Sysco (SYY) Barclays 17th Annual Global Consumer Staples Conference summary

Industry Overview and Market Positioning

• Operates in a $370 billion U.S. addressable market, expanding to $470 billion globally, and holds #1 market share in the U.S., Ireland, Canada, Great Britain, and Costa Rica, with strong positions in Sweden and France.

• Food away from home consistently gains share from grocery, a trend mirrored in Europe but lagging by a decade.

• Market share has grown in most countries, with notable gains in Ireland, Great Britain, Canada, and Costa Rica.

• France presents a significant long-term opportunity after recent operational improvements.

• The company currently holds a 17% share of the total addressable market.

Growth Strategy and Operational Initiatives

• Pursues a 'Recipe for Growth' strategy focused on profitable growth through core business improvements, digital innovation, supply chain expansion, and product innovation.

• Added 450 net new sales colleagues in late fiscal 2024 and expands sales teams by 400–500 professionals annually to drive growth.

• Updated sales compensation model to emphasize performance-based earnings and productivity.

• Investing in supply chain expansion, with 10 global projects to increase throughput and efficiency, including upgraded routing and omni-channel improvements.

• Specialty product lines and international expansion are key growth vectors, each representing $10+ billion opportunities.

Financial Performance and Targets

• Achieved $79 billion in revenue in fiscal 2024, with 62% from restaurants, and $3.0 billion in operating cash flow.

• Net sales and operating cash flow grew at 6% and 5% CAGR from 2019-2024.

• Maintains industry-leading gross and EBITDA margins, and a robust, investment-grade balance sheet.

• Three-year algorithm targets 4-6% top-line growth, 6-8% adjusted EPS growth, 6-8% adjusted operating income growth, and 9-11% total shareholder return annually.

• Adjusted ROIC reached 16.8% in FY24, outperforming the S&P 500 Consumer Staples median.