Sysco shares rise on third quarter profit boost

NEW YORK—Sysco Corp. shares rose Monday after the food distributor said third-quarter profit jumped 9 percent despite a difficult restaurant operating environment that has cut into demand for Sysco's products.

Shares rose $2.38, or 8.5 percent, to close at $30.50.

Before the market opened, the company said its profit beat Wall Street analyst estimates by 1 cent per share, helped by strong sales in its broadline division. Sales in that unit grew 8 percent.

Sysco said it was pleased with its results given that many restaurants -- which make up a large number of Sysco's customers -- have experienced slower sales due to a pullback in consumer spending. Meanwhile, restaurants are struggling to pay higher costs for food.

Goldman Sachs analyst John Heinbockel said the company's third-quarter results "demonstrate the success with which the company is managing through the current difficult restaurant environment."

Heinbockel said the company is "aggressively managing operating expenses" to offset a dip in demand due to far higher costs of food.