HOUSTON, July 30, 2024 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) ("Sysco" or the "company") today announced financial results for its 13-week fourth fiscal quarter and its fiscal year ended June 29, 2024. Key financial results for the fourth quarter of fiscal year 2024 include the following (comparisons are to the same period in fiscal year 2023): Sales increased 4.2%; U.S. Foodservice volume increased 3.5%; U.S. local volumes grew 0.7%; Gross profit increased 4.2% to $3.8 billion; Operating income increased 1.2% to $977 million, and adjusted operating income increased 6.4% to $1.1 billion1; EBITDA decreased 7.7% to $1.2 billion, and adjusted EBITDA increased 5.4% to $1.3 billion1,2; and EPS3 decreased 14.6% to $1.23, compared to $1.44 in the same period last year, and adjusted EPS1 increased 3.7% to $1.39. "Sysco's financial performance for the quarter and year included market share gains, strong profit growth, investments in the business, and robust annual cash flow. Our balanced efforts to grow top-line and manage margins enabled us to deliver solid bottom-line results. In addition, we rewarded our shareholders with share repurchases and dividends. I am proud of our team for a steadfast focus on core business drivers, and advancing our strategic initiatives. We remain on track with a specific set of actions that we are confident will positively increase local case performance in the upcoming fiscal year. I am particularly pleased with our International business, which delivered a 19.4% increase in operating income and 23.6% increase in adjusted operating income for the year. I want to thank all Sysco colleagues for their strong customer focus and hard work in fiscal 2024. We are the leader in the Food Away From Home distribution business because of you, our talented team," said Kevin Hourican, Sysco's Chair of the Board and Chief Executive Officer. ______________________________1 Adjusted financial results, including adjusted operating expense, adjusted operating income (loss), adjusted earnings per share (EPS) and adjusted EBITDA, are non-GAAP financial measures that exclude certain items, which primarily include acquisition-related costs, restructuring and severance costs, and transformational project costs. Last year's Certain Items include a pension settlement charge that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer, adjustments to our bad debt reserve specific to aged receivables existing prior to the COVID-19 pandemic, adjustments to a product return allowance related to COVID-related personal protection equipment inventory and a gain on a litigation financing agreement.2 Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.3 Earnings per share (EPS) are shown on a diluted basis, unless otherwise specified. "Our fourth quarter operating profit included our seventh consecutive quarter of positive operating leverage. Additionally, over $2.2 billion was returned to shareholders this year. We plan to build on that momentum with continual improvements expected this coming fiscal year. Fiscal 2025 kicks off the first year of our three-year financial growth algorithm. Our plans for consistent top- and bottom-line growth are built on our expectations for sustainable growth, operational excellence, and a balanced capital return profile. This long-term view reflects an expected compounded annual growth rate of 4%-6% for net sales, 6%-8% for adjusted EPS, and 9-11% total shareholder returns," said Kenny Cheung, Sysco's Chief Financial Officer. Key financial results for fiscal year 2024 include the following (comparisons are to the same period in fiscal year 2023): Sales increased 3.3%; U.S. Foodservice volume increased 3.1%; U.S. local volumes grew 1.1%; Gross profit increased 4.7% to $14.6 billion; Operating income increased 5.4% to $3.2 billion, and adjusted operating income increased 8.4% to $3.5 billion1; EBITDA increased 12.7% to $4.0 billion, and adjusted EBITDA increased 9.0% to $4.2 billion1,2; EPS increased 12.1% to $3.89, and adjusted EPS increased 7.5% to $4.311,3; Cash flow from operations increased 4.2% to $3.0 billion and free cash flow increased 5.6% to $2.2 billion as compared to the same period last year4; and Net Debt to adjusted EBITDA5 improved to 2.7 times, within our target ratio; we returned approximately $2.2 billion of capital to shareholders via $1.2 billion of share repurchases and $1.0 billion of dividends. Fourth Quarter Fiscal Year 2024 Results (comparisons are to the same period in fiscal year 2023) Total Sysco Sales for the fourth quarter increased 4.2% to $20.6 billion. Gross profit increased 4.2% to $3.8 billion, and gross margin decreased 1 basis point to 18.7%. Product cost inflation was 1.6% at the total enterprise level, as measured by the estimated change in Sysco's product costs, primarily in the poultry and meat categories. The increase in gross profit for the fourth quarter was primarily driven by positive volumes, as well as continued progress with effective management of product cost inflation and our strategic sourcing initiative. Operating expenses increased 5.2%, driven by increased volumes and cost inflation. Adjusted operating expenses increased 3.3%. Operating income increased 1.2% to $977 million, and adjusted operating income increased 6.4% to $1.1 billion. ______________________________4 Free cash flow is a non-GAAP financial measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations for all non-GAAP financial measures are included at the end of this release.5 Net debt to adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. Our net debt to adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of adjusted EBITDA. U.S. Foodservice Operations The U.S. Foodservice Operations segment results were driven by higher volumes, combined with effective margin management and re-investments. Sales for the fourth quarter increased 4.9% to $14.4 billion. Total case volume within U.S. Foodservice grew 3.5% for the fourth quarter, while local case volume within U.S. Foodservice increased 0.7%. Gross profit increased 3.1% to $2.8 billion, and gross margin decreased 32 basis points to 19.4%. Operating expenses increased 5.2%, and adjusted operating expenses increased 4.4%. Operating income decreased 0.1% to $1.0 billion, and adjusted operating income increased 1.1% to $1.1 billion. International Foodservice Operations The International Foodservice Operations segment delivered sales growth, along with outsized profit growth. Sales for the fourth quarter increased 3.8% to $3.8 billion. On a constant currency basis6, sales for the fourth quarter were $3.8 billion, an increase of 4.5%. Foreign exchange rates decreased both International Foodservice Operations sales by 0.7% and total Sysco sales by 0.1% during the quarter. Gross profit increased 8.7% to $787 million, and gross margin increased 93 basis points to 20.8%. On a constant currency basis6, gross profit increased 9.3% to $791 million. Foreign exchange rates decreased both International Foodservice Operations gross profit by 0.6% and total Sysco gross profit by 0.1% during the quarter. Operating expenses increased 11.3%, and adjusted operating expenses increased 7.6%. On a constant currency basis6, adjusted operating expenses increased 8.1%. Foreign exchange rates decreased both International Foodservice Operations operating expenses by 0.5% and total Sysco operating expenses by 0.1% during the quarter. Operating income decreased 4.2% to $115 million, and adjusted operating income increased 13.1% to $164 million. On a constant currency basis6, adjusted operating income was $165 million, an increase of 13.8%. Foreign exchange rates decreased both International Foodservice Operations operating income by 0.7% and total Sysco operating income by 0.1% during the quarter. Fiscal Year 2024 Results (comparisons are to the same period in fiscal year 2023) Total Sysco Sales for fiscal year 2024 increased 3.3% to $78.8 billion. ______________________________6 Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. These adjusted measures are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release. Gross profit increased 4.7% to $14.6 billion, and gross margin increased 25 basis points to 18.5%. Product cost inflation was 1.5% at the total enterprise level, as measured by the estimated change in Sysco's product costs, primarily in the poultry and meat categories. The increase in gross profit for the year was primarily driven by positive volumes, as well as continued progress with effective management of product cost inflation and our strategic sourcing initiative. Operating expenses increased 4.5%, driven by increased volumes and cost inflation. Adjusted operating expenses increased 3.6%. Operating income increased 5.4% to $3.2 billion, and adjusted operating income increased 8.4% to $3.5 billion. U.S. Foodservice Operations The U.S. Foodservice Operations segment results were driven by higher volumes and effective margin management, which resulted in continued profit growth. Sales for fiscal year 2024 increased 3.1% to $55.3 billion. Total case volume within U.S. Foodservice grew 3.1% for fiscal year 2024, while local case volume within U.S. Foodservice increased 1.1%. Gross profit increased 3.4% to $10.7 billion, and gross margin increased 5 basis points to 19.4%. Operating expenses increased 3.9%, and adjusted operating expenses increased 3.5%. Operating income increased 2.4% to $3.7 billion, and adjusted operating income increased 3.2% to $3.7 billion. International Foodservice Operations The International Foodservice Operations segment delivered another strong year of sales and profit growth. Sales for fiscal year 2024 increased 7.4% to $14.6 billion. On a constant currency basis6, sales for fiscal year 2024 were $14.3 billion, an increase of 5.5%. Foreign exchange rates increased both International Foodservice Operations sales by 1.9% and total Sysco sales by 0.3% during the year. Gross profit increased 11.6% to $2.9 billion, and gross margin increased 76 basis points to 20.2%. On a constant currency basis6, gross profit increased 9.2% to $2.9 billion. Foreign exchange rates increased both International Foodservice Operations gross profit by 2.4% and total Sysco gross profit by 0.4% during the year. Operating expenses increased 10.5%, and adjusted operating expenses increased 9.5%. On a constant currency basis6, adjusted operating expenses increased 6.8%. Foreign exchange rates increased both International Foodservice Operations operating expense by 2.7% and total Sysco operating expense by 0.6% during the year. Operating income increased 19.4% to $375 million, and adjusted operating income increased 23.6% to $492 million. On a constant currency basis6, adjusted operating income was $488 million, an increase of 22.6%. Foreign exchange rates increased both International Foodservice Operations operating income by $4 million and total Sysco operating income by $1 million during the year. Balance Sheet, Cash Flow and Capital Spending As of the end of the quarter, the company had a cash balance of $696 million. During the year, Sysco returned $2.2 billion to shareholders via $1.2 billion of share repurchases and $1.0 billion of dividends. Cash flow from operations was $3.0 billion for the fiscal year, which was an increase of $121 million over the prior year period. Capital expenditures, net of proceeds from sales of plant and equipment, for fiscal year 2024 were $753 million. Free cash flow4 for fiscal year 2024 was $2.2 billion, which was an increase of $119 million over the prior year period. Conference Call & Webcast Sysco will host a conference call to review the company's fourth quarter and full fiscal year 2024 financial results on Tuesday, July 30, 2024, at 10:00 a.m. Eastern Daylight Time. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com. Key Highlights:   13-Week Period Ended 52-Week Period Ended           Financial Comparison: June 29, 2024 Change June 29, 2024 Change GAAP:         Sales $20.6 billion 4.2% $78.8 billion 3.3% Gross Profit $3.8 billion 4.2% $14.6 billion 4.7% Gross Margin  18.7% -1 bp  18.5% 25 bps Operating Expenses $2.9 billion 5.2% $11.4 billion 4.5% Operating Income $977 million 1.2% $3.2 billion 5.4% Operating Margin  4.8% -14 bps  4.1% 8 bps Net Earnings $612 million -16.5% $2.0 billion 10.5% Diluted Earnings Per Share $1.23  -14.6% $3.89  12.1%           Non-GAAP (1):         Gross Profit $3.8 billion 4.2% $14.6 billion 4.7% Gross Margin  18.7% -1 bp  18.5% 25 bps Operating Expenses $2.8 billion 3.3% $11.1 billion 3.6% Operating Income $1.1 billion 6.4% $3.5 billion 8.4% Operating Margin  5.3% 11 bps  4.4% 21 bps EBITDA $1.2 billion -7.7% $4.0 billion 12.7% Adjusted EBITDA $1.3 billion 5.4% $4.2 billion 9.0% Net Earnings $693 million 1.5% $2.2 billion 6.0% Diluted Earnings Per Share (2) $1.39  3.7% $4.31  7.5%           Case Growth:         U.S. Foodservice  3.5%    3.1%   Local  0.7%    1.1%             Sysco Brand Sales as a % of Cases (3):         U.S. Broadline  36.6% -51 bps  36.7% -19 bps Local  47.1% -37 bps  47.0% 11 bps Note: (1) Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measures are included at the end of this release. (2) Individual components in the table above may not sum to the totals due to the rounding. (3) Amounts reflect the impact of current customer classifications; prior period history has been reclassified to match the current period customer classification.   Forward-Looking Statements Statements made in this press release or in our earnings call for the fourth quarter of fiscal year 2024 that look forward in time or that express management's beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. These statements include statements concerning: our expectations regarding future improvements in productivity; our belief that improvements in our organizational capabilities will deliver compelling outcomes in future periods; our expectations regarding improvements in international volume; our expectations that our transformational agenda will drive long-term growth; our expectations regarding the continuation of an inflationary environment; our expectations regarding improvements in the efficiency of our supply chain; our expectations regarding the impact of our Recipe for Growth strategy and the pace of progress in implementing the initiatives under that strategy; our expectations regarding Sysco's ability to outperform the market in future periods; our expectations that our strategic priorities will enable us to grow faster than the market; our expectations regarding our efforts to reduce overtime rates and the incremental investments in hiring; our expectations regarding the expansion of our Sysco Driver Academy and our belief that the academy will enable us to provide upward career path mobility for our warehouse colleagues and improve colleague retention; our expectations regarding the benefits of the six-day delivery and last mile distribution models; our plans to improve the capabilities of our sales team; our plans to refine our engineering labor standards; our expectations regarding the impact of our growth initiatives and their ability to enable Sysco to consistently outperform the market; our expectations to exceed our growth target by the end of fiscal 2025; our ability to deliver against our strategic priorities; economic trends in the United States and abroad; our belief that there is further opportunity for profit in the future; our future growth, including growth in sales and earnings per share; the pace of implementation of our business transformation initiatives; our expectations regarding our ability to execute our balanced approach to capital allocation and rewarding our shareholders; our plans to improve colleague retention, training and productivity; our belief that our Recipe for Growth transformation is creating capabilities that will help us profitably grow for the long term; our expectations regarding our long-term financial outlook; our expectations of the effects labor harmony will have on sales and case volume, as well as mitigation expenses; our expectations for customer acquisition in the local/street space; our expectations regarding the effectiveness of our Global Support Center expense control measures; and our expectations regarding the growth and resilience of our food away from home market. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Sysco's control. Therefore, you should not place undue reliance on any of the forward-looking statements contained herein. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Report on Form 10-K for the year ended July 1, 2023, as filed with the SEC, and our subsequent filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law.   About Sysco Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 76,000 colleagues, the company operates 340 distribution facilities worldwide and serves approximately 730,000 customer locations. For fiscal year 2024 that ended June 29, 2024, the company generated sales of more than $78 billion. Information about our Sustainability program, including Sysco's 2023 Sustainability Report and 2023 Diversity, Equity & Inclusion Report, can be found at www.sysco.com. For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoFoods. For important news and information regarding Sysco, visit the Investor Relations section of the company's Internet home page at investors.sysco.com, which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. In addition, investors should continue to review our news releases and filings with the SEC. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information.   Sysco Corporation and its Consolidated SubsidiariesCONSOLIDATED RESULTS OF OPERATIONS (Unaudited)(In Millions, Except for Share and Per Share Data)   Quarter Ended   Year Ended   Jun. 29, 2024   Jul. 1, 2023   Jun. 29, 2024   Jul. 1, 2023                 Sales $ 20,556   $ 19,728     $ 78,844   $ 76,325 Cost of sales   16,718     16,043       64,236     62,370 Gross profit   3,838     3,685       14,608     13,955 Operating expenses (1)   2,861     2,720       11,406     10,916 Operating income $ 977   $ 965     $ 3,202   $ 3,039 Interest expense   165     136       607     527 Other expense (income), net (1) (2)   8     (128 )     30     227 Earnings before income taxes   804     957       2,565     2,285 Income taxes   192     224       610     515 Net earnings $ 612   $ 733     $ 1,955   $ 1,770                 Net earnings:               Basic earnings per share $ 1.23   $ 1.45     $ 3.90   $ 3.49 Diluted earnings per share   1.23     1.44       3.89     3.47                 Average shares outstanding   495,872,056     506,546,404       501,238,422     507,362,913 Diluted shares outstanding   497,464,115     508,507,679       503,096,086     509,719,756 (1) Gains and losses related to the disposition of fixed assets have been recognized within operating expenses. Prior year amounts for the fourth quarter have been reclassified to conform to this presentation. (2) Sysco's second quarter of fiscal 2023 included a charge of $315 million in other expense related to pension settlement charges. Sysco's fourth quarter of fiscal 2023 included $122 million in other income related to a legacy litigation financing agreement.       Sysco Corporation and its Consolidated SubsidiariesCONSOLIDATED BALANCE SHEETS(In Millions, Except for Share Data)   Jun. 29, 2024   Jul. 1, 2023   (Unaudited)     ASSETS       Current assets       Cash and cash equivalents $ 696     $ 745   Accounts receivable, less allowances of $54 and $46   5,324       5,092   Inventories   4,678       4,481   Prepaid expenses and other current assets   323       284   Income tax receivable   22       6   Total current assets   11,043       10,608   Plant and equipment at cost, less accumulated depreciation   5,497       4,915   Other long-term assets       Goodwill   5,153       4,646   Intangibles, less amortization   1,188       860   Deferred income taxes   445       420   Operating lease right-of-use assets, net   923       732   Other assets   668       640   Total other long-term assets   8,377       7,298   Total assets $ 24,917     $ 22,821           LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities       Accounts payable $ 6,290     $ 6,025   Accrued expenses   2,226       2,251   Accrued income taxes   131       102   Current operating lease liabilities   125       99   Current maturities of long-term debt   469       63   Total current liabilities   9,241       8,540   Long-term liabilities       Long-term debt   11,513       10,348   Deferred income taxes   345       303   Long-term operating lease liabilities   838       656   Other long-term liabilities   1,089       932   Total long-term liabilities   13,785       12,239   Commitments and contingencies       Noncontrolling interest   31       33   Shareholders' equity       Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none   —       —   Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares   765       765   Paid-in capital   1,908       1,815   Retained earnings   12,260       11,311   Accumulated other comprehensive loss   (1,339 )     (1,253 ) Treasury stock at cost, 273,416,685 and 260,062,834 shares   (11,734 )     (10,629 ) Total shareholders' equity   1,860       2,009   Total liabilities and shareholders' equity $ 24,917     $ 22,821       Sysco Corporation and its Consolidated SubsidiariesCONSOLIDATED CASH FLOWS (Unaudited)(In Millions)   Year Ended   Jun. 29, 2024   Jul. 1, 2023 Cash flows from operating activities:       Net earnings $ 1,955     $ 1,770   Adjustments to reconcile net earnings to cash provided by operating activities:       Pension settlement charge   —       315   Share-based compensation expense   104       96   Depreciation and amortization   873       776   Operating lease asset amortization   124       113   Amortization of debt issuance and other debt-related costs   19       20   Deferred income taxes   27       (16 ) Provision for losses on receivables   57       36   Other non-cash items   (12 )     (7 ) Additional changes in certain assets and liabilities, net of effect of businesses acquired:       Increase in receivables   (110 )     (271 ) Increase in inventories   (70 )     (22 ) (Increase) decrease in prepaid expenses and other current assets   (2 )     2   Increase in accounts payable   104       196   (Decrease) increase in accrued expenses   (12 )     22   Decrease in operating lease liabilities   (144 )     (134 ) Increase in accrued income taxes   13       92   Decrease in other assets   38       6   Increase (decrease) in other long-term liabilities   25       (126 ) Net cash provided by operating activities   2,989       2,868   Cash flows from investing activities:       Additions to plant and equipment   (832 )     (793 ) Proceeds from sales of plant and equipment   79       42   Acquisition of businesses, net of cash acquired   (1,210 )     (37 ) Purchase of marketable securities   (33 )     (16 ) Proceeds from sales of marketable securities   29       12   Other investing activities (1)   5       7   Net cash used for investing activities   (1,962 )     (785 ) Cash flows from financing activities:       Bank and commercial paper borrowings, net   200       —   Other debt borrowings including senior notes   1,362       249   Other debt repayments including senior notes   (447 )     (830 ) Debt issuance costs   (13 )     —   Proceeds from stock option exercises   120       79   Stock repurchases   (1,232 )     (500 ) Dividends paid   (1,008 )     (996 ) Other financing activities (2)   (20 )     (58 ) Net cash used for financing activities   (1,038 )     (2,056 ) Effect of exchange rates on cash, cash equivalents and restricted cash   (10 )     8   Net (decrease) increase in cash, cash equivalents and restricted cash   (21 )     35   Cash, cash equivalents and restricted cash at beginning of period   966       931   Cash, cash equivalents and restricted cash at end of period $ 945     $ 966           Supplemental disclosures of cash flow information:       Cash paid during the period for:       Interest $ 557     $ 511   Income taxes, net of refunds   564       444   (1) Change primarily includes proceeds from the settlement of corporate-owned life insurance policies. (2) Change includes cash paid for shares withheld to cover taxes, settlement of interest rate hedges and other financing activities.     Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Impact of Certain Items The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. Our results for fiscal 2023 were also impacted by a pension settlement charge that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer, adjustments to our bad debt reserve specific to aged receivables existing prior to the COVID-19 pandemic, adjustments to a product return allowance related to COVID-related personal protection equipment inventory and a gain on a litigation financing agreement. The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.   Management believes that adjusting its operating expenses, operating income, other (income) expense, net earnings and diluted earnings per share to remove these Certain Items and presenting its results on a constant currency basis provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company's underlying operations and (2) facilitates comparisons on a year-over-year basis.   Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco's results for fiscal year 2024 and fiscal year 2023.   Set forth on the following page is a reconciliation of sales, operating expenses, operating income, other (income) expense, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.   Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Impact of Certain Items(Dollars in Millions, Except for Share and Per Share Data)     13-Week Period Ended Jun. 29, 2024   13-Week Period Ended Jul. 1, 2023   Change in Dollars   %/bps Change Sales (GAAP)   $ 20,556     $ 19,728     $ 828     4.2 % Impact of currency fluctuations (1)     25       —       25     0.1   Comparable sales using a constant currency basis (Non-GAAP)   $ 20,581     $ 19,728     $ 853     4.3 %                   Cost of sales (GAAP)   $ 16,718     $ 16,043     $ 675     4.2 %                   Gross profit (GAAP)   $ 3,838     $ 3,685     $ 153     4.2 % Impact of currency fluctuations (1)     4       —       4     0.1   Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP)   $ 3,842     $ 3,685     $ 157     4.3 %                   Gross margin (GAAP)     18.67 %     18.68 %       -1  bp Impact of currency fluctuations (1)     —       —         0  bps Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP)     18.67 %     18.68 %       -1  bp                   Operating expenses (GAAP)   $ 2,861     $ 2,720     $ 141     5.2 % Impact of restructuring and transformational project costs (2)     (61 )     (25 )     (36 )   NM Impact of acquisition-related costs (3)     (45 )     (28 )     (17 )   (60.7 ) Operating expenses adjusted for Certain Items (Non-GAAP)     2,755       2,667       88     3.3   Impact of currency fluctuations (1)     3       —       3     0.1   Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP)   $ 2,758     $ 2,667     $ 91     3.4 %                   Operating expense as a percentage of sales (GAAP)     13.92 %     13.79 %       13 bps Impact of certain item adjustments     (0.52 )     (0.27 )       -25 bps Adjusted operating expense as a percentage of sales (Non-GAAP)     13.40 %     13.52 %       -12 bps                   Operating income (GAAP)   $ 977     $ 965     $ 12     1.2 % Impact of restructuring and transformational project costs (2)     61       25       36     NM Impact of acquisition-related costs (3)     45       28       17     60.7   Operating income adjusted for Certain Items (Non-GAAP)     1,083