Oct 29 (Reuters) - Food distributor Sysco Corp ( SYY )

beat first-quarter revenue estimates on Tuesday, helped by

steady demand for its specialty seafood and fresh-cut meat

products, but missed profit expectations.

WHY IS IT IMPORTANT?

Sysco's ( SYY ) quarterly sales numbers offer a bright spot at a

time when the broader U.S. restaurant industry is struggling

with weaker traffic due to strained household budgets and higher

menu prices.

However, the company has been facing pressure from the

still-elevated prices of packaged and fresh food products, even

as supply chain constraints and input costs ease from their

peaks.

CONTEXT

Sysco ( SYY ) supplies fresh meat, seafood and dairy products to a

wide client base that ranges from educational, healthcare to

recreational institutions.

The Texas-based company's efforts to help local restaurants

attract customers in the recent quarters, including providing

low-cost menu alternatives, gave it an edge over consumer staple

peers such as Hormel Foods ( HRL ) and Conagra Brands ( CAG ).

KEY QUOTE

"We remain on track to accelerate local volume growth and

margins in the second half of the year, with an improving

pipeline," said CEO Kevin Hourican.

BY THE NUMBERS

The company's first-quarter net sales rose 4.4% to $20.48

billion from a year ago, topping analysts' average estimate of

$20.46 billion, according to data compiled by LSEG.

Excluding items, Sysco ( SYY ) earned $1.09 per share for the

quarter ended Sept. 28, compared with estimates of $1.13.

Its gross profit margin fell 27 basis points to 18.3% in the

first quarter.

The company reiterated its 2025 forecasts, where it expects

full-year sales growth of 4% to 5% and adjusted EPS growth of 6%

to 7%.