other material
confidence high
sentiment positive
materiality 0.80
Sysco raises mid-term EPS growth to 9-11%, unveils $500M AI program, reaffirms FY27
SYSCO CORP
- Reaffirms FY27 guidance: sales growth 6-7%, adj EPS growth 9-11%, ~2.5% local case growth (53-week year adds ~2% to sales).
- New $500M annualized AI/tech efficiency program by FY29; ~$100M net cost out included in FY27 guidance.
- Mid-term algorithm raised: sales growth 4-7% (was 4-6%), adj EPS growth 9-11% (was 6-8%), TSR 12-14% (was 9-11%).
- Jetro Restaurant Depot: year 1 adj EPS accretion mid-to-high single digit, year 2 low-to-mid teens; $250M synergies ramping year 3.
- FY26 results: sales $84.6B, adj EPS $4.61; expects net leverage reduction to ~1.0x within 24 months post-close.