Analysis of Reportable Segments
Sysco Corp. operates in 3 segments: U.S. Foodservice Operations; International Foodservice Operations; and SYGMA.
Segment Profit Margin
Sysco Corp., profit margin by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 6.64% | 6.68% | 6.54% | 6.88% | 5.45% | 7.73% |
| International Foodservice Operations | 2.58% | 2.31% | 0.87% | -2.78% | -3.84% | 1.09% |
| SYGMA | 0.93% | 0.72% | -0.05% | 0.81% | 0.66% | 0.44% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
An analysis of segment profit margins from 2019 to 2024 reveals a period of significant volatility followed by a trend toward stabilization and recovery. While the U.S. Foodservice Operations segment remains the primary driver of profitability, the International Foodservice Operations segment has demonstrated the most substantial turnaround in performance.
- U.S. Foodservice Operations
- This segment maintains the highest profit margins of the three reported units. A notable contraction occurred in 2020, where margins decreased from 7.73% to 5.45%. However, a recovery was realized by 2021, with margins returning to 6.88%. From 2021 through 2024, profitability has remained relatively stable, fluctuating within a narrow range between 6.54% and 6.88%, ending the period at 6.64%.
- International Foodservice Operations
- The international segment experienced the most severe volatility, shifting from a positive margin of 1.09% in 2019 to significant losses of -3.84% in 2020 and -2.78% in 2021. A consistent upward trajectory began in 2022, with the segment returning to profitability at 0.87%. This growth trend continued through 2023 and 2024, culminating in a period-high profit margin of 2.58%.
- SYGMA
- Profit margins for SYGMA are characterized by low-single-digit figures. After a steady increase from 0.44% in 2019 to 0.81% in 2021, the segment encountered a brief period of negative profitability in 2022, falling to -0.05%. A subsequent recovery occurred in 2023 and 2024, with margins rising to 0.72% and 0.93%, respectively.
Overall, the data indicates that while external shocks caused a widespread margin compression around 2020, all segments have since returned to profitability. The International Foodservice Operations segment shows the strongest momentum of recovery, while the U.S. Foodservice Operations segment continues to provide a stable and dominant contribution to overall profit margins.
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Segment Profit Margin: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment profit margin calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 3,673) | 3,587) | 3,173) | 2,457) | 2,003) | 3,193) |
| Sales | 55,339) | 53,683) | 48,521) | 35,725) | 36,774) | 41,288) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 6.64% | 6.68% | 6.54% | 6.88% | 5.45% | 7.73% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Sales
= 100 × 3,673 ÷ 55,339 = 6.64%
The U.S. Foodservice Operations segment exhibits a pattern of initial contraction followed by significant expansion in both top-line revenue and absolute operating profit. While total sales and operating income reached their highest levels in 2024, the segment profit margin has not returned to its 2019 peak, indicating a shift in the operational cost structure or pricing dynamics accompanying the growth in scale.
- Revenue Trends
- A contraction in sales occurred between June 2019 and July 2021, with revenue declining from $41,288 million to a low of $35,725 million. This period was followed by a robust recovery and expansion phase, with sales surging to $48,521 million in 2022 and continuing an upward trajectory to reach $55,339 million by June 2024.
- Operating Income Performance
- Operating income mirrored the revenue decline in 2020, dropping sharply to $2,003 million from $3,193 million in 2019. A consistent recovery followed, with operating income increasing annually to surpass pre-contraction levels by 2022. By June 2024, operating income reached $3,673 million, demonstrating an ability to scale absolute profitability in alignment with revenue growth.
- Segment Profit Margin Analysis
- The segment profit margin experienced a significant decline from 7.73% in 2019 to 5.45% in 2020. A partial recovery to 6.88% was observed in 2021, but the margin subsequently entered a period of relative stabilization, fluctuating narrowly between 6.54% and 6.68% from 2022 through 2024. This suggests that despite the substantial increase in sales volume, the segment's efficiency in converting revenue to operating income remains approximately 109 basis points lower than the 2019 benchmark.
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Segment Profit Margin: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment profit margin calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 375) | 313) | 102) | (232) | (371) | 125) |
| Sales | 14,561) | 13,560) | 11,787) | 8,351) | 9,672) | 11,493) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 2.58% | 2.31% | 0.87% | -2.78% | -3.84% | 1.09% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Sales
= 100 × 375 ÷ 14,561 = 2.58%
The International Foodservice Operations segment exhibited a distinct V-shaped recovery pattern across the analyzed six-year period. An initial phase of contraction and operating losses between 2020 and 2021 was followed by a period of sustained growth in both top-line revenue and bottom-line profitability from 2022 through 2024.
- Revenue Trajectory
- Sales experienced a significant decline starting in 2020, falling from $11,493 million in 2019 to a trough of $8,351 million in 2021. This downward trend reversed sharply in 2022, with sales increasing to $11,787 million. The growth trajectory continued through 2024, ending the period at $14,561 million, representing a substantial increase over the 2019 baseline.
- Operating Income Performance
- Operating results shifted from a modest profit of $125 million in 2019 to significant operating losses in 2020 and 2021, reaching a peak deficit of $371 million in 2020. A return to profitability was achieved in 2022 with an operating income of $102 million, which subsequently accelerated to $313 million in 2023 and $375 million in 2024.
- Segment Profit Margin Trends
- The segment profit margin closely mirrored the volatility of operating income. After starting at 1.09% in 2019, the margin collapsed to -3.84% in 2020 and -2.78% in 2021. A steady recovery began in 2022 as the margin returned to positive territory at 0.87%. By 2024, the margin had expanded to 2.58%, indicating not only a recovery to pre-2020 levels but an improvement in overall operational efficiency and pricing power within the international segment.
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Segment Profit Margin: SYGMA
Sysco Corp.; SYGMA; segment profit margin calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 72) | 57) | (4) | 53) | 37) | 28) |
| Sales | 7,768) | 7,843) | 7,246) | 6,499) | 5,556) | 6,244) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 0.93% | 0.72% | -0.05% | 0.81% | 0.66% | 0.44% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Sales
= 100 × 72 ÷ 7,768 = 0.93%
The SYGMA segment demonstrates a general trajectory of growth in both scale and profitability over the six-year period from 2019 to 2024, characterized by a significant recovery following a period of volatility in 2022.
- Revenue Trends
- Sales experienced a contraction in 2020, falling to 5,556 million USD from 6,244 million USD in 2019. However, a consistent upward trend followed, with sales peaking at 7,843 million USD in 2023. A slight normalization occurred in 2024, with sales adjusting to 7,768 million USD, indicating a plateauing of top-line growth after several years of expansion.
- Operating Income Performance
- Operating income showed steady growth from 2019 to 2021, rising from 28 million USD to 53 million USD. A sharp reversal occurred in 2022, where the segment reported an operating loss of 4 million USD. This downturn was followed by a robust recovery, with income climbing to 57 million USD in 2023 and reaching a period high of 72 million USD in 2024.
- Segment Profit Margin Analysis
- Profit margins mirrored the volatility seen in operating income. Margins improved from 0.44% in 2019 to 0.81% in 2021. The 2022 operating loss resulted in a negative margin of -0.05%. Post-2022, the segment demonstrated enhanced operational efficiency, with the profit margin recovering to 0.72% in 2023 and expanding further to 0.93% in 2024, the highest level recorded in the analyzed timeframe.
The correlation between increasing operating income and expanding margins in 2024, despite a slight decrease in total sales, suggests an improvement in cost management or a shift toward higher-margin revenue streams within the segment.
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Segment Return on Assets (Segment ROA)
Sysco Corp., ROA by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 29.37% | 31.47% | 33.25% | 32.19% | 30.13% | 44.11% |
| International Foodservice Operations | 4.97% | 4.22% | 1.55% | -3.43% | -5.93% | 2.13% |
| SYGMA | 7.80% | 6.73% | -0.44% | 6.92% | 5.38% | 4.45% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
The segment return on assets (ROA) reveals divergent performance trajectories across the three primary business operations from 2019 to 2024. While the U.S. Foodservice Operations continues to deliver the highest absolute returns, it has experienced a general contraction in efficiency. Conversely, the International Foodservice Operations and SYGMA segments have demonstrated resilience and growth following periods of volatility.
- U.S. Foodservice Operations
- A significant reduction in ROA is observed, falling from a peak of 44.11% in 2019 to 29.37% in 2024. The most substantial decline occurred between 2019 and 2020, where returns dropped by approximately 1,400 basis points. Although a marginal recovery was noted between 2020 and 2022, reaching 33.25%, the subsequent two years show a downward trend, indicating a gradual erosion of asset productivity in the domestic market.
- International Foodservice Operations
- This segment exhibited a strong recovery pattern. Following a period of negative returns, reaching a low of -5.93% in 2020, the ROA has improved consistently every year since. Returns returned to positive territory by 2022 (1.55%) and continued to climb to 4.97% by 2024. This represents a successful turnaround, with 2024 performance exceeding the pre-pandemic levels of 2019.
- SYGMA
- The SYGMA segment displays a generally positive trend characterized by a notable anomaly in 2022. ROA grew steadily from 4.45% in 2019 to 6.92% in 2021, before plummeting to -0.44% in 2022. However, a rapid recovery followed, with returns surging to 6.73% in 2023 and reaching a period high of 7.80% in 2024, suggesting a stabilization of operations and improved asset utilization.
Comparative analysis indicates that the gap in asset efficiency between the U.S. and non-U.S. segments is narrowing. The high-margin dominance of the U.S. Foodservice Operations is tempering, while the International and SYGMA segments are establishing more stable and upward-trending return profiles.
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Segment ROA: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment ROA calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 3,673) | 3,587) | 3,173) | 2,457) | 2,003) | 3,193) |
| Assets | 12,505) | 11,398) | 9,541) | 7,632) | 6,647) | 7,238) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 29.37% | 31.47% | 33.25% | 32.19% | 30.13% | 44.11% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 3,673 ÷ 12,505 = 29.37%
The U.S. Foodservice Operations segment exhibits a pattern of recovery in operating income coupled with a substantial expansion of the asset base. While profitability has returned to and surpassed pre-2020 levels, the overall efficiency of asset utilization has experienced a long-term decline.
- Operating Income Performance
- A significant contraction occurred in 2020, with operating income falling to 2,003 million US$. Following this dip, a consistent recovery trend is observed, with income rising steadily to 3,673 million US$ by June 2024. This represents a growth of approximately 14.8% over the 2019 baseline of 3,193 million US$.
- Asset Base Growth
- The asset base has expanded aggressively, particularly after 2020. From a low of 6,647 million US$ in 2020, assets increased to 12,505 million US$ by June 2024. This represents an increase of approximately 88% in total assets over a four-year period, indicating significant capital investment or balance sheet expansion.
- Segment Return on Assets (ROA) Analysis
- The Segment ROA shows a clear downward trajectory over the analyzed period. The ratio dropped sharply from 44.11% in 2019 to 30.13% in 2020. Despite a slight recovery peaking at 33.25% in 2022, the ROA declined further to 29.37% by June 2024. The divergence between rising operating income and a falling ROA indicates that the growth in the asset base has significantly outpaced the growth in earnings, leading to reduced asset productivity.
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Segment ROA: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment ROA calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 375) | 313) | 102) | (232) | (371) | 125) |
| Assets | 7,545) | 7,433) | 6,596) | 6,784) | 6,258) | 5,888) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 4.97% | 4.22% | 1.55% | -3.43% | -5.93% | 2.13% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 375 ÷ 7,545 = 4.97%
The International Foodservice Operations segment demonstrated a cyclical performance pattern from 2019 through 2024, marked by a severe contraction in the middle period followed by a sustained recovery in both profitability and asset efficiency.
- Operating Income Trends
- Profitability experienced a significant downturn starting in 2020, with operating income falling from US$ 125 million in 2019 to a loss of US$ 371 million in 2020. While losses persisted into 2021 at US$ 232 million, the segment returned to profitability in 2022. This positive trajectory accelerated through 2023 and 2024, culminating in an operating income of US$ 375 million.
- Asset Base Expansion
- The total assets associated with the segment showed a general upward trajectory, increasing from US$ 5,888 million in 2019 to US$ 7,545 million by 2024. Aside from a slight contraction in 2022, the asset base grew steadily, indicating a continued investment in the segment's infrastructure despite the period of operating losses.
- Segment ROA Analysis
- The Return on Assets (ROA) closely correlates with the volatility of operating income, plummeting to a low of -5.93% in 2020. The ratio returned to positive territory in 2022 at 1.55% and grew consistently thereafter. By June 29, 2024, the ROA reached 4.97%, the highest efficiency level recorded in the analyzed period, suggesting that the growth in operating income has significantly outpaced the growth in the asset base during the recovery phase.
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Segment ROA: SYGMA
Sysco Corp.; SYGMA; segment ROA calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 72) | 57) | (4) | 53) | 37) | 28) |
| Assets | 923) | 840) | 835) | 760) | 685) | 625) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 7.80% | 6.73% | -0.44% | 6.92% | 5.38% | 4.45% |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 72 ÷ 923 = 7.80%
The SYGMA segment demonstrated a general trajectory of growth in asset base and operational profitability from 2019 through 2024, characterized by a significant volatility event in 2022 followed by a strong recovery.
- Operating Income Trends
- Operating income experienced a steady increase from 28 million USD in 2019 to 53 million USD in 2021. A sharp reversal occurred in 2022, resulting in an operating loss of 4 million USD. However, the segment showed resilience in subsequent years, with income rebounding to 57 million USD in 2023 and reaching a period peak of 72 million USD by June 29, 2024.
- Asset Base Expansion
- The asset base grew consistently throughout the analyzed period. Total assets rose from 625 million USD in 2019 to 923 million USD in 2024, representing a total increase of approximately 47.7%. This steady upward trend indicates continuous investment in the segment's infrastructure regardless of short-term fluctuations in profitability.
- Segment Return on Assets (ROA)
- The Segment ROA reflects the volatility seen in operating income. The ratio improved from 4.45% in 2019 to 6.92% in 2021. The 2022 operating loss led to a negative ROA of -0.44%. Following this decline, the ROA recovered sharply to 6.73% in 2023 and concluded the period at its highest level of 7.80% in 2024, suggesting enhanced efficiency in asset utilization and a strengthened capacity to generate returns from the expanded asset base.
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Segment Asset Turnover
Sysco Corp., asset turnover by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 4.43 | 4.71 | 5.09 | 4.68 | 5.53 | 5.70 |
| International Foodservice Operations | 1.93 | 1.82 | 1.79 | 1.23 | 1.55 | 1.95 |
| SYGMA | 8.42 | 9.34 | 8.67 | 8.55 | 8.11 | 10.00 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
An evaluation of segment asset turnover reveals contrasting trajectories across the three reportable business units between 2019 and 2024. While the efficiency of asset utilization varies significantly by segment, a general trend of volatility is evident, particularly surrounding the 2021 period, followed by diverging recovery paths.
- U.S. Foodservice Operations
- A sustained decline in asset turnover is observed in this segment. From a peak of 5.70 in 2019, the ratio decreased to 4.43 by 2024. Despite a brief period of recovery in 2022 where the ratio rose to 5.09, the overall trend indicates a reduction in the revenue generated per unit of asset, marking a total decline of approximately 22% over the analyzed period.
- International Foodservice Operations
- This segment experienced a V-shaped trend in asset efficiency. A significant contraction occurred between 2019 and 2021, with the ratio falling from 1.95 to a low of 1.23. However, a consistent recovery followed, with the ratio climbing steadily to reach 1.93 by 2024, nearly returning to its pre-2020 efficiency levels.
- SYGMA
- SYGMA consistently maintains the highest asset turnover ratio of all segments, indicating a significantly more lean asset base relative to its revenue generation. After a sharp decline from 10.00 in 2019 to 8.11 in 2020, the segment showed a recovery trend peaking at 9.34 in 2023 before moderating to 8.42 in 2024.
Comparing the three segments, SYGMA operates with the highest efficiency, while International Foodservice Operations remains the least efficient in terms of asset turnover. The data highlights a divergence where the International segment has fully recovered its asset utilization levels, whereas the U.S. Foodservice segment continues to operate below its 2019 efficiency benchmarks.
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Segment Asset Turnover: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 55,339) | 53,683) | 48,521) | 35,725) | 36,774) | 41,288) |
| Assets | 12,505) | 11,398) | 9,541) | 7,632) | 6,647) | 7,238) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 4.43 | 4.71 | 5.09 | 4.68 | 5.53 | 5.70 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment asset turnover = Sales ÷ Assets
= 55,339 ÷ 12,505 = 4.43
The U.S. Foodservice Operations segment has experienced a sustained decline in asset turnover efficiency over the six-year period from 2019 to 2024. While revenue recovered and expanded significantly following a contraction between 2019 and 2021, the growth of the asset base has outpaced sales growth, resulting in a lower ratio of sales generated per unit of assets.
- Sales Trajectory
- Revenue exhibited a notable contraction between June 2019 and July 2021, falling from $41,288 million to $35,725 million. However, a strong recovery followed, with sales increasing to $48,521 million in 2022 and reaching $55,339 million by June 2024. This indicates a robust return to growth and an expansion of market volume in the latter half of the analyzed period.
- Asset Base Expansion
- Assets grew steadily after a brief dip in 2020. From a low of $6,647 million in 2020, the asset base expanded to $12,505 million by June 2024. The growth in assets was particularly aggressive between 2021 and 2024, suggesting significant capital investment or an increase in working capital requirements to support the rising sales volume.
- Asset Turnover Efficiency
- The segment asset turnover ratio has trended downward, decreasing from 5.70 in 2019 to 4.43 in 2024. While a temporary improvement to 5.09 was observed in 2022, the overall trajectory indicates a decline in operational efficiency regarding asset utilization. The divergence between the rapid increase in assets and the more moderate increase in sales has fundamentally pressured the turnover ratio downward.
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Segment Asset Turnover: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 14,561) | 13,560) | 11,787) | 8,351) | 9,672) | 11,493) |
| Assets | 7,545) | 7,433) | 6,596) | 6,784) | 6,258) | 5,888) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.93 | 1.82 | 1.79 | 1.23 | 1.55 | 1.95 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment asset turnover = Sales ÷ Assets
= 14,561 ÷ 7,545 = 1.93
The International Foodservice Operations segment exhibited a significant V-shaped trend in asset utilization and revenue generation between 2019 and 2024. After a period of contraction and declining efficiency, the segment has returned to operational productivity levels nearly identical to those seen at the start of the analyzed period.
- Revenue Performance
- Sales experienced a notable decline between June 2019 and July 2021, falling from US$ 11,493 million to a low of US$ 8,351 million. This downward trajectory was reversed starting in 2022, with revenue accelerating to US$ 14,561 million by June 2024, representing a substantial recovery and growth beyond the 2019 baseline.
- Asset Base Evolution
- The asset base showed a general upward trend, increasing from US$ 5,888 million in 2019 to US$ 7,545 million in 2024. Despite the decline in sales during the 2020 and 2021 fiscal years, assets continued to grow, peaking at US$ 6,784 million in 2021 before a slight correction in 2022 and further expansion through 2024.
- Segment Asset Turnover Analysis
- The asset turnover ratio, reflecting the efficiency with which assets are used to generate sales, declined from 1.95 in 2019 to a minimum of 1.23 in 2021. This deterioration was driven by the simultaneous decrease in sales and the increase in the asset base. However, a strong recovery phase began in 2022, with the ratio improving to 1.79 and continuing to climb to 1.93 by June 2024. This indicates that the segment has successfully scaled its revenue growth to outpace its asset expansion, restoring its operational efficiency to near pre-2020 levels.
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Segment Asset Turnover: SYGMA
Sysco Corp.; SYGMA; segment asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 7,768) | 7,843) | 7,246) | 6,499) | 5,556) | 6,244) |
| Assets | 923) | 840) | 835) | 760) | 685) | 625) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 8.42 | 9.34 | 8.67 | 8.55 | 8.11 | 10.00 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment asset turnover = Sales ÷ Assets
= 7,768 ÷ 923 = 8.42
The SYGMA segment exhibits a fluctuating trend in asset efficiency over the six-year period from 2019 to 2024. While both sales and assets generally increased over the long term, the asset turnover ratio highlights significant volatility in the segment's ability to generate revenue from its asset base.
- Revenue and Asset Growth Trends
- Sales experienced a notable contraction in 2020, falling to 5,556 million USD from 6,244 million USD in 2019, before entering a growth phase that peaked at 7,843 million USD in 2023. Conversely, segment assets demonstrated a consistent and linear upward trajectory, increasing from 625 million USD in 2019 to 923 million USD in 2024, indicating a steady expansion of the segment's resource base.
- Asset Turnover Volatility
- The segment asset turnover ratio began at a peak of 10.00 in 2019 but declined sharply to 8.11 in 2020, a result of falling sales coupled with rising assets. A gradual recovery followed between 2021 and 2023, with the ratio ascending to 9.34 as revenue growth outpaced the growth of assets.
- Recent Efficiency Decline
- A downward shift in efficiency is observed in 2024, with the asset turnover ratio dropping to 8.42. This decline is driven by a combination of a slight decrease in sales to 7,768 million USD and a continued increase in assets to 923 million USD, suggesting a reduction in the productivity of the asset base in the most recent fiscal year.
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Segment Capital Expenditures to Depreciation
Sysco Corp., capital expenditures to depreciation by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 0.73 | 0.89 | 0.64 | 0.45 | 0.71 | 0.96 |
| International Foodservice Operations | 1.17 | 0.88 | 0.65 | 0.64 | 0.78 | 1.00 |
| SYGMA | 0.64 | 0.98 | 1.13 | 1.01 | 0.68 | 1.03 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
An analysis of the capital expenditures to depreciation ratios across reportable segments reveals divergent investment strategies and varying levels of asset replacement since 2019. While all segments experienced a contraction in reinvestment ratios during the 2020-2021 period, the subsequent recovery trajectories differ significantly by region and business line.
- U.S. Foodservice Operations
- This segment exhibited a notable decline in its reinvestment ratio, reaching a low of 0.45 in 2021. A recovery followed through 2023, where the ratio peaked at 0.89, suggesting a period of intensified capital spending to modernize or expand assets. However, a reduction to 0.73 was observed by June 2024, indicating that current capital expenditures are remaining below the level of annual depreciation.
- International Foodservice Operations
- A distinct upward trend is observable in the latter half of the analyzed period. After reaching a trough of 0.64 in 2021, the ratio climbed steadily to 1.17 by June 2024. This shift indicates a strategic transition toward aggressive capital investment, as the segment is now replacing assets and expanding capacity at a rate that exceeds its depreciation expense.
- SYGMA
- The reinvestment profile for this segment is characterized by higher volatility compared to the Foodservice operations. Following a sharp dip to 0.68 in 2020, the ratio surged to a peak of 1.13 in 2022. This was followed by a consistent downward trend, ending at 0.64 in 2024, the lowest value recorded for this segment over the six-year period.
Comparatively, the International Foodservice segment is the only division currently maintaining a ratio above 1.0, signifying growth in the net book value of its fixed assets. In contrast, both the U.S. Foodservice and SYGMA segments are operating with ratios below 1.0, which suggests a phase of asset consolidation or a reduction in capital intensity relative to historical depreciation levels.
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Segment Capital Expenditures to Depreciation: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment capital expenditures to depreciation calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 366) | 389) | 262) | 163) | 264) | 327) |
| Depreciation and amortization | 499) | 437) | 407) | 367) | 374) | 342) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.73 | 0.89 | 0.64 | 0.45 | 0.71 | 0.96 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 366 ÷ 499 = 0.73
The U.S. Foodservice Operations segment exhibits a pattern of fluctuating capital reinvestment relative to a steadily increasing base of depreciation and amortization expenses over the six-year period ending June 2024.
- Capital Expenditures Trends
- Investment in capital assets experienced significant volatility, decreasing from 327 million USD in 2019 to a period low of 163 million USD in 2021. A subsequent recovery occurred between 2022 and 2023, with expenditures peaking at 389 million USD before settling at 366 million USD in 2024.
- Depreciation and Amortization Trends
- A consistent upward trend is observed in depreciation and amortization costs, which rose from 342 million USD in 2019 to 499 million USD in 2024. This steady increase suggests a growing scale of the segment's fixed asset base over time.
- Capital Expenditures to Depreciation Ratio Analysis
- The ratio follows a V-shaped trajectory, declining from 0.96 in 2019 to a minimum of 0.45 in 2021. This indicates a phase where capital spending was significantly lower than the consumption of existing assets. While the ratio recovered to 0.89 in 2023, it moderated to 0.73 by 2024. Because the ratio remained below 1.00 for the duration of the analyzed period, the segment has consistently reinvested less than the total amount of its annual depreciation.
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Segment Capital Expenditures to Depreciation: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment capital expenditures to depreciation calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 289) | 193) | 155) | 152) | 218) | 250) |
| Depreciation and amortization | 247) | 218) | 240) | 238) | 279) | 249) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.17 | 0.88 | 0.65 | 0.64 | 0.78 | 1.00 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 289 ÷ 247 = 1.17
The analysis of International Foodservice Operations reveals a cyclical pattern in investment levels relative to asset depreciation over the six-year period ending June 29, 2024. The segment capital expenditures to depreciation ratio exhibits a distinct U-shaped trajectory, characterized by a period of contraction followed by a significant recovery and subsequent expansion.
- Capital Expenditure Trends
- Annual capital expenditures experienced a notable decline from US$ 250 million in 2019 to a period low of US$ 152 million in 2021. Following this trough, a consistent upward trend was observed, with expenditures increasing to US$ 193 million in 2023 and reaching a peak of US$ 289 million by June 29, 2024.
- Depreciation and Amortization Trends
- Depreciation and amortization expenses remained relatively stable compared to capital spending, fluctuating between a high of US$ 279 million in 2020 and a low of US$ 218 million in 2023. This stability served as a consistent baseline for assessing the intensity of the segment's reinvestment strategy.
- Segment Capital Expenditures to Depreciation Ratio Analysis
- The ratio began at 1.00 in 2019, signifying that capital investments were exactly offsetting the depreciation of existing assets. A downward trend followed, with the ratio reaching its lowest point of 0.64 in 2021, indicating a period where investment was significantly below the replacement level of assets. A recovery phase ensued, with the ratio rising to 0.88 in 2023 and culminating in a value of 1.17 in 2024. The move above the 1.0 threshold in the final year suggests a transition from maintenance-level spending to an expansionary investment phase.
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Segment Capital Expenditures to Depreciation: SYGMA
Sysco Corp.; SYGMA; segment capital expenditures to depreciation calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 21) | 31) | 35) | 33) | 24) | 36) |
| Depreciation and amortization | 33) | 32) | 31) | 33) | 35) | 35) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.64 | 0.98 | 1.13 | 1.01 | 0.68 | 1.03 |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 21 ÷ 33 = 0.64
The SYGMA segment demonstrates a pattern of inconsistent capital investment against a backdrop of highly stable depreciation and amortization expenses. While depreciation costs have remained within a narrow range over the six-year period, capital expenditures have experienced significant volatility, leading to a fluctuating investment-to-depreciation ratio.
- Capital Expenditure Volatility
- Expenditures peaked at 36 million USD in 2019 and 35 million USD in 2022, but experienced notable contractions in 2020 (24 million USD) and 2024 (21 million USD). This indicates a non-linear approach to asset acquisition and maintenance within the segment.
- Depreciation and Amortization Stability
- Depreciation and amortization expenses have remained remarkably consistent, fluctuating only between 31 million USD and 35 million USD annually. This stability suggests a steady rate of asset aging and a consistent baseline of existing infrastructure.
- Capital Expenditures to Depreciation Ratio
- The ratio has oscillated between a high of 1.13 in 2022 and a low of 0.64 in 2024. Ratios exceeding 1.0 in 2019, 2021, and 2022 indicate periods where the segment invested more than the value of its asset wear-and-tear, suggesting growth or modernization. Conversely, the declines to 0.68 in 2020 and 0.64 in 2024 reflect periods where investment fell significantly below depreciation, signaling a reduction in capital intensity or a shift toward utilizing existing capacity.
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Sales
Sysco Corp., sales by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 55,339) | 53,683) | 48,521) | 35,725) | 36,774) | 41,288) |
| International Foodservice Operations | 14,561) | 13,560) | 11,787) | 8,351) | 9,672) | 11,493) |
| SYGMA | 7,768) | 7,843) | 7,246) | 6,499) | 5,556) | 6,244) |
| Other | 1,176) | 1,239) | 1,082) | 724) | 891) | 1,088) |
| Total | 78,844) | 76,325) | 68,636) | 51,298) | 52,893) | 60,114) |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
Total sales exhibit a significant V-shaped trajectory over the analyzed six-year period. An initial contraction occurred between 2019 and 2021, with total revenue declining from 60,114 million US dollars to a low of 51,298 million US dollars. This downturn was followed by a period of aggressive expansion, with sales surging to 78,844 million US dollars by June 29, 2024, representing an overall increase of approximately 31.1% relative to the 2019 baseline.
- U.S. Foodservice Operations
- This segment serves as the primary revenue driver, consistently representing the largest portion of total sales. After experiencing a decline from 41,288 million US dollars in 2019 to 35,725 million US dollars in 2021, the segment entered a phase of rapid growth. Sales increased significantly to 55,339 million US dollars by 2024, indicating a robust recovery and expansion in the domestic market.
- International Foodservice Operations
- The international segment demonstrated higher volatility than domestic operations. Sales dropped from 11,493 million US dollars in 2019 to a trough of 8,351 million US dollars in 2021. A strong recovery was observed starting in 2022, with revenues climbing steadily to reach 14,561 million US dollars in 2024, surpassing pre-2020 levels.
- SYGMA
- SYGMA exhibited greater resilience during the initial downturn compared to the foodservice segments. While sales dipped slightly in 2020, they recovered more quickly, growing steadily from 6,499 million US dollars in 2021 to a peak of 7,843 million US dollars in 2023, before stabilizing at 7,768 million US dollars in 2024.
- Other Operations
- The other category represents the smallest revenue stream and mirrors the broader corporate trend of contraction followed by recovery. Sales fell to 724 million US dollars in 2021 before rebounding to 1,176 million US dollars by 2024.
The distribution of revenue indicates a growing reliance on the U.S. Foodservice Operations, which accounted for approximately 68% of total sales in 2019 and increased to roughly 70% by 2024. The synchronized recovery across all segments beginning in 2022 suggests a broad market rebound, with the U.S. and International Foodservice sectors providing the most substantial contributions to the overall growth in top-line revenue.
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Operating income (loss)
Sysco Corp., operating income (loss) by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 3,673) | 3,587) | 3,173) | 2,457) | 2,003) | 3,193) |
| International Foodservice Operations | 375) | 313) | 102) | (232) | (371) | 125) |
| SYGMA | 72) | 57) | (4) | 53) | 37) | 28) |
| Other | 40) | 57) | 17) | —) | (21) | 36) |
| Total | 4,160) | 4,013) | 3,289) | 2,276) | 1,647) | 3,382) |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
Total operating income experienced a substantial contraction in 2020, falling from US$ 3,382 million in 2019 to US$ 1,647 million. This decline was followed by a sustained recovery period, with total operating income increasing annually from 2021 through 2024, ultimately reaching US$ 4,160 million. This trajectory indicates a successful recovery and expansion phase following a significant volatility event.
- U.S. Foodservice Operations
- As the primary contributor to overall profitability, this segment mirrored the general corporate trend. After a sharp decline to US$ 2,003 million in 2020, operating income grew steadily each year, surpassing 2019 levels by 2022 and reaching US$ 3,673 million by 2024. This segment remains the dominant driver of the organization's financial performance.
- International Foodservice Operations
- This segment exhibited the highest degree of volatility. Significant losses were recorded in 2020 (US$ -371 million) and 2021 (US$ -232 million). A turnaround occurred in 2022, with the segment returning to profitability at US$ 102 million. Growth accelerated thereafter, culminating in an operating income of US$ 375 million by 2024, representing a complete recovery and a strengthened position compared to 2019.
- SYGMA
- Operating income for SYGMA remained relatively stable and small in scale compared to the primary foodservice segments. Despite a brief dip into negative territory in 2022 (US$ -4 million), the segment demonstrated an upward trend, ending the period at US$ 72 million in 2024.
- Other Segments
- The "Other" category showed inconsistent results, with fluctuations between losses in 2020 and a peak of US$ 57 million in 2023. By 2024, the operating income for this segment stood at US$ 40 million, contributing a marginal but positive amount to the total operating results.
The overall financial trend reveals a shift from a period of operational distress in 2020 to a state of expanded profitability by 2024. The recovery was led by the U.S. Foodservice segment and bolstered by a significant turnaround in International operations, resulting in a total operating income for 2024 that is approximately 23% higher than the 2019 baseline.
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Depreciation and amortization
Sysco Corp., depreciation and amortization by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 499) | 437) | 407) | 367) | 374) | 342) |
| International Foodservice Operations | 247) | 218) | 240) | 238) | 279) | 249) |
| SYGMA | 33) | 32) | 31) | 33) | 35) | 35) |
| Other | 10) | 9) | 9) | 10) | 12) | 11) |
| Total | 789) | 695) | 687) | 648) | 700) | 638) |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
Total depreciation and amortization expenses exhibit an overall upward trajectory over the observed six-year period, increasing from $638 million in June 2019 to $789 million in June 2024. This growth is characterized by a period of volatility between 2020 and 2021, followed by a sustained increase in expenditures beginning in 2022.
- U.S. Foodservice Operations
- This segment serves as the primary driver of total depreciation and amortization growth. Expenses rose steadily from $342 million in 2019 to $499 million in 2024. A pronounced acceleration is observed in the most recent periods, specifically with a significant increase to $499 million in 2024, suggesting intensified capital investment or an expansion of the domestic asset base.
- International Foodservice Operations
- Depreciation and amortization within the international segment demonstrate a fluctuating pattern. Following a peak of $279 million in 2020, costs experienced a general decline, reaching a low of $218 million in 2023. A recovery was noted in 2024, with expenses rising to $247 million, indicating inconsistent capital expenditure cycles compared to domestic operations.
- SYGMA and Other Segments
- The SYGMA and Other segments maintain highly stable expense profiles. SYGMA expenses remained largely stagnant, fluctuating within a narrow range between $31 million and $35 million. Similarly, the Other segment showed negligible variance, remaining between $9 million and $12 million throughout the duration of the analysis.
- Concentration of Expenses
- There is a clear shift in the distribution of depreciation and amortization toward the U.S. Foodservice segment. In 2019, U.S. operations accounted for approximately 53.6% of total expenses; by 2024, this proportion increased to 63.2%, reflecting a growing concentration of capital assets within the domestic market.
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Capital expenditures
Sysco Corp., capital expenditures by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 366) | 389) | 262) | 163) | 264) | 327) |
| International Foodservice Operations | 289) | 193) | 155) | 152) | 218) | 250) |
| SYGMA | 21) | 31) | 35) | 33) | 24) | 36) |
| Other | 35) | 23) | 4) | 17) | 21) | 25) |
| Total | 711) | 636) | 457) | 365) | 526) | 638) |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
Total capital expenditures exhibited a cyclical trend between 2019 and 2024, characterized by a significant contraction followed by a robust recovery. Total spending decreased from $638 million in 2019 to a period low of $365 million in 2021, before ascending to a peak of $711 million by June 2024.
- U.S. Foodservice Operations
- This segment consistently represents the primary driver of capital allocation. Expenditures declined from $327 million in 2019 to $163 million in 2021, coinciding with the overall corporate trend. A strong recovery followed, with spending increasing to $389 million in 2023 and remaining elevated at $366 million in 2024.
- International Foodservice Operations
- Investment in international operations mirrored the U.S. trajectory with a decline to $152 million in 2021. However, this segment demonstrated the most consistent growth in the latter years of the period, rising steadily from 2022 to reach a six-year high of $289 million in 2024.
- SYGMA
- Capital expenditures for the SYGMA segment remained relatively low and exhibited a general downward trajectory. Spending decreased from $36 million in 2019 to $21 million in 2024, suggesting a reduction in the relative capital intensity of this operation.
- Other
- The Other category displayed significant volatility, particularly in 2022 when expenditures dropped to a minimum of $4 million. Spending subsequently rebounded, reaching $35 million by June 2024.
The aggregate data suggests a strategic pivot toward increased investment in both domestic and international foodservice operations following a period of reduced spending in 2021. The 2024 total expenditure exceeds the 2019 baseline by approximately 11.4%, indicating an expansionary phase in capital investment.
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Assets
Sysco Corp., assets by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 12,505) | 11,398) | 9,541) | 7,632) | 6,647) | 7,238) |
| International Foodservice Operations | 7,545) | 7,433) | 6,596) | 6,784) | 6,258) | 5,888) |
| SYGMA | 923) | 840) | 835) | 760) | 685) | 625) |
| Other | 616) | 644) | 555) | 455) | 458) | 477) |
| Total | 21,589) | 20,315) | 17,527) | 15,632) | 14,049) | 14,228) |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
Total assets exhibited a strong upward trajectory over the analyzed six-year period, growing from 14,228 million USD in 2019 to 21,589 million USD in 2024. While a slight contraction occurred between 2019 and 2020, the subsequent years demonstrate accelerated expansion, particularly between 2021 and 2023.
- U.S. Foodservice Operations
- This segment represents the primary driver of asset growth. Assets increased from 7,238 million USD in 2019 to 12,505 million USD in 2024, representing an overall increase of approximately 72.7%. A notable acceleration in asset accumulation is observed after 2020, with the most significant year-over-year growth occurring between 2022 and 2023.
- International Foodservice Operations
- The international segment showed a steady, though more moderate, increase in assets, rising from 5,888 million USD in 2019 to 7,545 million USD in 2024. Unlike the U.S. operations, this segment maintained a more consistent growth pattern with less volatility, despite a marginal dip observed in 2022.
- SYGMA and Other Segments
- SYGMA assets demonstrated consistent incremental growth every year, increasing from 625 million USD in 2019 to 923 million USD in 2024. The Other segment remained relatively stable, fluctuating between a low of 455 million USD in 2021 and a peak of 644 million USD in 2023, ending the period at 616 million USD.
- Asset Composition and Concentration
- There is a visible shift in the concentration of assets toward the U.S. Foodservice Operations. In 2019, U.S. assets accounted for approximately 50.8% of the total asset base; by 2024, this proportion increased to approximately 57.9%. This indicates a strategic reallocation or intensified investment in domestic infrastructure relative to international and secondary segments.
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