The sales growth of 1.1% was primarily due to increased sales in the SYGMA and U.S. Foodservice Operations segments. This indicates that the company's growth strategy is focused on these segments.

Sysco acquired Campbells Prime Meat, a leading specialty meat business based in Scotland. This acquisition provides a strategic opportunity to enable total team selling in this region.

Sysco sold its interest in its joint venture partnership in Mexico, which was a part of its International Foodservice Operations. This divestiture will facilitate efforts to improve the company's return on invested capital position.

Gross margin decreased 35 basis points, primarily due to a shift in customer mix driven by national sales volumes outpacing local sales volumes and a decrease in Sysco brand penetration rates. This suggests that management needs to focus on improving brand penetration and managing customer mix.

Operating expenses increased primarily due to costs associated with expanded building capacity, including depreciation expense related to new facilities, sales headcount investments and higher supply chain labor rates. This indicates that management is investing in growth, but needs to manage these expenses effectively.

The company now expects net sales growth of approximately 3% for the full fiscal 2025 year, as compared to its previous fiscal 2025 sales growth target of 4-5%, as a result of lower than expected volume.

Foot traffic to restaurants decreased 3.1% for the third quarter of fiscal 2025, as compared to a decrease of 1.6% experienced in the second quarter of fiscal 2025. Winter storms and wildfires negatively affected foot traffic, and lower consumer confidence also contributed.

Sysco is engaged in various legal proceedings, and the likelihood of loss for these legal proceedings ranges from remote to reasonably possible to probable. Sysco also received a Statutory Notice of Deficiency from the Internal Revenue Service, mainly related to foreign tax credits generated in fiscal 2018 from repatriated earnings primarily from our Canadian operations.

Reflecting the current uncertain macroeconomic environment, including concerns regarding consumer confidence, the company expects earnings per share and adjusted earnings per share growth of approximately 1% for the full fiscal 2025 year.

SYGMA segment sales were 9.5% higher in the third quarter of fiscal 2025, primarily driven by the growth of new customers. This indicates a strong competitive position for this segment.

Gross margin decreased primarily due to a shift in customer mix driven by national sales volumes outpacing local sales volumes and a decrease in Sysco brand penetration rates. This suggests a shift in competitive dynamics.

The company believes that its Recipe for Growth strategy will allow it to better serve its customers and differentiate Sysco from its competition. From these actions, as a part of our Recipe for Growth, the benefits of our developing capabilities are apparent in the new customers we are winning and in the progress we are making toward increasing market share.

Global Support Center expenses decreased $42 million, primarily due to decreases in colleague-related costs, including lower annual bonus incentive compensation, and other miscellaneous costs. This indicates improved operational efficiency.

Adjusted operating expenses were 14.3% of sales during the third quarter of fiscal 2025, which is a 17-basis point improvement from the third quarter of fiscal 2024. This is due to lower annual bonus incentive compensation and recent supply chain and Global Support Center efficiency initiatives.

The company is undertaking efforts to modify truck routing, including a small truck initiative, in order to reduce outbound transportation costs.

The company is undertaking various business technology transformation initiatives, which are impacting operating expenses. This suggests that the company is investing in technology to improve its operations.

The company's growth transformation is supported by strategic pillars that they believe will allow them to better serve their customers, including their digital strategy.

Due to the company's reliance on technology, any technology disruption or delay in implementing new technology could have a material negative impact on the business.

Sysco repurchased 9,418,578 shares for $700 million during the first 39 weeks of fiscal 2025 and intends to repurchase up to a total of $1.25 billion in fiscal 2025. As of March 29, 2025, they had a remaining authorization of approximately $2.1 billion.

In April 2025, Sysco declared a regular quarterly dividend for the fourth quarter of fiscal 2025 of $0.54 per share, representing an increase of $0.03 per share.

Capital expenditures in the first 39 weeks of fiscal 2025 consisted primarily of investments in buildings and building improvements, technology equipment, warehouse equipment, and fleet.

Applying a reporting threshold of $1 million, there are no material environmental matters to disclose for this reporting period.

Lower levels of consumer confidence due to macroeconomic conditions adversely impacted foot traffic trends during the quarter. Industry traffic trends, while still in a year-over-year decline, improved in March as compared to February.

We experienced inflation at a rate of 2.1% in the third quarter of fiscal 2025, at the total enterprise level, primarily driven by inflation in the dairy and meat categories. We continue to manage inflation by successfully passing on cost increases to our customers in a timely manner. Gross margin decreased 35 basis points, primarily due to a shift in our customer mix driven by national sales volumes outpacing local sales volumes and a decrease in Sysco brand penetration rates.

The impact of geopolitical, economic and market conditions and developments, including changes in global trade policies and tariffs and their ability to impact consumer confidence and foot traffic to restaurants, is a risk factor.