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Factual Summary
Sysco reported FY2025 (ended 2025-06-28) revenue of $81.37 billion, operating income of $3.088 billion, and net income of $1.828 billion (10-K, accession no. 0000096021-25-000099). In its FY2026 Q4 and full-year (52-week) results announced on 2026-08-04, the company reported annual revenue of $84.6 billion (+3.9% YoY) and adjusted EPS of $4.61 (+3.4% YoY). On 2026-03-30, Sysco entered into an agreement to acquire Restaurant Depot (JRD Unico) for approximately $29.1 billion, targeting a close in FY2027 Q3 subject to regulatory approval (FTC/DOJ). The closing price as of the reference date (2026-08-17) was $81.85, with a market cap of approximately $39.14 billion.
Price-Change Context Note
On 2026-08-03 (the day before the Q4 earnings release), the stock fell 3.8% amid declining restaurant foot traffic and concerns over integration and financing related to the Restaurant Depot acquisition. Although revenue and adjusted EPS beat market expectations in the 2026-08-04 results, the reference-date (2026-08-17) closing price of $81.85 remains below the 52-week high of $91.85. On the same day, the CEO announced that the company had halted purchases of Taylor Farms Mexican-sourced lettuce in connection with the spread of Cyclospora infections.
Business Overview
Founded in 1969, Sysco is the world's largest broadline foodservice distributor, headquartered in Houston, Texas. It distributes food and non-food products (such as kitchen equipment) to restaurants, healthcare institutions, educational institutions, and sports venues, operating through four segments: U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other (Sysco 10-K FY2024).
Precise segment-level revenue and operating income figures (excluding International) are left unconfirmed pending cross-reference with the original 10-Q/10-K filings.
5-Year Financial Trend (FY2021–FY2025, Consolidated)
| Fiscal Year | Revenue (M$) | Operating Income (M$) | Net Income (M$) | Total Assets (M$) | Total Equity (M$) |
|---|---|---|---|---|---|
| FY2021 | 51,298 | 1,447 | 524 | 21,414 | 1,553 |
| FY2022 | 68,636 | 2,346 | 1,359 | 22,086 | 1,382 |
| FY2023 | 76,325 | 3,039 | 1,770 | 22,821 | 2,009 |
| FY2024 | 78,844 | 3,202 | 1,955 | 24,917 | 1,860 |
| FY2025 | 81,370 | 3,088 | 1,828 | 26,774 | 1,830 |
The unusually high ROE (net income / total equity) of roughly 90–105% stems from a capital structure in which large-scale share buyback programs have kept total equity at just 6–9% of total assets, and should be interpreted with caution as a profitability metric since it may be distorted. Total liabilities are left unconfirmed, as no value appears in the system's confirmed financial data table.
FY2026 Quarterly Trend and Annual (52-Week) Results
| Period | Revenue (M$) | Operating Income (M$) | Net Income (M$) |
|---|---|---|---|
| FY2026 Q1 cumulative | 21,148 | 800 | 476 |
| FY2026 H1 cumulative | 41,910 | 1,493 | 866 |
| FY2026 Q3 cumulative | 62,429 | 2,112 | 1,206 |
| FY2025 Q3 cumulative (comparison) | 60,232 | 2,200 | 1,297 |
On a nine-month cumulative basis for FY2026, revenue rose +3.65% year-over-year, while operating income declined -4.0% and net income declined -7.0% (10-Q, accession no. 0000096021-26-000022).
Note: FY2026 Q4 and full-year (52-week) figures fall outside the scope of the system's pre-confirmed financial data table and have been supplemented via web research based on the 2026-08-04 earnings release (8-K, accession no. 0000096021-26-000026). They may differ from the finalized figures in the formal 10-K.
Largest Strategic Event — Restaurant Depot Acquisition
| Date | Event |
|---|---|
| 2026-03-30 | Announced agreement to acquire Restaurant Depot (JRD Unico) |
| 2026-08-11 | CEO appeared on CNBC, reaffirmed target close in FY2027 Q3 |
| 2026-08-12 | Filed 8-K with investor presentation materials related to the acquisition |
| FY2027 Q3 | Target closing timeline (subject to regulatory approval) |
Restaurant Depot (JRD Unico, Inc.) is a cash-and-carry (self-service, no delivery) operator running 166 warehouse-format stores across 35 states, generating 2025 annual revenue of $16 billion and EBITDA of $2.1 billion, and serving approximately 725,000 independent restaurant operators. The transaction is structured so that a newly formed holding company (working name New Slider Holdco, Inc.) will convert each existing Sysco common share into one holding company common share and will assume the NYSE ticker SYY (per Form 425; the related S-4 registration statement had not yet become effective as of 2026-08-12). Regulatory approval is subject to FTC/DOJ review, expected to take 6–12 months, and some opposition has been noted, including a request from a New York state legislator for FTC review.
Competitor Comparison
| Metric | Sysco (SYY) | US Foods (USFD) | PFG (PFGC) |
|---|---|---|---|
| US foodservice market share (2024) | approx. 17% | approx. 11% | Not available |
| P/E (Trailing) | 22.36 | 33.25 | 45.72 |
| P/E (Forward) | 16.11 | 20.76 | 18.71 |
| EV/EBITDA | 11.54 | Not available | 14.21 |
| Dividend Yield | 2.67% | Not available | Not available |
Merger talks between US Foods and PFG, underway since July 2025, fell through by mutual agreement on 2025-11-24, reducing the likelihood of a near-term shift in the competitive landscape. Four months later, on 2026-03-30, Sysco separately announced its own acquisition of Restaurant Depot.
Valuation (Factual Multiples)
Based on the reference-date (2026-08-17) closing price of $81.85, the multiple against FY2026 GAAP EPS ($3.66) is directly calculated at approximately 22.4x, and against adjusted EPS ($4.61) at approximately 17.8x (A). Applying the company's own FY2027 guidance (adjusted EPS of $5.02–$5.12) yields a multiple of approximately 16.0–16.3x (labeled E, as this is calculated from company-provided guidance). The elevated P/B ratio (14.69x) stems from a low equity base resulting from large-scale share buybacks and should not be interpreted as an indication of overvalued profitability.
Governance and Capital Structure
Following an internal reorganization on 2026-01-12, Vanguard's holdings are now reported separately by two entities, Vanguard Capital Management (7.51%, as of 2026-03-31) and Vanguard Portfolio Management (5.60%, as of 2026-03-31); the figure above is the sum of these two entities' self-reported holdings. The BlackRock and State Street figures are as of 2024-12-31 and 2023-12-31, respectively; updated 2026 figures are not available.
| Date | Event |
|---|---|
| 2026-03-05 | Kenny Cheung announced resignation as CFO |
| 2026-03-06 | Brandon Sewell appointed Interim CFO |
| 2026-04-17 | Kenny Cheung's final day in role |
A shareholder proposal mandating separation of the Chair and CEO roles was put forward at the 2025 annual meeting, but the board recommended against it (DEF 14A, 2025-10-02). The voting outcome is not available. As of 2026-08-18, it has not been confirmed whether a permanent (non-interim) CFO has been appointed (interim arrangement continues). Share buybacks are executed under a $5 billion program (no expiration) approved by the board in 2021; secondary reports indicate that FY2026 execution has been significantly reduced from the initial-year plan due to funding needs related to the Restaurant Depot acquisition.
Macro Factors
| Factor | Current Value | Impact on Sysco |
|---|---|---|
| US Fed funds rate | 3.50–3.75% (held 2026-07-29) | FY2026 interest expense of $717 million (+12.9% YoY); executed an additional $2 billion in rate hedges in 2026-06 |
| Food commodity inflation | FY2026 product cost inflation of 3.0% (led by meat and fresh produce) | Higher procurement costs, though sourcing efficiencies actually helped gross margin expand +10bp to 18.5% |
| Logistics labor shortage | Approx. 60,000 truck driver shortfall (2026), wages rising 12–15% | Upward pressure on delivery labor costs, partly offset by improved employee retention |
| Weaker dollar (DXY approx. 99.5) | EUR/USD 1.1588 (2026-08-18) | Favorable for translated International segment revenue (18.3% of revenue), with a +$46 million translation effect in Q4 |
| Restaurant foot traffic | Declined year-over-year in 15 of the last 16 months | Constrains end-demand volume growth, partly offset by price increases and local case growth |
| Semiconductor/electronics tariffs (Section 232, etc.) | Not applicable | No direct link to Sysco's procurement categories (food and consumables) — not mentioned in earnings materials or calls |
Supply and Demand
Insider (officer and director) ownership is approximately 8.89%, and retail ownership is approximately 3.46%. Recent Form 4 filings signed between 2026-07-31 and 08-10 are mostly acquisitions from performance share unit (PSU) vesting and dispositions for tax withholding purposes; aside from Ronald Phillips (EVP and CHRO), who sold shares on the open market following a stock option exercise (approx. $558,000), no discretionary share disposals were identified. Sysco is a constituent of the S&P 500 Index (consumer staples/food distribution sector) and has risen +9.3% over the trailing 52 weeks, underperforming the S&P 500 Index (+20.8%) over the same period.
Risk Factors
FTC/DOJ antitrust review of the Restaurant Depot acquisition is ongoing (expected to take 6–12 months), with some opposition noted, including a request from a New York state legislator for FTC review.
Net debt / adjusted EBITDA is expected to rise from the current 2.7x to approximately 4.5x upon deal close, with a stated target of reducing it by at least 1.0x within the following 24 months.
There are execution challenges in integrating the cash-and-carry (warehouse, no-delivery) model with the existing delivery-based broadline model, with a risk of falling short of the targeted cost synergies ($250 million annually within 3 years).
In connection with the 2026 spread of Cyclospora infections, Taylor Farms' Mexican-sourced iceberg lettuce was recalled in 27 states, and Sysco shifted the affected supply chain to U.S.-sourced product.
Meat (especially beef) cost inflation continues (3.0% in FY2026), though gross margin has been defended through sourcing efficiencies.
Sysco is a plaintiff in meat price-fixing litigation against Tyson, JBS, Hormel, and others, and is engaged in an ongoing appeal in a dispute with a litigation funder over recovery of settlement proceeds.
Recent News Timeline
| Date | Event |
|---|---|
| 2026-08-18 | No company-specific event identified for this date (price data only) |
| 2026-08-12 | Filed 8-K with investor presentation materials related to the Restaurant Depot acquisition |
| 2026-08-11 | CEO appeared on CNBC — reaffirmed target close in FY2027 Q3 for the acquisition, stated no plans for in-store price increases |
| 2026-08-04 | Announced FY2026 Q4 and full-year results, provided FY2027 guidance; CEO announced halt of Taylor Farms Mexican-sourced lettuce purchases in connection with Cyclospora |
| 2026-08-03 | Stock fell 3.8% the day before earnings release (weak restaurant traffic, acquisition-related concerns) |
| 2026-07-18 | Taylor Farms iceberg lettuce recalled in 27 states (Cyclospora concerns) |
| 2026-04-28 | Announced FY2026 Q3 results |
| 2026-03-30 | Announced agreement to acquire Restaurant Depot (approx. $29.1 billion) |
Theme Relevance
Fact Highlights
FY2026 Q4 (ended 2026-06-27) revenue was $22.1 billion (+4.7% YoY), with adjusted EPS of $1.53, beating the market estimate of $1.51 (Sysco 8-K, 2026-08-04).
On 2026-03-30, Sysco entered into an agreement to acquire Restaurant Depot (JRD Unico) — a deal valued at approximately $29.1 billion ($21.6 billion cash + 91.5 million new shares), or 14.6x Restaurant Depot's operating income (SEC 8-K, 2026-03-30).
Net debt / adjusted EBITDA is disclosed to rise from the current 2.7x to approximately 4.5x upon deal close (Sysco FY2026 earnings release, 2026-08-04).
Sysco holds approximately 17% share of the US foodservice distribution market, ahead of US Foods (approximately 11%) (2024, aggregated secondary sources).
Short interest stands at 3.18% of shares outstanding (as of 2026-07-31), down 6.21% from the prior period (MarketBeat, republished from FINRA).
Raised its quarterly dividend to $0.55 per share on 2026-04-17 (up from $0.54), returning a total of $1.2 billion to shareholders in FY2026 through $1 billion in dividends and $200 million in share buybacks (Sysco IR press release).
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