SYY
Consumer DefensiveSysco Corporation · Food Distribution · $36B
What is Sysco Corporation?
Sysco Corporation is North America's largest foodservice distributor, supplying restaurants, hospitals, schools, hotels, and other food-away-from-home venues across the United States, Canada, the United Kingdom, France, and beyond.
Sysco generates revenue by purchasing food and related products in bulk and distributing them to foodservice operators who cannot source at scale themselves. Its segments cover U.S. Foodservice Operations, International Foodservice Operations, SYGMA (chain restaurant supply), and other specialty services. The company earns margin through logistics efficiency, private-label penetration, and the breadth of its product catalog — from frozen proteins and fresh produce to disposable tableware and kitchen equipment.
Incorporated in 1969 and headquartered in Houston, Texas, Sysco has grown into a global distribution network spanning hundreds of facilities.
- Frozen and fresh meats, seafood, and fully prepared entrées
- Dairy, beverage, and dry grocery products
- Fresh produce and imported specialty foods
- Disposable paper products, tableware, and cookware
- Restaurant equipment, cleaning supplies, and kitchen essentials
Is SYY a Good Stock to Buy?
UQS Score rates SYY as Below Average overall, reflecting meaningful headwinds across several key pillars.
Valuation stands out as the relative bright spot in Sysco's profile — the stock appears reasonably priced compared to its own history and sector peers, which may attract value-oriented investors. Quality and Moat both land at Neutral, suggesting the business retains a functional competitive position through its distribution scale, even if that advantage is not widening.
Growth and Risk are both rated Weak, pointing to limited near-term earnings momentum and a balance sheet or operational risk profile that warrants careful attention.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SYY pay dividends?
Yes — Sysco Corporation pays a dividend.
Sysco pays a regular dividend, a practice consistent with its mature, cash-generative distribution model. The company has historically prioritized returning capital to shareholders alongside reinvestment in its logistics network. Income-focused investors often view Sysco's dividend as a core part of the total-return case, though the Weak Risk pillar rating is worth factoring into any income-oriented thesis.
When does SYY report earnings?
Sysco reports earnings on a quarterly cadence, typical for US-listed large-cap equities.
Revenue trends reflect the broader foodservice environment — volume recovery in dining and institutional channels has been a tailwind, though cost pressures across the supply chain have weighed on margin expansion. Growth has remained subdued relative to historical norms, consistent with the Weak Growth pillar rating.
For the most recent quarter's results and guidance, visit Sysco Corporation's investor relations page directly.
SYY Price History
+5.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Sysco Corporation?
Based on Sysco Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SYY Long-term Outlook
Sysco's fundamental outlook is shaped by two competing forces: a stable, recurring demand base from foodservice operators on one side, and limited organic growth potential paired with elevated risk factors on the other. The Weak Growth pillar suggests the business is unlikely to deliver above-sector earnings expansion in the near term. Meanwhile, the Weak Risk pillar indicates investors should monitor leverage and margin sensitivity closely. The Good Valuation label does provide some cushion — the stock is not priced for perfection, which limits downside from multiple compression.
Growth drivers
- Recovery and expansion in away-from-home dining volumes
- Private-label product mix shift improving unit economics
- International segment growth in the UK and France
Key risks
- Elevated debt load constraining financial flexibility
- Food cost inflation and fuel price volatility compressing margins
- Slow organic volume growth in a mature distribution market
SYY vs Peers
Sysco operates in a competitive foodservice distribution landscape alongside several large national players.
US Foods is Sysco's closest national rival, competing directly for independent restaurant accounts with a comparable broad-line distribution model.
Performance Food Group has pursued an aggressive acquisition strategy, expanding into convenience distribution and broadening its customer base beyond traditional foodservice.
UNFI focuses on natural, organic, and specialty grocery distribution, serving a different customer mix that skews toward retail grocery rather than foodservice operators.
Frequently Asked Questions
What does Sysco do?
Sysco is a foodservice distributor that purchases food and non-food products in bulk and delivers them to restaurants, hospitals, schools, hotels, and other venues that prepare meals away from home. It operates across the United States, Canada, the United Kingdom, France, and other international markets.
Does SYY pay dividends?
Yes, Sysco pays a regular dividend. The company has a long history of returning capital to shareholders through dividends, supported by its relatively predictable cash flows from foodservice distribution. Investors should weigh the Weak Risk pillar rating when evaluating dividend sustainability.
When does SYY report earnings?
Sysco reports earnings on a quarterly cadence, as is standard for US-listed large-cap companies. For the exact date of the next earnings release, check Sysco's official investor relations page, as our data source does not cover forward-looking calendar events.
Is SYY a good stock to buy?
UQS Score rates SYY as Below Average, driven by Weak Growth and Risk pillars. The Valuation pillar is rated Good, meaning the stock is not expensive relative to peers, but that alone does not offset the fundamental concerns. A full pillar breakdown is available to Pro members.
Is SYY overvalued?
Based on the UQS Valuation pillar, SYY is rated Good — suggesting the stock trades at a reasonable price relative to sector peers rather than appearing stretched. That said, valuation alone does not determine investment quality; the Growth and Risk pillars both rate Weak.
How does SYY compare to its competitors?
Sysco is the largest broad-line foodservice distributor in North America, giving it scale advantages over US Foods and Performance Food Group. However, all three compete intensely for the same restaurant and institutional accounts. UNFI operates in a different niche, focusing on natural and specialty grocery distribution.
What is SYY's market cap bracket?
Sysco is classified as a large-cap company, reflecting its position as the dominant player in North American foodservice distribution with a substantial and widely held public float.
Who founded Sysco Corporation?
Sysco was founded by John F. Baugh, who assembled a group of regional foodservice distributors to form the company. Founding context and historical detail are widely available through Sysco's corporate history resources and public filings.
Is SYY a long-term quality investment?
As a long-term quality indicator, the UQS Score rates SYY as Below Average. The Neutral Quality and Moat pillars suggest the business model is functional but not compounding strongly. Weak Growth limits the long-term earnings trajectory. Pro members can view the complete pillar analysis to form their own view.
What is the main competitive advantage of Sysco?
Sysco's primary advantage is distribution scale — operating hundreds of facilities and serving a vast network of foodservice customers creates cost efficiencies and supplier leverage that smaller distributors struggle to replicate. However, the UQS Moat pillar rates this advantage as Neutral, indicating it is not widening materially.
What sector does SYY belong to?
Sysco is classified in the Consumer Defensive sector. Foodservice distribution tends to be relatively resilient because demand for food away from home persists across economic cycles, though it is not immune to volume swings during downturns or periods of consumer belt-tightening.
Is SYY a growth stock or value stock?
Based on UQS pillar labels, SYY leans toward value rather than growth. The Growth pillar is rated Weak, indicating limited earnings expansion momentum, while the Valuation pillar is rated Good — a combination more typical of a value-oriented profile than a high-growth one.
Unlock Full SYY Analysis
Sign in to unlock the detailed analysis behind the UQS Score.
- ✓View the exact UQS Score and all five pillar ratings
- ✓Access complete financial metrics and trend data
- ✓Compare SYY head-to-head against USFD, PFGC, and UNFI
- ✓See the full risk and valuation breakdown in detail
- ✓Get the complete analyst-grade view in one dashboard
Pro Analysis
SYY — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 7, 2026 | 45.8 | 57.1 | 44.0 | 34.8 | 12.1 | 78.6 | 0.0 |
| May 3, 2026 | 45.8 | 57.1 | 44.0 | 34.8 | 12.1 | 78.3 | +0.2 |
| May 2, 2026 | 45.6 | 57.1 | 44.0 | 34.8 | 12.1 | 77.3 | -0.1 |
| Apr 28, 2026 | 45.7 | 57.1 | 44.0 | 34.8 | 12.1 | 77.4 | 0.0 |
| Apr 26, 2026 | 45.7 | 57.1 | 44.0 | 34.9 | 12.1 | 77.5 | 0.0 |
| Apr 20, 2026 | 45.7 | 57.1 | 44.0 | 34.9 | 12.1 | 77.7 | 0.0 |
| Apr 19, 2026 | 45.7 | 57.1 | 44.0 | 34.8 | 12.1 | 77.7 | -0.2 |
| Apr 18, 2026 | 45.9 | 57.1 | 44.0 | 34.8 | 12.1 | 78.7 | -0.4 |
| Apr 14, 2026 | 46.3 | 57.1 | 44.0 | 34.8 | 12.1 | 82.0 | -0.1 |
| Apr 12, 2026 | 46.4 | 57.1 | 44.0 | 34.8 | 12.1 | 82.3 | -0.1 |
SYY — Pillar Breakdown
Quality
— 56.4/100 (25%)Sysco Corporation shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 34.7/100 (20%)Sysco Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 12.1/100 (15%)Sysco Corporation presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 75.9/100 (15%)Sysco Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 44/100 (25%)Sysco Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SYY.
Score Composition
Financial Data
More Stock Analysis
How is the SYY UQS Score Calculated?
The UQS (Unified Quality Score) for Sysco Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Sysco Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Sysco Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.