SYY SYSCO CORP
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Executive Summary
Sysco held an investor event on May 18, 2026, providing an update on its previously announced acquisition of Restaurant Depot (JRD Unico, Inc. and Warehouse Realty, LLC). The presentation detailed the strategic rationale, financial profile of the combined entity, and deleveraging plan, projecting ~$250M in annual net cost synergies, mid-to-high single-digit year 1 adjusted EPS accretion, and low-to-mid-teens year 2 accretion, with a commitment to reduce net leverage by ~1.0x within 24 months post-close.
Actionable Insight
The investor presentation reinforces the strategic and financial merits of the Restaurant Depot acquisition, with detailed synergy targets and a clear deleveraging path. Traders should monitor regulatory approval milestones and the S-4 filing for additional deal terms. The pro forma financial profile suggests meaningful margin and FCF expansion, supporting a positive re-rating if execution is credible.
Key Facts
- Sysco projects ~$250M in annualized net cost synergies from the Restaurant Depot acquisition.
- Pro forma combined company expected to achieve ~6.7% Adj. EBITDA margin (vs. Sysco standalone 5.2%), including synergies.
- Year 1 adjusted EPS accretion: mid-to-high single digit; Year 2: low-to-mid teens.
- Net leverage estimated at ~4.5x at close, with a target of ~2.75x long-term and ~1.0x reduction within 24 months.
- Restaurant Depot reported ~$16B revenue and ~$2.1B Adj. EBITDA for 2025, with 13% Adj. EBITDA margin.
- Sysco's standalone Net Debt/Adjusted EBITDA was 2.80x as of March 28, 2026.
- Sysco's LTM Adjusted EBITDA (standalone) was $4,327M as of March 28, 2026.
- Sysco's LTM Free Cash Flow (standalone) was $3,603M as of December 27, 2025, with 83.3% FCF conversion.
- Restaurant Depot has 167 locations, ~725K local customers, and revenue growth in 28 of the last 30 years.
- Management committed to no large-scale M&A until target leverage is achieved.
Financial Impact
Pro forma revenue ~$20B increase (Sysco ~$82.6B + Restaurant Depot ~$16B = ~$98.6B); Adj. EBITDA margin expansion from 5.2% to 6.7%; $250M annual net cost synergies; >$2B additional annual FCF by year four.
Risk Factors
- Regulatory approval risks and potential conditions on the transaction.
- Integration risks and ability to realize $250M in net cost synergies.
- Higher leverage at close (~4.5x) increases financial risk; execution on deleveraging plan is critical.
- Potential for unforeseen liabilities or business disruption during integration.
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000950142-26-001434 |
| Document: eh260780816_8k.htm | 0000950142-26-001434 |
| Document: 0000950142-26-001434-index-headers.html | 0000950142-26-001434 |
| Document: 0000950142-26-001434-index.html | 0000950142-26-001434 |
| Document: 0000950142-26-001434.txt | 0000950142-26-001434 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 2, 2026
7d ago
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425
| $75.21 $74.12 | ▼ −1.45% | ▼ −1.85% | $77.55 (+3.12%) |
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May 27, 2026
13d ago
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Press Release
| $75.06 $75.71 | ▲ +0.87% | ▲ +0.31% | $77.55 (+3.32%) |
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May 18, 2026
22d ago
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8-K
| $73.51 $75.22 | ▲ +2.33% | ▲ +2.98% | $77.55 (+5.50%) |
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Apr 28, 2026
6w ago
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8-K
| $73.16 $73.93 | ▲ +1.05% | ▲ +1.06% | $77.55 (+6.01%) |
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Apr 20, 2026
7w ago
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425
| $74.54 $75.32 | ▲ +1.05% | ▲ +0.03% | $77.55 (+4.04%) |
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Apr 20, 2026
7w ago
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8-K
| $74.54 $75.32 | ▲ +1.05% | ▲ +0.03% | $77.55 (+4.04%) |
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Apr 17, 2026
7w ago
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Press Release
| $76.26 $74.54 | ▼ −2.26% | ▼ −1.60% | $77.55 (+1.70%) |
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Apr 7, 2026
9w ago
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425
| $75.00 $74.99 | ▼ −0.01% | ▼ −0.58% | $77.55 (+3.41%) |
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Apr 7, 2026
9w ago
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Press Release
| $72.84 $75.00 | ▲ +2.96% | ▲ +0.42% | $77.55 (+6.47%) |
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Mar 30, 2026
10w ago
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425
| $70.80 $72.15 | ▲ +1.91% | ▲ +1.16% | $77.55 (+9.54%) |
US Market Status
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