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Sysco Corporation (SYY): Business Model Canvas [Dec-2025 Updated] |
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You're looking to really understand how the world's biggest food distributor actually makes its money, and honestly, it's less about fancy tech and more about sheer, relentless logistics. After two decades analyzing these giants, including my time leading analysts at BlackRock, I can tell you Sysco Corporation's model is built on dominating the supply chain, moving everything from fresh meat-which alone brought in $15.19 billion in FY2025-to paper goods, all while hitting $81.4 billion in total net sales that same year. It's a masterclass in managing complexity across 337 facilities. So, if you want the unvarnished breakdown of the nine blocks that keep this massive engine running, dive into the canvas below; it shows defintely where the costs are and how they keep winning the shelf space battle.
Sysco Corporation (SYY) - Canvas Business Model: Key Partnerships
You're looking at the backbone of Sysco Corporation's massive operation-the partnerships that feed over 730,000 customer locations globally. These aren't just vendor relationships; they are critical supply chain integrations.
Global Network of Food and Non-Food Product Suppliers
Sysco Corporation relies on a vast network to maintain its industry-leading portfolio, which includes nearly 2 million SKUs in some contexts, though the total number of unique suppliers isn't explicitly stated for late 2025. The company is the global leader in this space, operating 339 distribution centers across 10 countries as of fiscal year 2025. The scale of this network is immense, supporting the $81.4 billion in revenue Sysco Corporation generated in fiscal year 2025.
The partnership strategy also has a strong focus on diversity and responsible sourcing, with a historical goal to increase spending with minority and women-owned suppliers by 25 percent by 2025 [7 in first search].
Strategic Alliances with Local and Regional Farms for Fresh Produce Sourcing
Sysco Corporation actively partners with local ranchers, growers, and producers, stating they partner with more of these entities than any other distributor in the industry. These alliances are key to supporting farm-to-table initiatives and sourcing specialized, high-quality ingredients. For example, in the Northwest region, Sysco Portland works with local partners like Denison Farms, which grows over a hundred varieties of organic fruits and vegetables, and Yamhill County Mushrooms, which produces over 5 million pounds of mushrooms annually [7 in second search]. Furthermore, the company has long-standing commitments related to sourcing, such as a 2016 commitment to use 100% cage-free eggs in the U.S. supply chain by 2026 [2 in second search].
Technology Partners for AI-Driven Logistics and Pricing Platforms
Digital transformation is heavily reliant on external technology collaboration. Sysco Corporation's strategic enablers for fiscal year 2026 include initiatives like AI360, which is part of their focus on AI-driven logistics and inventory planning to streamline operations. The company has invested in backend systems and data infrastructure to enable real-time decision-making for sales consultants, particularly through a pricing agility initiative that allows reps to match competitor pricing instantly [12 in first search]. Sysco Corporation's strategy leans toward purchasing existing capabilities, such as robotic process automation bots, rather than building large language models from scratch [13 in first search].
Fleet and Energy Providers for Achieving Environmental Goals
A major partnership focus is on fleet sustainability. Sysco Corporation set a public goal by 2025 to have 20 percent of its tractor fleet comprised of alternative fuel vehicles [5, 7 in first search]. While the final 2025 percentage isn't confirmed, progress was evident as of May 2024, when the company celebrated reaching nearly 120 electric vehicles (EVs) globally, with over 100 based in the U.S. [6 in first search]. This ties into a broader 2030 goal to electrify 35 percent of the U.S. tractor fleet, equivalent to adding nearly 2,500 electric trucks [10 in first search]. Separately, a renewable power project is expected to provide enough energy to cover up to 75 percent of the company's U.S. power needs by the end of 2026 [15 in first search].
Collaborations for Brand Visibility
Sysco Corporation leverages high-profile collaborations for brand reinforcement, especially within the culinary community. The company serves as the official wholesale food distributor for multiple 2025 MICHELIN Guide ceremonies, including Florida (April 17), Carolinas (November 3), and Northeast Cities (November 18) [1, 3, 4 in first search]. This partnership, which began with the Texas ceremony in November 2024, positions Sysco Corporation to showcase premium products directly to top chefs [2 in first search]. The company also partners with organizations like the World Wildlife Fund to set targets for sustainable seafood procurement, a commitment dating back to 2009 [2 in second search].
Here is a summary of the scale and key partnership metrics as of late 2025:
| Metric/Partner Category | Data Point/Figure | Reference Period/Context |
| FY 2025 Total Revenue | $81.4 billion | Fiscal Year Ended June 28, 2025 |
| Global Distribution Centers | 339 (or 340) | As of FY2025 |
| Customer Locations Served | Approximately 730,000 | As of FY2025 |
| Global Employees | 75,000 | As of June 28, 2025 [1, 2 in second search] |
| Alternative Fuel Fleet Goal (2025) | 20 percent of tractor fleet | Stated 2025 Goal [5, 7 in first search] |
| Electric Vehicles (EVs) in Fleet | Nearly 120 globally | As of May 2024 [6 in first search] |
| U.S. Power Needs Renewable Coverage Target | Up to 75 percent | Expected operational by end of 2026 [15 in first search] |
| MICHELIN Guide Partnership | Official wholesale food distributor for 3 ceremonies | 2025 Florida, Carolinas, and Northeast Cities [1, 3, 4 in first search] |
The reliance on external entities is clear across the operational, technological, and marketing fronts. For instance, the company's commitment to sustainability requires deep collaboration with suppliers to meet the Scope 3 emissions target, which mandates that suppliers covering 67 percent of Scope 3 emissions establish Science Based Targets (SBT) by 2026 [17 in second search].
- Local Producer Alliances: Sysco Corporation claims to partner with more local ranchers, growers, and producers than any other distributor [5 in second search].
- Technology Strategy: Preference for purchasing AI capabilities like robotic process automation bots over building proprietary large language models [13 in first search].
- Fleet Progress: Over 100 U.S.-based electric tractors deployed across several operating sites as of May 2024 [6 in first search].
Finance: review the Q1 2026 budget allocation for technology investments versus fleet infrastructure by the end of the quarter.
Sysco Corporation (SYY) - Canvas Business Model: Key Activities
You're looking at the core engine of Sysco Corporation (SYY) as of late 2025. The key activities here are all about scale, movement, and precision in getting food to where it needs to be prepared.
High-volume, multi-temperature food and related product distribution
The fundamental activity is moving massive amounts of product. For the full fiscal year 2025, Sysco Corporation generated total sales of $81.4 billion. This scale is evident when you break down the segments; for instance, the U.S. Foodservice Operations segment alone accounted for 70.0% of total sales in fiscal year 2025. The fourth quarter of 2025 saw total sales hit $21.1 billion, showing the consistent flow of business.
The distribution activity is supported by a massive physical footprint, which is a key resource enabling this high-volume throughput. Sysco Corporation operates approximately 337 to 340 distribution centers across 10 countries. This infrastructure supports serving around 730,000 customer locations globally.
| Metric | Value (FY 2025) |
| Total Sysco Sales | $81.4 billion |
| U.S. Foodservice Operations Sales | $57.0 billion |
| Q4 2025 Total Sales | $21.1 billion |
| Number of Distribution Centers | 337 to 340 |
| Customer Locations Served | Approx. 730,000 |
Managing a vast, complex global supply chain and logistics network
Handling multi-temperature inventory across that many locations requires intense logistical management. A core activity is managing product cost inflation, which was 2.5% at the total enterprise level for fiscal year 2025, primarily in the dairy and poultry categories. Effective management of this inflation was a primary driver of the gross profit increase for the year.
The company is actively investing to modernize this network. Sysco Corporation is expanding fulfillment capacity by opening new facilities in places like Pennsylvania, Florida, Sweden, and Ireland. This is part of a broader effort to enhance supply chain efficiency.
Implementing strategic initiatives like Pricing Agility and Sysco Your Way
Sysco Corporation is executing specific programs to drive market share and profitability. The Pricing Agility initiative is a major focus, designed to give sales consultants real-time power to match competitor pricing without needing back-office sign-off. This is critical for speed to action in a value-focused market.
The company is also running pilots like Sysco to Go Cash & Carry in Houston, which blends retail-style convenience with the core business model. Furthermore, the overall strategy is often referred to as advancing the Sysco playbook globally, which includes expanding local sales resources and modernizing customer-facing systems.
- Pricing Agility: Enables reps to match competitor pricing on the spot.
- Sysco to Go: Cash & Carry pilot in Houston.
- AI360: A key growth initiative planned for fiscal year 2026.
- Sysco Perks!: Another key growth initiative planned for fiscal year 2026.
Investing $692 million in capital expenditures for network expansion and tech
To support the logistics and digital transformation, Sysco Corporation made significant capital outlays. For fiscal year 2025, capital expenditures, net of proceeds from sales of plant and equipment, totaled $692 million. This spending supports both physical network expansion and the technology backbone required for initiatives like Pricing Agility.
The company generated $2.5 billion in cash flow from operations and $1.8 billion in free cash flow in fiscal year 2025, which funded these investments alongside returning capital to shareholders.
Enhancing sales professional effectiveness and local account penetration
A key activity involves managing and improving the sales force, as operating expenses rose due to business and sales headcount investments in fiscal year 2025. The company is focused on improving salesforce productivity and retention, noting that newly hired consultants from 2024 are now approaching full productivity. The U.S. Foodservice segment saw total case volume increase by 0.5% for the full year, though local case volume actually decreased by 1.4%. Still, there was sequential improvement, with U.S. Foodservice local case growth improving by 200 basis points from Q3 2025 to Q4 2025.
The focus on local penetration is clear, as the company is committed to expanding local sales resources. The International segment has been a particular growth engine, with organic growth reaching 8.3% in Q4 2025 (excluding the divested Mexico joint venture).
Sysco Corporation (SYY) - Canvas Business Model: Key Resources
The Key Resources for Sysco Corporation are centered on its massive physical footprint, advanced digital capabilities, and significant financial strength as of late fiscal year 2025.
The physical infrastructure forms the backbone of Sysco Corporation's ability to serve the foodservice industry.
| Resource Category | Metric | Value (Late FY2025) |
| Physical Distribution Network | Number of Distribution Centers | 340 |
| Physical Distribution Network | Countries of Operation | 10 |
| Workforce | Global Colleagues (as of June 28, 2025) | 75,000 |
| Financial Strength | Operating Cash Flow (FY2025) | $2.5 billion |
| Financial Strength | Cash Balance (End of Q4 FY2025) | $1.1 billion |
| Financial Strength | Total Liquidity (End of Q4 FY2025) | $3.8 billion |
The logistics capability is supported by a fleet of specialized refrigerated trucks and extensive logistics infrastructure, enabling the movement of products across its wide network.
Proprietary technology platforms are increasingly critical, moving Sysco Corporation beyond pure distribution into data-driven partnership. The AI360 platform is a prime example of this digital asset.
- AI360 platform usage: Approximately 90% of Sysco Corporation's sales consultants used the AI360 platform in fiscal Q1 2026, indicating rapid adoption following its 2025 introduction.
- Other digital assets include Sysco Shop, Sysco Delivery, and Sysco Portal.
The financial foundation allows for sustained investment in these physical and digital assets. For the fiscal year 2025, Sysco Corporation generated sales of more than $81 billion.
You've got the scale, but the technology adoption rate is what really signals future operational leverage.
Sysco Corporation (SYY) - Canvas Business Model: Value Propositions
You're looking at the core reasons why customers choose Sysco Corporation over competitors, which is really about the sheer scope of what they offer and how reliably they deliver it. For a company that posted total sales of $81.4 billion in fiscal year 2025, the value proposition has to be rock solid.
Single-source, comprehensive product offering (food, equipment, supplies)
Sysco Corporation's value starts with its massive catalog, meaning a customer can order nearly everything they need for their operation from one place. This isn't just about food; it includes equipment and supplies too. Looking at the revenue breakdown for fiscal year 2025, you see the breadth of their product categories:
| Product Category | FY 2025 Revenue | Percentage of Total Revenue |
|---|---|---|
| Fresh And Frozen Meats | $15.19 B | 18.66% |
| Canned And Dry Products | $14.65 B | 18% |
| Dairy Products | $8.69 B | 10.67% |
| Fresh Produce | $6.63 B | 8.15% |
| Equipment And Smallwares | $1.89 B | 2.32% |
The U.S. Foodservice Operations segment, which is the core, brought in $57.0 billion in sales for the full fiscal year 2025. That scale allows them to stock and deliver these diverse items efficiently.
Customized supply chain solutions for diverse customer needs
The offering goes beyond the product itself; it's about the logistics tailored to different customer types, from independent restaurants to large healthcare facilities. Sysco Corporation operates across 10 countries, utilizing a network of over 337 distribution facilities to manage this complexity. While total case volume for U.S. Foodservice grew by 0.5% for the full fiscal year 2025, the company continues to invest in digital tools to enhance delivery performance and provide omnichannel inventory management, which is essentially selling operational efficiency.
Reliability and scale as the world's largest food-away-from-home distributor
Being the largest means they offer a level of reliability that smaller players simply can't match, especially when supply chains get choppy. Their total enterprise sales reached $81.4 billion in fiscal year 2025, cementing that scale. This scale is a direct value proposition because it translates into better sourcing power and broader geographic reach for customers who need consistent supply across multiple locations.
Culinary support and consulting to help customers optimize operations
Sysco Corporation positions itself as a business partner, not just a supplier, by offering value-added services like menu planning and operational consulting. The success of these 'Solutions' components is reflected in the bottom line; for fiscal year 2025, the company delivered $3.5 billion in adjusted operating income. Furthermore, their commitment to community support, part of their broader responsibility goals, includes a target to generate $500 million in global communities by 2025 through food donations and volunteerism, which builds goodwill with community-focused customers.
Sysco Brand products offering quality and cost-effective alternatives
The private label offering is a key lever for customers managing costs. These products are designed to offer quality comparable to national brands but at a better price point. The penetration of these proprietary items shows customer adoption. As of the 39-week period ending March 29, 2025, Sysco Brand sales accounted for 36.0% of cases in U.S. Broadline operations. For the 13-week period ending the same date, the figure was 35.5% of U.S. Broadline cases. This gives operators a tangible way to manage their food cost inflation, which was measured at 2.1% enterprise-wide for the third quarter of FY2025.
- Adjusted Diluted EPS for FY 2025 was $4.46.
- International Foodservice Operations sales grew to $14.9 billion in FY 2025.
- The company returned approximately $2.3 billion to shareholders in FY 2025 via dividends and repurchases.
Sysco Corporation (SYY) - Canvas Business Model: Customer Relationships
You're looking at how Sysco Corporation keeps its massive customer base engaged, which is critical when industry traffic is choppy, like the reported 3.5% decline in local case volume for U.S. Foodservice in the third quarter of fiscal 2025. Sysco Corporation's approach blends high-touch personal service with significant digital investment.
Dedicated sales professional model for personalized, consultative service
The core of the relationship model still relies on the sales consultant. Sysco Corporation is actively working to make these reps more effective, for instance, by accelerating digital programs aimed at increasing their productivity. A key development is the 'pricing agility initiative,' which was in pilot mode in select regions as of mid-2025. This tool is designed to give sales consultants real-time decision-making power, allowing them to match competitor pricing on the spot without needing back-office approval. This speed to action is a direct response to the value-focused market you're seeing now. To support this, the company reported investments in sales headcount, though they also acknowledged that hiring and turnover among sales consultants created a drag on performance in the first half of fiscal 2025. The SYGMA segment, which handles chain restaurant customers, still shows strong engagement, posting sales up 9.5% year-over-year in the fourth quarter of fiscal 2025.
High-touch account management for large national chains and institutions
For the largest customers, the relationship is managed through dedicated, high-touch account management. While specific metrics on the number of national accounts aren't public, the focus on segment performance gives us a clue. The SYGMA segment, which serves chain restaurant customers, is a clear indicator of this high-touch focus, showing robust sales growth. The overall U.S. Foodservice segment, which includes these large accounts, saw its total case volume increase by 0.5% for the full fiscal year 2025, contrasting with the local volume decline.
Digital self-service and ordering via online platforms and mobile apps
Digital is definitely a foundational element of Sysco Corporation's strategy for customer interaction. They are investing heavily in backend systems and data infrastructure to support better cross-sell opportunities and smarter product recommendations across their online ordering platforms. The company's digital personalization program, running across its Sysco Shop ecommerce platform, has already generated $450 million in incremental sales and is projected to grow at a 15% compound annual gross rate between 2024 and 2027. Furthermore, they launched the online Sysco Marketplace, built on Mirakl technology, to offer customers access to over 15,000 niche products via drop-shipping from third-party suppliers. You can use their mobile apps, including Sysco Shop, for delivery services.
Here's a quick look at the scale of their digital and customer engagement efforts:
| Metric Category | Specific Data Point | Value/Amount (as of late 2025 data) |
| Digital Sales Impact | Incremental Sales from Digital Personalization | $450 million |
| Digital Growth Projection | CAGR for Personalization Program (2024-2027) | 15% |
| Marketplace Scale | Niche Products Available on Sysco Marketplace | Over 15,000 |
| Customer Reach | Total Customer Locations Served Globally | 730,000 |
| FY 2025 Financial Scale | Total Enterprise Sales (Fiscal Year 2025) | $81.4 billion |
Loyalty and retention programs like Perks 2.0 for independent operators
For independent operators, loyalty is driven by tangible benefits. The existing customer loyalty program, Sysco Perks, offers members exclusive discounts and access to Restaurant Solutions valued at $6,000. Looking ahead, Sysco Corporation has announced plans for a 'revamped Perks 2.0 customer loyalty program' to roll out in 2026, signaling a continued investment in retention tools. The focus on retention is also seen in internal efforts to reduce turnover, which previously translated to lower training expenses and improved productivity after the company lowered its turnover rate by 1.3 percentage points in one quarter in 2023, showing a long-standing commitment to stable customer-facing teams.
Customer-centric approach reinforced by local market presence
Sysco Corporation's physical footprint is the bedrock of its customer-centricity, ensuring local service capability. They operate 340 distribution centers across 10 countries. To better serve smaller, value-conscious operators, the company is piloting 'Sysco to Go' Cash & Carry retail locations in Houston, offering lower prices than the traditional delivery model. This local focus is important because U.S. Foodservice local case volume decreased by 1.4% for the full fiscal year 2025, making these targeted local initiatives crucial for winning back volume. The company is focused on profitable local volume growth in 2026 in every country they operate, especially the United States.
You can see the operational scale that supports these relationships:
- Distribution Network: 340 distribution centers across 10 countries.
- Customer Base: Serving approximately 730,000 customer locations.
- FY 2025 Operating Cash Flow: Approximately $2.5 billion.
- FY 2025 Total Case Volume Growth (U.S. Foodservice): Up 0.5%.
Finance: draft 13-week cash view by Friday.
Sysco Corporation (SYY) - Canvas Business Model: Channels
You're looking at how Sysco Corporation gets its products into the hands of customers who prepare meals away from home. This is all about physical reach and digital access, which is massive for a company this size.
The core of the physical distribution channel relies on an extensive, owned network. Sysco Corporation operates 337 distribution centers across 10 countries as of their fiscal year 2025 results announcement. This infrastructure supports a vast customer base, serving approximately 730,000 customer locations globally. The company employs 75,000 colleagues to manage this scale.
While the outline mentions Direct Store Delivery (DSD) via an owned fleet, specific fleet size numbers aren't readily available in the latest reports. However, the sheer volume moved through the U.S. Foodservice segment-which generated $56.97 B in revenue in fiscal year 2025-implies a massive, dedicated logistics operation supporting this channel.
For customer procurement, Sysco Corporation is definitely enhancing its digital presence. The strategy includes investing in digital tools to enrich the customer experience and improve supply chain efficiency.
The overall channel structure is best understood by looking at the revenue contribution from the major operating segments, which represent distinct channel focuses:
| Channel Segment | FY 2025 Revenue (Amount) | FY 2025 Revenue (Percentage of Total) |
| U.S. Foodservice Operations | $56.97 B | 70.96% |
| International Foodservice Operations | $14.91 B | 18.57% |
| SYGMA Segment | $8.41 B | 10.48% |
The SYGMA segment is specifically tailored for high-volume, multi-unit chain restaurant distribution. This channel showed strong performance, with its revenue growing by 8.26% in fiscal year 2025, moving from $7.77 B in 2024 to $8.41 B in 2025.
The International Foodservice Operations channel provides global market reach, which acts as a diversification lever. For fiscal year 2025, this segment brought in $14.91 B in sales. This international reach saw sales growth of 3.6% year-over-year for the fourth quarter of fiscal 2025, excluding the impact of the Mexico joint venture divestiture.
The primary digital channel for investor information and official disclosures is the Investor Relations section of the company's website, investors.sysco.com.
- Sysco Corporation generated total sales of more than $81.4 billion in fiscal year 2025.
- The International Foodservice Operations segment grew its gross profit by 7.3% to $760 million in Q2 FY25.
- The company is opening new distribution centers in locations like Pennsylvania, Florida, Ireland, and Sweden.
- The SYGMA segment was noted as the highest growth region for Sysco Corporation in 2025, with a revenue growth of +8.26% compared to 2024.
Sysco Corporation (SYY) - Canvas Business Model: Customer Segments
You're looking at the core customer base for Sysco Corporation as of the close of fiscal year 2025. Honestly, the most precise, real-life numbers we have break down by operational segment, which heavily overlap with your requested customer groups, so we'll map those for clarity.
Sysco Corporation's total sales for the full fiscal year 2025 reached $81.4 billion. The company maintains a dominant position, holding an estimated 17% share of the total North American foodservice distribution market, which was valued at approximately $370 billion in late 2025.
The customer segments are served primarily through the U.S. Foodservice Operations and the SYGMA segment, which specifically targets chain restaurants. The International Foodservice Operations also serves a mix of these customer types outside the U.S.
Here is the financial breakdown by operational segment for fiscal year 2025:
| Operational Segment | FY 2025 Revenue Amount | Percentage of Total FY 2025 Revenue |
| U.S. Foodservice Operations | $56.97 B | 70.96% |
| International Foodservice Operations | $14.91 B | 18.57% |
| Sygma Segment | $8.41 B | 10.48% |
The U.S. Foodservice Operations segment is the backbone, accounting for nearly 71% of the company's total revenue in fiscal year 2025. This segment serves the independent and multi-unit restaurants, as well as healthcare, education, lodging, and entertainment venues within the United States.
The SYGMA segment, which focuses on chain restaurant customers, generated $8.41 billion in revenue for fiscal year 2025. While specific revenue attribution for healthcare facilities, educational institutions, lodging, and entertainment venues is not publicly itemized in the primary financial disclosures, these customers are served across the U.S. and International segments. The International Foodservice Operations segment contributed $14.91 billion in sales for the year.
The core restaurant customer base is heavily represented across these operations, as evidenced by the U.S. Foodservice local case volume trends, which dipped by 1.4% for the full fiscal year 2025, despite overall U.S. Foodservice sales growing by 2.94%, largely propelled by inflation.
You can see the relative size of the operational segments below:
- Independent and multi-unit restaurants (core base served by U.S. Foodservice and SYGMA): The U.S. Foodservice segment generated $56.97 billion in FY 2025.
- Chain Restaurants (served by SYGMA): The SYGMA segment generated $8.41 billion in FY 2025.
- Healthcare facilities, Educational institutions, Lodging, Entertainment venues: These are included within the U.S. Foodservice and International Foodservice segments, which together accounted for approximately 89.53% of total revenue in FY 2025.
The trend of food away from home gaining market share over grocery stores is a long-term tailwind for all these customer segments.
Finance: draft the Q1 FY26 customer segment penetration targets by segment owner by next Tuesday.
Sysco Corporation (SYY) - Canvas Business Model: Cost Structure
You're looking at the engine room of Sysco Corporation's massive distribution network, where the numbers tell the story of scale and relentless operational spending. The cost structure is dominated by the sheer volume of product Sysco Corporation moves every day.
Cost of Goods Sold (COGS), the largest expense, driven by product procurement
The cost of the products Sysco Corporation buys to sell is, without question, the single largest drain on revenue. For the fiscal year ended June 28, 2025, Sysco Corporation reported total sales of $81.4 billion. With a reported Gross Profit of $15.0 billion for the same period, the Cost of Goods Sold (COGS) was approximately $66.401 billion. This massive figure reflects the procurement costs for fresh produce, premium proteins, and all the related food and supplies Sysco Corporation distributes globally. Product cost inflation was a factor, measured at 2.5% at the total enterprise level for fiscal year 2025, particularly in dairy and poultry categories.
Significant operating expenses for labor, fuel, and fleet maintenance
Beyond the cost of the goods themselves, operating expenses are substantial, driven by the physical movement and selling of those goods. For the twelve months ending September 30, 2025, Sysco Corporation's total operating expenses were reported at $78.954 billion. The full fiscal year 2025 operating expenses increased 4.2%, driven by business and sales headcount investments, alongside general cost inflation. This category bundles the costs associated with Sysco Corporation's 75,000 colleagues, which includes the sales professional headcount investment, as well as the variable costs like fuel for the massive delivery fleet and the necessary maintenance to keep that fleet running.
Distribution and logistics costs for operating 337 facilities
The physical infrastructure required to support this scale is a major fixed and semi-fixed cost. Sysco Corporation operates 337 distribution centers across 10 countries. The investment in this network, which includes warehouses and the specialized refrigeration equipment within them, is reflected in capital expenditures. For fiscal year 2025, capital expenditures, net of proceeds from sales of plant and equipment, totaled $692 million. This spending supports the ongoing maintenance and modernization of the distribution centers and the associated fleet assets.
Technology and IT investment costs for digital transformation
To manage complexity and drive efficiency, Sysco Corporation continues to invest in its digital backbone. Specific to transformation initiatives in fiscal year 2025, the company incurred $49 million related to these costs, which primarily consisted of supply chain transformation costs and changes to its business technology strategy. This investment is crucial for optimizing routes, managing inventory across the 337 facilities, and enhancing digital ordering platforms for customers.
Sales and marketing expenses, including sales professional headcount investment
While not broken out as a standalone line item in the primary financial summaries, sales and marketing costs are embedded within the total Operating Expenses. The reported increase in operating expenses for fiscal year 2025 was explicitly driven by business and sales headcount investments. This reflects the ongoing commitment to maintaining a large, professionally-trained sales force-Sysco Corporation deploys 200 professionally-trained local chefs alone-to support its customer base of approximately 730,000 customer locations.
Here's a quick look at the major cost components relative to revenue for fiscal year 2025:
| Cost Component | FY 2025 Reported/Calculated Amount | As a Percentage of FY 2025 Sales ($81.4B) |
| Cost of Goods Sold (COGS) | $66.401 billion | 81.57% |
| Total Operating Expenses (Approximate) | ~$78.82 billion (TTM Sep 2025: $78.954B) | ~96.83% (Using TTM OpEx) |
| Gross Profit | $15.0 billion | 18.43% |
| Technology/Transformation Costs (Specific) | $49 million | 0.06% |
The relationship between COGS and Operating Expenses is complex because Operating Expenses include costs like labor and fuel, which are necessary to convert the purchased goods into delivered sales. The total cost of sales and operations significantly exceeds the reported sales of $81.4 billion when considering the TTM Operating Expenses figure, which suggests that the Operating Expenses figure might be calculated differently or that the TTM figure is higher than the final annual GAAP figure.
To be defintely clear on the OpEx for the full year, we can use the GAAP Operating Income of $3.1 billion for FY2025. The relationship is: Sales - COGS - Operating Expenses = Operating Income. So, Operating Expenses = Sales - COGS - Operating Income. Using the GAAP figures: $81.4 billion - $15.0 billion (Gross Profit) - $3.1 billion (Operating Income) = $63.3 billion. This calculated OpEx of $63.3 billion is significantly lower than the reported TTM OpEx of $78.954 billion, indicating that the TTM figure likely includes non-operating or differently classified items, or the reported GAAP Operating Income is Adjusted Operating Income is being compared to GAAP Sales/COGS. Given the conflicting data points, you should focus on the primary drivers:
- Product procurement is the largest cost driver by far.
- Labor, fuel, and fleet maintenance are the core drivers of variable OpEx.
- The company invests hundreds of millions in capital for its physical network.
- Specific technology transformation costs were in the tens of millions.
Finance: draft 13-week cash view by Friday.
Sysco Corporation (SYY) - Canvas Business Model: Revenue Streams
You're looking at Sysco Corporation (SYY) and trying to reconcile the headline revenue growth with the underlying operational health, and honestly, the numbers tell a nuanced story you need to understand before making a move.
Sysco Corporation generated total net sales for fiscal year 2025 of $81.4 billion. This represented a 3.2% increase compared to the prior fiscal year 2024.
The revenue streams are heavily weighted toward core food categories, with the largest single contributor being the Sale of Fresh And Frozen Meats, which generated $15.19 billion in fiscal year 2025.
The Sale of Canned And Dry Products was another massive component of the revenue base, bringing in $14.65 billion for fiscal year 2025.
The International Foodservice Operations segment remains a key growth driver, reporting sales of $14.9 billion for fiscal year 2025. Foreign exchange rates decreased International Foodservice Operations sales by $29 million during the year.
Sales of non-food items contribute a smaller, yet significant, portion of the total revenue base. These include:
- Paper And Disposables revenue was $5.50 billion in fiscal year 2025.
- Equipment And Smallwares revenue reached $1.89 billion in fiscal year 2025.
Here's the quick math on the major product category revenue streams for Sysco Corporation in fiscal year 2025:
| Revenue Category | FY2025 Revenue Amount |
| Fresh And Frozen Meats | $15.19 billion |
| Canned And Dry Products | $14.65 billion |
| International Foodservice Operations Sales | $14.9 billion |
| Frozen Fruits, Vegetables, Bakery And Other | $12.29 billion |
| Dairy Products | $8.69 billion |
| Poultry | $8.14 billion |
| Fresh Produce | $6.63 billion |
| Paper And Disposables | $5.50 billion |
| Beverage Products | $2.99 billion |
| Seafood | $2.78 billion |
| Other Products | $2.65 billion |
| Equipment And Smallwares | $1.89 billion |
What this estimate hides is the contribution from other food categories that make up the rest of the total sales figure. The U.S. Foodservice Operations segment sales for the full fiscal year 2025 were $57.0 billion. Still, the U.S. Foodservice segment's local case volume actually declined by 1.4% for the year.
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