Food distributor Sysco misses quarterly sales estimates as dining-out demand cools

April 28 (Reuters) - Sysco ‌on Tuesday ​reported ​third-quarter sales below Street estimates, hurt by weakening restaurant demand for packaged ‌food, sending its shares down about 3% in ⁠early trading.

The packaged and fresh food distributor maintained ‌its annual profit forecast, though ‌higher costs and incentive compensation squeeze margins as price-conscious consumers cut back on eating ​out.

• Sales for the quarter ended March 28 came in at $20.52 billion, below analysts' ⁠average estimate of $20.57 billion, according data compiled by LSEG.

• Local U.S. ​Foodservice volumes grew 3.3%, while total U.S. Foodservice volumes rose 2.3%.

• Sysco posted ​adjusted earnings of 94 cents ‌per share, in line with analysts' expectations.

• Gross margin rose 31 basis ⁠points to 18.6%, driven by volume growth, sourcing efficiencies and pricing actions, despite 2.8% product cost ⁠inflation, mainly in dairy, meat and seafood, the company said.

• ​Sysco reaffirmed its full-year 2026 adjusted earnings per share forecast at the high end of its prior range ‌of $4.50 to $4.60.

• The company in March struck a $29  billion deal to buy catering ‌supplier Jetro Restaurant Depot in a bid ⁠to expand the top ‌U.S. food distributor's ​reach among price-sensitive independent restaurants.

(Reporting by Krisha Bhatt in Bengaluru; Editing by Diti ‌Pujara)

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