olivLaw · US equity research
Sysco Corporation SYY
Wholesale-Groceries & Related Products · SIC 5140 · Vertical: Wholesale — nondurable goods (SIC 514x)
Sysco is the global leader in distributing food and related products to businesses that prepare meals away from home, from restaurants to hospitals and schools. The company reached record sales in fiscal 2026 and has agreed to acquire Jetro Restaurant Depot, a move that could extend its reach to independent restaurants.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Sysco Corporation (SYY) stock was 76.94 USD (+3.82% on the day), with market capitalisation 37.9 bn USD, P/E 20.5 on diluted EPS of 3.76 USD over the last 12 months, dividend yield 2.83%, beta 0.29, 52-week range 69.30–91.16 USD. Latest reported quarter (Q1 2027): revenue of 21.7 bn USD (+2.8% YoY), net income of 526.0 m USD (+10.5% YoY), diluted EPS 1.09 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.7
- weak (30–45)
- Bollinger (20, 2)
- 75.99 – 85.62
- in the lower half of the band · %B 0.10 · band width 11.9%
- SMA 50 / 200
- 80.17 / 80.48
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.22 / 0.38
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.7% | −1.1% | +1.8 pp | — |
| 3 months | −8.6% | −0.5% | −8.2 pp | — |
| 6 months | +4.9% | +4.4% | +0.5 pp | — |
| Year to date | +4.4% | +12.3% | −7.9 pp | — |
| 1 year | +5.3% | +13.5% | −8.3 pp | +12.9% |
| 3 years | +14.8% | +76.4% | −61.6 pp | +32.2% |
| 5 years | −5.4% | +63.7% | −69.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 26 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 20.2 bn | 19.6 bn | 21.1 bn | 21.1 bn | 20.8 bn | 20.5 bn | 22.1 bn | 21.7 bn |
| Cost of revenue | 16.5 bn | 16.0 bn | 17.2 bn | 17.2 bn | 17.0 bn | 16.7 bn | 18.0 bn | 17.7 bn |
| Gross profit | 3.7 bn | 3.6 bn | 4.0 bn | 3.9 bn | 3.8 bn | 3.8 bn | 4.1 bn | 4.1 bn |
| Operating income | 712.0 m | 681.0 m | 888.0 m | 800.0 m | 692.0 m | 619.0 m | 983.0 m | 717.0 m |
| Depreciation & amortisation | 238.0 m | 238.0 m | 236.0 m | 233.0 m | 240.0 m | 251.0 m | 252.0 m | 262.0 m |
| Pre-tax income | 533.0 m | 523.0 m | 716.0 m | 600.0 m | 510.0 m | 445.0 m | 720.0 m | 687.0 m |
| Income tax | 127.0 m | 122.0 m | 185.0 m | 124.0 m | 121.0 m | 105.0 m | 169.0 m | 161.0 m |
| Net income | 406.0 m | 401.0 m | 531.0 m | 476.0 m | 389.0 m | 340.0 m | 551.0 m | 526.0 m |
| Diluted EPS | 0.82 | 0.82 | 1.10 ≈ | 0.99 | 0.81 | 0.71 | 1.15 ≈ | 1.09 |
| Operating cash flow | 445.0 m ≈ | 819.0 m ≈ | 1.2 bn | 86.0 m | 525.0 m ≈ | 852.0 m ≈ | 1.2 bn | 278.0 m |
| Capex | 211.0 m | 199.0 m | 374.0 m | 160.0 m | 140.0 m | 161.0 m | 239.0 m | 97.0 m |
| Dividends paid | 252.0 m ≈ | 249.0 m ≈ | 248.0 m | 259.0 m | 259.0 m ≈ | 260.0 m ≈ | 259.0 m | 264.0 m |
| Share repurchases | 192.0 m ≈ | 400.0 m ≈ | 550.0 m | 0 | 0 ≈ | 200.0 m ≈ | 0 | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 24 percentile of its own 41-quarter history (min 17.9, median 24.5, max 137.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 60.1 bn | 52.9 bn | 51.3 bn | 68.6 bn | 76.3 bn | 78.8 bn | 81.4 bn | 84.6 bn |
| Revenue YoY | +2.4% | −12.0% | −3.0% | +33.8% | +11.2% | +3.3% | +3.2% | +3.9% |
| Net income | unavailable | 215.5 m | 524.2 m | 1.4 bn | 1.8 bn | 2.0 bn | 1.8 bn | 1.8 bn |
| Net income YoY | unavailable | unavailable | +143.3% | +159.2% | +30.2% | +10.5% | −6.5% | −3.9% |
| Diluted EPS | 3.20 | 0.42 | 1.02 | 2.64 | 3.47 | 3.89 | 3.73 | 3.66 |
| Diluted EPS YoY | +18.5% | −86.9% | +142.9% | +158.8% | +31.4% | +12.1% | −4.1% | −1.9% |
| net % | unavailable | 0.4% | 1.0% | 2.0% | 2.3% | 2.5% | 2.2% | 2.1% |
| Free cash flow | 1.7 bn | 898.3 m | 1.4 bn | 1.2 bn | 2.1 bn | 2.2 bn | 1.6 bn | 1.9 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 27 Jun 2026
- Cash
- 1.8 bn USD
- Financial debt
- 1.2 bn USD
- Net debt
- -585.0 m USD
- Equity
- 2.7 bn USD
- Total assets
- 28.4 bn USD
- Debt / equity
- 0.45x
- Current ratio
- 1.28x
- ROE
- 78.2%
- ROA
- 6.4%
- FCF margin
- 2.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 51.3 bn | 68.6 bn | 76.3 bn | 78.8 bn | 81.4 bn | 84.6 bn | SEC (XBRL)· 21 Aug 2026verified |
| Cost of revenue | 41.9 bn | 56.3 bn | 62.4 bn | 64.2 bn | 66.4 bn | 68.9 bn | SEC (XBRL)· 21 Aug 2026verified |
| Gross profit | 9.4 bn | 12.3 bn | 14.0 bn | 14.6 bn | 15.0 bn | 15.6 bn | SEC (XBRL)· 21 Aug 2026verified |
| Operating income | 1.4 bn | 2.3 bn | 3.0 bn | 3.2 bn | 3.1 bn | 3.1 bn | SEC (XBRL)· 21 Aug 2026verified |
| Depreciation & amortisation | 737.9 m | 773.0 m | 776.0 m | 873.0 m | 945.0 m | 976.0 m | SEC (XBRL)· 21 Aug 2026verified |
| EBITDA | 2.2 bn ≈ | 3.1 bn ≈ | 3.8 bn ≈ | 4.1 bn ≈ | 4.0 bn ≈ | 4.1 bn ≈ | SEC (XBRL)· 21 Aug 2026derived |
| Pre-tax income | 584.7 m | 1.7 bn | 2.3 bn | 2.6 bn | 2.4 bn | 2.3 bn | SEC (XBRL)· 21 Aug 2026verified |
| Income tax | 60.5 m | 388.0 m | 515.0 m | 610.0 m | 587.0 m | 519.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Net income | 524.2 m | 1.4 bn | 1.8 bn | 2.0 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 21 Aug 2026verified |
| Diluted EPS | 1.02 | 2.64 | 3.47 | 3.89 | 3.73 | 3.66 | SEC (XBRL)· 21 Aug 2026verified |
| Weighted average diluted shares | 513.6 m | 514.0 m | 509.7 m | 503.1 m | 489.8 m | 480.6 m | SEC (XBRL)· 21 Aug 2026verified |
| Dividend per share | 1.82 | 1.90 | 1.97 | 2.01 | 2.07 | 2.17 | SEC (XBRL)· 21 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.0 bn | 867.0 m | 745.0 m | 696.0 m | 1.1 bn | 1.8 bn | SEC (XBRL)· 21 Aug 2026verified |
| Current assets | 10.7 bn | 10.5 bn | 10.6 bn | 11.0 bn | 12.0 bn | 13.4 bn | SEC (XBRL)· 21 Aug 2026verified |
| Property, plant & equipment, net | 4.3 bn | 4.5 bn | 4.9 bn | 5.5 bn | 6.1 bn | 6.0 bn | SEC (XBRL)· 21 Aug 2026verified |
| Goodwill | 3.9 bn | 4.5 bn | 4.6 bn | 5.2 bn | 5.2 bn | 5.2 bn | SEC (XBRL)· 21 Aug 2026verified |
| Intangibles (excl. goodwill) | 746.1 m | 952.7 m | 860.0 m | 1.2 bn | 1.1 bn | 952.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Total assets | 21.4 bn | 22.1 bn | 22.8 bn | 24.9 bn | 26.8 bn | 28.4 bn | SEC (XBRL)· 21 Aug 2026verified |
| Accounts payable | 4.9 bn | 5.8 bn | 6.0 bn | 6.3 bn | 6.5 bn | 6.6 bn | SEC (XBRL)· 21 Aug 2026verified |
| Short-term debt | 8.8 m | 580.6 m | 63.0 m | 469.0 m | 949.0 m | 1.2 bn | SEC (XBRL)· 21 Aug 2026verified |
| Long-term debt | 10.6 bn | — | — | — | — | — | SEC (XBRL)· 30 Aug 2021verified |
| Current liabilities | 7.3 bn | 8.8 bn | 8.5 bn | 9.2 bn | 9.9 bn | 10.5 bn | SEC (XBRL)· 21 Aug 2026verified |
| Equity | 1.6 bn † | 1.4 bn † | 2.0 bn † | 1.9 bn † | 1.8 bn † | 2.7 bn † | SEC (XBRL)· 21 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.9 bn | 1.8 bn | 2.9 bn | 3.0 bn | 2.5 bn | 2.6 bn | SEC (XBRL)· 21 Aug 2026verified |
| Capex | 470.7 m | 633.0 m | 793.0 m | 832.0 m | 906.0 m | 700.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Free cash flow | 1.4 bn ≈ | 1.2 bn ≈ | 2.1 bn ≈ | 2.2 bn ≈ | 1.6 bn ≈ | 1.9 bn ≈ | SEC (XBRL)· 21 Aug 2026derived |
| Investing cash flow | -428.7 m | -1.9 bn | -785.0 m | -2.0 bn | -717.0 m | -696.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Financing cash flow | -4.6 bn | -2.0 bn | -2.1 bn | -1.0 bn | -1.4 bn | -1.2 bn | SEC (XBRL)· 21 Aug 2026verified |
| Dividends paid | 917.6 m | 959.0 m | 996.0 m | 1.0 bn | 1.0 bn | 1.0 bn | SEC (XBRL)· 21 Aug 2026verified |
| Share repurchases | 0 | 500.0 m | 500.0 m | 1.2 bn | 1.3 bn | 200.0 m | SEC (XBRL)· 21 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 68 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 37.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation68
- Returns68
- Quality91
- Balance sheet87
- Growth20
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 28.52 – 149.72 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA74.94 – 116.82 (Mid 98.30)5 companies used · median multiple 11.5x · quartiles 8.6x – 13.8xCHEF, DIT, DPZ, UNFI, USFD
- Peers: P/E98.45 – 149.72 (Mid 127.12)7 companies used · median multiple 33.8x · quartiles 26.2x – 39.8xCHEF, DIT, DPZ, PFGC, RAVE, UNFI, USFD
- Dividend discount (DDM)28.52 – 38.35 (Mid 32.71)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 68/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 93.1% | 100 (vs peers) | 11% |
| Net margin · Quality | 2.1% | 67 (vs peers) | 7% |
| FCF conversion · Quality | 121.4% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.5% | 29 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 1.8% | 12 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | -0.6x | 100 (vs peers) | 11% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.5x | 55 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 20.5x | 71 (vs peers) | 11% |
| EV/EBITDA · Valuation | 8.9x | 60 (vs peers) | 11% |
| FCF yield · Valuation | 5.8% | 72 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 3.3% | 47 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 47.5% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet87/100 · 2/3 factors with a value
- Growth20/100 · 2/2 factors with a value
- Quality91/100 · 3/3 factors with a value
- Returns68/100 · 2/2 factors with a value
- Valuation68/100 · 3/3 factors with a value
Memo
Sysco Corporation (SYY). Latest full fiscal year: 2026; data up to 2026-09-26.
Figures computed from the financial statements: revenue 84.6 bn USD in 2026; YoY growth 3.9%; net margin 2.1%; ROE 59.1%; net debt/EBITDA -0.6x.
The estimated value range is 74.94–116.82 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 98.30 USD, the price of 76.94 USD leaves a potential of 27.8% (value / price − 1) and a margin of safety of 21.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 68/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 93.1%
- FCF conversion: 121.4%
- Net debt / EBITDA: -0.6x
- P/E (TTM): 20.5x
- FCF yield: 5.8%
- Payout ratio (FCF): 47.5%
What contradicts it
- Revenue CAGR 3Y: 3.5%
- EPS CAGR 3Y: 1.8%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Interest coverage.
Versus the vertical median
Wholesale — nondurable goods (SIC 514x) · same industry group (3-digit SIC) · compared with 9 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SYYSysco Corporation | 37.9 bn | 20.5 | 59.1% | 2.1% | +3.9% | +5% / +15% |
| USFDUs Foods Holding Corp. | 23.8 bn | 33.8 | 16.4% | 1.8% | +4.1% | +40% / +151% |
| PFGCPerformance Food Group Company | 17.3 bn | 43.7 | 8.2% | 0.6% | +7.2% | +13% / +68% |
| DPZDomino’s Pizza, Inc. | 11.2 bn | 19.3 | — | 11.9% | +5.0% | −19% / −13% |
| CHEFChefs’ Warehouse, Inc. | 4.6 bn | 46.5 | 16.2% | 2.3% | +9.4% | +74% / +297% |
| UNFIUnited Natural Foods, Inc. | 2.9 bn | 36.0 | 5.3% | 0.3% | −2.0% | +29% / +232% |
| HFFGHf Foods Group Inc. | 80.3 m | — | -15.5% | -2.8% | +2.2% | −41% / −69% |
| DITAmcon Distributing Co | 59.4 m | 33.1 | 1.6% | 0.1% | +3.9% | −19% / −48% |
| RAVERave Restaurant Group, Inc. | 31.1 m | 11.0 | 18.3% | 22.3% | +7.2% | −31% / −4% |
| MWYNMarwynn Holdings, Inc. | 27.7 m | — | -54.7% | -24.7% | +427.5% | +59% / unavailable |
1- and 3-year price returns: for SYY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 43.95 Total return -41% · Per year -41% | 77.73 Total return 4% · Per year 4% | 117.14 Total return 56% · Per year 56% |
| 3 years | 41.77 Total return -39% · Per year -15% | 83.22 Total return 17% · Per year 5% | 137.83 Total return 90% · Per year 24% |
| 5 years | 39.71 Total return -38% · Per year -9% | 89.10 Total return 31% · Per year 6% | 162.17 Total return 131% · Per year 18% |
- Exit P/E± 20.81
- Net margin± 14.56
- Annual revenue growth± 12.07
- Annual dilution± 1.22
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 21 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
In brief
Sysco is the global leader in distributing food and related products to businesses that prepare meals away from home, from restaurants to hospitals and schools. The company reached record sales in fiscal 2026 1 and has agreed to acquire Jetro Restaurant Depot, a move that could extend its reach to independent restaurants 1.
SWOT
Strengths
Weaknesses
- Low gross and operating margins typical of the industry, which make profitability sensitive to cost changes 1.
- Reliance on labor and exposure to wage costs, with some union contracts due for renegotiation 1.
- Exposure to debt levels and financing conditions, particularly in connection with the Jetro acquisition 1.
Opportunities
- Savings from the AI-enabled transformation program, which could improve operating margins 2.
- Access to independent restaurant operators through the Jetro Restaurant Depot acquisition, if the transaction closes 1.
- Growth in international markets and local customer volumes, which tend to carry better profitability 2.
Threats
- Product cost inflation or deflation that could affect results if price changes cannot be passed through in time 1.
- Weak economic conditions that could reduce restaurant demand and food-away-from-home spending 1.
- Regulatory and cybersecurity risks, including those tied to the use of artificial intelligence 1.
Risks
- Completion of the Jetro acquisitionhigh
The transaction is subject to conditions that may not be satisfied on a timely basis, if at all, including regulatory clearance under the HSR Act 1. If integration does not succeed, the expected benefits might not be realized 1.
- Financing of the acquisitionmedium
The company might not obtain financing on favorable terms for the Jetro transaction, and higher leverage could affect liquidity 1.
- Product cost inflation and deflationmedium
Rapid changes in product prices could affect margins, because a significant share of sales is priced at cost plus a fixed markup 1.
- Labor cost and availabilitymedium
A shortage of qualified staff or rising wages could reduce profitability, and union negotiations could lead to work stoppages 1.
- Cybersecurity and regulationlow
Cyber incidents or failures to comply with data privacy rules could harm reputation and customer relationships 1.
Investment thesis
What would need to be true (bull case)
- If the AI program delivers the planned savings and local volumes keep growing, margins could gradually recover toward management's targets 2.
- A leading position in the U.S. foodservice market and international diversification provide a solid base for growth 1.
- The Jetro acquisition could open access to independent restaurant customers, a segment that is harder to reach through existing channels 1.
What would break the thesis
- Thin industry margins mean that any rise in costs or delay in integrating a large acquisition could weigh on profit 1.
- Financing a transaction of Jetro's size could raise debt and limit financial flexibility if credit conditions worsen 1.
- Wage pressure and union renegotiations due in fiscal 2027 could raise operating costs 1.
What to watch
- Regulatory clearance and closing of the Jetro acquisitionthird quarter of fiscal 2027
- Delivery of the roughly 100 million USD in fiscal 2027 cost-outs from the AI program and related actionsfiscal 2027
- U.S. local case volume growth and international volume trendsQ1 2027
- Results against fiscal 2027 guidance of 6%-7% sales growth and 9%-11% adjusted EPS growthfiscal 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 21 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
The business
Sysco distributes food and non-food products to restaurants, healthcare and educational facilities, lodging and other foodservice customers, with primary operations in North America and Europe 1. The company began as a public company in 1970 and has grown through internal expansion and acquisitions to its record fiscal 2026 sales 1. On March 30, 2026 it agreed to acquire Jetro Restaurant Depot, a US cash-and-carry foodservice provider for smaller independent restaurants, with closing expected by the third quarter of fiscal 2027 1.
The company reports three reportable segments: U.S. Foodservice Operations, International Foodservice Operations and SYGMA, plus an Other category for hotel supply 1. Its product mix is led by fresh and frozen meats, followed by canned and dry products and frozen fruits, vegetables and bakery items 1. Sysco states that prompt delivery, competitive pricing and customer service are of primary importance in its market 1.
Segments
U.S. Foodservice Operations
This is the largest segment, covering U.S. Broadline operations and specialty businesses such as FreshPoint, Buckhead Newport and Greco & Sons, and it represents roughly 70% of total sales 1. In fiscal 2026 U.S. case volume grew 1.4% and local case volume grew 1.7% 2.
SYGMA
SYGMA provides customized distribution to quick-service restaurant chain locations in the U.S. 1. The source describes it as one of the four reporting segments, without separate figures in the sources provided.
Market context
Sysco estimates it serves about 18% of a U.S. foodservice market of roughly 377 billion USD at the end of calendar 2025, a market Technomic projects could reach about 390 billion USD by the end of calendar 2026 1. Foodservice represents about 56% of consumer food dollars in the U.S. 1.
Growth depends on case volumes and product pricing, and local customers generally offer better margins than national customers who negotiate lower prices 1. If the Jetro acquisition closes, the company could extend its presence with independent operators, a segment the filing highlights as important 1.
Trends
- Automation and artificial intelligencetailwind
Sysco is running a multi-year AI-enabled transformation covering inventory management, routing and back-office automation, and expects about 100 million USD of cost-outs in fiscal 2027 from these and previously announced actions 2. If these savings materialize, they could support margins, although the company also flags risks linked to AI use 1.
- Growth in local volumestailwind
Local volume rose in the fourth quarter of fiscal 2026, supporting profitability because local customers typically pay more favorable prices 2. Management tracks local case growth as a key indicator of gross margin performance 1.
- Product cost inflationmixed
Product cost inflation was 3.0% at the enterprise level in fiscal 2026, concentrated in meat and seafood 2. The company notes that during rapid inflation it may be unable to pass all cost increases to customers, while deflation could also weigh on results 1.
- Labor cost and availability pressureheadwind
The company notes periodic shortages of qualified labor, especially for warehouse workers and drivers, and rising minimum wages or overtime costs 1. About 14% of employees are represented by unions, and some collective agreements are due for renegotiation in fiscal 2027 1.
Competitive position
Sysco operates in a low-margin industry where competition and the influence of group purchasing organizations can reduce margins and make it harder to hold market share 1. The company also notes that shifting its mix toward locally managed customers could affect gross and operating margins 1.
Sysco points to its broad assortment, daily delivery, Sysco Brand products and ancillary services such as usage reports and inventory control assistance as ways to compete 1. The company views these services as important for keeping customers in a competitive market 1.
- Jetro Restaurant Depot
A U.S. cash-and-carry foodservice provider serving smaller independent restaurants, which Sysco has agreed to acquire and which would change the competitive landscape 1.
- Regional foodservice distributors
Local and regional distributors compete for independent and chain customers, a dynamic the filing describes as part of a highly competitive environment 1.
- Group purchasing organizations
Buying groups that negotiate prices for multi-unit customers and can pressure distributor margins, identified as a competitive risk 1.
- Specialty food distributors
Smaller companies competing in niches such as fresh produce and specialty Italian products, segments in which Sysco also operates 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Warren warns against Sysco-Restaurant Depot mergerThe Hill · 19 Oct 2026 · EN
- Sysco Draws Blowout Demand for $17 Billion Global Bond OfferingBloomberg Markets · 22 Sept 2026 · EN
- Sysco Seeks to Raise $1 Billion in Share Sale for Jetro DealBloomberg Markets · 14 Sept 2026 · EN
- Is Sysco Stock Underperforming the Dow?Yahoo Finance — News · 12 Sept 2026 · EN
- Sysco raises mid-term growth targets and outlines $500 million AI efficiency programmeYahoo Finance — News · 09 Sept 2026 · EN
- D.E. Shaw Sees Value in Sysco (SYY) as AI and Restaurant Depot Offer New Growth OpportunitiesYahoo Finance — News · 28 Aug 2026 · EN
The latest news item in our archive is from 19 Oct 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report03 Nov 2026Results of operations · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report06 Oct 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Proxy statement01 Oct 2026
- Current report25 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report24 Sept 2026Other events · Financial statements and exhibits
- Current report16 Sept 2026Other events · Financial statements and exhibits
- Current report14 Sept 2026Other events · Financial statements and exhibits
- Current report09 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Current report09 Sept 2026Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-27 · SEC / Sysco Corporation · 21 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Sysco Corporation · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.