Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that while trends can be profitable, ensuring their longevity is crucial [1][2]. Group 1: Stock Performance - Chefs' Warehouse (CHEF) has shown a solid price increase of 25.8% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 8.9% in the last four weeks, suggesting that the upward trend is still intact [5]. - CHEF is currently trading at 94% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - CHEF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors seeking stocks with upward momentum backed by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through this screen, indicating potential investment opportunities [8].

Core Viewpoint - The Chefs' Warehouse, Inc. is set to announce its financial results for the second quarter of 2025 on July 30, 2025, before the market opens, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the second quarter ended June 27, 2025, will be released before the stock market opens on July 30, 2025 [1]. - A conference call to review the financial results will take place at 8:30 a.m. ET on the same day [1]. Group 2: Conference Call Details - The conference call will be available via a live webcast on the Company's investor relations website [2]. - An online archive of the webcast will be accessible for 30 days following the event [2]. Group 3: Company Overview - The Chefs' Warehouse, Inc. is a leading distributor of specialty food products in the United States, the Middle East, and Canada [3]. - The company serves a diverse clientele, including independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos, and specialty food stores [3]. - The Chefs' Warehouse distributes over 88,000 products to more than 50,000 customer locations across its operational regions [3].

Group 1 - The Chefs' Warehouse (NASDAQ: CHEF) is identified as a strong investment opportunity, with a previous recommendation as a 'buy' candidate [1] - The focus of the investment service is on cash flow generation and identifying companies with growth potential in the oil and natural gas sector [1] Group 2 - Subscribers have access to a comprehensive stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A promotional offer is available for a two-week free trial to engage with the oil and gas investment community [3]

Summary of Conference Call Company Overview - The conference call discusses **Chef's Warehouse**, a public foodservice distributor that services over **44,000 customer locations** and has projected revenues of **$4 billion** for the year [1][2]. Industry Insights - Chef's Warehouse is noted as the smallest public foodservice distributor but maintains historically high **EBITDA margins** due to a focus on profitable independent restaurants [2]. - The company emphasizes the importance of **market share growth** in a challenging environment where population growth is stagnant [4]. Key Points Market Position and Strategy - Chef's Warehouse is focused on **gaining market share** and acquiring new customers, supported by a **$1 billion investment** in technology and facilities over the last decade [4]. - The company targets **independent restaurants** and smaller groups rather than large volume customers, emphasizing quality over quantity [5][11]. Competition and Market Dynamics - The competitive landscape is acknowledged, with larger distributors developing higher service models to target specialty accounts, but Chef's Warehouse believes competition drives improvement [12][15]. - The foodservice market is valued at over **$3.4 trillion**, indicating significant growth potential despite challenges [16]. Financial Performance - The company is transitioning from focusing on **gross profit margins** to **gross profit dollars**, which is crucial for driving EBITDA growth [33][34]. - The product mix has evolved due to acquisitions, impacting gross profit margins but leading to overall growth in gross profit dollars [34]. Technology and Operations - Chef's Warehouse utilizes technology to manage a diverse product range of **88,000 SKUs**, with a focus on just-in-time inventory management [41][42]. - The company is exploring **automation** in its operations but is cautious about large investments until the ROI is clear [72][76]. Growth Opportunities - There is a strong emphasis on **cross-selling** across different product categories, particularly in growing markets like Texas and Florida, which are experiencing significant growth rates [50][54]. - The company is actively looking for **M&A opportunities** but is currently focused on internal growth and integration of recent acquisitions [58][61]. Talent Acquisition - Attracting skilled salespeople remains a challenge, but Chef's Warehouse is noted as a desirable workplace, which helps in recruitment [64][66]. - The company aims to hire individuals with a passion for food, enhancing the customer experience through knowledgeable staff [66][68]. International Expansion - Chef's Warehouse has made strategic investments in the Middle East, capitalizing on population growth and a strong management team, which has exceeded initial expectations [82][84]. Conclusion - Chef's Warehouse presents itself as a growth-oriented company with a strong market position, a focus on quality service, and a commitment to leveraging technology for operational efficiency. Investors are encouraged to consider the company's potential for continued growth and expansion in the foodservice industry [87].

Company Overview - The Chefs' Warehouse, Inc. is a premier distributor of specialty food products in the United States, the Middle East, and Canada [3] - The company serves chefs operating leading independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos, and specialty food stores [3] - It carries and distributes over 88,000 products to more than 50,000 customer locations [3] Upcoming Event - The company will participate in a fireside chat at the BMO Global Farm to Market Conference in New York on May 14, 2025, starting at 11:00 a.m. ET [1] - Investors and interested parties can listen to a webcast of the fireside chat on the company's investor relations website [2]

Financial Performance - Net sales for the thirteen weeks ended March 28, 2025, were $950,748, an increase of $76,260 or 8.7% compared to $874,488 for the same period in 2024[64] - Gross profit increased to $225,995, reflecting a $16,559 increase or 7.9% from $209,436 in the prior year, with a gross profit margin of 23.8%[66] - Net income for the period was $10,288, a significant increase from $1,931 in the prior year, driven by improved operational performance[64] Expenses - Selling, general and administrative expenses rose to $202,763, an increase of $12,442 or 6.5%, representing 21.3% of net sales, down from 21.8%[67] - Interest expense decreased by $2,991 or 22.6%, totaling $10,253, due to lower debt levels and interest rates[69] Taxation - The effective tax rate improved to 17.6% from 30.0% in the prior year, reflecting a discrete tax benefit related to stock awards[70] Cash Flow and Capital Expenditures - Cash provided by operating activities was $49,566, an increase of $18,666 from $30,900 in the prior year, attributed to sales growth and improved working capital management[76] - Capital expenditures for fiscal 2025 are expected to be approximately $40,000 to $50,000[75] Share Repurchase and Indebtedness - The company has a remaining share repurchase authorization of $82.6 million as of March 28, 2025, with no repurchases made during the current quarter[74] - As of March 28, 2025, total indebtedness was $359.3 million, with a significant portion bearing variable interest rates, indicating exposure to interest rate risk[80] Compliance and Governance - The company filed Amendment No. 7 to the ABL Facility on March 12, 2025[92] - Certifications of the Chief Executive Officer and Chief Financial Officer were completed pursuant to the Sarbanes-Oxley Act of 2002[92] - The report was signed on behalf of the registrant on April 30, 2025[94] - James Leddy serves as the Chief Financial Officer and Timothy McCauley as the Chief Accounting Officer[96]

"First quarter 2025 business activity displayed typical seasonal cadence as revenue trends coming out of January increased steadily into February and March. During the quarter, our business units, international and domestic, delivered strong growth in unique item placements and solid operating leverage versus the prior year first quarter", said Christopher Pappas, Chairman and Chief Executive of the Company. "As we entered the second quarter, revenue builds during the first few weeks of April continued to d ...

Core Viewpoint - Chefs' Warehouse (CHEF) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.15 per share a year ago, indicating a strong performance in the specialty food distribution sector [1][2]. Financial Performance - The company achieved revenues of $950.75 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.36% and reflecting a year-over-year increase from $874.49 million [2]. - Chefs' Warehouse has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2]. Stock Performance - Chefs' Warehouse shares have increased approximately 8% since the beginning of the year, contrasting with a decline of 5.5% in the S&P 500 [3]. - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45, with projected revenues of $1.01 billion, and for the current fiscal year, the estimate is $1.70 on revenues of $4.02 billion [7]. - The estimate revisions trend for Chefs' Warehouse is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6]. Industry Context - The Food - Miscellaneous industry, to which Chefs' Warehouse belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - The performance of Chefs' Warehouse may also be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform lower-ranked ones significantly [8].

Financial Data and Key Metrics Changes - Net sales increased by approximately 8.7% to $950.7 million from $874.5 million in Q1 2024 [10] - Gross profit increased by 7.9% to $226 million, with gross profit margins decreasing by approximately 18 basis points to 23.8% [12] - GAAP net income was $10.3 million or $0.25 per diluted share, compared to $1.9 million or $0.05 per diluted share in Q1 2024 [13] - Adjusted EBITDA for Q1 2025 was $47.5 million compared to $40.2 million in the prior year [13] Business Line Data and Key Metrics Changes - Specialty sales grew by 10.7%, driven by unique customer growth of approximately 4.5% and placement growth of 7.7% [6] - Gross margins in the specialty category increased by approximately six basis points, while gross margins in the center of the plate category decreased by approximately 83 basis points year over year [7] Market Data and Key Metrics Changes - Net inflation was reported at 5.2%, with 4.8% inflation in the specialty category and 5.9% in the center of the plate category [10] - Average revenue per case in Hardee's increased approximately 12% versus Q1 2024, influenced by the mix of lower volume, higher revenue cases [11] Company Strategy and Development Direction - The company is focusing on digital platform investments to improve profitability and enhance customer-facing functionality [9] - The management emphasized a disciplined approach to capital expenditures and is exploring technology to build smaller, more efficient facilities [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting that April trends were as expected and that the restaurant business remains strong [21] - The company remains cautiously optimistic about future performance despite some concerns regarding tourism and economic conditions [82] Other Important Information - Total liquidity at the end of Q1 was $278.9 million, comprising $116.5 million in cash and $162.4 million available under the ABL facility [14] - Full-year guidance for 2025 estimates net sales between $3.96 billion and $4.04 billion, with adjusted EBITDA between $234 million and $246 million [15][16] Q&A Session Summary Question: Inquiry about tariffs and input costs - Management indicated that tariffs are a small percentage of overall business and that they have diversified their supply chain to mitigate risks [18][20] Question: Impact of international travel on sales - Management noted that while tourism is significant, they do not foresee a material headwind due to a strong local customer base [28] Question: Slowdown in new restaurant formation - Management reported no significant slowdown in new restaurant openings, particularly in areas with population growth [40] Question: Update on Chef Middle East performance - The business is performing well, with continued growth and a new facility opened in December [43] Question: Impact of non-core customer attrition on margins - Management explained that the attrition of low-margin customers has impacted reported volume growth but is expected to lead to a more profitable business in the long run [62][92]

The Chefs' Warehouse (CHEF) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Alexandros Aldous - Gen. Counsel, Chief Government Relations Officer, Corporate Secretary & Chief Administrative OfficerChristopher Pappas - Founder, Chairman, CEO & PresidentJim Leddy - CFOMark Carden - Director - Equity ResearchPeter Saleh - MD - RestaurantsKelly Bania - MD - Equity Research Conference Call Participants Alexander Slagle - Stock AnalystAndrew Wolf - SVP & Senior Research AnalystTodd Brooks - E ...