Sysco Continues with US Foods Deal as Results Top Estimates

Multinational food distributor Sysco made more deliveries to restaurants and hotels in the past three months.
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Multinational food distributor Sysco made more deliveries to restaurants and hotels in the past three months. Its quarterly profit came in at 52 cents a share, a penny above expectations. The company made more than $12.4 billion in sales, better than a year ago and estimates. Sysco wasn't able to raise prices so it focused on increasing volume instead. CEO Bill DeLaney said that while Sysco was challenged with expense management, it generated 2% case volume growth and also managed some inflationary pressures well. Sysco wants to buy US Foods for $3.5 billion, but it was met with resistance from the Federal Trade Commission. Sysco said Monday that it's not backing off on the deal, but it expects delays because of the upcoming holidays. The federal regulators are considering an antitrust lawsuit to block the deal because it would combine the two largest food suppliers in the country.