Sysco Corp Exec Says While Food Costs Have Moderated Labor Costs At Restaurants Have Not Moderated
Portfolio Pulse from Benzinga Newsdesk
During a conference call, a Sysco Corp executive mentioned that while food costs have seen moderation, labor costs at restaurants continue to remain high.
April 30, 2024 | 2:45 pm
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Sysco Corp's acknowledgment of high labor costs in restaurants could signal ongoing operational challenges, potentially affecting profit margins.
The statement by Sysco Corp's executive regarding high labor costs, despite a moderation in food costs, suggests that the company might face increased operational expenses. This situation could lead to reduced profit margins if the company is unable to pass these costs onto its customers. Given Sysco's significant role in the food distribution industry, particularly to restaurants, this could have a short-term negative impact on its stock price as investors reassess the company's future earnings potential in light of these challenges.
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