How Does Sysco Make its Money?
Sysco is the world’s largest foodservice distribution company, delivering food, kitchen supplies, and equipment to restaurants, healthcare facilities, schools, hotels, and other customers. The company controls approximately 17% of the US foodservice distribution market and operates a fleet of over 14,000 delivery vehicles from nearly 340 distribution facilities globally. Sysco’s scale gives it significant purchasing power and logistics advantages that smaller distributors cannot match. The company is investing in technology, specialty products, and international expansion to drive growth.
Sysco (SYY) Business Model
Sysco operates in the food distribution sector. Below is a summary of Sysco’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Sysco’s 2024 fiscal year filings with the SEC.
Sysco Competitors
Sysco’s key competitors and comparable public companies in the food distribution sector include Costco, Walmart, Mcdonalds, and Starbucks. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Sysco stacks up by comparing their revenue breakdown, margins, and growth metrics.
Sysco Competitors
Sysco’s key competitors and comparable public companies in the food distribution sector include Costco, Walmart, Mcdonalds, and Starbucks. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Sysco stacks up by comparing their revenue breakdown, margins, and growth metrics.
Sysco Competitors
Sysco’s key competitors and comparable public companies in the food distribution sector include Costco, Walmart, Mcdonalds, and Starbucks. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Sysco stacks up by comparing their revenue breakdown, margins, and growth metrics.
Sysco Competitors
Sysco’s key competitors and comparable public companies in the food distribution sector include Costco, Walmart, Mcdonalds, and Starbucks. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Sysco stacks up by comparing their revenue breakdown, margins, and growth metrics.
Sysco Competitors
Sysco’s key competitors and comparable public companies in the food distribution sector include Costco, Walmart, Mcdonalds, and Starbucks. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Sysco stacks up by comparing their revenue breakdown, margins, and growth metrics.
Sysco Competitors
Sysco’s key competitors and comparable public companies in the food distribution sector include Costco, Walmart, Mcdonalds, and Starbucks. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Sysco stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| US Foodservice Operations | $56,400 | $53,100 | +6.2% |
| International Foodservice Operations | $13,500 | $12,800 | +5.5% |
| SYGMA (Chain Restaurant Distribution) | $8,300 | $7,900 | +5.1% |
| Other | $1,300 | $1,200 | +8.3% |
| Total Revenue | $79,000 | $75,200 | +5.1% |
US Foodservice Operations — 71% of Revenue
International Foodservice Operations — 17% of Revenue
SYGMA (Chain Restaurant Distribution) — 11% of Revenue
Other — 2% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $79,000 | $75,200 |
| Cost of Revenue | $63,800 | $60,800 |
| Gross Profit | $15,200 | $14,400 |
| Operating Expenses | $11,400 | $10,900 |
| Operating Income | $3,800 | $3,500 |
| Net Income | $2,200 | $1,900 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 19.2%
- Operating Margin: 4.8%
- Revenue Growth: 5.1%
Is Sysco Profitable?
Yes, Sysco is profitable. The company reported net income of $2,200 on total revenue of $79,000. With an operating margin of 4.8%, Sysco demonstrates solid profitability for the food distribution sector. The gross margin of 19.2% reflects Sysco’s pricing power and cost structure.
What to Watch
- Restaurant traffic trends and foodservice industry health post-pandemic
- Market share gains from independent restaurant customers (higher margin)
- International expansion, particularly in Europe and Latin America
- Technology investments in digital ordering and supply chain optimization
Sysco (SYY) Financial Summary
Sysco (SYY) is a food distribution company that generated $79,000 in total revenue in fiscal year 2024. Revenue grew 5.1% year-over-year. The company earned $2,200 in net income, making it profitable. For a deeper look at Sysco’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.