With a market cap of $36.6 billion, Sysco Corporation (SYY) engages in the marketing and distribution of various food and related products to the food service or food-away-from-home industry internationally. Based in Houston, Texas, the company operates through four segments: U.S. Foodservice Operations; International Foodservice Operations; SYGMA; and Other.
Companies valued at $10 billion or more are generally described as “large-cap stocks,” and Sysco definitely fits that description. The multinational corporation operates 340 distribution centers in 10 countries. It also offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations.
The food-away-from-home distributor declined 9.5% from its 52-week high of $82.33. In addition, shares of SYY dropped 4.2% in the past three months, surpassing the broader Nasdaq Composite ($NASX), which dipped 11.4% over the same period.
In the long term, SYY is down nearly 2.3% on a YTD basis, outpacing NASX's 7.8% decrease. However, shares of Sysco have slipped 7.7% over the past 52 weeks, lagging behind NASX’s nearly 11.5% increase over the same time period.
Despite a few fluctuations, the stock has fallen below its 50-day and 200-day moving averages since January.
Despite beating Q2 2025 revenue estimates with $20.2 billion, Sysco shares fell over 5.9% on Jan. 28. Gross margins declined by 11 basis points to 18.1%, impacted by inflation in dairy and poultry, while U.S. food service operating income dropped as local case volumes fell. Additionally, cash flow from operations plunged by $358 million year-over-year to $498 million. Investors were also cautious about the decline in net income to $406 million and the significant free cash flow drop to $331 million.
Moreover, compared to its rival, Mission Produce, Inc. (AVO) has performed weaker than SYY. Shares of AVO dropped 15.4% over the past 52 weeks and also declined 28.9% YTD.
Despite SYY’s weak performance over the last year, analysts remain moderately optimistic about its prospects. Among the 17 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and SYY is currently trading below the mean price target of $84.69.
