Sysco signaled renewed momentum in its core U.S. business, boosting its full-year profit guidance and delivering quarterly results that topped analyst expectations. The food distributor said stronger orders for steaks, fillets and frozen products helped its U.S. foodservice operations continue to rebound.
Management pointed to robust restaurant traffic and improved demand from foodservice customers - including chains such as KFC and Subway - as contributors to the uptick in U.S. sales. The company noted that higher-income consumers have continued to spend, while lower-income households remain more cautious due to the price impact of U.S. President Donald Trump’s volatile trade policies.
Operationally, Sysco has focused on trimming costs to counter inflationary pressures. The company cited reductions in shipping expenses, renegotiated supplier contracts and tighter controls on warehouse and inventory spending as measures that helped offset rising input costs.
Internationally, Sysco said its business also remained a bright spot. Sales in that segment rose 7.3% in the quarter ended December 27, and gross margin widened by 42 basis points to 20.8%.
On the company’s performance metrics, Sysco reported quarterly net sales of $20.76 billion, in line with analyst expectations. Quarterly gross margin expanded by 15 basis points to 18.3%.
"We delivered our third consecutive quarter of sequentially improving local case growth. More importantly, U.S. Foodservice local case volume is now positive, having delivered positive 1.2% case volume growth in the quarter," said CEO Kevin Hourican.
Sysco’s adjusted profit for the quarter was $0.99 per share, slightly ahead of the $0.98 per share estimate compiled by LSEG. U.S. foodservice segment sales rose 2.4% in the quarter, accelerating from a 1.4% increase a year earlier.
Following the results, the company raised its fiscal 2026 adjusted earnings-per-share outlook to the high end of its prior range - projecting growth of 5% to 7% and an EPS target of $4.50 to $4.60. That replaces the earlier guidance of 1% to 3% growth.
In early trading, Sysco shares were up roughly 3.7% premarket. The stock had declined about 4% in value over 2025 prior to these results.
These results reflect a mix of recovering demand in the U.S. foodservice channel, continued international margin improvement and active cost management aimed at cushioning the company against higher input prices.