Company: SYY
Filing Date: 2025-08-22
Form Type: 10-K
Source: 0000096021-25-000099
Chunk: 149

Company: SYSCO CORP
Filing Date: 2025-08-22
Form: 10-K
Item: Item 7
Chunk 149
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35.8% for fiscal 2025, as compared to fiscal 2024. Specific to local customers, Sysco brand penetration for U.S. Broadline decreased by 81 basis points to 46.2% for fiscal 2025, as compared to fiscal 2024. 

Gross margin, which is gross profit as a percentage of sales, was 19.1% in fiscal 2025. This was a decrease of 26 basis points compared to gross margin of 19.4% in fiscal 2024, primarily due to a shift in our customer mix driven by national sales volumes outpacing local sales volume and a decrease in Sysco brand penetration rates.

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The increase in operating expenses for fiscal 2025, as compared to fiscal 2024, was primarily driven by cost inflation and increases in colleague-related costs, depreciation expense, and bad debt, partially offset by lower incentive compensation and gains from sale leaseback transactions. 

Results of International Foodservice Operations

In fiscal 2025, the International Foodservice Operations operating results represented approximately 18.3% of Sysco’s overall sales. 

The following table sets forth a summary of the components of operating income and adjusted operating income expressed as a percentage increase or decrease over the prior year:

 20252024Change in Dollars % Change (Dollars in millions)Sales$14,905 $14,561 $344 2.4 %Gross profit3,109 2,947 162 5.5 Operating expenses2,672 2,572 100 3.9 Operating income$437 $375 $62 16.5 %Gross profit$3,109 $2,947 $162 5.5 %Adjusted operating expenses (Non-GAAP) (1)2,524 2,455 69 2.8 Adjusted operating income (Non-GAAP) (1)$585 $492 $93 18.9 %Comparable sales using a constant currency basis (Non-GAAP) (1)$14,934 $14,561 $373 2.6 %Comparable gross profit using a constant currency basis (Non-GAAP) (1)3,098 2,947 151 5.1 Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) (1)2,513 2,455 58 2.4