NEW YORK (TheStreet) -- Sysco Corp. (SYY) - Get Report  shares are rallying 2.24% to $44.23 on Monday after the Houston-based food and supply distributor said earlier today it would cut 2% of its workforce over the next 15 months. 

Around 1,200 administrative, non-customer-facing roles will be eliminated, the company noted, as it continues to work on its growth strategy.

Today's announcement to slash jobs and increase the income growth target are revisions to Sysco's existing three-year plan, introduced last year. 

"Our improving recent business performance, along with these key steps on technology and productivity, give us the confidence to raise our operating income growth target from $400 million to at least $500 million by the end of fiscal 2018," CEO Bill DeLaney said.

Enhancing its future has been the company's focus since last June, when a U.S. District judge in Washington blocked Sysco' $3.5 billion plan to acquire rival US Foods on antitrust grounds.

As a result, Sysco was required to pay break-up fees of $300 million to US Foods and another $12.5 million to Performance Food Group to end an agreement to sell it some of US Foods' asset if the deal got approved. 

Even though Sysco had been working on this merger for over a year and a half, it said at the time this wasn't its entire strategy and it would focus on the possibility of smaller acquisitions and trimming costs.

Since the terminated deal less than a year ago, Sysco has agreed to acquire European food distributor the Brakes Group for $3.1 billion, announced last Monday. 

TheStreet's Jack Mohr, Action Alerts PLUS Portfolio Director of Research pointed out, "Much of the Sysco story is predicated upon operational improvements, especially considering the major activist presence," as Nelson Peltz's Trian Partners owns nearly 8% of shares and holds two board seats.

"The strategic actions announced today align with the cost discipline inherent to Mr. Peltz's focus on productivity, cost efficiencies and workforce optimization," he added. 

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A-. 

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: SYY

Image placeholder title

SYY

data by

YCharts