Sysco FY 3Q16 Earnings Call Notes

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Sysco (SYY) William J. DeLaney on Q3 2016 Results

The overall sales trends remain mixed

“Turning to specific restaurant industry data, the overall sales trends remain mixed. According to the National Restaurant Association, restaurant sales have been uneven during the first three months of 2016 after steadily rising throughout 2015. Both NPD and KNAPP-TRACK have also shown recent traffic and sales declines”

There were some tailwinds this quarter

” I would say this particular quarter, we acknowledged it, there were some tailwinds. And I don’t like to talk about weather a lot. I think that the last two third quarters we’ve talked about weather. Two years ago we had a brutal winter at the beginning of the winter, and last year I think it was at the end of winter, and this year was a pretty mild winter. So I think that helped a little bit.”

Not sure when we’re going to see inflation

“I wish I could tell you when we were going to cross over between deflation and inflation as we were pretty cautious in our comments. So I think we said that we expect it to last at least another quarter, it could be longer than that based on what we’re seeing. And so I’m not really sure when to make that call.”

We may be seeing a little bit of a softening out there right now

” we may be seeing a little bit of a softening out there right now in terms of what we’re seeing in our business and the industry. So I think there’s the external aspect of that. ‘