Restaurants were symbolic of the economic devastation that the pandemic has caused. Many of them shut down permanently, and others suffered for months. The downturn in the restaurant business also affected other businesses that supply materials to restaurants. Among them was Sysco Corporation. However, things are looking a lot better now. With a majority of Americans now vaccinated, there is greater confidence among people to step out and indulge in activities that were commonplace before the pandemic. Eating out is one of those activities, and it has boosted business at restaurants. Recently in an interview, Sysco Corp CEO Kevin Hourican said that the demand at restaurants is surpassing not just 2020 levels but also 2019 levels. There has been a complete boom as far as restaurants are concerned. However, he also cautioned that certain urban centers are still not out of the woods. Regardless, the trend appears to be positive, and now would be a good time to look at food stocks for long-term investing.
There Is A Shortage Of Chicken Wings
The demand scenario is such that there is a shortage of chicken wings throughout the US. According to Mr. Hourican, fast food chains are in an intense struggle to secure supplies for chicken wings. They are seeing a tremendous surge in demand as people are beginning to order food again. Other shortages include cooking oil. There are fears that such intense demand outstripping supplies can lead to inflation. Companies like Sysco Corp are, therefore, having to work overtime to secure alternate sources of suppliers. They have to ensure that their clients get the supplies they need at a competitive cost. Judging by the current trend, Mr. Hourican believes that french fries could be the next menu item on the shortage list due to the lack of availability of cooking oil. Regardless, there definitely seems to be enough reason to believe that prices could go up and certain food businesses could benefit. Now might be a good time to look for the best food stocks to invest in.
Sysco Corporation’s stock has risen 108% since the March 2020 crash. It was around 14% down from its 52-week high on 5th August 2021. The company is part of the Fortune 500 list of companies.