Here's How Much You'd Have If You Invested $1000 in Sysco a Decade Ago

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Sysco (SYY) ten years ago? It may not have been easy to hold on to SYY for all that time, but if you did, how much would your investment be worth today?

Sysco's Business In-Depth

With that in mind, let's take a look at Sysco's main business drivers.

Headquartered in Houston, TX, Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. The company provides products and related services to approximately 425,000 customers, including restaurants, health care and educational facilities, lodging establishments and other foodservice customers.

The company’s distribution facilities are located throughout the United States, Bahamas, Canada, Republic of Ireland and Northern Ireland. In fiscal 2017 that ended July 1, 2017, the company generated sales of more than $55 billion.

In the foodservice industry, Sysco caters to restaurants, hospitals and nursing homes, hotels and motels, schools and colleges and industrial caterers among others. Some of the products distributed by the company include a full line of canned and dry foods; beverage products; fresh meat and sea foods; imported specialties; a full line of frozen foods (like meat, fruits, vegetables, desserts) and more.

Additionally, Sysco supplies non-food items like paper products (disposable plates, napkins etc), cookware (pots and utensils), cleaning supplies, restaurant and kitchen supplies and tableware (like silverware ).

The company reports through these operating segments:

U.S. Foodservice Operations primarily includes U.S. broadline operations, Specialty Meat and FreshPoint (the specialty produce companies). In second-quarter fiscal 2022, the segment contributed roughly 70.5% to total revenues.

International Foodservice Operations, which includes Canada, Europe, Bahamas, International Food Group, and the joint ventures in Mexico and Costa Rica. In second-quarter fiscal 2022, the segment contributed 17.2% to total revenues.

SYGMA: The company’ customized distribution subsidiary. In second-quarter fiscal 2022, the segment contributed 10.8% to total revenues.

Other: This mainly includes hotel supply operations and Sysco Labs.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Sysco, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in April 2012 would be worth $3,114.89, or a 211.49% gain, as of April 26, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 208.92% and the price of gold increased 9.95% over the same time frame in comparison.

Analysts are anticipating more upside for SYY.

Sysco has outpaced the industry in the past six months. The company is gaining on solid food-away-from-home trends and is progressing well with its Recipe for Growth plan. The impact of these upsides was witnessed in the second quarter of fiscal 2022, wherein the top and bottom lines rose year over year and sales beat the Zacks Consensus Estimate. Sysco continued to witness market share gains and solid food-away-from-home sales, though sales growth decelerated in December due to the omicron variant. Omicron hurt Sysco’s customers’ sales and operating hours and is likely to continue impacting sales in the third quarter. Further, the company is battling inflated labor and transport costs due to supply-chain disruptions. High transformation and snapback investments are also a concern. Management lowered its earnings view for fiscal 2022.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.