Sysco CorporationNYSE: SYY
Consumer Staples · Food Distributors
$74.16
-0.74%
Vol: 2.6M
Research Digest
Friday, May 1, 2026
Sysco announces $29.1B acquisition of Jetro Restaurant Depot; Q3 2026 adjusted EPS of $0.94 matches expectations while company raises dividend to $0.55.
Sysco reported Q3 2026 adjusted EPS of $0.94 (matching consensus) and revenue of $20.52B (slightly below $20.56B consensus). The transformative $29.1B Jetro Restaurant Depot acquisition will close by Q3 FY2027, adding ~16% ownership to JRD holders. U.S. Foodservice volume increased 2.3%. Sysco raised dividend to $0.55 and reaffirmed FY26 adjusted EPS guidance of $4.50-$4.60. Morgan Stanley lowered price target to $84 (Equalweight).
Previous Market Intelligence
13 daysApr 30Sysco Q3 fiscal 2026 results beat expectations; announces $29.1B Jetro Restaurant Depot acquisitionPositive▶
Sysco Corp reported strong third-quarter fiscal 2026 results with revenue growth of 4.7% to nearly $21 billion and 3.3% local volume growth marking the strongest quarter in three years. Adjusted EPS of $0.94 came in line with expectations despite headwinds from higher incentive compensation. Most significantly, Sysco announced a planned acquisition of Jetro Restaurant Depot for approximately $29.1 billion including $21.6 billion cash and 91.5 million Sysco shares, expected to close by Q3 fiscal 2027. The deal will add high-margin cash-and-carry distribution and expand Sysco's addressable market. Management reaffirmed 2026 EPS guidance of $4.50-$4.60 and declared a $0.01 dividend increase to $0.55.
Apr 29Sysco Q3 FY2026 revenue grows 4.7% to $21B; raises dividend to 55c; $29.1B Jetro Restaurant Depot deal progressesPositive▶
Sysco reported strong Q3 fiscal 2026 results with 4.7% revenue growth to nearly $21 billion and 3.3% local volume growth in US business (strongest in three years). Adjusted EPS of $0.94 met expectations. Company reaffirmed full-year adjusted EPS guidance of $4.50-$4.60 and raised quarterly dividend from 54c to 55c effective July 2026. Major $29.1 billion acquisition of Jetro Restaurant Depot aims to enhance growth and profitability through cash-and-carry expansion and plans to open 125 new locations. Morgan Stanley lowered price target to $84 from $86 with Equalweight rating; average target $87.38 (+14.67%).
Apr 16Sysco acquires Jetro Restaurant Depot for $29.1B to expand into higher-margin cash-and-carry channel; stock down 15% on debt concerns.Negative▶
Sysco announced a definitive agreement to acquire Jetro Restaurant Depot for approximately $29.1 billion, creating a combined company with nearly $100 billion in pro forma revenue. The deal is expected to close by Q3 2027 and deliver $250 million in annual cost synergies within three years. However, the acquisition raised significant debt load concerns, causing a 15% stock drop. CEO Kevin Hourican stated plans to open 125+ new Jetro locations. Company is preparing Q3 2026 earnings report for April 28 with expected diluted EPS of $0.95.
Apr 15Sysco announces $29.1B acquisition of Jetro Restaurant Depot; stock drops 15% on debt concerns.Mixed▶
Sysco Corporation announced acquisition of Jetro Restaurant Depot for $29.1 billion. The major acquisition raised investor concerns over debt load, causing a 15% stock price decline. Sysco declared quarterly dividend of $0.54/share. Company scheduled to announce Q3 FY2026 results on April 28.
Apr 14Sysco acquires Jetro Restaurant Depot for $29.1 billion, significantly expanding foodservice distribution but raising debt concerns.Mixed▶
Sysco announced a transformational $29.1 billion acquisition of Jetro Restaurant Depot. However, the acquisition has raised significant concerns over Sysco debt load, contributing to a 15% stock decline. Piper Sandler maintained Neutral rating, lowering price target from $83 to $77. Q3 FY2026 earnings on April 28.
Apr 13Q3 fiscal 2026 earnings April 28; Piper Sandler slashed price target on $29.1B Restaurant Depot acquisition debt concerns.Negative▶
Sysco will release Q3 fiscal 2026 results on April 28. The $29.1 billion acquisition of Jetro Restaurant Depot triggered analyst downgrades. Piper Sandler cut price target from $83 to $77, citing $21 billion in new debt and net leverage to 4.5x. Stock dropped 15%. Chief Information Officer Tom Peck resigned April 10. Allspring Global sold 93.9% of its Sysco position.
Apr 10Sysco announces $29B acquisition of Restaurant Depot; Piper Sandler lowers price target to $77 as stock drops 15%.Negative▶
Sysco Corporation announced a proposed $29.1 billion acquisition of Restaurant Depot (Jetro) on April 7, marking a major consolidation in food service distribution. Piper Sandler lowered its price target to $77 from $83, maintaining Neutral. The stock has fallen 20.58% over the past month. Q3 FY2026 results on April 28.
Apr 9Sysco announces $29.1B acquisition of Restaurant Depot; stock drops 15% on debt concernsNegative▶
Sysco announced acquisition of Jetro Restaurant Depot LLC for $29.1B enterprise value ($21.6B cash + 91.5M shares) on April 7-8, 2026. Transaction unanimously approved by both boards, expected to close by Q3 FY2027. Pro forma combined company would generate ~$100B revenue, $6.4B EBITDA, $5.5B free cash flow in 2025, with $250M annual synergies within 3 years. Stock dropped 15% on debt load concerns. Piper Sandler lowered PT from $83 to $77, Neutral rating. Guggenheim lowered PT $95 to $90 (Buy). FTC regulatory approval required.
Apr 8Sysco agrees $29.1B Jetro acquisition; Piper Sandler cuts PT to $77 as debt concerns mount; CIO resigns.Negative▶
Sysco Corporation announced $29.1B acquisition of Jetro Restaurant Depot from billionaire Nathan Kirsh, creating one of largest US food-service groups and expanding into high-margin cash-and-carry distribution. Deal raised debt and execution risk concerns, triggering 15% stock decline post-announcement. Piper Sandler downgraded to Neutral on April 7, cutting PT from $83 to $77; Guggenheim cut PT from $95 to $90. Executive VP and Chief Information Officer Tom Peck resigns effective April 10. Q3 FY2026 earnings call April 28 at 10 a.m. ET. Analyst consensus "Buy" with $88.54 12-month target (+24.09%).
Apr 7Sysco to acquire Jetro Restaurant Depot for $29.1B; debt concerns weigh on stock.Mixed▶
Sysco March 30 announced $29.1B Jetro Restaurant Depot acquisition creating ~$100B revenue company. Adds 166 Cash & Carry warehouses, $250M synergies. Stock dropped 15% on debt concerns to $67.76-74.90. Citi PT $73 April 2; Guggenheim PT $90. CFO Tom Peck resigning April 10.
Apr 6Sysco Faces Debt Concerns From Jetro AcquisitionNegative▶
Sysco Corporation completed its $29.1 billion acquisition of Jetro Restaurant Depot, but the deal has sparked significant investor concerns over debt levels. The acquisition creates combined 2025 revenues exceeding $97 billion with adjusted EBITDA of $6.4 billion and $250 million in targeted annualized cost synergies. However, SYY has taken on $21 billion in new debt, lifting net leverage to 4.5x and diluting existing shareholders by 19.1%. Stock fell 15% on acquisition announcement despite management projecting rapid deleveraging to 2.75x within 24 months. Citi raised price target to $73 from $72. Analysts maintain Moderate Buy consensus despite concerns.
Apr 3Sysco announced $29.1 billion acquisition of Jetro Restaurant Depot, sparking stock decline to 52-week lows amid leverage concerns.Negative▶
Sysco announced a major $29.1 billion acquisition of Jetro Restaurant Depot on March 30 (impacting April 1-3 trading). The deal: $21.6B in cash and 91.5M shares. Jetro operates 166 warehouses with $16B annual revenue. Stock fell 15% to 52-week lows. UBS cut PT to $90 from $95 maintaining Buy. S&P placed company on negative outlook due to 4.5x leverage. Q3 FY2026 results scheduled for April 28.
Apr 2Sysco stock tumbles as Jetro acquisition debt concerns mount; Citi cuts price target to $72, Guggenheim maintains Buy at $90.Negative▶
Sysco faces headwinds following its $29.1 billion acquisition of Jetro Restaurant Depot announced in late March. Stock down 12.7% over past week, trading at $71.45. Citi cut price target to $72 from $88; Guggenheim lowered target to $90 from $95 (both Buy rated). Concerns center on increased debt leverage (4.5x), S&P negative outlook, and integration risks. CFO Kenny Cheung departing; Brandon Sewell named interim CFO. Quarterly dividend of $0.54/share declared.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| SYYSYSCO | $74.16 | -0.74% | +2.0% | 15.0x | 0.69 | $35.8B |
| WMTWALMART | $131.84 | -0.07% | +4.0% | 40.2x | 0.66 | $1.05T |
| COSTCOSTCO | $1,012.70 | -0.18% | -0.4% | 45.1x | 0.98 | $450.1B |
| PGPROCTER | $147.58 | +0.33% | +3.0% | 20.7x | 0.40 | $342.5B |
| KOCOCA | $78.69 | -0.10% | +2.0% | 22.7x | 0.36 | $338.9B |
| PMPHILIP | $166.92 | +1.12% | +3.0% | 18.1x | 0.45 | $257.3B |
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Price below 200d MA — bearish structure.