SYY · 10-K · 2026A · Full report

Gross Margin Drivers

SYSCO CORP · 2026-08-21 · Importance 49 · Surprise 32

Consolidated gross profit increased 4.5% to $15.639 billion in fiscal 2026, and gross margin rose 10 basis points to 18.50%. Management attributed the annual margin improvement primarily to strategic sourcing and local case growth outpacing national case growth. Fourth-quarter gross margin declined 17 basis points year over year as the company lapped favorable strategic-sourcing benefits from the prior-year quarter and faced higher fuel costs. U.S. Foodservice gross margin increased 2 basis points to 19.11%, while U.S. Broadline Sysco brand penetration fell 59 basis points to 35.4%.

Key facts

Sysco's fiscal 2026 gross profit increased 4.5%, primarily due to strategic sourcing efforts and higher volumes from local customers. source
Sysco experienced total-enterprise product cost inflation of 3.0% in fiscal 2026. source
Sysco's total-enterprise inflation was 2.8% in the fourth quarter and 3.0% for fiscal 2026, primarily driven by meat, seafood, and fresh produce. source
Sysco's consolidated gross margin increased 10 basis points in fiscal 2026 versus fiscal 2025, primarily due to strategic sourcing and local case growth outpacing national case growth. source
Sysco's consolidated gross margin decreased 17 basis points in the fourth quarter of fiscal 2026 versus the fourth quarter of fiscal 2025, primarily due to lapping favorable strategic sourcing benefits and increased fuel cost. source
Sysco U.S. Broadline brand penetration decreased 59 basis points to 35.4% in fiscal 2026; local-customer penetration decreased 45 basis points to 45.8%. source
Sysco's U.S. Foodservice gross margin was 19.11% in fiscal 2026 versus 19.09% in fiscal 2025, a 2-basis-point increase primarily due to local sales volume growth outpacing national growth. source
Fiscal 2026 International Foodservice Operations comparable gross margin on a constant-currency basis was 21.11%, compared with 20.86%, an increase of 25 basis points. source