Sysco (SYY, Financial), the world’s leading foodservice distributor, was also a positive contributor in the quarter with the stock returning 4.4%, adding 0.5% to the Fund’s return. Sysco is the largest-scaled player in its industry, and the lowest-cost supplier, so it uniquely benefits from the current inflationary environment. The company is gaining independent-restaurant market share faster than expected, thanks to solid execution of the company’s new pricing tool, loyalty program, and staffing levels. Sysco is also skillfully taking out structural costs while passing through elevated inflation, raising the prospect for enhanced profitability coming out of the pandemic.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio)'s second-quarter 2022 commentary.
