Sysco acquired several companies in fiscal 2024, including BIX Produce Company, Edward Don, Ready Chef, and Jacmar Foodservice Distribution, to expand its geographic footprint and capabilities.

Sysco is enriching the customer experience through personalized digital tools to reduce friction in the purchase experience and introduce innovation to customers.

Sysco is developing a more nimble, accessible and productive supply chain that is better positioned to support our customers.

The company demonstrated positive operating leverage, with gross profit growing faster than operating expenses, indicating improved efficiency and cost management.

Sysco continued to experience supply chain productivity improvements and successfully managed operating expenses at its Global Support Center, with expenses decreasing by 7% in the fourth quarter of fiscal 2024.

Sysco is committed to responsible growth and will cultivate new channels, new segments, and new capabilities, organically and through strategic M&A, while being stewards of the company and the planet for the long term.

The foodservice distribution industry is characterized by relatively high inventory turnover with relatively low profit margins, making it susceptible to volatile food costs and periods of inflation or deflation.

The company faces a shortage of qualified labor in certain geographies, leading to increased costs from temporary wage actions and higher costs to purchase services of third parties.

Sysco's international operations are subject to economic and political instability, unfavorable changes in laws and regulations, and military conflicts, which could negatively impact operations.

Sysco estimates that it serves about 17% of the approximately $360 billion annual foodservice market in the U.S., indicating a significant market presence.

The foodservice distribution industry is fragmented and highly competitive, with local, regional and multi-regional distributors, and specialty competitors, creating pricing pressure.

Sysco believes its competitive advantages include its sales consultants, diversified product base with quality-assured Sysco brand products, service reliability, ancillary services, and multi-regional presence.

The company has focused on supply chain productivity improvements and successfully managed operating expenses at its Global Support Center, with expenses decreasing by 7% in the fourth quarter of fiscal 2024.

Sysco is focused on increasing profitability by lowering operating costs and aggregate inventory levels, which reduces future facility expansion needs.

Sysco generally maintains inventory on hand to meet customer demand and fills a majority of sales orders within 24 hours of customer order placement, demonstrating operational efficiency.

Sysco is focused on enriching the customer experience through personalized digital tools that reduce friction in the purchase experience and introduce innovation to customers.

The company uses technology in substantially all aspects of its business operations, including generating and selecting orders, loading and routing trucks, making purchases, and managing warehouses.

Sysco's technology systems are vulnerable to disruption from cyber-attacks, viruses, theft, and inadvertent release of information, highlighting the need for robust cybersecurity measures.

Sysco's capital expenditures are financed primarily by internally generated funds, along with bank and other borrowings, demonstrating a balanced approach to capital allocation.

The company has a share repurchase program to authorize the repurchase of up to $5 billion of the company's common stock, with approximately $2.8 billion remaining as of June 29, 2024.

Sysco paid dividends of $1.0 billion in fiscal 2024, demonstrating a continued commitment to returning value to shareholders.

Sysco has set sustainability goals, including reducing Scope 1 & 2 emissions by 27.5% by 2030 and encouraging suppliers to set science-based targets by 2026, reflecting a commitment to environmental responsibility.

Sysco is committed to equal pay for equal work, regardless of gender, race, ethnicity or other personal characteristics, and benchmarks pay ranges based on market data and other factors.

Sysco's Diversity, Equity and Inclusion (DEI) team develops global strategic initiatives that are implemented to ensure that the needs specific to each region are addressed.

Sysco continued to outperform the foodservice market and successfully grew its market share, despite the foodservice market experiencing negative year-over-year foot traffic to restaurants.

Sysco expects negative foot traffic trends to continue into the first quarter of fiscal 2025, with modest industry traffic improvements in the second half of fiscal 2025.

Sysco believes the food-away-from-home sector is a healthy long-term market, and Sysco is diversified and well positioned as a market leader in food service.