Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Sysco Corporation (SYY) Halal?

FAIL

Sysco Corporation · NYSE: SYY · Consumer Staples

The short answer

No — Sysco (SYY) does not pass this Shariah stock screen. The foodservice distribution business (record $84.6B FY2026 sales to restaurants, healthcare, schools and hotels; no alcohol in the disclosed product lines) and the income screen both pass — interest income of $27M is only about 0.03% of revenue. But interest-bearing debt of $13.52B ($12,315M long-term plus $1,201M of current maturities at June 27, 2026) is about 35.3% of its ~$38.26B market cap ($77.77/share, Oct 1, 2026), above the ~33% ceiling. Zoya also covers SYY and rates it not Shariah-compliant (October 2026); no Musaffa or ShariaPortfolio rating was found. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

Gate 1 — Business activity: PASS

Sysco Corporation (NYSE: SYY), headquartered in Houston, Texas, describes itself in its FY2026 10-K as the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home — restaurants, healthcare and educational facilities, lodging establishments and entertainment venues. Its distributed products are frozen foods (meats, seafood, entrees, fruits, vegetables, desserts), canned and dry foods, fresh meats and seafood, dairy products, beverage products, imported specialties and fresh produce, plus non-food items (paper products, tableware, cookware, equipment, cleaning supplies). Segments are U.S. Foodservice Operations, International Foodservice Operations, SYGMA (customized chain-restaurant distribution) and Other (Guest Worldwide hotel supply). FY2026 sales were a record $84.6B. On alcohol: the 10-K product list does not include alcohol, and a filed Sysco executive agreement defines Sysco's 'Company Products' as explicitly not including 'wine, spirits, or other alcohol products'. In March 2026 Sysco agreed to acquire Jetro Restaurant Depot (a cash-and-carry wholesaler) for about $29.1B, expected to close by Q3 FY2027. No prohibited lines are disclosed. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: FAIL

At June 27, 2026 the 10-K reports long-term debt of $12,315M plus current maturities of long-term debt of $1,201M — total interest-bearing debt of $13,516M (about $13.52B). Against a market capitalization of about $38.26B ($77.77/share at the October 1, 2026 close), debt ÷ market cap is about 35.3%, above the ~33% ceiling. (Cross-check: 479.1M shares outstanding at August 4, 2026 × $77.77 ≈ $37.26B gives about 36.3% — also above the ceiling.) Cash and cash equivalents of $1,786M are about 4.7% of market cap, within the ~33% guideline; the failure is the debt ratio alone. Note: after the 10-K date, Sysco closed a C$1.5B senior notes offering (September 25, 2026) tied to the Jetro acquisition financing — excluded from the ratios above, which use the 10-K figures. Gate 2 fails. Facts only.

Gate 3 — Non-compliant income: PASS

Interest income was $27M in FY2026, disclosed in the 10-K's adjusted-EBITDA reconciliation footnote, against sales of $84,553M — about 0.03% of revenue, far below the 5% non-compliant income ceiling. Sysco is a distributor, not a lender; the interest is earned on cash balances, not from financing operations. Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Sysco do?

Sysco Corporation (NYSE: SYY) is the world's largest foodservice distributor, based in Houston, Texas. It sells, markets and distributes food and related products to customers who prepare meals away from home — restaurants, hospitals and nursing facilities, schools and colleges, hotels, and industrial caterers — across North America and Europe, reporting record sales of $84.6 billion in fiscal 2026. Its products include frozen foods, canned and dry goods, fresh meat and seafood, dairy, beverages, imported specialties and fresh produce, plus non-food supplies like paper goods, tableware and cleaning products. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA (distribution for chain restaurants) and Guest Worldwide (hotel supply).

Why does Sysco fail this Shariah stock screen?

Sysco fails on the debt screen, not the business or income screens. Its core business is foodservice distribution with no disclosed prohibited lines — the 10-K product list contains no alcohol, and a filed company agreement explicitly excludes wine, spirits and other alcohol products from Sysco's Company Products. Interest income of $27 million is only about 0.03% of its $84.6 billion in sales, far under the 5% limit. The problem is leverage: interest-bearing debt of $13.52 billion ($12,315 million long-term plus $1,201 million of current maturities at June 27, 2026) is about 35.3% of its roughly $38.26 billion market cap (at $77.77 per share on October 1, 2026), above the 33% ceiling used in this screen. Zoya independently covers SYY and rates it not Shariah-compliant as of October 2026. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Sysco's interest-bearing debt ratio?

About 35.3%, above the 33% ceiling — this is the screen Sysco fails. At June 27, 2026, Sysco's 10-K reported long-term debt of $12,315 million plus current maturities of long-term debt of $1,201 million, for total interest-bearing debt of $13,516 million (about $13.52 billion). Against a market capitalization of about $38.26 billion ($77.77 per share on October 1, 2026), that is 35.3%. A cross-check using the 10-K's 479.1 million shares outstanding gives about 36.3% — also over the ceiling. Cash and cash equivalents of $1,786 million are only about 4.7% of market cap, within the 33% guideline. Note the ratios use the 10-K figures and exclude Sysco's C$1.5 billion senior notes offering that closed September 25, 2026 to help finance the Jetro acquisition.

What is Sysco's non-compliant income ratio?

About 0.03% of revenue, far below the 5% ceiling — this screen passes. Sysco disclosed interest income of $27 million for fiscal 2026 in the adjusted-EBITDA reconciliation footnote of its 10-K, against sales of $84,553 million. Sysco is a food distributor, not a lender: the interest is earned on cash balances rather than from financing operations, and other expense (income), net of $102 million is mostly unrelated items including a $54 million loss on deal-contingent rate lock transactions tied to the planned Jetro acquisition.

Do Zoya, Musaffa, or ShariaPortfolio cover Sysco?

Zoya covers Sysco and rates SYY as not Shariah-compliant as of October 2026, per its public stock page — an independent result consistent with this screen's debt-ratio finding. No rating or coverage of Sysco (NYSE: SYY) was found on Musaffa or ShariaPortfolio — honestly reported as absent, not invented. This page applies the screen directly from the company's filings: the Form 10-K for the fiscal year ended June 27, 2026 and the related earnings release.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).