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Sysco
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Latest analysis
Updated Nov 4, 2026
Sysco Q1 FY2027: Core operations hold as $21.7B quarter is overshadowed by $14.65B JRD debt financing and pending Jetro Restaurant Depot acquisition
Sysco's Q1 FY2027 results demonstrate underlying operational resilience — adjusted operating income up 3.2%, gross margin expanding 18 basis points to 18.63%, and U.S. case volumes up 2.6% — against a backdrop of a ~2% industry restaurant traffic decline and a Cyclospora outbreak at quarter midpoint. The defining event of this filing is not operational but structural: Sysco completed multi-tranche bond and equity financing totaling approximately $16.6 billion to fund the pending acquisition of Jetro Restaurant Depot, a 170-store cash-and-carry wholesale network serving over 725,000 independent restaurants. International Foodservice adjusted operating income grew 12.2% in constant currency, but reported operating income fell 28.1% due to acquisition-related amortization and restructuring, flagging the cost drag that will intensify post-JRD close.
Tone: mixedRevenue
$84.6B
SYY 10-K · FY 2026
Employees
75,000
Revenue growth YoY
+3.9%
Founded
1969
Profile
SYY 10-K Item 1 · Aug 21, 2026Sysco Corporation is the global leader in foodservice distribution, selling and delivering food and related products to restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and other away-from-home eating occasions. Operating across North America and Europe through three reportable segments, the company serves approximately 18% of the U.S. foodservice market. A pending merger with Jetro Restaurant Depot, announced March 2026, would significantly expand Sysco's reach into the independent restaurant channel via cash-and-carry wholesale.
Read filing description ↓ Collapse description ↑
Sysco Corporation is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Founded in 1969, Sysco commenced operations as a public company in March 1970 when the stockholders of nine companies exchanged their stock for Sysco common stock. Since our formation, we have grown from $115 million to our all-time high of $84.6 billion in annual sales in fiscal 2026, both through internal expansion of existing operations and acquisitions. Sysco distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Our primary operations are in North America and Europe. Under the accounting provisions related to disclosures about segments of an enterprise, we have combined certain operations into three reportable segments. 'Other' financial information is attributable to our other operations that do not meet the quantitative disclosure thresholds. U.S. Foodservice Operations primarily includes our U.S. Broadline operations and U.S. Specialty operations. International Foodservice Operations includes operations outside of the U.S. in the Americas and Europe. SYGMA represents our U.S. customized distribution operations serving quick-service chain restaurant customer locations. Other primarily includes our hotel supply operations, Guest Worldwide. We estimate that we serve about 18% of an approximately $377 billion annual foodservice market in the U.S., as estimated by Technomic, Inc., for calendar year 2025.
Primary products
- Frozen foods (meats, seafood, fully prepared entrees, fruits, vegetables and desserts)
- Canned and dry foods
- Fresh meats and seafood
- Dairy products
- Beverage products
- Imported specialties
Business segments
End markets
Geographies
Named customers
No single customer accounted for 10% or more of Sysco's total sales for the fiscal year ended June 27, 2026.
Named competitors
“We believe, based upon industry trade data, our sales to the U.S. and Canada food-away-from-home industry were the highest of any foodservice distributor during fiscal 2026.” Competitive position, as stated in the filing
Revenue commentary · FY 2026
Fiscal 2026 sales increased 3.9%, or $3.2 billion, to $84.6 billion, driven by inflation and volume growth including contributions from recent acquisitions.
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