Sysco (SYY) Stock Drops 5% After $29 Billion Jetro Restaurant Depot Deal

TLDR

• Sysco agreed to buy Jetro Restaurant Depot for $29.1 billion — nearly 75% of its own market cap.
• Restaurant Depot holders get $21.6 billion in cash and 91.5 million Sysco stock, giving them a 16% stake.
• Sysco will fund the deal mostly through new and hybrid debt, with $1 billion from cash and equity on hand.
• The deal gives Sysco entry into the $60–$70 billion “cash and carry” wholesale market, serving 725,000+ restaurants.
• Sysco expects the deal to boost EPS in the mid-to-high single digits in the first year after closing, expected by Q3 fiscal 2027.

Sysco has agreed to acquire family-owned Jetro Restaurant Depot in a $29.1 billion deal, one of the biggest moves in the food distribution industry in years. The market didn’t love it — at least not right away.

The deal is structured so Restaurant Depot shareholders receive $21.6 billion in cash, plus 91.5 million Sysco stock. That gives them a 16% stake in the combined company upon closing.

Sysco plans to fund most of the deal through $21 billion in new and hybrid debt, with around $1 billion coming from existing cash and equity. The company is also pausing its share repurchase program as part of the move.

Sysco Corporation, SYY

The deal is valued at close to 75% of Sysco’s own market cap, which stood at $39.2 billion as of Friday. That’s a bold commitment for a company that already sits at the top of the U.S. food distribution chain.

Why Jetro?

Sysco’s core business is high-volume delivery — supplying restaurants, hospitals, and hotels. Jetro Restaurant Depot operates a completely different model: cash and carry warehouses, where independent restaurant owners walk in, pay upfront, and leave with what they need.

The company runs 166 warehouse stores across the U.S. and posted roughly $16 billion in revenue and $2.1 billion in EBITDA in 2025. It serves more than 725,000 restaurants and food-service operators.

The cash and carry market has a total addressable market of $60 to $70 billion, according to Sysco. This deal is their entry ticket.

What Sysco Gets Out of It

On the financial side, Sysco expects the deal to be accretive to EPS in the mid-to-high single-digit range within the first year after closing. The company reaffirmed its existing annual forecasts alongside the announcement.

The deal would also put Sysco in direct contact with the small independent restaurant segment — a customer base it previously had limited reach into.

Earlier this year, Sysco had lifted its annual profit forecast, pointing to resilient demand despite a tough macro backdrop. The company supplies to chains including KFC and Subway.

The acquisition is expected to close by the third quarter of Sysco’s fiscal 2027, pending regulatory approval.

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