Foodservice Distribution 1Q26: Sysco Makes Its Move

Founded in 1976, Jetro is the dominant U.S. wholesale cash-and-carry foodservice provider, serving more than 725,000 independent restaurants and operators through 166 warehouses across 35 states. In FY25, it generated $16 billion in revenue and $2.1 billion in EBITDA.

The transaction will be funded primarily through about $21 billion in new and hybrid debt, pushing Sysco's net leverage to roughly 4.5x-5.0x, well above its target range. Sysco paused share repurchases and plans to reduce leverage by 1x over 24 months. Sysco's stock fell 15% following the announcement as investors scrutinized the price paid.

Performance Food Group (PFG) acquired Cash-Wa Distributing in early 2026, adding about $1 billion in revenue across Nebraska, South Dakota, and North Dakota, continuing an active M&A strategy that includes its $2.1 billion Cheney Brothers acquisition in 2024.

Average sales gains across the industry were 5.3%, primarily driven by pricing and mix, while restaurant foot traffic declined nearly 3%. Private label was a standout theme as customers prioritized affordability, and rising fuel costs tied to Middle East tensions introduced renewed volatility heading into the rest of 2026.