HOUSTON, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Sysco Corporation, the leading global foodservice distribution company, is excited to share that nearly 10,000 colleagues around the world volunteered every day in November, making the company’s 3rd annual Purpose Month its most successful yet. Thousands of colleagues from 339 sites in 9 countries participated in Sysco’s Purpose Month, impacting over 1,700 individual charities in an annual quest to ease global food insecurity. “Sysco’s Purpose Month is further evid ...

Core Insights - Sysco Corporation is partnering with the MICHELIN Guide to celebrate the Northeast Cities recipients of Michelin stars at a ceremony in Philadelphia on November 18, 2025 [1][2] - The MICHELIN Guide is recognized globally for its prestigious ratings and reviews of restaurants, covering major cities including New York City, Washington, D.C., Chicago, Boston, and Philadelphia [2] - Sysco aims to support culinary excellence and emerging talent through this partnership, highlighting its commitment to the foodservice community [3][6] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to various customers, including restaurants and healthcare facilities, operating 339 distribution centers across 10 countries [7][8] - The company generated over $81 billion in sales for the fiscal year 2025, ending June 28, 2025 [7] - Sysco provides a wide range of products and innovative solutions to help customers optimize their operations and enhance menu offerings [8]

Core Insights - Happy Day Brands partners with Sysco to launch a multistate hunger-relief event, packaging and donating over 1 million servings of nutritious cereal to local food banks on November 14 [2][3] - Sysco's Purpose Month emphasizes community service, with 75,000 colleagues dedicating time and resources to combat food insecurity [3][4] - Happy Day Brands has donated over 7 million meals since 2021 through its Good For You, Good For All™ initiative, supporting Feeding America® food banks [5][6] Company Overview - Happy Day Brands, founded in 2017, specializes in non-GMO, organic, and gluten-free food products, with a strong national presence through 44 Sysco distribution centers [4][6] - Sysco is the global leader in food distribution, generating over $81 billion in sales for fiscal year 2025, serving approximately 730,000 customer locations [7][8] Strategic Initiatives - The collaboration between Happy Day Brands and Sysco aims to address food insecurity and uplift communities, aligning with both companies' missions [2][3] - Sysco's Purpose Month allows employees to engage in hands-on efforts to support local food banks, reinforcing the company's commitment to community impact [4][3]

Core Insights - Sysco Corporation partners with the MICHELIN Guide to announce the recipients of Michelin stars in the American South, highlighting its role as a key player in the culinary industry [1][2] - The inaugural American South MICHELIN Guide Ceremony will take place on November 3, 2025, in Greenville, S.C., covering multiple states including South Carolina, North Carolina, Alabama, Tennessee, Louisiana, and Mississippi [2] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to various customers, including restaurants and healthcare facilities, operating 339 distribution centers across 10 countries [7][8] - The company generated sales exceeding $81 billion in fiscal year 2025, which ended on June 28, 2025 [7] Partnership Details - Sysco's partnership with the MICHELIN Guide began in November 2024, with a focus on celebrating culinary excellence and supporting chefs [6] - Sysco Carolinas Region President Matt Jacobson will present the MICHELIN Guide Young Chef Award at the ceremony, emphasizing the importance of nurturing emerging culinary talent [5][6] Product and Service Offerings - Sysco provides a broad assortment of industry-leading products, including fresh produce, premium proteins, and innovative culinary solutions, aimed at helping chefs innovate and optimize their operations [4][8]

Core Insights - Sysco Corporation has partnered with the MICHELIN Guide to announce the recipients of Michelin stars in the Carolinas, marking a significant collaboration in the culinary industry [1][2] - The inaugural MICHELIN Guide for the American South will include South Carolina, North Carolina, Alabama, Tennessee, Louisiana, Mississippi, and the pre-existing Atlanta Guide [2] - Sysco aims to support chefs and emerging culinary talent through this partnership, highlighting their commitment to the culinary community [3][5][6] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to various customers, including restaurants, healthcare, and educational facilities [7] - The company operates 339 distribution centers across 10 countries, employing 75,000 colleagues and serving approximately 730,000 customer locations [7] - In fiscal year 2025, Sysco generated sales exceeding $81 billion, showcasing its strong market presence [7] Product and Service Offerings - Sysco provides a broad assortment of industry-leading products, including fresh produce, premium proteins, specialty products, and innovative culinary solutions [8] - The company acts as a trusted business partner, helping customers innovate and optimize their operations through customized supply chain solutions and culinary support [8]

Financial Performance - Net earnings for the 13-week period ended September 27, 2025, were $476 million, compared to $490 million for the same period in 2024, reflecting a decrease of approximately 2.9%[49] - Basic earnings per share for the first quarter of fiscal 2026 were $0.99, down from $1.00 in the first quarter of fiscal 2025, indicating a decline of 1%[49] - Comprehensive income for the first quarter of fiscal 2026 was $445 million, a decrease of 32.9% from $663 million in the first quarter of fiscal 2025[50] - Total sales for the 13-week period ended September 27, 2025, were $21,148 million, compared to $20,484 million for the same period in 2024, reflecting a year-over-year increase of 3.2%[72] - Total operating income for the 13-week period ended September 27, 2025, was $800 million, compared to $808 million for the same period in 2024[72] Tax and Benefits - The effective tax rate for the first quarter of fiscal 2026 was 20.6%, lower than the statutory rate of 21.0%, primarily due to foreign income tax benefits[62] - As of September 27, 2025, the gross amount of unrecognized tax benefits was $68 million, with related accrued interest of $18 million[64] - Sysco recorded a benefit of $131 million related to foreign tax credits under the Tax Cuts and Jobs Act of 2017; potential reversal may occur if the company loses its legal challenge[65] - Sysco entered into a contract to purchase approximately $200 million of Transferable Tax Credits to offset fiscal 2026 federal income taxes[66] Share-Based Compensation - Share-based compensation costs recognized in the first quarter of fiscal 2026 totaled $31 million, slightly higher than $30 million in the same period of fiscal 2025[61] - A total of 721,368 stock options were granted to employees in the first 13 weeks of fiscal 2026, with a weighted average grant-date fair value of $19.53 per option[57] - Employees were granted 451,638 performance share units (PSUs) in the first 13 weeks of fiscal 2026, with a weighted average grant-date fair value of $86.23 per PSU[58] - The company had a total of $219 million of unrecognized compensation cost related to share-based compensation arrangements as of September 27, 2025, expected to be recognized over 2.18 years[61] - The number of securities excluded from the diluted earnings per share calculation due to anti-dilutive effects was approximately 1,718,000 for the first 13 weeks of fiscal 2026[49] Assets and Expenditures - Capital expenditures for the 13-week period ended September 27, 2025, totaled $160 million, an increase from $122 million in the same period in 2024[73] - Total assets as of September 27, 2025, were $27,044 million, up from $26,774 million as of June 28, 2025[73] Segment Performance - The company’s U.S. Foodservice Operations segment reported sales of $14,780 million for the 13-week period ended September 27, 2025[72] - The International Foodservice Operations segment reported sales of $3,966 million for the same period, compared to $3,794 million in the prior year[72] Market Risks - Sysco's market risks include interest rate risk, foreign currency exchange rate risk, fuel price risk, and investment risk, with no significant changes reported since June 28, 2025[140]

Core Insights - Sysco Corporation (SYY) started fiscal 2026 strongly, showing significant progress in sales performance, margin management, and supply chain operations [1] - The company's bottom line exceeded estimates, driven by robust local business performance, particularly in the U.S. Foodservice (USFS) local segment, which outperformed broader industry trends [2][3] Financial Performance - Sysco's adjusted earnings were $1.15 per share, surpassing the Zacks Consensus Estimate of $1.12, marking a 5.5% year-over-year increase [4][10] - Total sales reached $21.1 billion, a 3.2% increase year-over-year, nearly aligning with estimates, with foreign exchange contributing 0.4% to sales growth [4][10] - Gross profit rose 3.9% to $3.9 billion, with gross margin improving by 13 basis points to 18.5% [5] - Operating expenses increased by 5.3% year-over-year to $3.1 billion, while adjusted operating income rose 2.9% to $898 million [6] Segment Performance - U.S. Foodservice Operations saw sales rise 2.9% to $14.8 billion, with gross profit growing 2.8% to $2.8 billion [7] - International Foodservice Operations reported a 4.5% sales increase to $4 billion, with gross profit climbing 6.7% to $826 million [8][9] - The SYGMA segment's sales increased by 4.1% year-over-year to $2.129 billion, while the Other segment's sales decreased by 3.2% to $273 million [11] Financial Health - Sysco ended the quarter with cash and cash equivalents of $844 million and total liquidity of $3.5 billion [12] - Cash flow from operations was $86 million, while free cash flow was negative $50 million [12] - The company returned $259 million to shareholders through dividends during the quarter [13] Fiscal 2026 Outlook - Sysco reaffirmed its guidance for fiscal 2026, expecting sales growth of 3-5% and adjusted earnings per share growth of 1-3% [14] - The guidance includes a $100 million headwind related to lower incentive compensation from the previous year, with adjusted EPS growth anticipated to be 5-7% excluding this impact [14] Stock Performance - Sysco shares have declined by 2.9% over the past three months, compared to a 7.3% decline in the industry [15]

Core Insights - Sysco Corporation reported first-quarter fiscal 2026 results that slightly exceeded expectations, with adjusted EPS of $1.15 compared to the estimated $1.12, and revenue of $21.1 billion, surpassing the consensus of $21.07 billion [1] Financial Performance - Operating income decreased by 1.0% to $800 million, while adjusted operating income increased by 2.9% to $898 million [2] - Gross profit rose by 3.9% to $3.9 billion, with gross margin expanding by 13 basis points to 18.5% [2] - Operating expenses grew by 5.3% due to investments in capacity and sales headcount, which outpaced revenue growth [2] Segment Performance - The International Foodservice Operations segment showed strong performance, with sales increasing by 4.5% and adjusted operating income rising by 13.1% to $147 million [3] Future Outlook - Sysco maintained its full-year fiscal 2026 targets, projecting 3–5% sales growth and 1–3% adjusted EPS growth [3]

Core Insights - Sysco Corporation (NYSE: SYY) has shown mediocre performance over the past year, with only a modest gain in its stock price [1] - The company is not expected to see a rebound in momentum, as indicated by its mixed financial results [1] Company Performance - Sysco's stock has generated a modest gain over the last year, suggesting a lack of strong growth [1] - The current outlook does not indicate an imminent recovery in momentum for the company [1]

Core Insights - Sysco Corporation reported first-quarter adjusted earnings per share of $1.15, a 5.5% increase year over year, surpassing the analyst consensus estimate of $1.12 [1] - Quarterly sales reached $21.148 billion, exceeding the expected $21.080 billion, with a year-over-year sales increase of 3.2% [1][3] Financial Performance - Gross profit rose by 3.9% to $3.9 billion, with gross margin expanding by 13 basis points to 18.5% [3][6] - Adjusted operating income increased by 2.9% to $898 million, while adjusted operating margin stood at 4.3% [6] - Adjusted EBITDA saw a slight increase of 0.1% to $1.1 billion [6] Segment Performance - U.S. Foodservice Operations reported sales growth of 2.9% to $14.8 billion, with total case volume up by 0.1% [4] - International Foodservice Operations experienced a 4.5% sales increase to $4.0 billion, benefiting from effective margin management and local volume gains [5] Cash Flow and Liquidity - As of the end of the quarter, Sysco had a cash balance of $844 million and total liquidity of $3.5 billion [7] - Cash flow from operations was reported at $86 million, while free cash flow was negative $50 million for the first 13 weeks of fiscal year 2026 [7] Outlook - Sysco reaffirmed its fiscal 2026 adjusted EPS outlook at $4.50 to $4.60, aligning closely with the consensus of $4.59 [8] - The company maintained its fiscal 2026 sales guidance of $84 billion to $85 billion, compared to the estimate of $84.536 billion [8]