The analyst recommends Sysco due to its strong competitive advantage as the global leader in food service distribution, with extensive warehouse infrastructure reducing costs and improving service. This has led to above-industry average sales and profit growth, even amidst inflation, and a consistent history of increasing dividends for 53 consecutive years.
“Cisco has a strong competitive Advantage with over 190 distribution warehouses more than twice the next closest competitor... That Advantage has helped the company grow at one and a half times the industry average with a 15.8 percent sales growth and 17 profit growth in the last quarter.”