SYY · 10-Q · 2026Q3 · Full report

Interest Expense Increase

SYSCO CORP · 2026-11-04 · Importance 65 · Surprise 82

Interest expense increased $89 million, or 51.7%, in the first quarter of fiscal 2027, primarily because of $90 million of bridge-loan debt-issuance-cost amortization associated with the planned JRD acquisition. Sysco expects approximately $787 million of interest expense for the remainder of fiscal 2027 related to newly issued notes. Interest expense before the JRD closing will be treated as a Certain Item; interest expense after closing will not. The company expects financing proceeds invested before closing to generate interest income, most of which will also be treated as Certain Items, except income on common-stock offering proceeds.

Key facts

• Sysco expects approximately $787 million of interest expense for the remainder of fiscal 2027 related to newly issued notes. source
• Interest expense on the newly issued notes before the JRD acquisition closing will be treated as a Certain Item; expense after closing will not be treated as a Certain Item. source
• Sysco interest expense increased $89 million in the first quarter of fiscal 2027 compared with the first quarter of fiscal 2026, primarily due to bridge-loan debt issuance cost amortization related to the planned JRD acquisition. source