Sysco Corporation
Company History
Sysco History: Founding, Growth & Key Milestones
Founded 1969 in Houston, Texas, United States
When was Sysco founded?
Sysco was founded in 1969 in Houston, Texas, United States by John F. Baugh, making it 57 years old.
- Founded
- 1969
- Founding place
- Houston, Texas, United States
- Founders
- John F. Baugh
- Headquarters today
- Houston, Texas, United States
- Milestones documented
- 11 (1969–2026)
- Current CEO
- Kevin Hourican
- Acquisitions
- 11
| Year | Event |
|---|---|
| 1969 | Sysco is founded |
| 1970 | Sysco goes public |
| 1988 | CFS Continental Acquired |
| 1999 | Acquired Newport Meat |
| 2015 | US Foods merger blocked |
| 2016 | Brakes Group acquisition |
| 2018 | Tom Bené becomes CEO |
| 2020 | Kevin Hourican becomes CEO |
| 2025 | Sales reach $81.370B |
| 2026 | Jetro Restaurant Depot deal announced |
| 2026 | Fiscal 2026 sales reach $84.6B |
- Where was Sysco founded?
- Sysco was founded in Houston, Texas, United States in 1969.
- Who founded Sysco?
- Sysco was founded by John F. Baugh.
- When did Sysco start?
- Sysco was founded in 1969.
- How old is Sysco?
- Sysco is 57 years old as of 2026.
Founding Story
Sysco was formed in 1969 when John F. Baugh, founder of Houston's Zero Foods, joined with other independent regional food distributors to create Systems and Services Company. The combined business went public in 1970 and spent the following decades acquiring regional broadline and specialty distributors, turning a fragmented local trade into a national delivery network.
Founders
John F. Baugh
John F. Baugh (1916-2007) founded Houston frozen-food distributor Zero Foods in 1946. In 1969 he brought Zero Foods together with other independent regional distributors to form Systems and Services Company, or Sysco, which listed its shares in 1970. The idea was simple: restaurants buying from many small local suppliers would value one distributor with national scale and consistent service. John F. Baugh was born in 1916.
Key Milestones
Sysco is founded
John F. Baugh and other distributors formed Sysco to build a national foodservice distribution company.
Source: sysco.comSysco goes public
Sysco became a public company and used capital markets to support expansion.
Source: sysco.comCFS Continental Acquired
Sysco bought CFS Continental, then the third-largest US food distributor, in 1988.
Source: en.wikipedia.orgAcquired Newport Meat
Sysco acquired Newport Meat. Sysco acquired Newport Meat in 1999.
Source: en.wikipedia.orgUS Foods merger blocked
Antitrust opposition ended Sysco's proposed combination with US Foods.
Source: ftc.govBrakes Group acquisition
Sysco expanded internationally by acquiring Brakes Group in Europe.
Source: investors.sysco.comTom Bené becomes CEO
Tom Bené became CEO of Sysco in 2018. Stepped down on January 31, 2020, when Kevin Hourican took over.
Source: nasdaq.comKevin Hourican becomes CEO
Kevin Hourican became CEO of Sysco in 2020. Under Hourican, sales grew from $51.3 billion in fiscal 2021 to $84.6 billion in fiscal 2026.
Source: en.wikipedia.orgJetro Restaurant Depot deal announced
Sysco agreed to acquire Jetro Restaurant Depot for an enterprise value of about $29.1 billion.
Source: investors.sysco.comFiscal 2026 sales reach $84.6B
Sysco reported fiscal 2026 sales of $84.6 billion and guided to 6%-7% sales growth for fiscal 2027.
Source: investors.sysco.comMajor Acquisitions
Newport Meat
1999Sysco acquired Newport Meat in 1999.
FreshPoint
2000Added a specialty fresh-produce distribution business.
Crossgar Foodservice
2012Sysco acquired Crossgar Foodservice in 2012.
Appert's Foodservice
2012Sysco acquired Appert's Foodservice in 2012.
Brakes Group
2016After the US Foods merger was blocked in 2015, Sysco bought Brakes Group for about $3.1 billion to expand in Europe.
HFM FoodService
2017Sysco acquired HFM FoodService in 2017.
Doerle Food Services
2018Sysco acquired Doerle Food Services in 2018.
Kent Frozen Foods
2018Sysco acquired Kent Frozen Foods in 2018.
Greco and Sons
2021Sysco acquired Greco and Sons in 2021.
Paragon Foods
2021Sysco acquired Paragon Foods in 2021.
Jetro Restaurant Depot
2026Announced March 30, 2026 to add a cash-and-carry warehouse channel for independent restaurants; pending as of October 2026.
Keep researching Sysco
Sysco Company History FAQ
When, where, and by whom was Sysco Corporation founded?
Sysco was founded in 1969 in Houston, Texas, by John F. Baugh alongside his wife Eula Mae Baugh and a coalition of eight other independent regional food distributors. The company's name was an acronym for "Systems and Services Company."
What was the original concept that led to Sysco's creation?
John F. Baugh operated Zero Foods in Houston. In the late 1960s, he recognized that national restaurant chains, hotels, and hospitals were expanding rapidly across the U.S. but had to deal with dozens of fragmented regional food wholesalers. Baugh united nine regional distributors into Sysco to provide unified national foodservice distribution.
When did Sysco go public on the stock market?
Sysco completed its Initial Public Offering (IPO) in March 1970, listing on the New York Stock Exchange under the ticker symbol SYY. At the time of its IPO, the newly consolidated company recorded approximately $115 million in annual revenue.
What was Sysco's pivotal acquisition of CFS Continental in 1988?
In 1988, Sysco acquired CFS Continental for $750 million, the largest acquisition in foodservice distribution history at the time. The deal doubled Sysco's size, added crucial West Coast and Midwest distribution hubs, and established Sysco as the undisputed market leader in North America.
When did Sysco acquire FreshPoint and why was it strategic?
In 2000, Sysco acquired FreshPoint Inc., North America's largest specialty produce distributor. FreshPoint gave Sysco specialized temperature-controlled supply chains, ripening rooms, and direct relationships with global growers, expanding beyond frozen foods into fresh agricultural produce.
Why was Sysco's proposed $3.5 billion merger with US Foods blocked in 2015?
In December 2013, Sysco agreed to acquire primary rival US Foods for $3.5 billion. However, in 2015, the Federal Trade Commission (FTC) sued to block the merger on antitrust grounds, and a federal judge granted an injunction, ruling that combining the top two distributors would create a national monopoly and inflate food prices for hospitals, schools, and restaurants.
How did Sysco expand into Europe with the Brakes Group acquisition in 2016?
In July 2016, following the termination of the US Foods merger, Sysco acquired leading European foodservice distributor Brakes Group from Bain Capital for $3.1 billion. The acquisition expanded Sysco's footprint across the United Kingdom, Ireland, France, and Sweden.
How did Sysco navigate the COVID-19 pandemic restaurant shutdowns in 2020?
When dining rooms closed in March 2020, cutting restaurant demand by over 60%, newly appointed CEO Kevin Hourican pivoted Sysco to supply surging grocery store chains, launched temporary curbside pickup programs, waived order minimums for independent restaurants, and accelerated digital e-commerce via Sysco Shop.
What is Sysco Shop and how did it modernize the company's ordering workflow?
Sysco Shop is the company's proprietary digital e-commerce and mobile ordering platform. Replacing paper order guides and manual sales rep ordering, Sysco Shop provides chefs and restaurant operators with real-time inventory visibility, pricing transparency, and AI-driven personalized product recommendations.
What is Sysco's "Recipe for Growth" corporate strategy?
Unveiled in May 2021 by CEO Kevin Hourican, the "Recipe for Growth" is Sysco's long-term transformation plan focused on digital customer tools, supply chain automation, dedicated culinary sales consultants, and customer loyalty rewards to outgrow the broader food market by 1.5 times.
What recent equipment and supplies acquisitions did Sysco complete?
In 2023, Sysco acquired Edward Don & Company, a leading national distributor of foodservice equipment, kitchen supplies, glassware, and flatware, allowing Sysco to offer full turnkey kitchen fit-outs alongside consumable food products.
How has Sysco maintained its status as an S&P 500 Dividend Aristocrat?
Sysco has increased its annual shareholder dividend for more than 50 consecutive years, earning elite status as an S&P 500 Dividend King and Dividend Aristocrat through consistent cash flow generation and countercyclical food distribution resilience.
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