Strong Results Support Sysco's Increased Share Buyback Without Sacrificing Reinvestment

Foodservice distribution is highly fragmented, with Sysco holding just 17% as the leader of the roughly $350 billion U.S. market. However, we think its dominance is far stronger than share alone may imply. Restaurants demand timely and consistent delivery to serve the freshest food. Sysco adds value by allowing restaurants to buy the bulk of its needs from a single source rather than dozens of producers, simplifying logistics and saving time. While the goods it sells are commodities, Sysco can differentiate on selection, quality, and freshness while also offering services like menu planning and kitchen setup advice. Indeed, we believe this has driven top-line growth that has outpaced industry growth, which should persist, leading to our 4.5% average annual sales growth forecast.