Sysco Provides Update On 3-Year Plan, Boosts Operating Income Growth Target

Shares of SYSCO Corporation (NYSE: SYY) were trading higher by nearly 1.50 percent on Monday after the company provided an update to its three-year outlook.

Sysco said that it plans on modernizing and adding new capability and functionality to its technological tools. The company noted that renewing existing and proven technology systems has "gained viability and popularity" in recent years due to the "major advantages" of cloud computing, services architectures, software as a service and mobile applications.

As part of its investments in technology, Sysco expects to eliminate its workforce by approximately 2 percent, or 1,200 positions, over the next 15 months. The company expects to to incur charges of approximately $70 million in fiscal 2016 and $130 million the following year.

Related Link: Sysco Offers Further Details For 3-Year Plan

Sysco also raised its operating income growth target from $400 million by the end of fiscal 2018 to at least $500 million.

"This new approach to our business technology strategy enables us to achieve our original business transformation objectives sooner, at a lower cost, with less risk, and provides a better user experience for our customers and operating companies," DeLaney said.

"Our technology efforts going forward will increasingly be directed toward developing customer-facing tools and systems that add value to our customers' overall business experience with Sysco. Additionally, we will continue to develop integrated systems that enable the use of shared services across the enterprise."

At the time of this publication, Sysco was trading up 2.17 percent on the day at $44.20.