Will Sysco Rebound as Restaurants Reopen?
Food service giant Sysco's (NYSE: SYY) shares are down almost 36% year-to-date (versus a 3.5% decline for the S&P 500) as it suffers the adverse effects of the coronavirus pandemic along with so many other companies. But the restaurant supply specialist is hoping for a rebound as restaurants and other entities it services across the country begin to reopen.
Many restaurants are still operating under decreased capacity to conform to government guidelines on their operations under COVID-19, and consumers may be facing economic pressures decreased confidence that requires they cut back on restaurant spending. However, Sysco is counting on some upward bump in demand from reopening restaurants. The food distribution company is also implementing strategies to bolster its balance sheet and help manage these lower business levels for the time being. Is the worst of the pandemic over for this company?
Image source: Sysco.
Source Fool.com
