I've begun adding more shares today my Sysco position.
"Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates 180 distribution facilities serving more than 400,000 customers. For the fiscal year 2008 that ended June 28, 2008, the company generated more than $37 billion in sales."
A big plus would seem to be that distribution costs have come down or are coming down (fuel cost for the trucks that Sysco uses to make all those deliveries). Otoh, with demand for hotel rooms (and hotel meals) down, and with people reducing restaurant visits, the number of Sysco deliveries might be fewer and quantities delivered less.
At the current price, you do get the dominant company in the industry, a long history of rising dividends (with the div. yield now up to 4%), great roe, and a company profitable every year (so far).
I'll repeat an opinion I've had before: I've observed Mr. Buffett has bought his food stocks at p/e of 12. With that he gets the brand names of the company he's purchased. With SYY, you get a p/e at or below 12 too now. You don't get the well-known consumer brand names, but you do get a powerhouse - in size and scale - a company that delivers food products that commercial customers need - Sysco's commercial brands. And this is a very diverse customer base.
sysco.com
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If stock will drop a point more or so on no adverse news, I'll consider if I want to punch up my small position to size it more in the direction of a core holding.
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Here's a 'dividend analysis' of Sysco by Steve Felix in Sept in his "Dividend investing for retirement" subject thread:
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