Our market risks consist of interest rate risk, foreign currency exchange rate risk, fuel price risk and investment risk. Interest Rate Risk We do not utilize financial instruments for trading purposes. Our use of debt directly exposes us to interest rate risk. Floating rate debt, where the interest rate fluctuates periodically, exposes us to short-term changes in market interest rates. Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes us to changes in market interest rates reflected in the fair value of the debt and to the risk that we may need to refinance maturing debt with new debt at higher rates. We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and may employ interest rate swaps as a tool to achieve that position. The major risks from interest rate derivatives include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties in such transactions. At June 27, 2026, we have fixed-to-floating swap agreements on $2.3 billion of outstanding fixed-rate senior notes. See Note 10, “Derivative Financial Instruments” for more details. A hypothetical 100 basis-point increase (decrease) in market interest rates related to the fixed-to-floating swaps would increase (decrease) the fair value of the long-term senior notes by approximately $140 million. At June 27, 2026, we have forward starting interest rate swap agreements on a $2 billion notional value of debt issuances expected to occur in the first quarter of fiscal 2027. See Note 10, “Derivative Financial Instruments” for more details. A hypothetical 100 basis-point increase (decrease) in benchmark interest rates would increase (decrease) the fair value of the pre-issuance swap agreements by approximately $120 million. At June 27, 2026, we have deal-contingent interest rate lock agreements on $6.3 billion of future permanent debt that could be issued to finance the purchase of JRD and are accounted for mark-to-market with changes in fair value going to Other income and expense. See Note 10, “Derivative Financial Instruments” for more details. A hypothetical 100-basis point increase (decrease) in interest rates would increase (decrease) the fair value of these agreements by approximately $425 million and have a similar impact on earnings. At June 27, 2026, there were no commercial paper issuances outstanding under our European commercial paper program and no commercial paper issuances outstanding under our U.S. commercial paper program. Total debt as of June 27, 2026 was $13.5 billion, of which approximately 83% was at fixed rates of interest. At June 28, 2025, there were $205 million in commercial paper issuances outstanding under our European commercial paper program and no commercial paper issuances outstanding under our U.S. commercial paper program. Total debt as of June 28, 2025 was $13.3 billion, of which approximately 90% was at fixed rates of interest. 61 Details of our outstanding swap agreements as of June 27, 2026 are below: Maturity Date of Swap Notional Value (in millions) Fixed Coupon Rate on Hedged Debt Floating Interest Rate on Swap Floating Rate Reset Terms Location of Fair Value on Balance Sheet Fair Value of Asset (Liability) (in millions) June 25, 2031 $ 600 4.40 % USD-SOFR-COMPOUND w/ -2 Day Lookback USD-SOFR-OIS Compound w/ -2 Day Lookback Every six months on the last day of each calculation period Accrued expenses $ (2) Other long-term liabilities (9) September 30, 2031 1,000 N/A USD-SOFR-OIS Compound Every twelve months on the last day of each calculation period Other long-term liabilities (3) January 17, 2034 500 6.00 USD-SOFR Compound USD-SOFR-OIS Compound Every six months on the last day of each calculation period Other assets 5 March 23, 2035 550 5.40 USD-SOFR-OIS Compound Every six months on the last day of each calculation period Prepaid expenses and other current assets 1 Other assets 6 March 25, 2036 650 4.95 USD-SOFR-OIS Compound w/ -2 Day Lookback Every six months on the last day of each calculation period Accrued expenses (1) Other long-term liabilities (11) September 30, 2036 1,000 N/A USD-SOFR-OIS Compound Every twelve months on the last day of each calculation period Other long-term liabilities (4) 62 The following tables present our interest rate position as of June 27, 2026. All amounts are stated in U.S. dollar equivalents. Interest Rate Position as of June 27, 2026 Principal Amount by Expected Maturity Average Interest Rate 2027 2028 2029 2030 2031 Thereafter Total Fair Value (Dollars in millions) U.S. Dollar Denominated: Fixed Rate Debt $ 1,043 $ 750 $ 655 $ 1,500 $ 700 $ 5,384 $ 10,032 $ 9,462 Average Interest Rate 3.46 % 3.25 % 5.93 % 4.77 % 5.10 % 4.79 % 4.63 % Floating Rate Debt $ — $ — $ — $ — $ — $ 2,300 $ 2,300 $ 2,297 Average Interest Rate — % — % — % — % — % 5.14 % 5.14 % Interest Rate Position as of June 27, 2026 Notional Amount by Expected Maturity Average Interest Swap Rate 2027 2028 2029 2030 2031 Thereafter Total Fair Value (Dollars in millions) Interest Rate Swaps Related To Debt: Pay Variable/Receive Fixed $ — $ — $ — $ — $ — $ 2,300 $ 2,300 $ (11) Average Variable Rate Paid: Rate A Plus — % — % — % — % — % 1.29 % 1.29 % Fixed Rate Received — % — % — % — % — % 5.14 % 5.14 % Rate A – six-month USD-SOFR Compound and USD-SOFR-OIS Compound Foreign Currency Exchange Rate Risk The majority of our foreign subsidiaries use their local currency as their functional currency. To the extent that business transactions are not denominated in a foreign subsidiary’s functional currency, we are exposed to foreign currency exchange rate risk. We also incur gains and losses within our shareholders’ equity due to the translation of our financial statements from foreign currencies into U.S. dollars. Our largest currency exposures are with Canadian dollars, British pound sterling and Euro currencies. Our income statement trends may be impacted by the translation of the income statements of our foreign subsidiaries into U.S. dollars. The exchange rates used to translate our foreign sales into U.S. dollars positively affected sales by 0.6% in fiscal 2026 when compared to fiscal 2025. The exchange rate used to translate our foreign sales into U.S. dollars negatively affected sales by less than 0.1% in fiscal 2025 when compared to fiscal 2024. The impact on our operating income, net earnings and earnings per share was not material in fiscal 2026 or fiscal 2025. A 10% unfavorable change in the fiscal 2026 weighted year-to-date exchange rate and the resulting impact on our financial statements would have negatively affected fiscal 2026 sales by 1.7% and would not have materially affected our operating income, net earnings and earnings per share. Our investments and loans to foreign operations create additional foreign currency exposure and from time to time, we enter into agreements to hedge foreign currency exchange rate risks and mitigate impact to our consolidated results of operations. In third quarter of fiscal 2026, we entered into Canadian dollar cross-currency swaps which will mature on June 25, 2031 to hedge the foreign currency exposure of the net investment in our Canadian operations. Changes in the value of these items resulting from fluctuations in the underlying exchange rates to U.S. Dollar exchange rates were recorded as foreign currency translation adjustments within accumulated other comprehensive income (loss), net. Additionally, we periodically enter into agreements to hedge foreign currency risk associated with changes in spot and forward rates on foreign denominated balances, which are designated as fair value hedges. Gains or losses from fair value hedges impact the same category on the consolidated statements of income as the item being hedged, including the earnings impact of excluded components. Unrealized gains or losses on components excluded from hedge effectiveness are recorded as a component of accumulated other comprehensive income (loss), net and recognized into earnings over the life of the hedged instrument. Fuel Price Risk Due to the nature of our distribution business, we are exposed to potential volatility in fuel prices. The price and availability of diesel fuel fluctuates due to changes in production, seasonality and other market factors are generally outside of 63 our control. Increased fuel costs may have a negative impact on our results of operations in three areas. First, the high cost of fuel can negatively impact consumer confidence and discretionary spending and thus reduce the frequency and amount spent by consumers for food-away-from-home purchases. Second, the high cost of fuel can increase the price we pay for product purchases, and we may not be able to pass on these costs fully to our customers. Third, increased fuel costs impact the costs we incur to deliver products to our customers. Fuel costs related to outbound deliveries represented approximately 0.5% of sales in each of fiscal 2026, fiscal 2025 and fiscal 2024. Our activities to mitigate fuel costs include routing optimization with the goal of reducing miles driven, improving fleet utilization by adjusting idling time and maximum speeds and using fuel surcharges that primarily track with the change in market prices of fuel. We use diesel fuel swap contracts to fix the price of a portion of our projected monthly diesel fuel requirements. As of June 27, 2026, we had diesel fuel swaps with a total notional amount of approximately 87 million gallons through June 2028. These swaps are expected to lock in the price of approximately 80% of our bulk fuel purchases for fiscal 2027, or 70% of our total projected fuel purchase needs for fiscal 2027. Our remaining fuel purchase needs will occur at market rates unless contracted for a fixed price or hedged at a later date. Using current, published quarterly market price projections for diesel and estimates of fuel consumption, a 10% unfavorable change in diesel prices from the market price would result in a potential increase of approximately $9 million in our fuel costs on our non-contracted volumes. Investment Risk Our U.S. Retirement Plan holds various investments, including public and private equity, fixed income securities and real estate funds. The amount of our annual contribution to the plan is dependent upon, among other things, the return on the plan’s assets and discount rates used to calculate the plan’s liability. Fluctuations in asset values can cause the amount of our anticipated future contributions to the plan to increase and can result in a reduction to shareholders’ equity on our balance sheet as of fiscal year-end, which is when this plan’s funded status is measured. Also, the projected liability of the plan will be impacted by the fluctuations of interest rates on high quality bonds in the public markets. To the extent the financial markets experience declines, our anticipated future contributions and funded status will be affected for future years. A 10% unfavorable change in the value of the investments held by our company-sponsored retirement plans at the plans’ fiscal year end (December 31, 2025) would not have a material impact on our anticipated future contributions for fiscal 2027; however, such an unfavorable change would increase our pension expense for fiscal 2027 by $25 million and would reduce our shareholders’ equity on our balance sheet as of June 27, 2026 by $259 million. 64