. optimistic when so know. independent industry's a most the is independents doing, very profitable segment, strength of and of coupled we're as industry It's the you local when increase delta, are our XX%, So well we number doors we down serve, have general

restrictions, reducing front have in here tailwind we opening As strong we see of more us. markets up, a

Lauren Silberman

Hopefully, Great. better. you Okay. me can hear

Just to flat about running local in U.S. said we the little Can volumes customer down April? you anything running I X%. Broadline are positive share wins. case to together this sales, assume is you're a specific South new willing Local point? think over at with the customers

Kevin Hourican

Well, for we I detail shared of this think we've the of level purposes call. can

chains is One our I talk Day would of the certainly things you take foodservice individual with we're of going have What management about the slow, about being portfolio the the the Investor not is coming have that strength recovered, in see in hospitality you still the over customer at we away independents been back stronger think how the to in strength -- can where base. course. components the having is and

Operator

from Nicole with is Piper question Miller next Sandler. Your

Nicole Miller

your would. how if on internal how there's they team sure successes. you spectrum, average. then the to hear challenges clearly to and like still you're offsetting about meaning curious of areas you first of a and It's very labor, I'm share an positive wanted I community ask could areas helping reflection, if I'm help

outlined the truck And happens challenges? and through in? or I on shift it's when truck I clearly talk So we other overnight somebody where does end of the think sales fill does there's how where where night that. And get labor, field. -- that But the truck drive out to you've crushing something a about just out, to clearly, to just before maybe that kind then hard think for Can all the successes. is this of the fit it the the like in of pulls nuances you example, of hear, like spectrum,

you, thank in. can you So fill that if

Kevin Hourican

you. Sure, Kevin. Nicole. Thank It's

to We We're X field. folks them warehouse actually then of the have in drivers. are driver and the call major be more work. in that to We functions of piece going our work the name the We're actually the selectors. There's sales reflective Those function. change the as going with the for to we right now, earlier. it team level. that consultants, is selectors, partners But activate sales now, Sales partner our to actually start at local delivery out talked team calling we're sales about because sales killing there they them consultants, drivers. -- just

spring that I over X,XXX going wage. our not our to fill actually on in describe location. this people jobs. to day-to-day, I selectors sales to with add complement a want ton Those And is Warehouse our earlier, we're we'll hiring hire more is And job in as and we it pay week-to-week have for We bit We in The little more we those based And investments I time our green selectors difficult more hiring in manage fair in our on consultants. going red warehouse are again, track. jobs. by consultants broadline will of hiring. do. team-based adding in position, to the a very we're be How We've be excellent it's we're a total wage because existing at would by selling on it a make we to able May job. of warehouse a of specialists green, on model. selector driver to XXXX to not our we sales season. are said goals mentioned for publicly, position fiscal said talk point meaning site, about -- XX, good

purchased jobs. country earlier, overall more role those drivers about terrific. macro is same a creating wage line inspired would driver there. impact on they've done. too going exact has that going what up said awareness into in-source driver the retiring, is I and I'm I with people It's pilots, The have People is our to As there's our age and are of They this are pilot school. say by actually Airlines few for problem the United just in of of and the getting work.

creating what and you long-term to our is While the in progressive the a is would way And I'm growth. for not this it to today anything get let success. we're going be drivers submit industry Sysco call, very not be on going leader of of on announcing I our pipeline of to all

Aaron Alt

back have with add industry, we teams. core pipeline with just with significant that, the don't in industry. which look, have attractive the many many drivers, go the I some issues with the If of to it's -- sales wage our buildings the benefit our selectors, We whether capabilities, of to a from ways scale the employer perspective. our We're is, could across in we so to do in have themes, on that the an and

line, in costs and rates opportunity. investing drive we are where and our in to so the you've bringing invest but also relates the both against the and we to able we bottom retention that we it we And can already in team We've great have We the -- to that that have heard the us our successes are that talk be proven, as investing And can our QX, bring have. can down about in employees recovery QX we cost, fact improve going necessary. enterprise we forward.

Nicole Miller

an day external a a that in the window and time sneak changing. second about deliver reflection, and a just of more life of nature how that's the fill the of restaurant you rates can like I If last predictive question, I'm and in curious to.

do shared. restaurants, little it's is average, and insight. at you've lagging This better When amazing. on more a we bit some correlating some obviously to again, mapping have where and naturally. are So what is are it off look But we

of you the they how want in deal restaurants the life the don't." I'm going restaurant think, window -- the fill maybe get to is ask this suburban you and if So chain in tempted, probably I'm So can speak spectrum to how with? at just restaurants day rate, is it I'm everything of and need, again, it's because a they urban wrong. to tempted local "Oh,

Kevin Hourican

We distributors. the just question. fill the challenges Cool, for is we're are rates, to track call fill thanks all I'll One it as outbound down supplier Sysco, customers, as experiencing our it, into break just to we rate supplier. parts. it by X

our to very ship those performance we And ensure we customers. effectively that shortening, very, time doing ability because products A our unique that improve But on wings, our are to really in to for B is us be that can't improve, move specific to ensure an customers' can those just supplier examples. are Sysco can volume specific, supplier we on from We order amount of right rigorous are that provide anyone in we're challenging doing to else data. The now, this business give that we to joint our We are if are space, find to chicken partner of now. we We and than a orders. can. to enormous X strength some who ship of do work full which plan. provide our customers. a can't meet work supplier in forecasts. suppliers. allows our And our with We rolling scale. But they to that We demand, size more and can going right There aggressively to fill

tremendous As the window going a about it chain. for model. versus Robinson, arriving actually be relates that is to more on Sysco are what's to our we're them to excited doing supply making customer-first into Chief that We're our more topic more of bringing our XX. that good We're Chain work. customers Supply progress designed and Officer, within a back flexible way work a exactly agile, Marie on-time we delivery, to fit of mentality customer-focused amount and our meaning May the talk truck want, about

we're that on more you So talking on and excited that. May with XX, about about

restaurants suburban, yes, are I that don't draw versus you should metro. on-time urban about have line need there rates I a metro and preferred project on Small And versus to XX. better we're delivery. it. in is would put when we're May What actually about an more we they bright to say relates a small say to something reinvigorating backrooms. on frequent because talk suburban actually year And you to it that really or As think windows going now talked pause setting I that COVID ago of

Operator

of question with Your final JPMorgan. line the from John comes Ivankoe

John Ivankoe

remarks, correctly? local versus hear there. chains comment in had that were your then actually accounts And made Kevin, I'll 'XX. markets reopened that 'XX outperforming prepared I from think, the a did independent guess, I restaurants that you I So go or about in

Kevin Hourican

by XXXX. fully Yes, way. that said statement. a pretty is local markets John, I didn't than I performing powerful across are What better reopened was in That, in itself, independent restaurants local to it come mean restaurants independent

John Ivankoe

the certainly, Yes. transcript. up understand mean, Yes. screw didn't Well mean -- I I that okay. I and to

and beginning you you day what some technology every it of fight are And street that. sticky So more a -- of added, your maybe something mean, that guess, a of forgive stickier your anticipate these that maintain are It's that have before restaurants up you terms in this you more seeing a it contract. you to sense? have me makes can not 'XX? are It's consumer your appropriately, obviously much the "Hey, number. your than of tenure? in for your I accounts. bit, Is through at initiatives They're maybe them used leading to experience little the there's consumer think I different, and tenure predictably I basically be, And it's huge independent local I to restaurant a or, in than business." mean XX%. had do your answer

Kevin Hourican

will humbly for offer provide we're increase needs because industry also merchandising individual currently to question, on the of customer is independent to that's that It's it on anyone great industry on tools we at precisely better. and to of comment this and do to What always submit, than else and prospect sure. at increase new the an that look relevant being Day level, you Investor retention, rate better to know been, that the XX. strategy data company. we respectfully has to XXth. to of ongoing And have as customers, individual an are. on win a more the It price, that on the them all we and customers the always unveil about we'll will level promotional because local how marketing talking bringing topic to about talk we we a end of But those be. more at the stickiness going be we're customers and meets it that strategy a May are forward It's related in things we're going those our we the amount we specific And I on existing the having about of the a right doing that that. and to And best can each doing we that

John Ivankoe

finally, and your to Obviously, a in terms current some even there market really challenging great. if people Europe? before the overall. in be to have questions Do Europe with a otherwise the you and the opportunity challenging assets on make call bet integration already get buy if that. of wouldn't to significant That's many, opportunities be prices? think there been and on change complete It's the have you you market the for ground Europe, basically and about that to U.S. landscape a And for scale opportunities were And and a sequitur. bigger an it's exist what able might exposure non in you been necessarily your in distributors, don't any, aren't balance that at I sheet you. there Sysco consolidation that U.K. have buy of that fact this

Kevin Hourican

recovering prepared dining not an and question. by restaurants. ago, if fact we weeks we and the I it's opened But need that essentially, It's spoke because warmly We're remarks reopened. to Europe slower, restrictions X time. one country when of the for mid-May has is had country of yet U.K. In being exception. can restrictions. for you our thanks outdoor country not looking the up outdoor a begin reservation It's with appointment the as of dining Europe, in go it so the to John, of health will easing earliest get received. U.K. the by at

late going mid-May to of the European the May process begin So are most when is of countries to easing restrictions.

pent-up ability So at in succeed recovery. in is And There's it's certainly Europe, not restaurants. but Europe do our Aaron we to for still Europe demand we're a eating increasing, confident talked struggle in anticipate one. decreasing. a about that actually

a future. have to future in U.K. that can That during very about pay dividend FSM will business the signed in begins that more win the this We recover. when that in pandemic. We notable the talk we've

to activity would self-inflicted any the to France, As fix I it that strategy wounds. comment we activity some unless things say on. we're relates our to was comment had were going there more on M&A broken. M&A, not is European

our take crisis describe we're reopening meaningfully to going that would a biggest business win significantly we're and lost expanded the U.K., start to to And performance restaurants and ready win to France our you in independent winning the about and France. to business. for product be with talk as XX. stabilize is May of and have In able range go out We this back new now on I to used customers, opportunity local

country. Tim Our by new country explaining to country, strategy international win go leader, each actually Ørting, in will our

Operator

This concludes today's conference.

You may now disconnect.

Sysco (SYY) 4 May 212021 Q3 Earnings call transcript