Sysco trims its sales outlook after a first-quarter revenue miss and holds its profit target

The company now expects full-year sales growth at the low end of its 6% to 7% range, while its 9% to 11% adjusted EPS growth target rests on volume growth of about 2.5%.

Sysco reported first-quarter revenue of $21.78B against $22.24B expected, and it now expects full-year sales growth at the lower end of its 6% to 7% range. The company ties the trim to a lower industry inflation environment. Adjusted earnings per share of $1.19 missed by one cent.

The revenue shortfall matters more than the cent. Sysco kept its fiscal 2027 adjusted EPS growth guidance of 9% to 11%, but that is management's own forecast, and it is built on local volume growth of approximately 2.5%. So the sales outlook has come down while the profit range has not, and the profit range depends on volume.

Chair and CEO Kevin Hourican said the quarter showed positive volume growth, expanding gross margins and disciplined expense control. He said this came despite softer restaurant foot traffic, higher fuel costs and lower than expected food cost inflation.

If restaurant traffic stays soft, the EPS range may be tested in coming quarters. A lower sales outlook leaves less room for growth to make up the difference.