Sysco

Sysco is the largest foodservice distributor in the world. It buys food and non-food products from thousands of suppliers and delivers them to about 670,000 customer locations from 333 distribution facilities. Restaurants give about 59% of sales; hospitals, schools, government, hotels and other customers give the rest. US Foodservice gives about 70% of sales, International about 19% and SYGMA, which serves restaurant chains, about 10%.

Sysco makes money from a small margin on a very large volume, and it earns more on local, independent restaurants and on its own Sysco Brand products than on national chains. Sales in the fiscal year to June 27, 2026 were $84.6 billion, and operating income was $3.1 billion. Sysco has agreed to buy Jetro Restaurant Depot, which runs 170 cash and carry warehouse stores for independent restaurants in 35 states.

The market prices Sysco lower because of the size and the debt of the Jetro Restaurant Depot purchase. Sysco will pay $21.6 billion in cash and 91.5 million shares, a total value of about $29.1 billion. It will borrow about $21 billion, and it paused its share buybacks until it reduces debt. S&P and Fitch have a negative outlook on Sysco's BBB rating, and Moody's has its Baa2 rating under review.

The Federal Trade Commission asked for more information on the deal on May 27, 2026, which can delay it. Investors also doubt that a distributor with a small margin can run large warehouse stores well. For the gap to close, four things must be true. The FTC must clear the deal, and the deal must close by the third quarter of Sysco's fiscal year 2027, that is, by about March 2027.

Sysco must keep its fiscal 2027 outlook of 6% to 7% sales growth and 9% to 11% adjusted EPS growth, with about 2.5% local case growth in the US. After closing, it must reach the $250 million of yearly cost savings in three years and reduce net leverage by at least 1.0 times within 24 months. In the Q1 report on November 3, 2026, US local case volume grew 2.7%, and Sysco kept its EPS outlook and its closing target. But it now expects sales growth at the low end of its range, because food cost inflation is low.

The next tests are the FTC decision and the Q2 report, expected in early February 2027. If the deal closes on time and leverage falls on plan, the gap can close over the next four to eight quarters. The main risk is that the FTC blocks the deal or forces Sysco to sell stores.

1. Nov 3, 2026Passed

   Q1 fiscal 2027 results: local volume and deal timingUS local case growth near 2.5%, a kept fiscal 2027 outlook and no new delay of the deal pass; a lower outlook or a later closing date fails.Outcome: US local case volume grew 2.7%, Sysco kept its 6% to 7% sales and 9% to 11% adjusted EPS growth outlook, though with sales now at the low end, and it still expects to close the deal by the third fiscal quarter.
2. Feb 3, 2027 · est.Pending

   Q2 fiscal 2027 results: local volume and deal closingUS local case growth near 2.5%, a kept adjusted EPS outlook and a deal on track to close by about March 2027 pass; a lower EPS outlook or a later closing date fails.
3. Q1 2027 · est.Pending

   FTC decision and closing of Jetro Restaurant DepotClearance without large store sales and closing by about March 2027 pass; an FTC suit or large forced sales fail.
4. 2028 · est.Pending

   Net leverage down by 1.0 times after closingNet leverage at least 1.0 times lower within 24 months after closing and stable investment-grade ratings pass; a rating cut fails.

Every passed and failed checkpoint across all picks

• November 3, 2026Sysco reported Q1 results for fiscal year 2027, which ended September 26, 2026. Sales grew 2.8% to $21.7 billion, and US local case volume grew 2.7%. EPS grew 10.1% to $1.09, and adjusted EPS grew 3.5% to $1.19. Sysco kept its outlook of 9% to 11% adjusted EPS growth for fiscal year 2027, but it now expects sales growth at the low end of its 6% to 7% range, because food cost inflation is lower. It still expects to close the Jetro Restaurant Depot deal by the third quarter of fiscal year 2027.
• November 3, 2026Sysco made Brandon Sewell, its interim CFO since March 6, 2026, its Chief Financial Officer from November 1, 2026.
• October 13, 2026Sysco said that it will report Q1 results for fiscal year 2027 on November 3, 2026.

Last earnings

November 3, 2026 (8-K on sec.gov)

Next earnings

Expected about February 3, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 26, 2026Filed November 4, 2026 · syy-20260926
• 8-KEarnings release and Change of directors or officersFiled November 3, 2026 · Press release and exhibits
• 8-KNew material agreement and New debt or financial obligationFiled October 6, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled September 25, 2026 · Read it on sec.gov
• 8-KOther company newsFiled September 24, 2026 · Read it on sec.gov
• 8-KOther company newsFiled September 16, 2026 · Read it on sec.gov
• 8-KOther company newsFiled September 14, 2026 · Read it on sec.gov
• 8-KInvestor disclosureFiled September 9, 2026 · Read it on sec.gov
• 8-KInvestor disclosureFiled September 9, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled September 4, 2026 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 96021)

• The FTC has asked for more information on the Jetro Restaurant Depot deal. The FTC or a state can try to block it or ask Sysco to sell assets. If the deal does not close because of the regulators or the termination date, Sysco must pay a termination fee of $1.164 billion and redeem most of the new notes.
• The deal adds about $21 billion of debt. S&P and Fitch have a negative outlook on Sysco's BBB rating, and Moody's has the Baa2 rating under review. Sysco paused share buybacks. If profit grows slower than planned, debt falls slower and a rating cut can raise interest costs.
• Sysco has never run cash and carry warehouse stores. The planned $250 million of yearly savings and the plan to open more than 125 new stores over at least 20 years depend on a good integration of a business with its own culture and systems.
• Restaurants give about 59% of sales. If consumers eat out less, local restaurant volume, which gives Sysco its best margins, can fall. US local case volume fell 1.4% in fiscal year 2025 before it grew again in fiscal year 2026.
• Low food cost inflation lowers sales growth. Product cost inflation was only 0.3% in Q1 of fiscal year 2027, and Sysco now expects sales growth at the low end of its 6% to 7% range.

Sysco funds itself with unsecured senior notes guaranteed by its US Broadline subsidiaries, commercial paper and a $3.0 billion revolving credit facility. At September 26, 2026, cash was $3.17 billion and debt was $13.82 billion, including $960 million due within 12 months. Read more

Yield at the current rate

2.9% (current annual rate, at today’s price)

Dividend yield

2.8% (last 12 months, at today’s price of $76.94)

Paid per share

$2.18 in the last 12 months (4 payments)

Current annual rate

$2.20 ($0.55 × 4 a year)

Payout ratio

59% of the last fiscal year’s earnings (the year that ended June 27, 2026)

Latest ex-dividend date

October 2, 2026, $0.55 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 3.1% a year. From 2015 to 2025, the dividend grew by about 8.8% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.