Food prices have risen due to supply chain disruptions and a slower shipping process. Food distribution companies Sysco and US Foods (USFD), we believe, should be able to benefit. Which stock is better to buy right now? You can read more about Sysco Corporation in Houston. It markets and distributes different food and related products primarily for the international foodservice/food-away-from home industry. The company operates in the U.S. Foodservice Operations and International Foodservice Operations as well as other segments. Comparatively, US Foods Holding Corp . US Foods, Inc., Rosemont, Ill., is a subsidiary of NYSE. It markets fresh, frozen, dry, and dried food to American foodservice customers. It has 70 distribution locations as well as 78 cash and carry outlets.

According to U.S. Bureau of Labor Statistics, the September increase in food prices in America was 4.6%. General supply chain disruptions, high demand and slowdown in shipping are the main reasons behind rising food costs. Jerome Powell, chair of the Federal Reserve said that there could be global supply chain problems through 2022. These factors will continue to drive food prices up, so the industry of food distribution should prosper. Both SYY and USFD are therefore expected to reap the benefits.

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.

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