What Is Behind The Move In Sysco Stock?
For questions about this article or underlying research, email help@trefis.com.
Shares of Sysco (SYY) fell 9.3% on Tuesday, November 3, 2026, while the S&P 500 gained 0.4%. The decline coincided with the food distributor reporting results for the first quarter of its fiscal 2027 and holding its earnings call. What did Sysco report, and what did it change in its outlook for the year?
What Did Sysco Report On November 3?
Adjusted earnings per share of $1.19 for the quarter matched analyst expectations. First-quarter sales reached $21.7 billion, representing a 2.8% increase from a year earlier, but fell short of the roughly $22.0 billion analysts had forecast. Management said that food costs rose just 0.3% in the quarter, below the 1.5% consensus, and said this lower inflation explained why sales missed its own plan.
Sysco also generated more profit on each dollar of sales. Gross margin widened by 18 basis points to 18.6%, an improvement management credited to a better customer mix and more sales of its own Sysco Brand products.
The company revised only the sales forecast among its three main targets. Citing lower inflation across the industry, Sysco now expects fiscal 2027 sales growth at the lower end of its earlier 6% to 7% range. The company said an extra week in the fiscal fourth quarter adds about 2 percentage points to that reported growth. Sysco maintained its forecast of 9% to 11% growth in adjusted earnings per share, and kept its target of about 2.5% growth in local case volume for its U.S. foodservice business.
Did Other Food Distributors Fall Too?
Most did, but by far less. Four of the five companies on Sysco’s peer list fell during the same session, while HF Foods closed unchanged. Sysco logged a decline about twice as large as US Foods and Performance Food, which dropped 4.2% and 4.3%, respectively. The four other food distributors in its GICS sub-industry with a market cap of $2 billion or more all fell, posting a median drop of 3.2%, and the consumer staples sector fund XLP lost 2.1%.
Sysco Stock’s Biggest Drop Since March
A drop this large is rare for Sysco. Over the prior year, only one session brought a fall at least as big: a 15.3% drop on March 30, 2026. That day also established the stock’s lowest close of the past year at $69.30, compared with a high of $91.16 on February 27, 2026.
Over the past year, the stock returned 2.7% including dividends, trailing the 11.9% gain for the S&P 500. The last three months were weaker, with Sysco down 11.4% against a 1.7% dip for the index.
Sysco is expected to report its fiscal second-quarter 2027 results in January 2027. Food cost inflation, the figure management tied to its lower sales outlook, will be the number to watch.
Now You Know Sysco. Here Is A Better Way To Invest
Before you decide on SYY, consider owning 30 quality companies instead of one. The Trefis High Quality (HQ) Portfolio has returned 105% since its September 2020 launch, ahead of a benchmark that combines the S&P 500, S&P MidCap and Russell 2000.
Spot an error or want more like this? Tell us in 10 seconds.