Sysco Corp ( SYY ) shares are trading lower on Tuesday.

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The company reported fourth quarter adjusted earnings per share of $1.48, beating the analyst consensus estimate of $1.36. Quarterly sales of $21.14 billion (+2.8% year over year) outpaced the Street view of $21 billion.

“Sysco’s Q4 results exceeded expectations, as improved financial outcomes were driven by Sysco ( SYY )-specific initiatives and improved restaurant industry traffic,” said Kevin Hourican, Sysco’s chair of the board and CEO.

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U.S. Foodservice Operations saw fourth-quarter sales rise 2.4% to $14.8 billion, despite lower volumes from weak industry foot traffic and rising costs. Ongoing investments in capacity and headcount also weighed on segment performance.

International Foodservice Operations delivered strong results with 3.6% sales growth to $3.9 billion. The segment benefited from effective margin management, local volume gains and double-digit profit growth.

Gross profit increased 3.9% to reach $4 billion, supported by solid top-line performance. In the quarter under review, adjusted EBITDA increased 1.8% to $1.3 billion.

As of the end of the quarter, the company had a cash balance of $1.1 billion and total liquidity of $3.8 billion.

Long-term debt in the quarter under review expanded to $12.360 billion from $11.513 billion a year ago.

Outlook: Sysco ( SYY ) expects fiscal year 2026 adjusted EPS in the range of $4.50 to $4.60, below the $4.68 analyst estimate.

The company projects sales between $84 billion and $85 billion, compared to the $84.34 billion consensus.

SYY Price Action: Sysco ( SYY ) shares are trading lower by 2.35% to $78.47 at publication on Tuesday.

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