Sysco (NYSE:SYY) distributes food to a variety of places. Unfortunately, it has the misfortune of relying on restaurants for 62% of its annual revenue. While other areas it sells to like healthcare, education, or government are likely to bounce back quickly, a large portion of its business will undoubtedly face ongoing pressure, as COVID-19 cases are on the rise.
The combination of limited seating capacity, the potential for governments to shut down restaurants again, and a slow economy means Sysco is in for a rough time. While you could wait this out, there’s more going on with the company that makes it difficult to consider investing in.
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