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.
o 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.
o Local U.S. Foodservice volumes grew 3.3%, while total U.S. Foodservice volumes rose 2.3%.
o Sysco posted adjusted earnings of 94 cents per share, in line with analysts' expectations.
o 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.
o 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.
o 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)
