Sysco Corporation ( SYY - Free Report ) experienced margin pressure in the third quarter of fiscal 2025, with gross profit falling 0.8% and gross margin contracting 35 basis points to 18.3%. Despite improved gross profit per case, overall margin was impacted by volume softness and an unfavorable shift in mix, specifically, stronger performance from lower-margin national accounts and reduced penetration of Sysco-branded products. The company cited macroeconomic headwinds and declining restaurant traffic as primary factors behind the volume decline. In addition, national business outpaced local performance during the quarter, further skewing the mix. Strategic sourcing initiatives, expected to bolster gross margin, fell short of internal timelines in the quarter. Fewer deals were finalized than anticipated, due in part to the challenging operating environment.