We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Sysco Sustain 3.3% Local Volume Growth in Fiscal 2027?
Read MoreHide Full Article
Key Takeaways
SYY grew U.S. local case volume 3.3% in Q3, the strongest quarterly local gain in more than 3 years.
SYY tied the surge to sales productivity, retention, better penetration and continued new-customer wins.
SYY expects at least 2.5% local volume growth in Q4 and said local trends should stay strong in FY27.
Sysco Corporation (SYY - Free Report) entered fiscal 2026 facing a difficult operating backdrop, but its fiscal third-quarter local case performance showed a clear shift in momentum. U.S. local case volume increased 3.3%, the company’s strongest quarterly local growth rate in more than three years, and improved 210 basis points sequentially from the prior quarter. The key question now is whether that acceleration can continue in fiscal 2027.
Restaurant traffic remained pressured across the industry, making the improvement more notable. Black Box data referenced during the quarter showed restaurant traffic declining nearly 1.9%, underscoring that Sysco’s gains were largely company-specific.
The improvement appears tied to operational execution rather than pricing or macro tailwinds. Sysco highlighted stronger sales productivity, improved retention among sales colleagues, better customer penetration and continued gains in new customer wins. The company also pointed to tools like AI360, which is helping improve onboarding and selling effectiveness, along with customer-focused initiatives such as Sysco Your Way and Perks 2.0.
Image Source: Zacks Investment Research
Importantly, the local business is becoming a larger growth engine within the broader portfolio. Local customers typically carry better profitability characteristics than national chain accounts, making sustained local momentum particularly meaningful from a margin perspective. The dynamic became increasingly visible in the third quarter as Sysco delivered gross margin expansion despite soft restaurant traffic conditions.
The near-term outlook also suggests confidence in continued momentum. Sysco expects local volume growth of at least 2.5% in the fourth quarter, which would represent another improvement on a two-year stacked basis. The company also indicated that local trends are expected to remain strong in fiscal 2027.
While the broader restaurant environment remains uneven, Sysco’s recent performance suggests its local business recovery is being supported by internal execution, productivity gains and customer acquisition efforts.
Shares of this Zacks Rank #3 (Hold) company have risen 1.2% over the past three months against the industry’s decline of 26%.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) transforms food and animal byproducts into sustainable ingredients for essential uses. DAR carries a Zacks Rank #2 (Buy).
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago reported figures. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Can Sysco Sustain 3.3% Local Volume Growth in Fiscal 2027?
Key Takeaways
Sysco Corporation (SYY - Free Report) entered fiscal 2026 facing a difficult operating backdrop, but its fiscal third-quarter local case performance showed a clear shift in momentum. U.S. local case volume increased 3.3%, the company’s strongest quarterly local growth rate in more than three years, and improved 210 basis points sequentially from the prior quarter. The key question now is whether that acceleration can continue in fiscal 2027.
Restaurant traffic remained pressured across the industry, making the improvement more notable. Black Box data referenced during the quarter showed restaurant traffic declining nearly 1.9%, underscoring that Sysco’s gains were largely company-specific.
The improvement appears tied to operational execution rather than pricing or macro tailwinds. Sysco highlighted stronger sales productivity, improved retention among sales colleagues, better customer penetration and continued gains in new customer wins. The company also pointed to tools like AI360, which is helping improve onboarding and selling effectiveness, along with customer-focused initiatives such as Sysco Your Way and Perks 2.0.
Image Source: Zacks Investment Research
Importantly, the local business is becoming a larger growth engine within the broader portfolio. Local customers typically carry better profitability characteristics than national chain accounts, making sustained local momentum particularly meaningful from a margin perspective. The dynamic became increasingly visible in the third quarter as Sysco delivered gross margin expansion despite soft restaurant traffic conditions.
The near-term outlook also suggests confidence in continued momentum. Sysco expects local volume growth of at least 2.5% in the fourth quarter, which would represent another improvement on a two-year stacked basis. The company also indicated that local trends are expected to remain strong in fiscal 2027.
While the broader restaurant environment remains uneven, Sysco’s recent performance suggests its local business recovery is being supported by internal execution, productivity gains and customer acquisition efforts.
Shares of this Zacks Rank #3 (Hold) company have risen 1.2% over the past three months against the industry’s decline of 26%.
Stocks to Consider
The Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) transforms food and animal byproducts into sustainable ingredients for essential uses. DAR carries a Zacks Rank #2 (Buy).
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago reported figures. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.