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Sysco Halts All Purchases from Fort Wayne, Ind. Facility that Supplied Frozen Shakes Linked to Listeria Outbreak and Recalls Related Products

1. Sysco recalls frozen supplemental shakes due to a Listeria outbreak. The company halts purchases from a troubled supplier. 2. Sysco immediately removes recalled items and notifies downstream customers. It emphasizes food safety as its top priority. 3. Sysco enhances supplier audits and rigorous quality assurance measures. The move safeguards customers and the community.

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FAQ

Why Bearish?

The recall introduces immediate reputational and operational concerns that may dent investor sentiment temporarily. Similar food safety recalls in the industry have, in the past, triggered short-term price dips.

How important is it?

While the recall highlights a significant food safety issue, Sysco’s strong safety protocols and scale reduce the potential financial fallout. The event is notable but not transformative for the company’s overall performance.

Why Short Term?

The event is likely to impact quarterly results and investor sentiment; however, Sysco’s robust safety and remediation programs suggest limited long-term damage.

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HOUSTON, Feb. 21, 2025 (GLOBE NEWSWIRE) -- Today, Sysco Corporation, the leading global foodservice distribution company, recalled frozen supplemental shakes linked to a Listeria monocytogenes outbreak and halted all purchases of other products supplied by Lyons Magnus from a Fort Wayne, Ind., facility. Lyons Magnus supplied Sysco Imperial and Lyons ReadyCare supplemental shakes linked to the outbreak. Sysco is immediately removing all the recalled items from its inventory, notifying potentially implicated downstream customers of the recall, and halting production of all products that originate from that facility. Additional actions will be taken as needed, and Sysco will continue to cooperate with all agencies. Sysco expresses our most sincere condolences with those affected by this outbreak and their families. Food safety is and will continue to be our top priority, and our focus will always be on improving these programs that protect our customers and our communities from foodborne illnesses. Sysco has an industry leading food safety and quality assurance program. We work continuously with suppliers to ensure they are meeting the rigorous standards we have in place. Sysco’s food safety program includes monitoring for safety compliance with all applicable regulatory agencies, and mandates its suppliers conduct annual third-party food safety certification assessments. In addition, Sysco conducts its own routine food safety audits and requires higher food safety standards on many products under the Sysco-brand portfolio. About SyscoSysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 340 distribution centers, in over 10 countries, with 76,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $78 billion in fiscal year 2024 that ended June 29, 2024. As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions. For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com. Follow us: https://www.linkedin.com/company/sysco/ https://www.instagram.com/syscofoodie/ https://www.facebook.com/SyscoFoods https://x.com/Sysco SYY-NEWS For more information contact:    Investor ContactMedia ContactKevin KimCassandra Mauelkevin.kim@sysco.comcassandra.mauel@sysco.com281-584-1219281-584-1390

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