Sysco Corp. said quarterly profit fell 71%, hammered by $430 million in costs related to its abandoned acquisition of rival US Foods Inc., though earnings otherwise rose.
Houston-based Sysco, the nation's largest distributor of food and other supplies to restaurants and cafeterias, has been piecing together a new growth strategy after dropping its $3.5 billion plan to buy US Foods, following a June ruling by a federal judge effectively blocking the deal on antitrust grounds.
Chief Executive Bill DeLaney said Monday that after a year-and-a-half of investing time and money into integration efforts for that planned deal, Sysco has shifted its focus to smaller acquisitions, internal cost-cutting and updating its product assortment and technology to compete with rivals that have more natural and organic items and better online ordering.
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