Sysco Corporation (NYSE:SYY) is among the stocks in focus as Jim Cramer highlighted a market yearning for the status quo ante. Cramer highlighted the company’s Jetro deal, as he stated:
Or how about yesterday, when Sysco… the very reliable food service distributor. They bought Jetro, this terrific wholesale supplier where you can pick up just tons of food and save a lot of money in the process. Everyone who’s starting out in the restaurant business know Jetro. It’s fantastic. You always go there, by the way, if you’re in a jam and I’ve been in a jam many times. Why would you be in a jam? Because it’s an emergency. Don’t have the right kind of food. You gotta go get shrimp, gotta go get steak. Otherwise, you have any larger regular food needs, you use Sysco.
This deal is a one-two punch. If you were running Sysco and you saw that Jetro came up for sale, buying it would be a no-brainer. Everyone in the restaurant game knows that these two are the only real games in town, and to put them together is like white on rice. The Jetro shareholders will receive $21.6 billion in cash, 91.5 million in shares of Sysco for this match made in heaven. And what happened? Market hated it. Sysco’s stock went from $81 to $69 and then back up to $71 today… What’s going on here, really?…
As for Sysco, the Jetro acquisition’s superb. First, I trust Sysco will clean them up. I’m not crazy about the dark and dank portions of the Jetros that I’ve been to. Second, Jetro is a natural feeder to Sysco, as I know from my own endeavors in the restaurant business… Both McCormick and Sysco used to be considered growth companies. Now, they’re value plays in a market where no one wants value… Same goes for Sysco, 3% yield, 15 times earnings.
Photo by Anna Nekrashevich on Pexels
Sysco Corporation (NYSE:SYY) distributes food products, including meats, produce, and frozen meals, to restaurants, healthcare facilities, and schools. The company also supplies other items, such as kitchen equipment, tableware, and cleaning supplies.
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