Sysco Corporation’s Stock Struggles Amid Market Challenges

With a market cap of $34.4 billion, Sysco Corporation (SYY) specializes in the marketing and distribution of food and related products aimed at the foodservice sector, both in the United States and internationally. Based in Houston, Texas, the company operates various segments, including U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.

Stock Performance and Market Comparison

In the past year, shares of Sysco have lagged behind the broader market and continue to underperform in 2025. Over the last 52 weeks, SYY stock has dropped 5.6%, with a year-to-date decline of 5.9%. For comparison, the S&P 500 Index ($SPX) has delivered an 11.9% return over the same period, although it has seen slight declines in 2025.

More specifically, SYY has also failed to match the Consumer Staples Select Sector SPDR Fund’s (XLP) increase of 4.4% over the past year and its 3.1% rise this year.

Recent Earnings and Future Outlook

Following the release of its Q3 earnings on April 29, SYY stock experienced a slight decline. The company reported a 1.1% year-over-year rise in sales, totaling $19.6 billion. However, this performance was affected by challenges such as California wildfires, extreme weather conditions, and diminishing consumer confidence. Sysco’s adjusted EPS for the quarter was $0.96, which was 6.8% below analyst expectations.

Looking ahead to the current fiscal year ending in June, analysts project an EPS increase of 1.6% year-over-year, anticipating it will reach $4.38. Sysco has a mixed earnings surprise track record, having met or exceeded consensus estimates in two of the last four quarters while falling short on two occasions.

Analyst Ratings and Price Targets

Currently, SYY holds a consensus “Moderate” rating among analysts. Out of the 17 analysts covering Sysco, 11 have rated it a “Strong Buy,” while six recommend a “Hold.”

Analyst coverage has shown consistency in recent months. On April 30, Barclays PLC (BCS) analyst Jeff Bernstein reaffirmed a “Buy” rating for Sysco while adjusting the price target down from $87 to $77.

SYY’s average price target of $79.77 represents a potential upside of 10.9% from current market prices. The highest target set by analysts at $88 suggests an impressive upside potential of 22.3% from current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.