SYY · 10-K · 2026A · Full report

Restructuring and Transformation Costs

SYSCO CORP · 2026-08-21 · Importance 53 · Surprise 82

Fiscal 2026 operating income was pressured by increased sales headcount investments, restructuring and transformation costs, and higher incentive compensation. Restructuring and transformational project costs were $287 million in fiscal 2026, up from $183 million in fiscal 2025. U.S. Foodservice operating expenses increased 4.9% to $7.721 billion, with colleague-related costs—including sales headcount and incentive compensation—identified as the primary driver. International Foodservice operating expenses increased 10.0% to $2.938 billion, partly due to colleague-related costs and sales headcount investments.

Key facts

• Sysco's Global Support Center Certain Items totaled $162 million in fiscal 2026 versus $79 million in fiscal 2025. source
• Fiscal 2026 restructuring and transformation costs included $71 million of restructuring, severance, and legal-matter costs and $216 million of transformation initiative costs, primarily supply chain transformation and business technology strategy changes. source
• Fiscal 2025 restructuring and transformation costs included $57 million of restructuring and severance charges and $126 million of transformation initiative costs, primarily business technology strategy changes. source