SYSCO CORP
For the period ended Dec 28, 2024. Filed Jan 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 28, 2024 · Filed Jan 29, 2025
SYY$76.86+2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-10-30.
0000096021-24-000186
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-28; filed 2025-01-29.
0000096021-25-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 174 previous paragraphs and 196 current paragraphs.
128 unchanged; 36 reworded; 31 added; 9 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 23 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
◦increased 4.5%, or $863 million, to $20.2 billion;
Current report
◦increased 1.7%, or $12 million, to $712 million;
Current report
◦adjusted operating income increased 5.1%, or $38 million, to $783 million;
Current report
◦decreased 2.2%, or $9 million, to $406 million;
Current report
◦adjusted net earnings increased 2.0%, or $9 million, to $458 million;
Current report
◦increased 1.2%, or $0.01, to $0.83 per share;
Current report
◦unchanged, at $0.82 per share;
Current report
◦adjusted diluted earnings per share increased 4.5%, or $0.04, to $0.93;
Current report
◦increased 1.9%, or $17 million, to $931 million; and
Current report
◦adjusted EBITDA increased 4.4%, or $41 million, to $969 million.
Current report
◦increased 4.4%, or $1.7 billion, to $40.6 billion;
Current report
◦increased 1.0%, or $15 million, to $1.5 billion;
Current report
◦adjusted operating income increased 3.5%, or $56 million, to $1.7 billion;
Current report
◦decreased 2.5%, or $23 million, to $896 million;
Current report
◦adjusted net earnings increased 0.6%, or $6 million, to $997 million;
Current report
•Basic earnings per share:
Current report
◦unchanged, at $1.82 per share;
Current report
•Diluted earnings per share:
Current report
◦increased 0.6%, or $0.01, to $1.82 per share; and
Current report
◦adjusted diluted earnings per share increased 3.1%, or $0.06, to $2.02;
Current report
•EBITDA:
Current report
◦increased 2.6%, or $50 million, to $2.0 billion; and
Current report
Divestitures
Current report
In the second quarter of fiscal 2025, we sold our interest in our joint venture partnership in Mexico, which was a part of our International Foodservice Operations. This operation was not significant to Sysco’s business, and the divestiture will facilitate our efforts to improve our return on invested capital position.
Current report
Mergers and Acquisitions
Current report
In the second quarter of fiscal 2025, we acquired Campbells Prime Meat, a leading specialty meat business based in Scotland. By combining the Campbells Prime Meat product offering with our broadline business, this acquisition provides a strategic opportunity to enable total team selling in this region. This company’s results are included within International Foodservice Operations and were not material to our results for the second quarter and first 26 weeks of fiscal 2025.
Current report
Sales
Current report
Operating Income
Current report
Net Earnings
Current report
Basic earnings per share in the first 26 weeks of fiscal 2025 were $1.82, which is unchanged from the comparable prior year amount of $1.82 per share. Diluted earnings per share in the first 26 weeks of fiscal 2025 were $1.82, a 0.6% increase from the comparable prior year period amount of $1.81 per share. Adjusted diluted earnings per share, excluding Certain Items, in the first 26 weeks of fiscal 2025 were $2.02, a 3.1% increase from the comparable prior year amount of $1.96 per share.
Current report
During the first 26 weeks of fiscal 2025, we received $166 million in proceeds from sales of plant and equipment, which is primarily attributable to proceeds received from sale leaseback transactions. During the first 26 weeks of fiscal 2024, we received $18 million in proceeds from sales of plant and equipment.
Removed paragraphs (9)
Previous report
◦increased 4.4%, or $864 million, to $20.5 billion;
Previous report
◦increased 0.5%, or $4 million, to $808 million;
Previous report
◦adjusted operating income increased 2.2%, or $19 million, to $873 million;
Previous report
◦decreased 2.6%, or $13 million, to $490 million;
Previous report
◦adjusted net earnings decreased 0.4%, or $2 million, to $540 million;
Previous report
◦unchanged, at $1.00 per share;
Previous report
◦unchanged, at $0.99 per share;
Previous report
◦adjusted diluted earnings per share increased 1.9%, or $0.02, to $1.09;
Previous report
◦increased 3.4%, or $34 million, to $1.0 billion; and
Reworded paragraphs (36)
Previous wording
Our first quarter of fiscal 2025 results were driven by sales growth of 4.4% as compared to the first quarter of fiscal 2024 primarily due to U.S. Foodservice Operations volume growth and higher inflation. Our gross profit grew 2.9% compared to the first quarter of fiscal 2024, due to volume growth and margin management. Operating income increased 0.5% as compared to the first quarter of fiscal 2024. Adjusted operating income increased 2.2% due to sales growth and expense controls. See below for a comparison of our fiscal 2025 results to our fiscal 2024 results, both including and excluding “Certain Items” (as defined below).
Current wording
Our second quarter of fiscal 2025 results included sales growth of 4.5% as compared to the second quarter of fiscal 2024 primarily due to U.S. Foodservice Operations volume growth and moderate inflation. Our gross profit grew 3.9% compared to the second quarter of fiscal 2024, due to volume growth and the effective management of product inflation. Operating income increased 1.7% as compared to the second quarter of fiscal 2024. Adjusted operating income increased 5.1% as compared to the second quarter of fiscal 2024 primarily due to continued positive momentum within our International Foodservice Operations. Our net earnings for the second quarter of fiscal 2025 decreased by $9 million as compared to the second quarter of fiscal 2024 due to increased restructuring and transformational project costs and acquisition-related costs. We consider these “Certain Item” expenses (as defined below). Excluding Certain Item expenses, adjusted net earnings increased by $9 million. See below for a comparison of our fiscal 2025 results to our fiscal 2024 results, both including and excluding Certain Items.
Previous wording
Comparisons of results from the first quarter of fiscal 2025 to the first quarter of fiscal 2024 are presented below:
Current wording
Comparisons of results from the second quarter of fiscal 2025 to the second quarter of fiscal 2024 are presented below:
Previous wording
◦adjusted EBITDA increased 4.4%, or $45 million, to $1.1 billion.
Current wording
◦adjusted EBITDA increased 4.4%, or $85 million, to $2.0 billion.
Previous wording
Foot traffic to restaurants decreased 3.6% for the first quarter of fiscal 2025; however, traffic trends did improve as the quarter progressed. Foot traffic declined approximately 5% in July, approximately 4% in August, and approximately 3% in September. We expect modest industry traffic improvements in the second half of fiscal 2025. Despite the current macroeconomic landscape, we expect to grow both sales and net earnings in fiscal 2025. We believe the food-away-from-home sector is a healthy long-term market, and Sysco is diversified and well positioned as a market leader in food service.
Current wording
Foot traffic to restaurants decreased approximately 2% for the second quarter of fiscal 2025, which represents a moderate improvement compared to the decrease of 3.6% experienced in the first quarter of fiscal 2025. We expect to see continued improvements in foot traffic trends in the second half of fiscal 2025. Despite the current macroeconomic landscape, we expect to grow both sales and net earnings in fiscal 2025. We believe the food-away-from-home sector is a healthy long-term growth market, and Sysco is diversified and well positioned as a market leader in food service.
Previous wording
Our sales and gross profit performance are influenced by multiple factors, including price, volume, inflation, customer mix and product mix. We experienced a 2.7% improvement in U.S. Foodservice Operations case volume in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024. Our volume growth was generated by 5.5% national volume growth and 0.2% local volume growth. Our volume reflects our broadline and specialty businesses, except for our specialty meats business, which measures its volume in pounds.
Current wording
Our sales and gross profit performance are influenced by multiple factors, including price, volume, inflation, customer mix and product mix. We experienced a 1.4% and 2.1% improvement in U.S. Foodservice Operations case volume in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. Our volume growth was primarily attributable to national volume growth of 4.3% and 4.9% in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. Our volume reflects our broadline and specialty businesses, except for our specialty meats business, which measures its volume in pounds.
Previous wording
We experienced inflation at a rate of 2.2% in the first quarter of fiscal 2025, at the total enterprise level, primarily driven by inflation in the poultry and dairy categories. We continued to be successful in managing this inflation, resulting in an increase in gross profit dollars. Gross margin decreased 27 basis points in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, primarily due to a shift in our customer mix driven by national volume growth, a decrease in Sysco brand penetration, and the timing of benefits from strategic sourcing initiatives.
Current wording
We experienced inflation at a rate of 2.1% in the second quarter of fiscal 2025, at the total enterprise level, primarily driven by inflation in the dairy and poultry categories. We continued to be successful in managing this inflation, resulting in an increase in gross profit dollars. Gross margin decreased 11 and 18 basis points in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024, primarily due to a shift in our customer mix driven by national volume growth, a decrease in Sysco brand penetration, and the timing of benefits from strategic sourcing initiatives.
Previous wording
Total operating expenses were $2.9 billion in the first quarter of fiscal 2025, a 3.6% increase compared to the first quarter of fiscal 2024. Total adjusted operating expenses were $2.9 billion in the first quarter of fiscal 2025, a 3.1% increase as compared to the first quarter of fiscal 2024. Operating expenses increased primarily due to an increase in volumes. In addition, higher selling expenses, which includes sales professional hires, and depreciation expense related to new facilities also resulted in an increase in operating expenses in the first quarter of fiscal 2025. Adjusted operating expenses were 14.1% of sales, which is an 18-basis point improvement from the first quarter of fiscal 2024, due to supply chain and Global Support Center efficiencies.
Current wording
Total operating expenses increased 4.4% and 4.0% during the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. Total adjusted operating expenses increased 3.5% and 3.3% during the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. Operating expenses increased primarily due to an increase in volumes. In addition, higher pay-related expenses, which includes investments in our business, including sales professionals, and depreciation expense related to new facilities also resulted in an increase in operating expenses in the second quarter and first 26 weeks of fiscal 2025. Adjusted operating expenses were 14.2% of sales during both the second quarter and first 26 weeks of fiscal 2025, which is a 13-basis point and 15-basis point improvement from the second quarter and first 26 weeks of fiscal 2024, respectively, due to supply chain and Global Support Center efficiencies and gains from sale leaseback transactions.
Previous wording
Our business transformation initiatives remain on track, which include promoting our specialty programs for produce, protein and Italian products and our customer growth initiatives. From these actions as a part of our Recipe for Growth, the benefits of our developing capabilities are apparent in the new customers we are winning and in the progress we are making toward increasing market share. We expect that, as our Recipe for Growth matures, the impact on our top-line growth will deliver profitable and consistent growth.
Current wording
Our business transformation initiatives are progressing, which include promoting our specialty programs for produce, protein and Italian products, and our customer growth initiatives. From these actions, as a part of our Recipe for Growth, the benefits of our developing capabilities are apparent in the new customers we are winning and in the progress we are making toward increasing market share. We expect that, as our Recipe for Growth matures, the impact on our top-line growth will deliver profitable and consistent growth.
Previous wording
Our U.S. Foodservice Operations and our International Foodservice Operations segments represent a substantial majority of our total segment results when compared to our other reportable segments. U.S. Foodservice Operations and International Foodservice Operations, collectively, represented approximately 88.6% of Sysco’s overall sales in the first 13 weeks of fiscal 2025. U.S. Foodservice Operations and International Foodservice Operations, collectively, represented approximately 97.4% of total segment operating income in the first 13 weeks of fiscal 2025.
Current wording
Based on information in Note 13, “Business Segment Information,” in the Notes to Consolidated Financial Statements in Item 1 of Part I of this Form 10-Q, U.S. Foodservice Operations and International Foodservice Operations, collectively, represented approximately 88.2% and 88.4% of Sysco’s overall sales in the second quarter and first 26 weeks of fiscal 2025, respectively. U.S. Foodservice Operations and International Foodservice Operations, collectively, represented approximately 97.6% and 97.5% of total segment operating income, in the second quarter and first 26 weeks of fiscal 2025, respectively. This illustrates that these segments represent a substantial majority of our total segment results when compared to other reportable segments.
Previous wording
The sales growth in our U.S. Foodservice Operations was driven by higher inflation and volume growth, inclusive of benefits from acquisitions. Case volumes from our U.S. Foodservice Operations increased 2.7% in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024. This included a 0.2% increase in local customer case volume in the first quarter of fiscal 2025. Our Edward Don acquisition, completed in the second quarter of fiscal 2024, positively impacted volumes by 2.6% and local volumes by 1.6%. Our national customer volume has grown faster than local customer volume and is the result of contract renewals with existing customers and the addition of new customers.
Current wording
The sales growth in our U.S. Foodservice Operations was driven by higher inflation and volume growth, inclusive of benefits from acquisitions. Case volumes from our U.S. Foodservice Operations increased 1.4% and 2.1% in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. This included a 0.9% decrease in local customer case volume in the second quarter of fiscal 2025 and a 0.3% decrease in the first 26 weeks of fiscal 2025. Our Edward Don acquisition, completed in the second quarter of fiscal 2024, positively impacted volumes by 1.6% and local volumes by 1.0% in the second quarter of fiscal 2025. Our national customer volume has grown faster than local customer volume and is the result of contract renewals with existing customers and the addition of new customers.
Previous wording
The decrease in operating income for the first quarter of fiscal 2025 as compared to the first quarter of fiscal 2024 was driven by an increase in operating expenses, partially offset by gross profit dollar growth and case volume growth, inclusive of benefits from acquisitions.
Current wording
The decrease in operating income for the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024, was driven by an increase in operating expenses, partially offset by gross profit dollar growth and case volume growth, inclusive of benefits from acquisitions.
Previous wording
Gross profit dollar growth in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, was driven primarily by case volume growth as a result of acquisitions and effective management of product cost fluctuations. The estimated change in product costs, an internal measure of inflation or deflation, increased in the first quarter of fiscal 2025. Gross margin, which is gross profit as a percentage of sales, was 19.1% in the first quarter of fiscal 2025 for our U.S. Foodservice Operations, which was a decrease of 43 basis points compared to the first quarter of fiscal 2024, primarily due to a change in customer mix, a decrease in Sysco brand penetration, and timing of benefits from strategic sourcing initiatives.
Current wording
Gross profit dollar growth in the second quarter and first 26 weeks of fiscal 2025, as compared to the second quarter and first 26 weeks of fiscal 2024, was driven primarily by case volume growth as a result of acquisitions and effective management of product cost fluctuations. The estimated change in product costs, an internal measure of inflation or deflation, increased in the second quarter and first 26 weeks of fiscal 2025. Gross margin, which is gross profit as a percentage of sales, was 18.9% and 19.0% in the second quarter and first 26 weeks of fiscal 2025, respectively, for our U.S. Foodservice Operations, which was a decrease of 20 basis points compared to gross margin of 19.1% in the second quarter of fiscal 2024, and a decrease of 32 basis points compared to a gross margin of 19.3% in the first 26 weeks of fiscal 2024, primarily due to a change in customer mix, a decrease in Sysco brand penetration, and timing of benefits from strategic sourcing initiatives.
Previous wording
The increase in operating expenses for the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, was primarily driven by increased volumes.
Current wording
The increase in operating expenses for the second quarter and first 26 weeks of fiscal 2025, as compared to the second quarter and first 26 weeks of fiscal 2024, was primarily driven by increases in colleague-related costs and freight costs, which are largely correlated with the increase in volumes, depreciation expense, and bad debt expense, partially offset by gains related to sale leaseback transactions.
Previous wording
Sales increased in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, due to higher inflation and an improvement in volume, primarily attributable to our Recipe for Growth initiatives.
Current wording
Sales for the second quarter and first 26 weeks of fiscal 2025 were higher, as compared to the second quarter and first 26 weeks of fiscal 2024, due to an improvement in volume and higher inflation.
Previous wording
The increase in operating income for the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, was due to growth in local case volumes and the ability to effectively manage product cost fluctuations.
Current wording
The increase in operating income for the second quarter and first 26 weeks of fiscal 2025, as compared to the second quarter and first 26 weeks of fiscal 2024, was primarily due to growth in local case volumes, success in our strategic sourcing program, and positive contributions from our recent mergers and acquisitions efforts, partially offset by an increase in operating expenses.
Previous wording
The increase in gross profit dollars in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, was attributable to increases in sales volumes and the effective management of inflation.
Current wording
The increase in gross profit dollars in the second quarter and first 26 weeks of fiscal 2025, as compared to the second quarter and first 26 weeks of fiscal 2024, was attributable to increases in sales volumes, success in our strategic sourcing program, and positive contributions from our recent mergers and acquisitions efforts.
Previous wording
The increase in operating expenses for the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, was primarily due to increases in colleague-related costs and the impact of foreign currency translation.
Current wording
The increase in operating expenses for the second quarter and first 26 weeks of fiscal 2025, as compared to the second quarter and first 26 weeks of fiscal 2024, was primarily driven by increases in colleague-related costs and freight costs, which are largely correlated with the increase in volumes, depreciation expense, and other miscellaneous costs.
Previous wording
For SYGMA, sales were 7.3% higher in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, primarily driven by profit enhancements and growth resulting from the recent addition of new customers. Operating income increased by $5 million in the first quarter of fiscal 2025 as compared to the first quarter of fiscal 2024.
Current wording
For SYGMA, sales were 10.6% and 9.0% higher in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024, primarily driven by the growth of new customers. Operating income increased by $2 million and $7 million in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024, primarily due to the growth of new customers and the improvement of profits from strengthening productivity.
Previous wording
For the operations that are grouped within Other, operating income decreased $3 million in the first quarter of fiscal 2025 as compared to the first quarter of fiscal 2024. The operations of this group primarily consist of our hospitality business, Guest Worldwide.
Current wording
For the operations that are grouped within Other, operating income decreased $4 million and $8 million in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. The operations of this group primarily consist of our hospitality business, Guest Worldwide.
Previous wording
Our Global Support Center generally includes all expenses of the corporate office and Sysco’s shared service operations. These expenses in the first quarter of fiscal 2025 decreased $30 million, or 11.8%, as compared to the first quarter of fiscal 2024, primarily due to decreases in colleague-related costs, fuel hedging program expenses, and other miscellaneous costs.
Current wording
Our Global Support Center generally includes all expenses of the corporate office and Sysco’s shared service operations. These expenses in the second quarter of fiscal 2025 decreased $5 million, or 2.0%, as compared to the second quarter of fiscal 2024, primarily due to decreases in colleague-related costs, fuel hedging program expenses, and other miscellaneous costs. These expenses in the first 26 weeks of fiscal 2025 decreased $35 million, or 6.9%, as compared to the first 26 weeks of fiscal 2024, primarily due to decreases in colleague-related costs and fuel hedging program expenses.
Previous wording
Included in Global Support Center expenses are Certain Items that totaled $19 million in the first quarter of fiscal 2025, as compared to $14 million in the first quarter of fiscal 2024. Certain Items impacting the first quarter of fiscal 2025 were primarily expenses associated with our business technology transformation initiatives and expenses associated with acquisitions. Certain Items impacting the first quarter of fiscal 2024 were primarily expenses associated with our business technology transformation initiatives and expenses associated with acquisitions.
Current wording
Included in Global Support Center expenses are Certain Items that totaled $12 million and $30 million in the second quarter and first 26 weeks of fiscal 2025, as compared to $14 million and $29 million in the second quarter and first 26 weeks of fiscal 2024, respectively. Certain Items impacting the second quarter and first 26 of fiscal 2025 were primarily expenses associated with our business technology transformation initiatives and expenses associated with acquisitions. Certain Items impacting the second quarter and first 26 weeks of fiscal 2024 were primarily expenses associated with our business technology transformation initiatives and expenses associated with acquisitions.
Previous wording
Interest expense increased $26 million for the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024. The increase was primarily due to interest on new senior notes that were issued in the second quarter of fiscal 2024, as well as an increase in commercial paper borrowing activity.
Current wording
Interest expense increased $10 million and $35 million for the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024. The increase was primarily due to interest on new senior notes that were issued in the second quarter of fiscal 2024, as well as an increase in outstanding commercial paper balances.
Previous wording
Net earnings decreased 2.6% in the first quarter of fiscal 2025, as compared to the first quarter of fiscal 2024, primarily due to the items noted above for operating income, and interest expense, as well as items impacting our income taxes that are discussed in Note 11, “Income Taxes,” in the Notes to Consolidated Financial Statements in Item 1 of Part I of this Form 10-Q. Adjusted net earnings, excluding Certain Items, decreased 0.4% in the first quarter of fiscal 2025.
Current wording
Net earnings decreased 2.2% and 2.5% in the second quarter and first 26 weeks of fiscal 2025, respectively, as compared to the second quarter and first 26 weeks of fiscal 2024, primarily due to the items noted above for operating income, and interest expense, as well as items impacting our income taxes that are discussed in Note 11, “Income Taxes,” in the Notes to Consolidated Financial Statements in Item 1 of Part I of this Form 10-Q. Adjusted net earnings, excluding Certain Items, increased 2.0% and 0.6% in the second quarter and first 26 weeks of fiscal 2025, respectively, primarily due to an increase in sales volume.
Previous wording
Basic earnings per share in the first quarter of fiscal 2025 were $1.00, which is unchanged from the comparable prior year amount of $1.00 per share. Diluted earnings per share in the first quarter of fiscal 2025 were $0.99, which is unchanged from the comparable prior year period amount of $0.99 per share. Adjusted diluted earnings per share, excluding Certain Items, in the first quarter of fiscal 2025 were $1.09, a 1.9% increase from the comparable prior year amount of $1.07 per share.
Current wording
Basic earnings per share in the second quarter of fiscal 2025 were $0.83, a 1.2% increase from the comparable prior year period amount of $0.82 per share. Diluted earnings per share in the second quarter of fiscal 2025 were $0.82, which is unchanged from the comparable prior year period amount of $0.82 per share. Adjusted diluted earnings per share, excluding Certain Items, in the second quarter of fiscal 2025 were $0.93, a 4.5% increase from the comparable prior year amount of $0.89 per share.
Previous wording
We produced positive free cash flow of $8 million in the first 13 weeks of fiscal 2025, as compared to negative free cash flow of $73 million in the first 13 weeks of fiscal 2024. The improvement in free cash flow is attributable to an increase in proceeds from sales of plant and equipment and a decrease in capital expenditures, partially offset by a decrease in cash provided by operating activities. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities and comparisons of the significant cash flows from the first 13 weeks of fiscal 2025 to the first 13 weeks of fiscal 2024 are provided.
Current wording
We produced positive free cash flow of $331 million in the first 26 weeks of fiscal 2025, as compared to positive free cash flow of $527 million in the first 26 weeks of fiscal 2024. The decrease in free cash flow is attributable to a decrease in cash provided by operating activities, partially offset by an increase in proceeds from sales of plant and equipment and a decrease in capital expenditures. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities and comparisons of the significant cash flows from the first 26 weeks of fiscal 2025 to the first 26 weeks of fiscal 2024 are provided.
Previous wording
Sysco generates cash in the U.S. and internationally. As of September 28, 2024, we had $733 million in cash and cash equivalents, approximately 85% of which was held by our international subsidiaries. Sysco’s strategic objectives are funded primarily by cash from operations and external borrowings. Traditionally, our operations have produced significant cash flow. Due to our strong financial position, we believe we will continue to be able to effectively access capital markets, as needed. Cash is generally allocated to working capital requirements, investments compatible with our overall growth strategy (organic and inorganic), debt management, and shareholder return. The remaining cash balances are invested in high-quality, short-term instruments.
Current wording
Sysco generates cash in the U.S. and internationally. As of December 28, 2024, we had $793 million in cash and cash equivalents, approximately 92% of which was held by our international subsidiaries. Sysco’s strategic objectives are funded primarily by cash from operations and external borrowings. Traditionally, our operations have produced significant cash flow. Due to our strong financial position, we believe we will continue to be able to effectively access capital markets, as needed. Cash is generally allocated to working capital requirements, investments compatible with our overall growth strategy (organic and inorganic), debt management, and shareholder return. The remaining cash balances are invested in high-quality, short-term instruments.
Previous wording
We generated $53 million in cash flows from operations in the first 13 weeks of fiscal 2025, compared to cash flows from operations of $87 million in the first 13 weeks of fiscal 2024. In the first 13 weeks of fiscal 2025, these amounts included year-over-year unfavorable comparisons on working capital of $29 million due to unfavorable comparisons on accounts receivable and inventory, partially offset by a favorable comparison on accounts payable. Accrued expenses also had an unfavorable comparison, primarily related to accrued payroll in the first 13 weeks of fiscal 2025 in comparison to the first 13 weeks of fiscal 2024. Income taxes positively impacted cash flows from operations, as estimated payments made in the first 13 weeks of fiscal 2025 were lower compared to the first 13 weeks of fiscal 2024. Our first quarter is typically our lowest cash flow quarter of the fiscal year due to seasonality.
Current wording
We generated $498 million in cash flows from operations in the first 26 weeks of fiscal 2025, compared to cash flows from operations of $856 million in the first 26 weeks of fiscal 2024. In the first 26 weeks of fiscal 2025, these amounts included year-over-year unfavorable comparisons on working capital of $360 million due to unfavorable comparisons on inventory, accounts receivable, and accounts payable, partially due to timing. Accrued expenses also had an unfavorable comparison, primarily related to accrued payroll in the first 26 weeks of fiscal 2025 in comparison to the first 26 weeks of fiscal 2024. Income taxes positively impacted cash flows from operations, as estimated payments made in the first 26 weeks of fiscal 2025 were lower compared to the first 26 weeks of fiscal 2024.
Previous wording
Tax relief provided by the IRS related to the effects of Hurricane Beryl that began on July 5, 2024 resulted in the deferral of approximately $28 million of fiscal 2024 U.S. federal extension payments to the third quarter of fiscal 2025. Our first and second quarter U.S. estimated payments will also be deferred to the third quarter of fiscal 2025.
Current wording
Tax relief provided by the IRS related to the effects of Hurricane Beryl that began on July 5, 2024 resulted in the deferral of approximately $28 million of fiscal 2024 U.S. federal extension payments to the third quarter of fiscal 2025. Our first and second quarter U.S. estimated payments were also deferred to the third quarter of fiscal 2025.
Previous wording
Our capital expenditures in the first 13 weeks of fiscal 2025 consisted primarily of investments in buildings and building improvements, technology equipment, warehouse equipment, and fleet. Our capital expenditures in the first 13 weeks of fiscal 2025 were $49 million lower than in the first 13 weeks of fiscal 2024 due to reduced spending in investments to advance our Recipe for Growth strategy.
Current wording
Our capital expenditures in the first 26 weeks of fiscal 2025 consisted primarily of investments in buildings and building improvements, technology equipment, warehouse equipment, and fleet. Our capital expenditures in the first 26 weeks of fiscal 2025 were $14 million lower than in the first 26 weeks of fiscal 2024 due to reduced spending in investments to advance our Recipe for Growth strategy.
Previous wording
The first 13 weeks of fiscal 2024 includes $219 million of cash paid for the acquisition of BIX Produce Company.
Current wording
During the first 26 weeks of fiscal 2025, we paid $40 million, net of cash acquired, for the acquisition of Campbells Prime Meat. The first 26 weeks of fiscal 2024 includes $1.2 billion of cash paid for the acquisitions of BIX Produce Company and Edward Don.
Previous wording
Proceeds from exercises of share-based compensation awards were $29 million in the first 13 weeks of fiscal 2025, as compared to $17 million in the first 13 weeks of fiscal 2024. The level of option exercises, and thus proceeds, will vary from period to period and is largely dependent on movements in our stock price and the time remaining before option grants expire.
Current wording
Proceeds from exercises of share-based compensation awards were $67 million in the first 26 weeks of fiscal 2025, as compared to $57 million in the first 26 weeks of fiscal 2024. The level of option exercises, and thus proceeds, will vary from period to period and is largely dependent on movements in our stock price and the time remaining before option grants expire.
Previous wording
In May 2021, our Board of Directors approved a share repurchase program to authorize the repurchase of up to $5.0 billion of the company’s common stock, which will remain available until fully utilized. We repurchased 1,439,652 shares for $108 million during the first 13 weeks of fiscal 2025 and intend to repurchase $1.0 billion in fiscal 2025. As of September 28, 2024, we had a remaining authorization of approximately $2.7 billion. We repurchased 20,413 additional shares for $2 million under our authorization through October 11, 2024.
Current wording
In May 2021, our Board of Directors approved a share repurchase program to authorize the repurchase of up to $5.0 billion of the company’s common stock, which will remain available until fully utilized. We repurchased 3,949,641 shares for $300 million during the first 26 weeks of fiscal 2025 and intend to repurchase up to a total of $1.25 billion in fiscal 2025. As of December 28, 2024, we had a remaining authorization of approximately $2.5 billion. We repurchased 286,506 additional shares for $21 million under our authorization from the end of our fiscal second quarter through January 10, 2025.
Previous wording
Dividends paid in the first 13 weeks of fiscal 2025 were $251 million, or $0.51 per share, as compared to $253 million, or $0.50 per share, in the first 13 weeks of fiscal 2024. In August 2024, we declared our regular quarterly dividend for the first quarter of fiscal 2025 of $0.51 per share, which was paid in October 2024.
Current wording
Dividends paid in the first 26 weeks of fiscal 2025 were $503 million, or $1.02 per share, as compared to $506 million, or $1.00 per share, in the first 26 weeks of fiscal 2024. In November 2024, we declared our regular quarterly dividend for the second quarter of fiscal 2025 of $0.51 per share, which was paid in January 2025.
Previous wording
•our plans regarding our transformation initiatives and the expected effects from such initiatives, including the Sysco Driver Academy;
Current wording
•our plans regarding our transformation initiatives and the expected effects from such initiatives;
Previous wording
•our expectations regarding the use and investment of remaining cash generated from operations;
Current wording
•our expectations regarding the use and investment of remaining cash generated from operations, including our expectations regarding the positive impact of our acquisitions;
Previous wording
•the impact of geopolitical, economic and market conditions and developments, including the outcome of the U.S. presidential election;
Current wording
•the impact of geopolitical, economic and market conditions and developments, including the impact of the U.S. presidential election;
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Comparisons of results from the first 26 weeks of fiscal 2025 to the first 26 weeks of fiscal 2024 are presented below:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
See Note 13, “Business Segment Information,” in the Notes to Consolidated Financial Statements in Item 1 of Part I of this Form 10-Q for additional information.