Sysco (SYY) investor relations material

Key strategic updates

• FY27 guidance reaffirmed: $90 billion in sales, 6%-7% revenue growth, and 9%-11% EPS growth, with momentum from late FY26 carrying into FY27.

• Midterm guidance for FY28-FY29 raised: sales growth range increased to 4%-7%, and EPS guidance midpoint lifted by 300 basis points, driven by AI efficiencies.

• At least $500 million in AI-driven efficiencies targeted by FY29, with $100 million embedded in FY27 guidance and 30 initiatives underway, four of which drive 70% of the value.

• Dedicated AI transformation office established, and board updated with expertise in industry and AI supply chain.

• Dividend growth continues for 56 consecutive years, with a focus on maintaining investment-grade balance sheet and high free cash flow.

Operational performance and market positioning

• Local restaurant segment identified as most profitable, with recent improvements in retention, productivity, and sales tools like AI 360 supporting 2.5% volume growth guidance for FY27.

• Non-commercial segments (healthcare, education, hospitality) growing at healthy rates and are more profitable than national restaurant chains.

• Industry remains fragmented, providing opportunities for further share gains in both broadline and specialty distribution.

• International and specialty businesses each represent $10 billion growth opportunities.

• Technology integration and sustainability are key differentiators for large institutional customers.

Restaurant Depot acquisition and financial impact

• Restaurant Depot deal expected to close in Q3, adding 20% revenue, 45% EBITDA, and 55% free cash flow, with day-one accretion and minimal integration risk as it will operate standalone.

• Restaurant Depot's lean operating model and focus on food enable durable 12% operating income and 13% EBITDA margins, outperforming club stores due to lower costs and focused product mix.

• Plan to open 125+ new Restaurant Depot stores in the U.S., with Canada as a future opportunity.

• $250 million in procurement synergies underwritten, with additional revenue synergies from broader assortments and digital capabilities not yet included in guidance.

• Deleveraging plan targets reduction from 4.5x to 3.5x net leverage within 24 months, with free cash flow expected to double in four years post-acquisition.