Sysco unveils $500M AI-powered efficiency plan, raises mid-term growth targets
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Sysco SYY is reaffirming its fiscal 2027 outlook while raising its mid-term growth targets, backed by a new $500M AI-powered efficiency program designed to reduce structural costs over the next three years. The company continues to expect 9% to 11% growth in adjusted earnings per share in fiscal 2027 on a 53-week basis. Net sales growth is expected to be approximately 6% to 7% to ~$90B. For fiscal 2028 and 2029, Sysco raised its mid-term outlook for net sales growth to approximately 4% to 7%, from 4% to 6% previously, while increasing its adjusted EPS growth target to 9% to 11%, from 6% to 8%. With the guidance, Sysco also introduced a $500M AI powered efficiency to help remove structural costs from the business across the next three fiscal years. The company said it remains on-target for the $100M of in-year net cost savings previously introduced for fiscal 2027. Sysco said the combination of AI-enabled cost savings and underlying business performance should support stronger earnings growth over the three-year period. Disclaimer Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.
