SYY Sysco Corporation
Price Chart
Executive Summary
Sysco (SYY) announced a transformative $29.1 billion acquisition of Jetro Restaurant Depot, combining two major foodservice distributors to create a dominant multi-channel platform. The deal, expected to close in Q3 2027, is immediately accretive to EPS and free cash flow, with $250 million in annual cost synergies targeted within three years. Sysco will fund the cash portion with $21 billion in new debt and $1 billion in cash or equity, pausing share buybacks to prioritize de-leveraging while maintaining its dividend.
Key Financial Metrics
Actionable Insight
Traders should view this as a strategic expansion into the high-margin, resilient Cash & Carry channel, enhancing Sysco’s scale and profitability. Near-term EPS accretion and strong synergy outlook support bullish sentiment, though leverage increase is a temporary headwind. Monitor regulatory approval progress and post-close integration efficiency. The pause in buybacks may limit near-term stock support, but long-term cash flow growth potential is significant.
Key Facts
- Sysco is acquiring Jetro Restaurant Depot for $29.1 billion in cash and stock, representing 14.6x Jetro’s 2025 operating income.
- Jetro generated $16 billion in revenue, $2.1 billion in EBITDA, and $1.9 billion in free cash flow in 2025.
- The combined company will have nearly $100 billion in annual revenue, $6.4 billion in adjusted EBITDA, and $5.5 billion in free cash flow.
- Deal is expected to be mid-to-high single-digit accretive to EPS in year one and low-to-mid teens accretive in year two.
- Sysco plans to open 125+ new Jetro warehouse locations over the next two decades, leveraging its supply chain.
- Synergies of $250 million annually are expected within three years, primarily from procurement and supply chain optimization.
- Sysco will pause its share repurchase program post-close to reduce net leverage by at least 1.0x in the first 24 months but will maintain its dividend.
- Transaction subject to regulatory approval; expected to close by Q3 FY2027.
Financial Impact
Deal increases Sysco's annual revenue by ~20%, EBITDA by ~45%, and free cash flow by ~55%. $250M in annual cost synergies expected. EPS accretion of mid-to-high single digits in first year.
Risk Factors
- Regulatory delays or conditions could slow or alter the transaction.
- Integration risks between two large, distinct operating models could disrupt service or delay synergies.
- Increased leverage from $21 billion in new debt may pressure credit ratings if de-leveraging lags.
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3264454 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 2, 2026
12d ago
|
425
| $75.21 $74.12 | ▼ −1.45% | ▼ −1.85% | $79.19 (+5.30%) |
|
May 27, 2026
18d ago
|
Press Release
| $75.06 $75.71 | ▲ +0.87% | ▲ +0.31% | $79.19 (+5.51%) |
|
May 18, 2026
27d ago
|
8-K
| $73.51 $75.22 | ▲ +2.33% | ▲ +2.98% | $79.19 (+7.73%) |
|
Apr 28, 2026
6w ago
|
8-K
| $73.16 $73.93 | ▲ +1.05% | ▲ +1.06% | $79.19 (+8.25%) |
|
Apr 20, 2026
7w ago
|
425
| $74.54 $75.32 | ▲ +1.05% | ▲ +0.03% | $79.19 (+6.24%) |
|
Apr 20, 2026
7w ago
|
8-K
| $74.54 $75.32 | ▲ +1.05% | ▲ +0.03% | $79.19 (+6.24%) |
|
Apr 17, 2026
8w ago
|
Press Release
| $76.26 $74.54 | ▼ −2.26% | ▼ −1.60% | $79.19 (+3.85%) |
|
Apr 7, 2026
9w ago
|
425
| $75.00 $74.99 | ▼ −0.01% | ▼ −0.58% | $79.19 (+5.59%) |
|
Apr 7, 2026
9w ago
|
Press Release
| $72.84 $75.00 | ▲ +2.96% | ▲ +0.42% | $79.19 (+8.72%) |
|
Mar 30, 2026
10w ago
|
425
| $70.80 $72.15 | ▲ +1.91% | ▲ +1.16% | $79.19 (+11.86%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access