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Home/News Feed/Sysco shares drop 16% after $29.1B Jetro acquisition raises debt and execution risks
SYY
$80.82
-$2.03 -2.45%

Sysco shares drop 16% after $29.1B Jetro acquisition raises debt and execution risks

Market News
31 Mar 2026
24/7 Wall Street
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Bearish
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Sysco's stock fell 16.16% following its announcement to acquire Jetro Restaurant Depot for $29.1 billion, a deal that adds $21 billion in debt and pauses share buybacks. Citi cut its price target to $72, citing concerns over multi-year execution risks and the challenge of disproving the bear thesis amid high leverage of 4.5x. Despite expected cost synergies and EPS accretion, the heavy debt load and integration timeline create ongoing pressure on the stock. The acquisition aims to expand Sysco's presence in a faster-growing, higher-margin market, but significant free cash flow will be needed for deleveraging through fiscal 2028.

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Sysco to report Q4 and fiscal 2026 results on August 4 with webcast and investor materials.

Sysco to report Q4 and fiscal 2026 results on August 4 with webcast and investor materials.

Sysco Corporation will announce its financial results for the fourth quarter and fiscal year 2026 on August 4, 2026. The company will host a conference call and webcast at 10 a.m. ET to discuss the results, with investor materials available on its we...

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