This post was originally published on this site
The cost of food in the United States increased 4.6% in September, according to the U.S. Bureau of Labor Statistics. The key reasons for rising food prices are overall supply chain disruptions, heavy demand for food commodities, and a slowdown in shipping. Federal Reserve chair Jerome Powell said that global supply chain issues could remain through 2022. Because these factors are expected to keep driving food prices higher, the food distribution industry should thrive. Therefore, we think both SYY and USFD should benefit.
SYY’s shares have gained 6.9% in price over the past nine months, while USFD has returned 4.5%. However, USFD’s 8.1% gains year-to-date are higher than SYY’s 5.1% returns. Furthermore, USFD is the clear winner with 42.3% gains versus SYY’s 20.4% in terms of their past year’s performance.
