SYSCO'S $29.1 BILLION ACQUISITION OF RESTAURANT DEPOT INCLUDES DEBT - WSJ

Written by Emily J. Thompson, Senior Investment Analyst

Source: moomoo

Updated: 13 hours ago

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SYY-15.28%

Should l Buy SYY?

Source: moomoo

Deal Overview: SYSCO has finalized a deal for a restaurant depot valued at $29.1 billion, which includes debt considerations.
Financial Implications: The transaction reflects significant financial maneuvering, indicating SYSCO's strategic investment in the restaurant sector.

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Analyst Views on SYY

Wall Street analysts forecast SYY stock price to rise

10 Analyst Rating

5 Buy

5 Hold

0 Sell

Moderate Buy

Current: 81.800

Low

80.00

Averages

87.56

High

98.00

Current: 81.800

Low

80.00

Averages

87.56

High

98.00

S&P Global Ratings

BBB

maintain

2026-03-30

New

Reason

S&P Global Ratings

Price Target

AI Analysis

2026-03-30

New

maintain

BBB

Reason

S&P Global Ratings affirmed all its ratings on Sysco, including the 'BBB' issuer credit and 'A-2' short-term commercial paper ratings. "We revised the outlook to negative from stable, reflecting the potential for a lower rating if we believe S&P Global Ratings-adjusted leverage will remain above 4x for two years following the close of its acquisition. The transaction is occurring when the probability of a U.S. recession over the next 12 months is increasing due to rising energy prices. This could delay projected credit ratio improvement, especially if consumer spending at restaurants weakens or Sysco experiences integration difficulties."

Wells Fargo

Overweight

maintain

$92 -> $100

2026-02-19

Reason

Wells Fargo

Price Target

$92 -> $100

2026-02-19

maintain

Overweight

Reason

Wells Fargo raised the firm's price target on Sysco to $100 from $92 and keeps an Overweight rating on the shares. The firm notes the company provided a constructive update at CAGNY, and its post event catch-up with Sysco reinforced its positive view on the stock. Wells says it remains the firm's top food service idea into the calendar Q2 earnings cycle.

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About SYY

Sysco Corporation is engaged in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. It also supplies a variety of non-food items. Its segments include U.S. Foodservice Operations, International Foodservice Operations, SYGMA and Other. U.S. Foodservice Operations segment includes United States Broadline operations and United States Specialty operations. International Foodservice Operations include operations outside of the United States. SYGMA segment includes its United States customized distribution operations serving quick-service chain restaurant customer locations. Other segment includes primarily its hotel supply operations, Guest Worldwide. It distributes various products, such as frozen foods, fresh meats and seafood, dairy products, beverage products, imported specialties, and fresh produce. It operates around 340 distribution facilities worldwide.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Sysco Acquires Wholesaler for $29 Billion, but Investors Remain Skeptical.

11 hours agoBarron's

Acquisition Announcement: Sysco has announced its agreement to acquire Jetro Restaurant Depot for $29.1 billion.
Market Expansion: This deal will allow Sysco to enter the "cash and carry" wholesale business, expanding its market presence.

Food Company Secures $29 Billion Deal, Yet Wall Street is Unsettled.

11 hours agoBarron's

Acquisition Announcement: Sysco has announced its agreement to acquire Jetro Restaurant Depot for $29.1 billion.
Business Expansion: This deal marks Sysco's entry into the "cash and carry" wholesale business sector.

SYSCO and JETRO Restaurant Depot Shareholders Set to Receive $21.6 Billion in Cash and 91.5 Million SYSCO Shares

13 hours agomoomoo

Cash Distribution: Shareholders of Sysco Corporation are set to receive a total of $21.6 billion in cash.
Shareholder Benefits: In addition to the cash distribution, shareholders will also receive 91.5 million shares of Sysco stock.