Sysco Corporation (SYY)
NYSE:SYY
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Sysco
(NYSE:SYY)
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Rating:59Neutral
Price Target:
$85.00
▲(14.73% Upside)
Action:ReiteratedDate:03/31/26
The score is driven primarily by stable operating performance and cash generation, tempered by high leverage that elevates financial risk. Earnings-call guidance and momentum in volumes/FCF support the outlook, but technical signals remain weak and the large Jetro deal adds execution and regulatory/financing uncertainty despite attractive strategic upside.
Positive Factors
Recurring Broadline Distribution
Sysco's broadline model generates high-frequency, multi-item orders across restaurants, institutions and hotels, creating durable revenue cadence and customer stickiness. Private-label products and bundled non-food offerings increase margin capture and deepen procurement leverage, supporting lasting cash conversion.
Negative Factors
High Leverage
Very high debt relative to a small equity base reduces financial flexibility and elevates solvency risk over the medium term. Interest cost sensitivity and limited balance-sheet cushion constrain the company's ability to absorb demand softness, pursue opportunistic investments, or withstand margin compression without materially altering capital strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Broadline Distribution
Sysco's broadline model generates high-frequency, multi-item orders across restaurants, institutions and hotels, creating durable revenue cadence and customer stickiness. Private-label products and bundled non-food offerings increase margin capture and deepen procurement leverage, supporting lasting cash conversion.
Read all positive factors
Sysco (SYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.43B
Dividend Yield2.84%
Average Volume (3M)5.35M
Price to Earnings (P/E)22.9
Beta (1Y)0.08
Revenue Growth2.92%
EPS Growth-4.06%
CountryUS
Employees76,000
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.99
Shares Outstanding478,178,250
10 Day Avg. Volume5,879,656
30 Day Avg. Volume5,352,275
Financial Highlights & Ratios
PEG Ratio-4.88
Price to Book (P/B)20.01
Price to Sales (P/S)0.45
P/FCF Ratio20.56
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda12.67
Forecast
1Y Price Target
$87.85Price Target Upside18.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.59
Revenue Forecast (FY)$84.42B
Sysco Business Overview & Revenue Model
Company Description
Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and ...
How the Company Makes Money
Sysco primarily makes money by purchasing food and related supplies from manufacturers and producers and reselling them to foodservice customers at a markup, generating revenue based on product sales volume and pricing. Its core revenue stream is ...
Sysco Key Performance Indicators (KPIs)
Any
Revenue by Product
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Data provided by:
The Fly
The FlySysco Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented multiple material operational and financial positives: revenue and adjusted EPS growth, strong free cash flow (+25% YTD), gross margin expansion (+15 bps), robust international performance (sales +7.3%, OpInc +~25.6%), improving U.S. local volumes and high AI360 adoption that boosts sales productivity. Headwinds remain — notably weak restaurant traffic, softness in national chain restaurant volumes, a notable incentive-compensation lapping headwind (~$100M), slightly elevated leverage (2.86x) and modest compression in local drop size. On balance, company-specific initiatives (retention, AI360, merchandising, tuck-in M&A) are driving enough momentum to offset industry weakness and justify raised guidance.Positive Updates
Revenue Growth
Total revenue of nearly $21,000,000,000, up 3% year over year, driven by U.S. Foodservice, International and SYGMA.
Negative Updates
Soft Restaurant Traffic Environment
Industry restaurant traffic per Black Box declined more than 200 basis points year over year (and ~230 basis points sequentially), pressuring national chain restaurant volumes and overall industry demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of nearly $21,000,000,000, up 3% year over year, driven by U.S. Foodservice, International and SYGMA.
Read all positive updates
Company Guidance
Sysco raised its FY‑2026 outlook to the high end of its prior adjusted EPS range ($4.60), while noting an approximate $100 million headwind from lapping lower incentive compensation (~$0.16/share); excluding that headwind, management expects adjusted EPS growth of roughly 5%–7%. They forecast net sales growth of ~3%–5% to ~$84B–$85B (with ~2% inflation), and expect U.S. local case growth of at least +2.5% in both Q3 and Q4 (at least +2.1% organic plus ~50 bps from M&A). Quarter phasing assumptions include comfort with a Q3 consensus EPS of $0.94 and incentive‑comp carryovers of ~$63M in Q3 and ~$11M in Q4; adjusted D&A is expected to be ~ $820M for the year (~$210M in each of Q3 and Q4). Capital allocation guidance includes resuming share repurchases in Q3 (~$1B planned), ~ $1B in dividends (≈+6% per share), a target net leverage of 2.5x–2.75x (ended Q2 at 2.86x), liquidity of ~$2.9B, and YTD free cash flow of $413M (up 25%).Sysco Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.65B | 81.37B | 78.84B | 76.33B | 68.64B | 51.30B |
| Gross Profit | 15.26B | 14.97B | 14.61B | 13.96B | 12.32B | 9.36B |
| EBITDA | 4.06B | 4.14B | 4.17B | 3.70B | 3.25B | 2.32B |
| Net Income | 1.80B | 1.83B | 1.96B | 1.77B | 1.36B | 524.21M |
Balance Sheet | ||||||
| Total Assets | 27.18B | 26.77B | 24.92B | 22.82B | 22.09B | 21.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.22B | 1.07B | 696.00M | 745.00M | 867.09M | 3.01B |
| Total Debt | 16.20B | 14.49B | 12.95B | 11.17B | 11.39B | 11.82B |
| Total Liabilities | 24.84B | 24.92B | 23.03B | 20.78B | 20.67B | 19.83B |
| Stockholders Equity | 2.28B | 1.83B | 1.86B | 2.01B | 1.38B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 1.93B | 1.78B | 2.16B | 2.08B | 1.16B | 1.43B |
| Operating Cash Flow | 2.80B | 2.69B | 2.99B | 2.87B | 1.79B | 1.90B |
| Investing Cash Flow | -813.00M | -717.00M | -1.96B | -785.00M | -1.88B | -428.70M |
| Financing Cash Flow | -1.49B | -1.59B | -1.04B | -2.06B | -1.99B | -4.63B |
Sysco Technical Analysis
Negative
74.09
Price Trends
82.32
Negative
78.70
Negative
78.09
Negative
Market Momentum
-2.44
Negative
39.37
Neutral
73.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYY, the sentiment is Negative. The current price of 74.09 is below the 20-day moving average (MA) of 75.86, below the 50-day MA of 82.32, and below the 200-day MA of 78.09, indicating a bearish trend. The MACD of -2.44 indicates Negative momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 73.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYY.
Sysco Risk Analysis
Sysco disclosed 28 risk factors in its most recent earnings report. Sysco reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sysco Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $19.87B | 25.64 | 15.01% | ― | 4.80% | 3.49% | |
69 Neutral | $2.63B | 34.00 | 12.69% | ― | 8.88% | 54.12% | |
68 Neutral | $2.41B | 6.70 | 7.44% | 1.44% | 2.19% | -39.07% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.85B | 28.34 | -4.97% | ― | 1.45% | -5.49% | |
59 Neutral | $35.43B | 22.87 | 88.72% | 2.84% | 2.92% | -4.06% | |
57 Neutral | $13.96B | 57.89 | 7.66% | ― | 10.55% | -23.38% |
* Consumer Defensive Sector Average
SYY
Sysco
76.27
6.54
9.37%
ANDE
The Andersons
72.11
34.63
92.37%
CHEF
The Chefs' Warehouse
65.82
13.32
25.38%
UNFI
United Natural Foods
48.90
24.44
99.92%
PFGC
Performance Food Group
93.50
18.23
24.22%
USFD
US Foods Holding
93.69
32.54
53.21%
Sysco Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Sysco to Acquire Jetro Restaurant Depot in Major Deal
Positive
Mar 30, 2026
On March 30, 2026, Sysco agreed to acquire Jetro Restaurant Depot’s operating company JRD Unico and its real estate arm Warehouse Realty in a cash-and-stock deal valued at $21.6 billion in cash plus 91.5 million HoldCo shares. The transactio...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Sysco to Acquire Jetro Restaurant Depot in Major Deal
Positive
Mar 30, 2026
On March 30, 2026, Sysco agreed to acquire JRD Unico, Inc. and Warehouse Realty, LLC, collectively known as Jetro Restaurant Depot, in a cash-and-stock deal valuing the cash-and-carry wholesaler at about $29.1 billion, or 14.6 times its 2025 opera...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Sysco Names Interim CFO and Reaffirms 2026 Outlook
Positive
Mar 5, 2026
On February 27, 2026, Sysco’s Executive Vice President and Chief Financial Officer, Kenny Cheung, resigned to join a Fortune 10 company in another industry, with the company stressing that his departure did not stem from any disagreements ov...
Business Operations and StrategyPrivate Placements and Financing
Sysco Issues $1.25 Billion in New Senior Notes
Neutral
Feb 13, 2026
On February 13, 2026, Sysco Corporation issued and sold $600 million of 4.400% Senior Notes due 2031 and $650 million of 4.950% Senior Notes due 2036, raising net proceeds of about $1.24 billion. The notes, which are unsecured and guaranteed by ce...
Private Placements and Financing
Sysco Announces New Senior Notes Debt Offering
Neutral
Feb 11, 2026
On February 10, 2026, Sysco Corporation entered into an underwriting agreement with a syndicate of major banks to issue $600 million of 4.400% senior notes due 2031 and $650 million of 4.950% senior notes due 2036. The offering, conducted under an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.