NEW YORK (TheStreet) --Shares of Sysco (SYY) were higher in early morning trading on Tuesday, after the company reported stronger than expected 2017 fiscal first-quarter financial results, which were released before the market open on Monday. Sysco held its quarterly earnings call after the results were released.
"It was one of the most frightening conference calls I've been on," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
America's leading food products distributor said people are not going out to restaurants. There is a clear softening now, which is due to either the election or pricing, Sysco CEO Bill DeLaney said on the call with analysts yesterday.
Sysco's decline in the restaurant industry was "extraordinary, they've never seen anything like it," Cramer stated. However, he is hopeful that people will return once the election is over.
"I thought that call should have been listened to by everybody because that call was about America and what's happened in America in the last 90 days," Cramer contended.
Moreover, Cramer found the Sysco call to be coincidental with the U.S presidential election. "I couldn't find something else that happened in America, the last 90 days, that would make it so that they would talk about a dramatic deceleration in orders from restaurants."
Accounting for the decrease in its restaurant business domestically, Sysco still posted a solid quarter particularly in Europe, he noted.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.