Financial Data and Key Metrics Changes - Net sales for Q3 2025 increased approximately 9.6% to $1.021 billion from $931.5 million in Q3 2024 [12] - Gross profit increased 10% to $247.2 million for Q3 2025 compared to $224.7 million for Q3 2024 [13] - GAAP net income was $19.1 million or $0.44 per diluted share for Q3 2025, compared to net income of $14.1 million or $0.34 per diluted share for Q3 2024 [15] - Adjusted EBITDA for Q3 2025 was $65.1 million compared to $54.5 million for the prior year [15] Business Line Data and Key Metrics Changes - Specialty sales were up 7.7% over the prior year, driven by unique placement growth of 5.3% and reported specialty case growth of 3.2% [8] - Excluding the impact of the Texas Produce Processing and Packaging Program, specialty case growth was 5.4% versus the prior year quarter [8] - Center-of-the-plate pounds growth was 9.6% higher than the prior year when excluding the Texas Commodity Poultry Program attrition [9] Market Data and Key Metrics Changes - Reported inflation was 7.4% in Q3 2025, with 4.4% inflation in the specialty category and 12.3% inflation in the center-of-the-plate category [12] - Unique customer growth was approximately 5.8% year-over-year when excluding the impacts of the Texas poultry attrition and Middle East conflict [9] Company Strategy and Development Direction - The company completed the acquisition of Italco Food Products, enhancing its presence in the Colorado market [10] - The focus remains on leveraging a unique go-to-market and supply chain model to grow in urban and resort markets [10] - The company is cautiously optimistic about the fourth quarter performance, with strong holiday bookings anticipated [74] Management's Comments on Operating Environment and Future Outlook - Management noted that business and demand trends improved sequentially through Q3, with continued momentum into October [6] - The company has not seen a material impact from the government shutdown and remains optimistic about market performance [26][27] - Management highlighted the importance of maintaining a diverse customer base to mitigate risks associated with economic downturns [41] Other Important Information - The company raised its full-year financial guidance, estimating net sales for 2025 to be in the range of $4.085 billion to $4.115 billion [17] - Total liquidity at the end of Q3 was $224.6 million, with net debt approximately $575.2 million [16] Q&A Session Summary Question: Can you expand on the case growth trends and backdrop? - Management noted that July and August were stronger than expected this year, with good results continuing into October [22] Question: What is the potential impact of the government shutdown? - Management indicated that they have not seen a significant impact from past government shutdowns and remain cautiously optimistic [26][27] Question: Can you discuss the updated guidance and any conservatism in it? - Management raised full-year revenue guidance and feels confident about the mid to higher end of the guidance based on October trends [31] Question: How is the acquisition of Italco expected to impact capacity in Colorado? - Management expressed excitement about the acquisition, noting it aligns well with their growth strategy in the Rockies [32] Question: Have you seen accelerating share gains recently? - Management reported that high growth markets are growing low double digits, with mature markets also performing well [38] Question: What are the trends in beef costs and inflation? - Management acknowledged elevated protein prices but noted effective management of the inflationary environment [44] Question: How is the digital penetration progressing? - Management reported over 60% adoption on the specialty side, with digital tools enhancing salesforce efficiency [67] Question: What is the outlook for business-related travel? - Management noted ongoing domestic tourism and strong performance despite complaints about travel [69] Question: What are the operational challenges in key markets? - Management indicated that while challenges exist, they are optimistic about growth opportunities in Texas and other markets [85]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 increased approximately 9.6% to $1.021 billion from $931.5 million in Q3 2024 [11] - Gross profit increased 10% to $247.2 million for Q3 2025 compared to $224.7 million for Q3 2024 [12] - GAAP net income was $19.1 million or $0.44 per diluted share for Q3 2025, compared to net income of $14.1 million or $0.34 per diluted share for Q3 2024 [13] - Adjusted EBITDA for Q3 2025 was $65.1 million compared to $54.5 million for Q3 2024 [13] Business Line Data and Key Metrics Changes - Specialty sales were up 7.7% year-over-year, driven by unique placement growth of 5.3% and reported specialty case growth of 3.2% [6] - Center-of-the-plate pounds were approximately 1.1% lower than the prior year, but excluding the Texas Commodity Poultry Program attrition, growth was 9.6% higher than the prior year [8] Market Data and Key Metrics Changes - Unique customer growth was reported at 2.6% year-over-year, impacted by the Texas commodity poultry attrition and temporary conflict in the Middle East [7] - In the Middle East, the business continued to grow and exceed expectations despite temporary impacts [8] Company Strategy and Development Direction - The company completed the acquisition of Italco Food Products, aiming to leverage its supply chain model to grow in urban and resort markets [9] - The company is focused on maintaining a diverse customer base and is cautiously optimistic about future growth despite economic uncertainties [50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q4 2025, noting strong holiday bookings and positive trends continuing into October [77] - The company has not seen a material impact from government shutdowns historically and remains optimistic about its customer base's resilience [27][28] Other Important Information - The company raised its full-year financial guidance for 2025, estimating net sales between $4.085 billion and $4.115 billion [15][16] - Total liquidity at the end of Q3 was $224.6 million, with net debt approximately $575.2 million [14] Q&A Session Summary Question: Can you expand on the growth trends observed in Q3? - Management noted that July and August were stronger than expected, with good results continuing into September and October [23] Question: What impact do you foresee from the government shutdown? - Management indicated that they have not seen a significant impact from past government shutdowns [27][28] Question: How does the acquisition of Italco fit into your growth strategy? - The acquisition is seen as a strategic move to enhance market presence in the Rockies and leverage existing capabilities [41][66] Question: How is the company managing inflation and beef costs? - Management acknowledged elevated protein prices but emphasized effective supply chain management to navigate inflation [54] Question: What is the outlook for digital penetration and its impact on customer engagement? - Digital tools are enhancing salesforce efficiency, with adoption rates over 60% [72][73]

Third Quarter 2025 Earnings Presentation The Chefs' Warehouse, Inc. 1 Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding the business of The Chefs' Warehouse, Inc. (the "Company") that are not historical facts are "forward-looking statements" that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which c ...

Financial Performance - Net sales for the thirteen weeks ended September 26, 2025, increased by $89.9 million, or 9.6%, compared to the same period in 2024, driven by organic growth and inflation impacts [83]. - Gross profit for the same period rose to $247.2 million, a 10.0% increase, with a gross profit margin of 24.2%, up from 24.1% in the prior year [84]. - The company reported a net income of $19.1 million for the thirteen weeks ended September 26, 2025, compared to $14.1 million in the prior year, reflecting a 35.0% increase [82]. - For the thirty-nine weeks ended September 26, 2025, net sales increased by $246.3 million, or 8.9%, with organic growth contributing significantly [89]. - Gross profit for the thirty-nine weeks rose to $727.5 million, a 9.7% increase, maintaining a gross profit margin of 24.2% [90]. Expenses and Taxation - Selling, general and administrative expenses increased by $15.2 million, or 7.9%, but as a percentage of net sales, it decreased to 20.4% from 20.7% [85]. - Provision for income tax expense increased by $6.2 million, or 45.7%, from $13.5 million in 2024 to $19.7 million in 2025 [94]. - Effective tax rate decreased from 30.0% in 2024 to 28.0% in 2025 [94]. - Interest expense decreased by $5.2 million, or 14.1%, due to lower debt levels and interest rates compared to the previous year [93]. Cash Flow and Investments - Cash and cash equivalents decreased from $114.7 million in December 2024 to $65.1 million in September 2025 [102]. - Net cash provided by operating activities decreased from $80.1 million in 2024 to $55.4 million in 2025 [103]. - Net cash used in investing activities was $33.3 million for the thirty-nine weeks ended September 26, 2025, primarily driven by capital expenditures [104]. - Net cash used in financing activities was $71.6 million for the thirty-nine weeks ended September 26, 2025, including $20.0 million in payments under revolving credit facilities [105]. Debt and Financing - Aggregate indebtedness outstanding as of September 26, 2025, was $352.8 million, with a variable interest rate exposure [107]. - The company amended its asset-based loan agreement, extending the maturity date to August 20, 2030, with no changes to aggregate commitments of $300.0 million [98]. Shareholder Activities - The company repurchased 241,198 shares at an average price of $62.19 per share, with a remaining authorization of $67.6 million as of September 26, 2025 [101]. - The company expects capital expenditures for fiscal 2025 to be approximately $40.0 million to $50.0 million [102]. Customer Metrics - Unique customers in the specialty category increased by 2.6% for the thirteen weeks ended September 26, 2025, contributing to sales growth [83]. - Estimated inflation contributed an additional $80.6 million, or 4.7%, to sales in the specialty category for the thirty-nine weeks ended September 26, 2025 [89].

Financial Performance - Net sales for Q3 2025 increased by 9.6% to $1,021.3 million from $931.5 million in Q3 2024[4] - Gross profit rose by 10.0% to $247.2 million in Q3 2025, with gross profit margins increasing to 24.2%[5] - GAAP net income for Q3 2025 was $19.1 million, or $0.44 per diluted share, compared to $14.1 million, or $0.34 per diluted share in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $65.1 million, up from $54.5 million in Q3 2024[11] - Net sales for the thirteen weeks ended September 26, 2025, reached $1,021,319, a 9.7% increase from $931,452 in the same period last year[21] - Gross profit for the thirty-nine weeks ended September 26, 2025, was $727,525, up 9.7% from $663,186 in the prior year[21] - Net income for the thirty-nine weeks ended September 26, 2025, was $50,677, representing a 60.5% increase compared to $31,553 for the same period in 2024[25] - Basic net income per share increased to $1.31 for the thirty-nine weeks ended September 26, 2025, from $0.83 in the prior year, reflecting a 57.8% growth[21] - Net income for the thirteen weeks ended September 26, 2025, was $19,148 million, a 35.0% increase from $14,098 million for the same period in 2024[31] - Adjusted net income for the thirteen weeks ended September 26, 2025, was $21,455 million, up 39.5% from $15,382 million in the prior year[31] - Diluted adjusted net income per common share increased to $0.50 for the thirteen weeks ended September 26, 2025, compared to $0.36 for the same period in 2024, representing a 38.9% growth[31] Expenses and Costs - Selling, general and administrative expenses increased by approximately 7.9% to $208.1 million, representing 20.4% of net sales in Q3 2025[6] - The effective tax rate for Q3 2025 was 32.6%, compared to 30.0% in Q3 2024[10] - Total adjustments to reconcile net income to adjusted net income for the thirteen weeks ended September 26, 2025, amounted to $2,307 million, compared to $1,284 million in the same period of 2024[31] - The company expects a provision for income tax expense between $29,000 million and $30,000 million for fiscal 2025[33] - Depreciation and amortization expenses are projected to be between $77,000 million and $77,500 million for fiscal 2025[33] - Interest expense is anticipated to range from $42,000 million to $43,000 million for fiscal 2025[33] Guidance and Projections - The company updated its fiscal 2025 full-year guidance, projecting net sales between $4.085 billion and $4.115 billion[14] - The company provided adjusted EBITDA guidance for fiscal 2025, with a low-end estimate of $247,000 million and a high-end estimate of $253,000 million[33] Assets and Liabilities - Total assets as of September 26, 2025, were $1,916,036, an increase from $1,858,691 as of December 27, 2024[23] - Cash and cash equivalents decreased to $65,061 as of September 26, 2025, from $114,655 at the end of the previous year[23] - Long-term debt, net of current portion, increased to $711,738 as of September 26, 2025, from $688,744 as of December 27, 2024[23] Operational Metrics - Organic case count in the specialty category increased by approximately 3.2%, with unique customer placements up by 2.6% and unique item placements up by 5.3%[4] - Operating income for Q3 2025 was $38.9 million, compared to $31.9 million in Q3 2024, with an operating income margin of 3.8%[9] - Adjusted EBITDA for the thirty-nine weeks ended September 26, 2025, was $177,983, a 17.9% increase from $150,797 in the same period last year[26] - The company reported a net cash provided by operating activities of $55,352 for the thirty-nine weeks ended September 26, 2025, compared to $80,057 in the same period last year[25] - Capital expenditures for the thirty-nine weeks ended September 26, 2025, were $33,340, down from $41,131 in the prior year[25] Market Position - The company emphasized strong growth momentum and market share gains heading into the holiday season[3]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - The Chefs' Warehouse reported a 9.6% increase in net sales for Q3 2025, reaching $1,021.3 million compared to $931.5 million in Q3 2024, indicating strong demand and market share gains [4][11] - Gross profit rose by 10.0% to $247.2 million, driven by increased sales and price inflation, with gross profit margins slightly improving to 24.2% [5][11] - The company updated its fiscal 2025 guidance, projecting net sales between $4.085 billion and $4.115 billion, and adjusted EBITDA between $247 million and $253 million [16][31] Financial Performance - Net sales for Q3 2025 increased to $1,021.3 million from $931.5 million in Q3 2024, with organic case count up by approximately 3.2% [4][11] - Gross profit for Q3 2025 was $247.2 million, a 10.0% increase from $224.7 million in Q3 2024, with gross profit margins at 24.2% [5][11] - Selling, general and administrative expenses rose by 7.9% to $208.1 million, primarily due to higher compensation and benefits [6][11] Income Metrics - Operating income for Q3 2025 was $38.9 million, up from $31.9 million in Q3 2024, with operating income as a percentage of net sales increasing to 3.8% [7][11] - Net income for Q3 2025 was $19.1 million, or $0.44 per diluted share, compared to $14.1 million, or $0.34 per diluted share, in Q3 2024 [8][11] - Adjusted EBITDA for Q3 2025 was $65.1 million, compared to $54.5 million in Q3 2024, reflecting improved operational performance [9][11] Market Trends - Business and demand trends showed improvement throughout Q3 2025, with momentum continuing into October, indicating a positive outlook heading into the holiday season [3] - The company experienced strong year-over-year growth in unique item placements, enhancing its relevance with the customer base [3] Guidance and Future Outlook - The company raised its fiscal 2025 full-year financial guidance, projecting net sales between $4.085 billion and $4.115 billion, and adjusted EBITDA between $247 million and $253 million [16][31] - The effective tax rate for Q3 2025 was 32.6%, up from 30.0% in Q3 2024, impacting net income calculations [8][11]

Core Viewpoint - The Chefs' Warehouse, Inc. is set to announce its financial results for the third quarter of 2025 on October 29, 2025, before the market opens, followed by a conference call to discuss these results [1]. Company Overview - The Chefs' Warehouse, Inc. is a leading distributor of specialty food products in the United States, the Middle East, and Canada, catering to the needs of chefs operating independent restaurants, fine dining establishments, and various culinary businesses [3]. - The company distributes over 88,000 products to more than 50,000 customer locations across its operational regions [3]. Conference Call Details - The conference call to review the financial results will take place at 8:30 a.m. ET on October 29, 2025, and will be available for live streaming on the company's investor relations website [2]. - An online archive of the webcast will be accessible for 30 days following the event [2]. Contact Information - Investor relations can be contacted through Jim Leddy, CFO, at (718) 684-8415 for further inquiries [4].

Core Insights - The article highlights the author's qualifications and experience in equity research and investment analysis, emphasizing a strong focus on the U.S. equity market, particularly in the consumer staples sector, which is viewed as offering resilient long-term investment opportunities [1]. Group 1: Qualifications and Experience - The author is a certified FMVA and FPWMP, which provides a solid foundation for analyzing financial statements and building valuation models [1]. - Participation in the CFA Research Challenge has equipped the author with practical experience in equity analysis and industry research [1]. - The author holds a degree in Finance from Alexandria University, graduating in 2024 with a CGPA of 3.6, indicating a strong academic background [1]. Group 2: Analytical Focus - The primary analytical focus is on the U.S. equity market, with a specific interest in the consumer staples sector, which is perceived as defensive and offering long-term opportunities [1]. - Experience includes preparing investment reports across various sectors such as healthcare, consumer staples, and industrials, enhancing the ability to evaluate companies across diverse industries [1]. Group 3: Professional Development - In 2023, the author joined AIESEC, which contributed to the development of leadership, communication, and teamwork skills through global exchange and project collaboration [1].

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies such as Chefs' Warehouse, Perdoceo Education, Adtalem Global Education, and Nomad Foods exhibit strong net profit margins, making them attractive to investors [1][8] Financial Metrics - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value [3] Investment Considerations - A strong net profit margin provides clarity on a company's business model, including pricing, cost structure, and manufacturing efficiency, making it a preferred metric for investors [4] - However, net profit margin varies significantly across industries, and its relevance can diminish for companies that rely heavily on debt financing [5] Screening Criteria - The screening parameters for selecting stocks include a net margin of at least 0%, positive earnings per share (EPS) growth, and a strong broker rating [7] - Stocks like CHEF, PRDO, ATGE, and NOMD were selected based on their strong net margins and favorable EPS growth outlooks, each holding a Zacks Rank of 2 and a VGM Score of A [8] Company Performance - Chefs' Warehouse has seen its 2025 earnings estimate revised upward to $1.75 per share, with a historical average earnings surprise of 11.3% [10] - Perdoceo Education's 2025 earnings estimate increased to $2.52 per share, with an average earnings surprise of 6.2% [12] - Adtalem Global Education maintains a fiscal 2026 earnings estimate of $6.52 per share, with an average earnings surprise of 18.4% [13] - Nomad Foods' 2025 earnings estimate was revised upward to $2.13 per share, with an average earnings surprise of 3.2% [14]