Food Distributors: Into the CY2Q26 Prints

Research evidence excerpt

Food Distributors: Into the CY2Q26 Prints

Deutsche Bank

Research

North America Industry Date

United States 9 July 2026

Food Distributors

Consumer Industry Update

Into the CY2Q26 Prints

Lauren Silberman, CFA

Food Distributors CY2Q26 Preview Research Analyst

We believe expectations for the food distributors have increased into the earnings +1-212-250-1285

prints (as have valuations), reflecting solid top-line momentum, moderating fuel

Skyler Limber

costs and modestly higher inflation. Based on data from Black Box, we believe Research Associate

restaurant industry traffic in 2Q was similar to 1Q's -1.8%. Fuel costs were elevated +1-212-250-9185

during the quarter, though we think this should already be embedded in guides, and

Anish Chejerla

moderation in June and into July is encouraging (with some offset from

Research Associate

surcharges). We expect SYY's F4Q and FY27 to be in-line with expectations and

+1-212-250-9293

guidance, though the recently previewed AI initiatives could support incremental

upside. For USFD, we expect 2Q case growth and top-line to beat, EBITDA to be

Key Changes

in-line with the MSD-HSD guide, and a reiteration of the 2026 guide (which embeds

Company Target Price Rating

acceleration in 2H). We expect PFGC F4Q to beat and for FY27 guidance to come

123.00 to

in above its long-term algorithm. See more detailed company-specific takes below. PFGC.N -

130.00

SYY.N 84.00 to 86.00 -

Sysco (SYY) 111.00 to

SYY reports F4Q26 earnings TBD (we expect on 8/4 BMO). USFD.N 115.00 -

We expect SYY to deliver a largely in-line F4Q and our base case is for FY27 Source: Deutsche Bank

guidance to be in-line with its 6-8% algorithm (we model 7%). SYY has also recently

previewed incremental AI cost initiatives, which will be outlined in more detail on