Sysco Hits Record $81.4B Sales in FY25, Eyes Continued Growth

Ticker: SYY · Form: 10-K · Filed: 2025-08-22T00:00:00.000Z

Sentiment: bullish

Topics: Foodservice Distribution, Annual Sales Growth, Capital Expenditures, Employee Relations, Market Leadership, Supply Chain, Restaurant Industry

Related Tickers: SYY, USFD, PFGC

TL;DR

Sysco's record $81.4 billion in sales and consistent capital investment make it a solid long-term hold in the resilient foodservice sector.

AI Summary

Sysco Corporation (SYY) achieved an all-time high in annual sales, reaching $81.4 billion in fiscal 2025, demonstrating robust growth from its $115 million in sales at its 1970 public debut. The company, the largest global food distributor, serves approximately 730,000 customer locations, including restaurants, healthcare, and educational facilities. Capital expenditures, net of asset sales, were $692 million in fiscal 2025, down from $753 million in fiscal 2024, representing 0.9% of sales. Sysco employed approximately 75,000 individuals as of June 28, 2025, a slight decrease from 76,000 in fiscal 2024, with 14% of employees represented by unions. The company's sales mix saw fresh and frozen meats increase to 19% in fiscal 2025 from 18% in fiscal 2024, while canned and dry products decreased to 18% from 19%. Sysco anticipates capital expenditures, net of asset sales, to be approximately $700 million in fiscal 2026, financed by cash flow and borrowings. The company continues to focus on its diverse customer base, with restaurants accounting for 60% of sales in fiscal 2025.

Why It Matters

Sysco's record $81.4 billion in annual sales for fiscal 2025 underscores its dominant position in the foodservice distribution market, impacting a vast ecosystem of restaurants, healthcare, and educational institutions. This strong performance signals resilience in the food-away-from-home sector, benefiting investors through potential dividend stability and growth. For employees, Sysco's commitment to competitive wages, with U.S. distribution facility colleagues earning above state minimum wage, and comprehensive benefits, fosters a stable work environment. Customers benefit from Sysco's extensive product range and supply chain efficiency, crucial in a competitive industry where timely delivery and diverse offerings are paramount. The company's strategic capital investments, projected at $700 million for fiscal 2026, indicate a forward-looking approach to maintaining its competitive edge against rivals like US Foods.

Risk Assessment

Risk Level: medium — Sysco faces medium risk due to its reliance on a large, diverse customer base, with no single customer accounting for more than 10% of sales, which mitigates concentration risk. However, the company's exposure to union renegotiations, with approximately 14% of union employees covered by agreements subject to renegotiation in fiscal 2026, presents potential labor cost and operational disruption risks. Furthermore, the slight decrease in total employees from 76,000 in fiscal 2024 to 75,000 in fiscal 2025 could indicate efficiency gains or potential labor market challenges.

Analyst Insight

Investors should consider Sysco's consistent revenue growth and strategic capital allocation as indicators of stability in the foodservice industry. Monitor upcoming union negotiations in fiscal 2026 for potential impacts on operating costs, but the diversified customer base and strong market position suggest continued resilience.

Financial Highlights

debt To Equity
N/A
revenue
$81.4B
operating Margin
N/A
total Assets
N/A
total Debt
N/A
net Income
N/A
eps
N/A
gross Margin
N/A
cash Position
N/A
revenue Growth
N/A

Revenue Breakdown

SegmentRevenueGrowth
Fresh and Frozen MeatsN/A+1%
Canned and Dry ProductsN/A-1%
RestaurantsN/AN/A

Key Numbers

Key Players & Entities

FAQ

What were Sysco's total annual sales for fiscal year 2025?

Sysco Corporation reported an all-time high in annual sales, reaching $81.4 billion for the fiscal year ended June 28, 2025, demonstrating significant growth from its initial $115 million in 1970.

How many employees did Sysco have as of June 28, 2025?

As of June 28, 2025, Sysco employed approximately 75,000 individuals globally, which includes 51,000 U.S. employees and 24,000 employees outside the U.S. This is a slight decrease from approximately 76,000 employees in fiscal 2024.

What was Sysco's capital expenditure, net of asset sales, in fiscal 2025?

Sysco's capital expenditures, net of proceeds from sales of assets, were $692 million in fiscal 2025. This figure represents 0.9% of total sales for the year.

What percentage of Sysco's sales came from restaurants in fiscal 2025?

Restaurants accounted for 60% of Sysco's total sales in fiscal 2025. This highlights the restaurant sector as the company's largest customer segment.

What is Sysco's outlook for capital expenditures in fiscal 2026?

Sysco expects its capital expenditures, net of proceeds from sales of assets, to approximate $700 million in fiscal 2026. These investments are anticipated to be financed primarily by internally generated funds and bank and other borrowings.

What is the primary business of Sysco Corporation?

Sysco Corporation is the largest global distributor of food and related products, primarily serving the foodservice or food-away-from-home industry. The company provides products and services to approximately 730,000 customer locations worldwide.

Are Sysco's employees unionized, and what are the implications?

Approximately 14% of Sysco's employees are represented by unions, primarily the International Brotherhood of Teamsters. A similar percentage, 14%, of these union employees are covered by collective bargaining agreements that are subject to renegotiation in fiscal 2026, which could impact labor costs and operations.

Who is the Chief Executive Officer of Sysco Corporation?

Kevin P. Hourican serves as the Chair of the Board and Chief Executive Officer of Sysco Corporation. He assumed this position in 2024, having previously served as President and Chief Executive Officer from 2020 to 2025.

Does Sysco rely heavily on any single customer?

No, Sysco does not rely heavily on any single customer. The filing states that no single customer accounted for 10% or more of Sysco's total sales for the fiscal year ended June 28, 2025, indicating a diversified customer base.

Where can investors find more information about Sysco's financial performance?

Investors can find more information about Sysco's financial performance, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, free of charge on Sysco's website at www.sysco.com.

Risk Factors

Industry Context

Sysco operates as the largest global distributor in the highly competitive foodservice industry. The sector is characterized by a fragmented customer base, including restaurants, healthcare, and educational facilities, and is sensitive to economic conditions affecting consumer spending on dining out. Key trends include a growing demand for fresh and specialized products, increasing focus on supply chain efficiency, and the adoption of technology to enhance customer service and operational visibility.

Regulatory Implications

Sysco's operations are subject to extensive food safety regulations (e.g., FDA, USDA) and labor laws. Compliance failures can lead to significant penalties, recalls, and reputational damage. The company must also navigate evolving environmental, social, and governance (ESG) reporting requirements and potential antitrust scrutiny given its market dominance.

What Investors Should Do

  1. [object Object]
  2. [object Object]
  3. [object Object]
  4. [object Object]

Key Dates

Glossary

Foodservice
The industry encompassing businesses that prepare and serve food outside the home, including restaurants, hotels, hospitals, and schools. (Sysco's primary market, defining its core business operations and customer base.)
Capital Expenditures, net of asset sales
The total amount spent on acquiring or upgrading physical assets (like buildings, machinery) minus any proceeds received from selling assets. (Indicates Sysco's investment in its infrastructure and operational capacity, with $692 million in FY2025 and projected $700 million for FY2026.)
Sales Mix
The proportion of total sales contributed by different product categories. (Shows shifts in customer purchasing behavior, such as the increase in fresh and frozen meats (19% in FY2025) and decrease in canned/dry products (18% in FY2025).)
Exchange Act
The Securities Exchange Act of 1934, a U.S. federal law regulating the secondary trading of securities. (Governs Sysco's reporting obligations to the SEC, including this Form 10-K.)
Reportable Segments
Components of a business for which discrete financial information is available and regularly reviewed by management for decision-making. (Sysco organizes its operations into segments for reporting purposes, though specific segment revenues are not detailed here beyond product categories.)

Year-Over-Year Comparison

Sysco reported an all-time high of $81.4 billion in annual sales for fiscal 2025, a significant achievement. Capital expenditures decreased slightly to $692 million from $753 million in fiscal 2024, representing a smaller percentage of sales (0.9%). The employee count saw a minor reduction from 76,000 to approximately 75,000. Key shifts in the sales mix include an increase in fresh and frozen meats to 19% and a decrease in canned and dry products to 18%. No new major risks were highlighted, but existing concerns around supply chain, labor, and cybersecurity remain pertinent.

Filing Stats: 4,470 words · 18 min read · ~15 pages · Grade level 13.9 · Accepted 2025-08-21 17:56:50

Key Financial Figures

Filing Documents

Page No

PART I Page No. Item 1.

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 23 Item 3.

Legal Proceedings

Legal Proceedings 23 Item 4. Mine Safety Disclosures 24 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 26 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 116 Item 9A.

Controls and Procedures

Controls and Procedures 116 Item 9B. Other Information 116 Item 9C. Disclosure Reporting Regarding Foreign Jurisdictions that Prevent Inspections 116 PART III Item 10. Directors, Executive Officers and Corporate Governance 117 Item 11.

Executive Compensation

Executive Compensation 117 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 117 Item 13. Certain Relationships and Related Transactions, and Director Independence 117 Item 14. Principal Accountant Fees and Services 117 PART IV Item 15. Exhibit and Financial Statement Schedules 117

Form 10-K Summary

Item 16. Form 10-K Summary 122

Signatures

Signatures PART I

Business

Item 1. Business 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, acting through its subsidiaries and divisions, is the largest global distributor of food and related products primarily to the foodservice or food-away-from-home industry. Our purpose is "Connecting the World to Share Food and Care for One Another." We provided products and related services to approximately 730,000 customer locations, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers during fiscal 2025. 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 $81.4 billion in annual sales in fiscal 2025, both through internal expansion of existing operations and acquisitions. Sysco's fiscal year ends on the Saturday nearest to June 30th. This resulted in a 52-week year ended June 28, 2025 for fiscal 2025, a 52-week year ended June 29, 2024 for fiscal 2024 and a 52-week year ended July 1, 2023 for fiscal 2023. We will have a 52-week year ending June 27, 2026 for fiscal 2026. Available Information Sysco Corporation is organized under the laws of Delaware. The address and telephone number of our executive offices are 1390 Enclave Parkway, Houston, Texas 77077-2099, (281) 584-1390. This annual report on Form 10-K, as well as all other annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to reports filed or furnished by Sysco pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), with the Securities and Exchange Commission (SEC) a

View on Read The Filing