SYY · 10-Q · 2026Q3 · Full report

Market Demand Trends

SYSCO CORP · 2026-11-04 · Importance 25 · Surprise 32

Restaurant foot traffic decreased approximately 2% in the first quarter of fiscal 2027 compared with the first quarter of fiscal 2026. Management said the macroeconomic environment was negatively affected by a Cyclospora outbreak at mid-quarter and rising fuel costs, which also weighed on consumer demand. Despite soft restaurant traffic, Sysco expects to continue growing sales during the remainder of fiscal 2027.

Key facts

• Sysco's business, results of operations, and financial condition may be affected by unfavorable conditions in the Americas and Europe, global trade policy and tariff changes, foreign conflicts, and foreign exchange rates. source
• Sysco's relationships with long-term customers may be materially diminished or terminated. source
• Changes in consumer eating habits, including factors affecting consumer confidence and discretionary spending and advancements in pharmaceutical therapies, may reduce consumption of food prepared away from home and materially adversely affect Sysco's business, financial condition, or results of operations. source
• Public health crises, pandemics, epidemics, natural disasters, or adverse weather conditions may affect Sysco's business, financial condition, and results of operations. source
• Restaurant foot traffic decreased approximately 2% in the first quarter of fiscal 2027 compared with the first quarter of fiscal 2026. source
• A Cyclospora outbreak at the midpoint of Sysco’s first quarter of fiscal 2027 and rising fuel costs negatively affected supply chains and consumer demand. source
• Sysco enterprise product inflation was approximately 0.3% in the first quarter of fiscal 2027, primarily driven by meat-category inflation. source