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Foodservice Distribution Gross Margin

measures gross profit as a percentage of sales for a foodservice distribution business, reflecting pricing, sourcing, customer mix, product mix, and inflation.

By Lee BaileyPublished Sep 29, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Sep 29, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
10 connected conceptsPart of the reviewed Foodservice Distribution Economics; issuer definitions remain distinct where disclosed.
Company examples
2 reviewed companiesRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Customer and product mix can matter as much as price
  2. Gross margin does not measure distribution-cost conversion
  3. Part of the Foodservice Distribution Economics
  4. See It in Company Research
  5. Continue Research

Foodservice distribution gross margin measures gross profit as a percentage of sales under the distributor's reporting scope.

US Foods reported 18.2% gross margin for the 13 weeks ended June 27, 2026, versus 17.6% a year earlier. Sysco's U.S. Foodservice gross margin was 19.11% for fiscal 2026 versus 19.09% in fiscal 2025.

Customer and product mix can matter as much as price

Sysco attributed part of its margin improvement to local sales volume growth outpacing national volume. PFG says independent customers and Performance Brands can generate higher gross profit per case.

Those disclosures connect gross margin to independent sales mix and proprietary-brand case mix.

Gross margin does not measure distribution-cost conversion

Warehouse labor, delivery expense, sales costs, and administrative costs sit below gross profit.

A distributor can expand gross margin while operating costs rise enough to offset some of the benefit. Adjusted EBITDA margin adds that next layer, but it is a non-GAAP issuer-defined measure and should remain separate.

Primary sources: US Foods Q2 2026 Form 10-Q and Sysco fiscal 2026 Form 10-K.

Part of the Foodservice Distribution Economics

Connect case-volume growth and acquisition-normalized demand with local and independent customer mix, proprietary-brand penetration, food-cost inflation, gross margin, and adjusted EBITDA conversion.

Browse the full operating model in Company Analysis →
Where this concept fits
  • Gross profit and operating conversionCurrent relationship
    Gross margin captures sales less product cost, while adjusted EBITDA margin carries the analysis through distribution, selling, administrative, and issuer-defined adjustment layers. Margin conversion therefore depends on both upstream mix and downstream cost productivity.
    Adjusted EBITDA MarginFoodservice Gross MarginCurrent concept
  • Case growth and acquisition normalization
    Total case growth measures physical volume before acquisition normalization, organic case growth removes recently acquired operations under issuer policy, and local or independent-customer measures reveal where that volume is coming from. Local and independent definitions remain issuer-specific rather than interchangeable.
    Independent Restaurant Case GrowthLocal Case Volume GrowthOrganic Case Volume GrowthOrganic Independent Case GrowthTotal Case Volume Growth
  • Customer, brand, and inflation mix
    Independent sales mix shows customer composition, proprietary-brand case mix shows product composition, and food-cost inflation shows the pricing input moving through the distribution model. Each can affect gross profit without representing the same economic lever.
    Food Cost InflationIndependent Sales MixProprietary Brand Case Mix

See It in Company Research

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Compare foodservice gross margins

Compare gross margin with customer mix, sourcing, proprietary-brand penetration, inflation, and distribution economics kept in context.

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