Sysco faces risks from geopolitical/economic conditions, inflation/deflation impacting product costs and profitability, potential competition from GPOs, customer relationship changes, consumer eating habits, natural disasters, public health crises, tax law changes, fuel cost fluctuations, supply chain disruptions, product liability claims, regulatory compliance, financing difficulties, and technology disruptions. Labor issues and pension plan funding requirements are also noted.
Financial Upside
Sysco anticipates sales growth in fiscal 2025, driven by U.S. Foodservice Operations volume growth and inflation. Gross profit growth is expected due to volume and margin management. Acquisitions are contributing to volume growth. The company is pursuing cost savings and market share increases through its "Recipe for Growth" transformation. Positive free cash flow is projected.
