Sysco, the largest US foodservice distributor by sales and footprint, is investing behind its sales reps, services, digital tools, and proprietary products to win lucrative independent operators. It is acquiring Jetro Restaurant Depot to further cement its position with these customers.
Sysco’s dense distribution network allows it to deliver goods faster and at a lower cost than peers, which should buoy its ability to scoop up market share over the long haul.
Bears
Near-term macroeconomic angst and persistent inflation could curb consumers’ propensity to dine out, limiting Sysco’s ability to grow volumes. Meanwhile, higher commodity and labor costs could dent Sysco’s profits.
Sysco is the largest foodservice distributor in the US, with an 18% share of the $377 billion vertical. The firm sells and distributes over 500,000 food and nonfood products to about 730,000 customer locations, primarily serving restaurants, which represented 60% of fiscal 2025 sales. The balance of sales stems from healthcare facilities (8%), education and government customers (8%), travel and leisure clients (7%), and other smaller end markets (17%), like cafeterias. By segment, Sysco earns the bulk of its revenue from its US foodservice operations (70%), followed by its international footprint (18%), SYGMA, which focuses on quick-service logistics (10%), and other (2%). The pending Jetro Restaurant Depot deal stands to add $16 billion in sales upon close, expected in fiscal 2027.