Company: SYY
Filing Date: 2025-08-22
Form Type: 10-K
Source: 0000096021-25-000099
Chunk: 148

Company: SYSCO CORP
Filing Date: 2025-08-22
Form: 10-K
Item: Item 7
Chunk 148
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6 Operating expenses7,359 7,035 324 4.6 Operating income$3,516 $3,673 $(157)(4.3)%Gross profit$10,875 $10,708 $167 1.6 %Adjusted operating expenses (Non-GAAP) (1)7,243 6,964 279 4.0 Adjusted operating income (Non-GAAP) (1)$3,632 $3,744 $(112)(3.0)%

(1)See “Non-GAAP Reconciliations” below.

Sales

The following table sets forth the percentage and dollar value increase or decrease in sales over the prior year in order to demonstrate the cause and magnitude of change.

Increase (Decrease)2025(Dollars in millions)Cause of changePercentageDollarsCase volume (1)0.4 %$201 Inflation2.6 1,460 Other (2)(0.1)(35)Total change in sales2.9 %$1,626 

(1)Case volumes increased 0.5% compared to fiscal 2024. This volume increase resulted in a 0.4% increase in the dollar value of sales compared to fiscal 2024.(2)Case volume reflects our broadline and specialty businesses, with the exception of our specialty meats business, which measures its volume in pounds. Any impact in volumes from our specialty meats operations is included within “Other.”

The sales growth in our U.S. Foodservice Operations was driven by higher inflation in fiscal 2025. Case volumes from our U.S. Foodservice Operations increased 0.5%, as compared to fiscal 2024. This included a 1.4% decrease in local customer case volume as compared to fiscal 2024.

Operating Income

The decrease in operating income for fiscal 2025, as compared to fiscal 2024, was driven by increases in operating expenses, partially offset by gross profit dollar growth and case volume growth.

Gross profit dollar growth in fiscal 2025 was driven primarily by disciplined strategic sourcing efforts and case volume growth from recent acquisitions. The estimated change in product costs, an internal measure of inflation or deflation, increased in fiscal 2025. For fiscal 2025, this change in product costs was primarily driven by inflation in the dairy and poultry categories. Sysco brand penetration for U.S. Broadline decreased by 81 basis points to