On February 12 2026, more than 500 Sysco drivers and warehouse workers in Chicago and Montana, represented by five Teamsters locals, voted 99.5 % in favor of authorizing a strike under the current bargaining agreement. The vote signals growing labor tensions in the food‑service distribution sector, where rising labor costs and competition for skilled drivers are intensifying.
The strike authorization could disrupt Sysco’s delivery schedules in the two regions, forcing the company to deploy alternative logistics resources and potentially increase overtime costs for remaining staff. If the strike proceeds, Sysco may face revenue losses in the affected markets as customers experience delayed deliveries.
Sysco’s financial performance in 2025 and the first quarter of 2026 shows the company remains profitable, with net earnings of $1.8 billion in FY 2025 and adjusted EPS of $1.15 in Q1 2026. Revenue grew 3.2 % to $21.1 billion in Q1 2026, driven by strong demand in core segments, while the company maintained a gross margin of 18.5 % after a 13‑basis‑point expansion from the prior quarter.
Management has highlighted the company’s ability to sustain margins amid rising costs. CEO Kevin Hourican noted that “Sysco’s Q4 results exceeded expectations, as improved financial outcomes were driven by improved restaurant industry traffic and a 200‑basis‑point increase in local volumes.” In Q1 2026, Hourican added that “adjusted EPS performance exceeded expectations, driven by strong improvement in the local business.”
Analysts have responded to the strike authorization with caution, noting that while Sysco’s earnings beat expectations and guidance remains positive, the potential for operational disruptions and increased labor costs introduces a new risk factor. The company’s recent $1.25 billion senior unsecured notes issuance and ongoing labor negotiations underscore the importance of managing cost pressures.
The Teamsters represent more than 13,000 Sysco workers nationwide, and the organization has secured significant wage increases in recent contracts, including a 34 % raise in Spokane. The Chicago and Montana vote follows earlier strikes in Indianapolis and Louisville in 2023 and a planned strike in Houston in January 2025, indicating a pattern of organized action across the company’s operations.
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