Sysco Q1 2027: Revenue Miss and a $29 Billion Deal in Motion

Sysco Q1 2027: Revenue Miss and a $29 Billion Deal in Motion

As seen on the 24/7 Wall St. homepage on November 3, 2026.

SYYSysco

Full-year sales growth now lands at the low end of the 6% to 7% range on softer food inflation, missing expectations, while management held adjusted EPS growth of 9% to 11%. The pending $29 billion Restaurant Depot deal already cost $108 million in acquisition charges this quarter.

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Sysco's revenue of $21.74 billion missed expectations, and that matters now because management guided full-year sales growth to the low end of its range.

Muted U.S. food cost inflation drove the shortfall, while the adjusted EPS growth target for the full year was left intact.

The pending Jetro Restaurant Depot acquisition pushed GAAP operating income down 10.4% year over year through deal-related charges and financing costs.

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Underneath the deal noise, operations held up: U.S. Foodservice case volume rose 2.6% and gross margin expanded.

What decides the stock from here is how the Restaurant Depot transaction closes and whether the synergy case survives low inflation.

Mentioned: SYY