Financial Data and Key Metrics Changes - Sysco reported $81 billion in sales for the most recent year, with over 60% of revenue coming from restaurants, reflecting a 3% year-on-year growth in the restaurant segment [2][41] - The company expects FY 2026 sales growth of 3% to 5% and EPS growth of 1% to 3%, with adjusted EPS growth projected at 5% to 7% [38][50] - Sysco achieved a gross margin of 18.4%, which is 1.3 times higher than the average core peer, and an adjusted operating margin of over 4%, approximately 1.5 times higher than peers [45][46] Business Line Data and Key Metrics Changes - Sysco's specialty business, valued at $9 billion, is more than three times the size of its next biggest competitor in that space [5] - The U.S. Broadline business has shown positive inflection, with expectations for continued growth in Q1 [17][60] - The FreshPoint produce business experienced a drag due to exiting a business line, impacting the overall U.S. Foodservice (USFS) performance [18][56] Market Data and Key Metrics Changes - Sysco's international business is growing faster than its domestic core business, with a significant opportunity for expansion valued at over $10 billion [12][13] - The company has seen double-digit growth in its international segment for seven consecutive quarters [71] - The local case growth is improving, with Sysco's local business performing better than large national chains [56][64] Company Strategy and Development Direction - Sysco aims to leverage its size and scale to maintain its market leadership and drive profitability across various segments [4][40] - The company is focused on expanding its specialty business and enhancing its operational efficiencies through strategic sourcing and total team selling [45][46] - Sysco is committed to a balanced capital allocation strategy, investing in growth while maintaining an investment-grade balance sheet [48][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving FY 2026 guidance based on self-help initiatives and momentum in local case growth [68][70] - The overall consumer health is stabilizing, with improvements in foot traffic to restaurants noted [74][75] - Sysco is cautiously optimistic about the full year, expecting to grow by taking market share profitably [76][78] Other Important Information - Sysco has implemented new initiatives such as the Perks loyalty program and AI360 sales tool to enhance customer service and sales productivity [28][34] - The company plans to invest approximately $1 billion in share repurchases under current market conditions [83] Q&A Session Summary Question: Local case growth and momentum - Management highlighted that local business is outperforming national chains, with positive expectations for USBL in Q1 [56][60] - The retention and productivity of the sales workforce have improved, contributing to the positive momentum [57][61] Question: Confidence in FY 2026 guidance and consumer health - Management emphasized that guidance is based on self-help initiatives and momentum across various business segments, including international growth [68][70] - The consumer health is stabilizing, with improvements noted in restaurant traffic and performance in non-commercial sectors [74][76]