Sysco Corporation (SYY)

Under the base case, Sysco compounds steadily as North America's leading broadline foodservice distributor. Core U.S. Foodservice Operations maintain route density and commercial momentum, growing case volumes at 2.5-3.0% annually. Supply chain expense productivity keeps cost inflation below top-line growth, allowing consolidated operating margin to expand from 3.66% to 3.90% by FY2031. Free cash flow conversion remains above $1.9 billion annually, supporting steady dividend growth, balanced reinvestment, and gradual deleveraging toward the base intrinsic fair value of $86.19.

• Consolidated revenue expands from $84,553,000,000 in FY2026 to $92,196,280,045 in FY2028 and $103,408,159,026 by FY2031.
• Operating margin expands gradually from 3.66% in FY2026 to 3.75% in FY2028 and 3.90% in FY2031.
• Reinvestment rate scales from 12% in FY2027 to 15% of NOPAT by FY2031.
• Computed cost of equity of 7.9790% and WACC of 7.0896%.
• Terminal growth rate of 2.50% and terminal P/E multiple of 16.0x.