Sysco Stock Rises 2.21% on $340M Volume, Ranks 368th in Liquidity as International Sales Surge 8.3%

Generated by AI AgentAinvest Market Brief
Wednesday, Jul 30, 2025 6:55 pm ET1min read
SYY--
Aime RobotAime Summary

- Sysco (SYY) rose 2.21% on July 30, 2025, with $340M volume, ranking 368th in liquidity despite 8.3% international sales growth.

- International revenue surged to $21.1B (excluding Mexico), driven by SYGMA’s 8.3% sales growth and 12.5% profit expansion.

- U.S. foodservice volume fell 0.3% due to underperforming unit exits and high turnover, while AI tools and loyalty programs target future growth.

- $1.8B free cash flow funded buybacks and dividends, with 2026 guidance projecting 3%-5% revenue growth amid a 23.5%-24% tax rate hike.

On July 30, 2025, SyscoSYY-- (SYY) closed with a 2.21% increase, trading on $340 million in volume, a 40.08% decline from the prior day’s activity. The stock ranked 368th in market liquidity. Fourth-quarter results highlighted resilience in international operations, with revenue rising 2.8% to $21.1 billion. Excluding the divested Mexican business, international segment sales grew 8.3%, while adjusted operating income surged 20.1% year-over-year. SYGMA, the logistics division, delivered 8.3% annual sales growth and 12.5% profit expansion, driven by operational efficiencies. U.S. foodservice volume declined 0.3% overall, with local case volume down 1.5%, reflecting ongoing challenges in the domestic market. Management attributed this to exiting underperforming business units and elevated employee turnover, which impacted customer retention.

Strategic initiatives such as AI-empowered sales tools and the Perks 2.0 loyalty program were emphasized as catalysts for future growth. Gross profit expanded 3.9% to $4 billion, with a margin of 18.9%, supported by cost management despite 3.5% inflation in product costs. Free cash flow reached $1.8 billion, funding $1.3 billion in share repurchases and $1 billion in dividends. Guidance for fiscal 2026 projected revenue growth of 3%–5% and adjusted EPS of $4.50–$4.60, factoring in a tax rate increase to 23.5%–24% and a $100 million headwind from lapping lower incentive compensation. Leadership expressed confidence in fiscal 2026, citing improved local sales trends in June and July and plans to add 4% to sales force headcount.

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