Sysco Corporation SYY

Competitive advantage analysis · consumer-defensive

Corporate Default
Overall moat score
67/100
Moderate

About Sysco Corporation

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, … Full SYY analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 18.5% (top 25%) and operating margin at 3.7% (top 17%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.92), demonstrating pricing resilience across cycles.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
83

Where SYY ranks in Food Distribution

Sysco Corporation ranks #2 of 14 scored companies in Food Distribution by moat score — the top 14%. The widest moat in the group is G. Willi-Food International, L (WILC) at 75/100.

Moat scores for companies ranked near SYY in Food Distribution
# Company Moat score Rating
1 G. Willi-Food International, L WILC 75/100 Moderate
2 Sysco Corporation SYY 67/100 Moderate
3 US Foods Holding Corp. USFD 66/100 Moderate
4 Calavo Growers, Inc. CVGW 60/100 Moderate
5 Performance Food Group Company PFGC 58/100 Moderate
6 The Chefs' Warehouse, Inc. CHEF 57/100 Moderate
7 Mission Produce, Inc. AVO 55/100 Moderate
8 The Andersons, Inc. ANDE 53/100 Moderate
9 United Natural Foods, Inc. UNFI 45/100 Developing

See every General Corporate company ranked by moat score →

How SYY scores on the Corporate Default defenses

Pricing Power

Score 83 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 83 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 62 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 61 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 55 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 61 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SYY's moat

What is Sysco Corporation's moat score?

Sysco Corporation (SYY) scores 67 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #2 of 14 scored companies in Food Distribution, the top 14%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 13 companies in Food Distribution. Its strongest defense is Cost Advantage (83/100) and its weakest is Resilience (55/100).

How does Sysco Corporation compare with other Food Distribution companies?

Sysco Corporation ranks #2 of 14 scored companies in Food Distribution by moat score. The widest moat in Food Distribution is G. Willi-Food International, L (WILC) at 75/100. The companies ranked closest are G. Willi-Food International, L (WILC) at 75 just above it and US Foods Holding Corp. (USFD) at 66 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 13 companies in Food Distribution. The defenses are then weighted to produce the overall score out of 100.

Why is Sysco Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Sysco Corporation?

The Corporate Default template measures 6 defenses, and SYY scores: Pricing Power (83), Cost Advantage (83), Customer Stickiness (62), Capital Efficiency (61), Resilience (55), Scale & Market Position (61). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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