Company: SYY
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000096021-25-000157
Chunk: 46

Company: SYSCO CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 46
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 or $664 million, to $21.1 billion;

•Operating income:

◦decreased 1.0%, or $8 million, to $800 million;

◦adjusted operating income increased 2.9%, or $25 million, to $898 million;

•Net earnings:

◦decreased 2.9%, or $14 million, to $476 million;

◦adjusted net earnings increased 2.0%, or $11 million, to $551 million;

•Basic earnings per share:

◦decreased 1.0%, or $0.01, to $0.99 per share;

•Diluted earnings per share:

◦unchanged, at $0.99 per share;

◦adjusted diluted earnings per share increased 5.5%, or $0.06, to $1.15 per share;

•EBITDA:

◦decreased 3.1%, or $32 million, to $1.0 billion; and

◦adjusted EBITDA increased 0.1%, or $1 million, to $1.1 billion.

The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions.

The fiscal 2026 and fiscal 2025 items discussed above are collectively referred to as “Certain Items.” The results of our operations can be impacted by changes in exchange rates applicable to converting from local currencies to U.S. dollars. We measure our results on a constant currency basis. 

23

Trends

Economic and Industry Trends 

Foot traffic to restaurant trends experienced a sequential improvement of 60 basis points for the first quarter of fiscal 2026 as compared to foot traffic to restaurant trends experienced in the fourth quarter of fiscal 2025. Our U.S. Foodservice Operations local case growth trends experienced a sequential improvement of 120 basis points during the same time period, outpacing the industry’s foot traffic improvement trends. The macroeconomic environment was similar in the first quarter of fiscal