Sysco Corporation Q1 2027 Earnings Recap

Sysco shares fell 9.3% after earnings, as investors likely focused on the softer-than-planned food inflation and the resulting sales shortfall versus management’s expectations. The quarter also faced restaurant traffic and fuel-cost headwinds, while the company’s full-year inflation outlook moved below its original planning assumption.

Key Takeaways

• Adjusted EPS was $1.19, which management said met its expectations; enterprise sales rose 2.8% to $21.7 billion.
• Local case volume grew 2.7%, but enterprise inflation was only 0.3%, below plan. Management attributed the sales delta versus expectations to lower-than-expected food-cost inflation.
• After budgeting for roughly 1.5%–2% inflation for the year, Sysco now expects less than 1% in Q2 and approximately 1%–1.5% for the full year.
• Restaurant traffic was down 2% in the quarter, and rising fuel costs pressured inbound logistics and consumer spending.
• Gross margin expanded 18 basis points year over year, supported by customer mix and Sysco Brand progress; local Sysco Brand mix rose 44 basis points.