Sysco Corporation is a global leader in the sale, marketing, and distribution of food products to various sectors, including restaurants, healthcare, educational facilities, and lodging establishments . Operating primarily in North America and Europe, Sysco holds a significant presence in the U.S. foodservice market with a 17% market share of a $370 billion industry . The company offers a wide range of food and non-food items, including frozen foods, fresh produce, and restaurant equipment . Sysco's business strategy focuses on expanding specialty operations and enhancing supply chain efficiency through digital transformation and strategic acquisitions .
- U.S. Foodservice Operations - Provides a comprehensive range of food and non-food products to restaurants and other foodservice establishments across the United States.
- International Foodservice Operations - Delivers food and non-food products to foodservice customers outside the U.S., primarily in Europe.
- SYGMA - Supplies quick-service chain restaurants with food and non-food items, focusing on efficiency and reliability.
- Other Operations - Includes specialty operations like FreshPoint for fresh produce, Greco & Sons for Italian specialties, and hotel supply services.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Kevin P. Hourican ExecutiveBoard | Chair of the Board and CEO | Director at Tapestry, Inc.; Member of Wall Street Journal CEO Council; Member of Business Roundtable | Leads Sysco's transformation for customer-focused growth and international expansion; became Chair in April 2024 and CEO in February 2020. | View Report → |
Daniel J. Purefoy Executive | Senior Vice President and Chief Supply Chain Officer | None | Joined Sysco in August 2022; promoted to Chief Supply Chain Officer in September 2023; oversees supply chain operations. | |
Eve M. McFadden Executive | Senior Vice President, Legal, General Counsel, and Corporate Secretary | None | Joined Sysco as Corporate Counsel; promoted to General Counsel in February 2019; oversees legal, compliance, and risk management. | |
Greg D. Bertrand Executive | Executive Vice President and Global COO | None | Longtime Sysco leader since 1991; promoted to EVP and Global COO in September 2023 after holding various operational leadership roles. | |
Gregory S. Keller Executive | Senior Vice President, National Accounts | None | Joined Sysco in 2000; promoted to SVP, National Accounts in September 2023; oversees Sysco, SYGMA, and Guest Worldwide accounts. | |
Jennifer L. Johnson Executive | Senior Vice President and Chief Accounting Officer | None | Appointed CAO in October 2023; previously held senior accounting roles at FedEx Corporation. | |
Kenny K. Cheung Executive | Executive Vice President and CFO | None | Oversees Sysco's financial operations; joined Sysco in FY 2023 with a $600,000 sign-on bonus. | |
Ronald L. Phillips Executive | Executive Vice President and Chief Human Resources Officer | None | Joined Sysco in May 2021; leads HR strategy and operations; previously held senior HR roles at CVS Health and Carnival Cruise Line. | |
Thomas R. Peck, Jr. Executive | Executive Vice President, Chief Information and Digital Officer | None | Joined Sysco in January 2021; oversees IT and digital transformation; inducted into CIO Hall of Fame in 2015. | |
Victoria L. Gutierrez Executive | Senior Vice President and Chief Merchandising Officer | None | Joined Sysco in July 2021; promoted to Chief Merchandising Officer in August 2022; leads merchandising strategies and analytics. | |
Ali Dibadj Board | Director | CEO and Director at Janus Henderson Group plc | Director since January 2022; brings expertise in finance, strategy, and global asset management. | |
Alison Kenney Paul Board | Director | Managing Director at Google Cloud; Board Member at Girls, Inc. and International Women's Forum | Director since January 2022; brings expertise in digital technology, marketing, and strategy development. | |
Bradley M. Halverson Board | Director | Director at Constellation Energy Corporation and Lear Corporation | Director since 2016; Chair of Sysco's Audit Committee; former CFO at Caterpillar Inc.. | |
Francesca DeBiase Board | Director | Director at Norfolk Southern Corporation; Board Member at AWESOME, The Chicago Network, and Belizean Grove | Joined Sysco's Board in November 2023; former Chief Global Supply Chain and Sustainability Officer at McDonald’s Corporation. | |
Jill M. Golder Board | Director | Director at ABM Industries, Inc. and MOD Superfast Pizza Holdings, LLC | Director since January 2022; former CFO at Cracker Barrel and Ruby Tuesday; brings financial and operational expertise. | |
John M. Hinshaw Board | Director | Director at Illumio, Inc. and Single Store, Inc.; Proprietor of Blackbird Vineyards LLC | Director since April 2018; former COO at HSBC and EVP at Hewlett Packard; brings IT and cybersecurity expertise. | |
Larry C. Glasscock Board | Lead Independent Director | Director at Simon Property Group, Inc. | Director since 2010; became Lead Independent Director in April 2024; brings expertise in customer-focused growth and human capital development. | |
Roberto Marques Board | Director | Director at Alcoa Corporation; Board Member at We Mean Business Coalition and U.S. Tennis Association Foundation | Joined Sysco's Board in August 2024; former CEO of Natura & Co.; brings expertise in sustainability and global consumer businesses. | |
Sheila G. Talton Board | Director | CEO of Gray Matter Analytics; Director at Deere & Company and OGE Energy Corp.; Trustee at Northwestern Hospital Foundation | Director since September 2017; Chair of Sysco's Technology Committee; brings expertise in IT systems and cybersecurity. |
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Despite a 51 basis point decline in Sysco Brand penetration in U.S. Broadline, what specific steps are you taking to reverse this trend and drive private label growth in fiscal 2025, especially given the competitive pressures and improved national supplier fill rates?
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With gross margins slightly down year-over-year due to mix and increased competition, how are you balancing market share gains in the lower-margin CMU space with the need to maintain or improve overall profitability?
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Local case volume growth was only 0.7% for the year, and you mentioned not being satisfied with growth in the important local segment; what are your specific strategies to accelerate local case growth and how confident are you in achieving these targets amid declining restaurant foot traffic?
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Given that restaurant foot traffic was down approximately 3% year-over-year in the quarter and macro conditions remain challenging, how realistic is your expectation of volume growth in the low single digits for fiscal 2025, and what gives you confidence in this outlook?
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With your focus on expanding into the specialty market being a $10 billion-plus opportunity, what are the key challenges you anticipate in integrating your specialty assets, and how will you ensure that the Total Team Selling program effectively captures this growth potential?
Research analysts who have asked questions during SYSCO earnings calls.
Edward Kelly
Wells Fargo
6 questions for SYY
Jeffrey Bernstein
Barclays
6 questions for SYY
John Heinbockel
Guggenheim Partners
6 questions for SYY
Jake Bartlett
Truist Securities
5 questions for SYY
John Ivankoe
JPMorgan Chase & Co.
5 questions for SYY
Alexander Slagle
Jefferies
4 questions for SYY
Mark Carden
UBS
4 questions for SYY
Alex Slagle
Jefferies
2 questions for SYY
Kelly Bania
BMO Capital Markets
2 questions for SYY
Sara Senatore
Bank of America
2 questions for SYY
Brian Harbour
Morgan Stanley
1 question for SYY
Lauren Silberman
Deutsche Bank
1 question for SYY
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Campbells Prime Meat | 2025 | Sysco acquired Campbells Prime Meat in Q2 fiscal 2025 for $40 million (net of cash) to enhance its product offerings in the specialty meat segment, with results included in its International Foodservice Operations though the impact was not material to overall finances. |
BIX Produce Company | 2024 | Sysco acquired BIX Produce Company in Q1 fiscal 2024 for $219 million in cash to expand its specialty produce operations into a new geographic area, with the results being immaterial to overall financial results and integrated into U.S. Foodservice Operations. |
Edward Don & Company | 2024 | Sysco acquired Edward Don & Company in fiscal 2024 for approximately $965–$969.4 million in cash to strengthen its equipment and supplies platform within U.S. Foodservice Operations, supporting its "Recipe for Growth" strategy while contributing to increased interest expense. |
Ready Chef | 2024 | Sysco acquired Ready Chef in 2024, a fresh produce distributor in Ireland, to introduce a FreshPoint-like capability and boost its market share and profitability in the region as part of its international growth strategy. |
Jacmar Foodservice Distribution | 2024 | Sysco acquired Jacmar Foodservice Distribution in Q4 fiscal 2024, a premier provider based in California, with the acquisition results integrated into U.S. Foodservice Operations and being not material to overall financial results. |
Greco and Sons | 2021 | Sysco acquired Greco and Sons on August 12, 2021 to strengthen its position in the Italian foodservice sector by leveraging expertise in Italian specialty distribution (including Bellissimo Foods) and supporting nationwide expansion. |
Paragon Foodservice | 2022 | Sysco acquired Paragon Foodservice in Q2 fiscal 2022 as a regional broadline fresh produce distributor in western Pennsylvania, integrating it into its U.S. specialty produce business to cultivate new channels and capabilities. |
The Coastal Companies | 2022 | Sysco acquired The Coastal Companies in Q3 fiscal 2022, a leading East Coast fresh produce distributor and processor expected to contribute over $600 million in FY23 revenue and fill a key geographic gap while complementing its FreshPoint group. |
Recent press releases and 8-K filings for SYY.
- Sysco delivered 3.2% sales growth, 3.9% gross profit growth, and 5.5% adjusted EPS growth in Q1 FY2026, driven by volume improvement, margin expansion, and expense control.
- U.S. Foodservice local volumes inflected positive, with 0.4% growth in Broadline local and 0.3% growth in total USFS local when excluding a FreshPoint exit headwind; the company expects at least a 100 bp sequential improvement in Q2 USFS local volumes.
- International segment achieved 4.5% reported sales growth (7.9% ex-Mexico), ~5% local case volume increase, and 13.1% adjusted operating income growth, marking eight consecutive quarters of double-digit profit expansion.
- FY2026 guidance maintained for 3–5% net sales growth to $84–85 billion and $4.50–$4.60 adjusted EPS, with approximately $1 billion each in dividends and share repurchases planned.
- Financial position remains robust with $3.5 billion liquidity, 2.9× net leverage, $86 million operating cash flow, and a seasonal –$50 million free cash flow in Q1.
- Sales grew 3.2% (3.8% ex-Mexico), gross profit +3.9%, and adjusted EPS +5.5% in Q1 FY26.
- US Foodservice total local volume −0.2%, US Broadline +0.6%, with Sysco Broadline local inflecting to +0.4%; local performance outpaced industry by 120 bps vs. 60 bps, and Q2 local volume expected to improve by +100 bps sequentially.
- Gross margin expanded 13 bps to 18.5%, adjusted operating income was $898 M, and adjusted EBITDA $1.1 B; free cash flow was −$50 M reflecting seasonality.
- FY26 guidance: net sales up 3–5% to $84–85 B, adjusted EPS $4.50–4.60 (1–3% growth; 5–7% ex-compensation headwind); Q2 EPS growth 4–6% to ~$0.98; ~$1 B dividends and ~$1 B buybacks planned.
- Strategic initiatives: rolled out AI 360 (90% SE adoption) and Perks 2.0 driving retention and productivity; acquired Fairfax Meadow to expand UK protein capabilities.
- Q1 sales of $21.1 billion (+3.2% YoY), gross profit of $3.9 billion (+3.9%), adjusted operating income of $898 million (+2.9%), and adjusted EPS of $1.15 (+5.5%)
- International sales reached $4.0 billion (+4.5% YoY; +7.9% ex-Mexico JV) with adjusted operating income of $147 million (+13.1%)
- SYGMA segment delivered $2.1 billion in net sales and operating income of $25 million (+38.9%)
- Net debt leverage of 2.90× (vs. 2.74× in Q1 2025), with $12.4 billion in net debt and $3.5 billion in liquidity
- Reiterated FY 2026 guidance for sales growth and adjusted EPS growth
- Sales grew 3.2% (3.8% ex-Mexico) with gross profit up 3.9%, gross margin expansion of 13 bps, and Adjusted EPS +5.5% YoY.
- US Foodservice local volumes inflected positive (+0.4%), a 130 bps sequential improvement vs. Q4 and over 2× industry traffic gains; expects at least +100 bps further in Q2.
- International segment sales +4.5%, gross profit +6.7%, adjusted operating income +13.1%; Sigma delivered 4% sales and 39% operating income growth.
- Maintained FY 2026 targets: net sales +3–5% to $84–85 billion; Adjusted EPS $4.50–4.60 (+1–3%); Q2 EPS growth ~4–6%, including USFS local volume +100 bps sequentially.
- Robust liquidity ($3.5 billion), 2.9× net leverage, operating cash flow $86 million (+62%), free cash flow −$50 million; dividend up 6% and $1 billion share repurchase plan.
- Sysco’s Q1 sales rose 3.2% to $21.1 billion, while gross profit grew 3.9% to $3.9 billion.
- GAAP operating income was $800 million (down 1.0%) and net earnings were $476 million (down 2.9%), with EPS flat at $0.99; adjusted EPS increased 5.5% to $1.15.
- Adjusted EBITDA was $1.1 billion (+0.1%), and adjusted net earnings were $551 million (+2.0%).
- Free cash flow was negative $50 million, ending cash balance was $844 million, total liquidity $3.5 billion, and the company returned $259 million in dividends.
- Sysco reiterated its fiscal 2026 guidance for 3–5% sales growth and 1–3% adjusted EPS growth (5–7% excluding incentive compensation headwind).
- Sales increased 3.2% to $21.1 billion in Q1 FY26.
- Gross profit rose 3.9% to $3.9 billion, with gross margin up 13 bps to 18.5%.
- Operating income was $800 million (–1.0% YoY), while adjusted operating income grew 2.9% to $898 million.
- Net earnings declined 2.9% to $476 million; adjusted net earnings rose 2.0% to $551 million, EPS flat at $0.99 and adjusted EPS up 5.5% to $1.15.
- Sysco kicked off FY 2026 with robust performance: international segment achieved double-digit operating income growth for seven consecutive quarters, while U.S. broadline local case volumes inflected positive and sequentially improved month-over-month through mid-September.
- Colleague health and productivity are improving, with retention at its highest level ever, a planned 4% headcount increase (~1,000 sales hires), and the gap between new wins and customer losses doubling in Q4 and widening further in Q1, driving net new account growth.
- Launched Perks 2.0 premium loyalty service for top 15% of customers to enhance retention and wallet share, alongside AI 360, an AI-powered CRM app delivering next-best actions, pre-approved deals, and inventory insights to boost salesforce efficiency and new account penetration.
- International business (~20% of revenues) posted ~5% sales and ~20% operating income growth in fiscal 2025, expanding margins from ~2% to over 4%, with new distribution centers in Great Britain, Sweden, and Ireland, supported by an active M&A pipeline.
- Sysco reported $81.0 billion in FY 2025 sales, servicing 730,000 customer locations globally with 60% of revenue derived from restaurants.
- International segment (20% of FY 2025 sales) is growing faster than domestic, with profitability doubled over two years and a >$10 billion expansion opportunity, while market share has improved across all countries.
- U.S. local broadline business has inflected positive in Q4 and is expected to remain positive in Q1 FY 2026, driven by stabilized sales force retention and productivity improvements.
- Management reaffirmed FY 2026 guidance of 3–5% sales growth and 1–3% EPS growth (excluding incentive compensation: 5–7%), supported by continued case volume momentum and supply chain efficiencies.
- Capital allocation includes $1 billion of share repurchases, a 3% dividend yield, and continued investment in new distribution centers (Allentown, PA; Tampa, FL) and digital tools (Perks 2.0; AI360) to enhance service and productivity.
- Q4 net sales $21.1 B, up 2.8% reported (3.7% ex-Mexico); adjusted operating income $1.1 B (+1.1%) and adjusted EPS $1.48 (+6.5%)
- International segment sales +3.6% (8.3% ex-Mexico) with adjusted operating income +20.1%, while US Foodservice local case volume down 1.5% (–1.0% ex-exit)
- End-Q4 liquidity $3.8 B, net debt leverage 2.85×, operating cash flow $2.5 B and free cash flow $1.8 B
- FY26 guidance: net sales +3–5% to $84–85 B, adjusted EPS $4.50–4.60 (+1–3%), dividend +6%, $1 B share repurchases, capex ~$700 M, leverage target 2.5–2.75×
- Sysco Corporation entered into Amendment No. 2 to its Existing Credit Agreement, incorporating Sysco Global Holdings B. V. as a subsidiary borrower, which permits the new entity to request and accept credit extensions.
- The amendment builds on previous credit arrangements, updating the facility established on April 29, 2022, and subsequently amended on June 11, 2024, with customary fees and expenses from the participating banks.