Sysco is not a household name, but the company supplies the food served at more than 400,000 restaurants, hotels and institutional dining facilities around the world. This gives the company a decent amount of power; after all there is a large amount of business that relies on their services. Unfortunately, these facts do not provide enough of an incentive for stock holders to purchase a share. Yesterday their stock closed at $32.83 and opened at $32.81 today. Right now the stock remains at $32.78.
The company plays a vital role when it comes to restaurant profits. There are many restaurants that cannot afford to stock their own kitchens therefore they rely on Sysco to provide their food items. This makes everything more affordable and aids to maintain high sales revenue. There is a backlash to this method; if consumers feel like they are eating poor quality food they will not return.
Sysco is experiencing a rough patch in terms of their stock sales but Pepsico, one of the nation's leading Beverage Company is not. PepsiCo surprised investors with earnings of $1.66 billion, or $1.06 per share, in the fourth quarter, against $1.42 billion or $0.89 per share a year ago.
While reported revenue was down 1% at $19.95, organic revenue climbed 5% on the back of 9% growth in developing and emerging markets. This beat analyst estimates of $1.05 per share on revenue of $19.7 billion, driving up the stock price.
PepsiCo also owns food brands such as Quaker Oats which distributes snack items like rice cakes, rice snacks, soft baked cookies, granola bars and breakfast cereals. Quaker itself has a large customer following across the world. Their Twitter account has over 25,000 plus followers and their Facebook fan page contains over 1,0000,0000 plus followers. Owning brands like this is always a great asset because they produce revenue along with a following. Most customers would agree that when they hear the term oatmeal, they instantly think of The Quaker Oats brand.
