CHICAGO, January 29, 2026 — Sysco will be focusing in the months to come on expanding the array of value-priced products it can offer restaurants as they hunt for ways to preserve margins, the distribution giant stressed during a call with financial analysts this week.
“Sysco currently under-penetrates in the value tier” of its product portfolio, which the company breaks down into good, better, and best classifications, said CEO Kevin Hourican. “There is an opportunity for improvement, especially in an environment where restaurants are seeking ways to save money.”
He explained that Sysco has traditionally seen its strongest sales from the “premium, or better/best tiers” of its product hierarchy. But changing market conditions, particularly a significant drop-off in the traffic of chain restaurants, have prompted the company to look for lower-priced sellers.
“I want to be very clear that these efforts are not intended to trade customers down from better to good,” said Hourican. “This is about filling voids in the Sysco product assortment, meeting our customers where they are, and growing our business profitably with existing customers.”
Bolstering the array will be a priority for the company for the remainder of Sysco’s fiscal year and afterward, Hourican said.
Sysco’s sales to units of national chain were virtually flat during the second quarter ended Dec. 27, with the volume of cases shipped rising less than a percentage point.
In contrast, “We saw strong growth in our foodservice management business, solid growth in travel and entertainment, and positive and strengthening growth in our healthcare business,” Hourican commented.
Overall, the broadliner shipped 0.8% more cases domestically during the quarter. Sales of Sysco’s proprietary brands held steady from a year ago, accounting for 35.3% of total intake.
It posted a net profit of $389 million for the period, a 4.2% decline from the year-ago quarter. Revenues totaled $20.8 billion, an increase of 3%.