SYSCO CORP (SYY)

Sysco Corporation is a global distributor that sells, markets and distributes food and related products to customers who prepare meals away from home, including restaurants, healthcare and educational facilities, lodging establishments and entertainment venues. Founded in 1969 and a public company since March 1970, it grew from $115 million in sales to an all-time high of $84.6 billion in fiscal 2026 through internal expansion and acquisitions. On March 30, 2026, Sysco agreed to acquire Jetro Restaurant Depot, a U.S. wholesale cash-and-carry foodservice provider with 167 warehouse stores in 35 states serving more than 725,000 independent restaurants and foodservice operators. The consideration is about $29.1 billion, made up of $21.6 billion in cash and 91.5 million shares of Sysco Holdings common stock. Closing is expected by the third quarter of fiscal 2027, subject to customary conditions including Hart-Scott-Rodino clearance.

Sysco reports three segments plus an Other category. U.S. Foodservice Operations, about 70% of sales, includes U.S. Broadline operations and U.S. Specialty businesses such as FreshPoint produce, Buckhead | Newport Meat & Seafood, the Greco & Sons Italian specialty platform, Edward Don restaurant equipment and supplies, and an Asian specialty distributor. International Foodservice Operations covers Canada, the Bahamas, Costa Rica, Panama, export operations, and European operations in the U.K., France, Ireland and Sweden. SYGMA provides customized distribution to quick-service chain restaurant locations in the U.S. Other consists mainly of the Guest Worldwide hotel supply business. Products include frozen, canned, dry and fresh foods, meats, seafood, dairy, produce, beverages and imported specialties, plus non-food items such as paper goods, tableware, cookware, kitchen equipment and cleaning supplies. Sysco sells both branded and private-brand products and offers ancillary services such as menu planning, food safety training, inventory control help and product usage reports.

By customer type in fiscal 2026, restaurants made up about 59% of sales, education and government 8%, healthcare 8%, travel and leisure 7%, and other customers 18%. Food service management customers accounted for about 8% of sales. No single customer reached 10% of sales. Sysco estimates it serves about 18% of an approximately $377 billion U.S. foodservice market, per Technomic, and believes its U.S. and Canada food-away-from-home sales were the highest of any foodservice distributor in fiscal 2026. Its primary operations are in North America and Europe.

Sysco buys from thousands of suppliers, none above 10% of purchases, ranging from large brand-name corporations to independent regional processors and small producers of local and seasonal products. Purchasing runs through centrally developed programs, global procurement centers and direct programs at its operating sites, and about 90% of U.S. Foodservice products are bought domestically. Private-brand products are made to Sysco's specifications, with its quality assurance team certifying plants. Operating sites distribute from multi-temperature warehouses, and most orders are filled within 24 hours. A Global Support Center provides centralized services. Sysco had about 75,000 employees as of June 27, 2026, about 14% of them union-represented. It competes with broadline and specialty distributors, club, cash-and-carry and grocery stores, and online retailers, in a market with low switching costs and few entry barriers. It is subject to FDA and USDA food safety regulation. Its executive offices are at 1390 Enclave Parkway, Houston, Texas, and it is organized under Delaware law.