Sysco Corporation (“Sysco”) is the North American leader in selling, marketing and distributing food products, equipment and supplies for the foodservice and hospitality industries.
Trian was attracted to Sysco due to the company’s stable growth, scale relative to peers, well-established and trusted brand, and high cash flow generation. Trian believed there was a meaningful opportunity at Sysco to improve operating margins, enhance working capital efficiency, implement a more efficient capital structure and better align compensation with corporate objectives and company performance.
Since Nelson Peltz and Josh Frank joined the Board in August 2015, Sysco has made significant progress strengthening both its leadership and performance. The Company implemented a new board refreshment policy and has added nine out of twelve new directors including Nelson Peltz, Josh Frank, and Executive Chairman, Ed Shirley. President and CEO Kevin Hourican, appointed in January 2020, has upgraded the management team across functions and geographies. In May 2021, the Company announced a new multi-year strategic plan, supported by five key pillars, intended to grow sales 1.5x faster than the market by the end of fiscal year (“FY”) 2024, funded by $750mm of gross cost savings by the end of FY2024. And, in mid-August 2021, the company announced strong fourth quarter sales and cash flow, with market share gains driven by new customer wins.
Sysco announced on August 20, 2021 that Nelson Peltz and Josh Frank have decided to step down from the Board. This decision was driven by our confidence in Sysco’s leadership, business transformation and continued operating momentum.
We believe the Company is well positioned to drive profitable growth in the future. As a large shareholder and strong believer in Sysco’s future, Trian looks forward to ongoing engagement with Kevin Hourican and his team.