SYY · 10-Q · 2026Q3 · Full report

Operating Expense Trends

SYSCO CORP · 2026-11-04 · Importance 24 · Surprise 14

Total operating expenses increased 7.5% to $3.334 billion in the first quarter of fiscal 2027, compared with adjusted operating-expense growth of 4.0% to $3.124 billion. Adjusted operating expenses rose to 14.37% of sales from 14.20%, a 17-basis-point increase, attributed to sales-headcount and building-expansion investments and higher fuel costs. Global Support Center expenses increased $61 million, or 25.7%, primarily because of acquisition costs, business technology, colleague-related costs, and insurance. International Foodservice Operations operating expenses increased 13.1%, reflecting colleague-related costs, acquired-intangible amortization, and restructuring and transformation costs.

Key facts

• Sysco's efforts to modify truck routing, including its small truck initiative, may be unsuccessful in reducing outbound transportation costs. source
• Sysco may not realize anticipated benefits from operating cost reduction efforts, including accelerating or identifying additional cost savings. source
• Sysco's business transformation initiatives and other long-term strategic objectives may fail to deliver expected benefits in the anticipated timeframe, may not deliver benefits at all, or may cost more than expected. source
• Sysco may be unable to fully offset increases in fuel costs, and fuel hedging arrangements intended to contain fuel costs could result in above-market fuel costs. source
• Sysco may fail to comply with applicable laws or government regulations, including environmental, data privacy, tax, and accounting requirements. source
• Sysco faces risks related to its ability to attract, motivate, and retain employees, including key personnel. source
• Sysco faces labor risks, including renegotiation of union contracts and shortages of qualified labor. source
• Sysco total operating expenses were $3.3 billion in the first quarter of fiscal 2027, up 7.5% year over year. source