Sysco (SYY)

Consumer Staples · $38.2B market cap · SEC CIK 0000096021

Next reports on Jan 25, 2027, with analysts expecting $1.07 in earnings per share.

52-week range $68.19 to $91.85. 15% below its 52-week high and 14% above its low.

The case for SYY

• Earns 64% on shareholder equity, a figure flattered by a small equity base.
• Pays a 2.8% dividend while you wait.
• Reasonably priced for its growth: 21.2× earnings, where 14% a year of growth plus a 2.8% dividend would justify about 34×.
• Has compounded revenue at 10.5% a year over five years.
• Moves less than the market (beta 0.63).
• Price/sales of 0.4× is lower than 89% of Consumer Staples companies.

The case against

• Net margin of 2.1% leaves very little room for error.
• Long-term debt of $12.3B against $1.8B of cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.

The financials

The financials, five years deep

Pulled from Sysco's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Sysco says it does

Unless this Form 10-K indicates otherwise or the context otherwise requires, the terms “we,” “our,” “us,” “Sysco,” or the “company” as used in this Form 10-K refer to Sysco Corporation together with its consolidated subsidiaries and divisions. Overview 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’s fiscal year ends on the Saturday nearest to June 30th.…

Risk factors SYY lists in its 10-K

• Our industry is characterized by low margins, and periods of significant or prolonged inflation or deflation affect our product costs and may negatively impact our profitability and results of operations
• A shortage of qualified labor and increases in labor costs could adversely affect our business and materially reduce earnings
• Global health developments and economic uncertainty resulting from global public health crises may adversely affect our business, financial condition and results of operations
• Unfavorable macroeconomic conditions, as well as unfavorable conditions in particular local markets, may adversely affect our results of operations and financial condition
• Economic and political instability and changes in laws and regulations could adversely affect our results of operations and financial condition
• Competition and the impact of GPOs may reduce our margins and make it difficult for us to maintain our market share, growth rate and profitability
• Adverse publicity about us or lack of confidence in our products could negatively impact our reputation and reduce earnings
• Our relationships with long-term customers may be materially diminished or terminated, which could adversely affect our business, financial condition and results of operations
• Our anticipated change to the mix of locally managed customers versus multi-unit customers could reduce our gross and operating margins
• Changes in consumer eating habits could materially and adversely affect our business, financial condition, and results of operations
• Expanding into new markets and complementary lines of business presents unique challenges and may not be successful, and failure to successfully expand may adversely affect the implementation of our business strategy
• Changes in applicable tax laws or regulations and the resolution of tax disputes could negatively affect our financial results
• If our products are alleged to have caused injury, illness, or death, or to have failed to comply with governmental regulations, we may need to recall or withdraw our products and may experience product liability claims
• We may incur significant costs to comply with environmental laws and regulations, and we may be subject to substantial fines, penalties or third-party claims for non-compliance
• If we are unable to finance and integrate acquired businesses effectively, our earnings per share could be materially adversely affected
• We rely on technology in our business, and any cybersecurity incident, other technology disruption or delay in implementing new technology could negatively affect our business and our relationships with customers
• Our growing use of artificial intelligence systems in our operations poses inherent risks and could adversely affect our results of operations
• Our failure to comply with data privacy regulations could adversely affect our business
• Our level of indebtedness and the terms of our indebtedness could adversely affect our business and liquidity position
• We may be required to pay material amounts under multiemployer defined benefit pension plans, which could adversely affect our financial condition, results of operations and cash flows
• Our funding requirements for our company-sponsored qualified pension plan may increase should financial markets experience future declines, which could adversely affect our financial condition, results of operations and cash flows
• Failure to successfully renegotiate union contracts could result in work stoppages, which could have a material adverse effect on our business, financial condition and results of operations
• The Transactions are subject to conditions, some or all of which may not be satisfied or completed on a timely basis, if at all. Failure to complete the Transactions in a timely manner or at all could have adverse effects on us
• We and Jetro Restaurant Depot are subject to business uncertainties and contractual restrictions while the Transactions are pending
• We expect to obtain financing in connection with the Transactions but cannot guarantee that we will be able to obtain such financing on favorable terms or at all
• may not achieve the intended benefits, and the Transactions may disrupt our current plans or operations
• Potential litigation against us could result in substantial costs, an injunction preventing the completion of the Transactions and/or a judgment resulting in the payment of damages
• Our existing stockholders will have reduced ownership and economic interest in Sysco Holdings after the Transactions
• Our authorized preferred stock provides anti-takeover benefits that may not be viewed as beneficial to stockholders

Filings

Other Consumer Staples companies