Another rollup winner is Sysco, the nation's largest food-service distributor, supplying everything from restaurants to hospitals.
In particular, they were impressed with how Sysco managed its business after Hurricane Katrina.
Most analysts think investors should stand pat on SYSCO, with seven of 10 analysts rating it hold.
Sysco filed a combined return with Massachusetts so it is not instantly clear why this made a difference.
FORBES: Sysco Journal Entries Not Respected by Massachusetts Tax Board
Sysco said growth fell to meet its expectations last quarter, as the food distributors faces continued elevated food costs.
The majority of analysts think investors should stand pat on SYSCO, with seven of 10 analysts rating it hold.
Sysco is well organized and careful not to overstretch itself, says Rajan Chaudhry, an analyst with Credit Suisse First Boston.
Although SYSCO reported profit of 46 cents a year ago, the consensus estimate calls for earnings per share of 41 cents.
Although SYSCO reported profit of 57 cents a year ago, the consensus estimate calls for earnings per share of 54 cents.
For example, our editors decided that among food distributors Sysco had excellent financial performance as well as a compelling business case.
In the fiscal year ended June 30, Sysco's net income grew 23%.
Sysco Corp. shares are currently trading down about 1% on the day.
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With little competition--and partners like food-distributor giant Sysco and grocery chains like Kroger, Shop Rite, Giant and Harris Teeter on board--Davidson's plan looks unbreakable.
But when inflation really takes off, restaurant customers balk and Sysco may have to, well, eat the higher food costs in the short term.
Sysco is making the right moves by cutting costs and seeking operating efficiencies, and appears to be claiming additional share in a fragmented foodservice market.
Many investors think of Sysco primarily in terms of its dividend.
With little competition--and such partners as the food-distributor giant Sysco and the grocery chains Kroger, Shop Rite, Giant and Harris Teeter on board--Davidson's plan looks unbreakable.
Sysco competes with such companies as United Natural Foods, and reports from grocery chains like Supervalu and Whole Foods can offer some guidance on its performance.
And for corporate partners like Pepsi, Sysco Foods, Office Depot and Grainger, we created platforms where sponsorships let them sell their products to millions of consumers.
That trend, while understandable as the company wrestles with a still-soft market and suddenly rising input costs, could put a damper on Sysco shares in the future.
The Massachusetts State Appelate Tax Board decision Sysco Corporation v Department of Revenue makes me nostalgic for the days long gone by when money used to earn interest.
FORBES: Sysco Journal Entries Not Respected by Massachusetts Tax Board
When inflation levels are low, Sysco can pass the modestly higher costs along to restaurants (and the nursing homes, sports arenas, and college dorms it also serves) with little trouble.
Two things that hurt Sysco are worth mentioning though.
FORBES: Sysco Journal Entries Not Respected by Massachusetts Tax Board
Sysco ended up losing for several reasons.
FORBES: Sysco Journal Entries Not Respected by Massachusetts Tax Board
Among the largest underlying components of XLP, in trading today General Mills Incorporated ( NYSE: GIS) is up about 0.9%, Archer Daniels Midland Company ( NYSE: ADM) is up about 1.2%, and Sysco Corporation ( NYSE: SYY) is relatively unchanged.
Among the largest underlying components of PEY, in trading today Genuine Parts Company ( NYSE: GPC) is down about 0.3%, Universal Corporation ( NYSE: UVV) is off about 0.4%, and Sysco Corporation ( NYSE: SYY) is lower by about 0.9%.
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Among the largest underlying components of VDC, in trading today General Mills, Inc. ( NYSE: GIS) is down about 0.5%, Kraft Foods Group Inc ( NASD: KRFT) is off about 1.5%, and Sysco Corp. ( NYSE: SYY) is up by about 0.6%.
More importantly though, interest accounting entries were just that, and amounts credited to operating companies as interest were immediately swept up to Sysco forming part of a rapidly growing net liability from Sysco to the companies during the tax years at issue.
FORBES: Sysco Journal Entries Not Respected by Massachusetts Tax Board
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