Company Performance - Chefs' Warehouse reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and up from $0.40 per share a year ago, representing an earnings surprise of +15.56% [1] - The company achieved revenues of $1.03 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.47%, compared to $954.7 million in the same quarter last year [2] - Over the last four quarters, Chefs' Warehouse has consistently surpassed consensus EPS estimates and topped revenue estimates three times [2] Stock Performance - Chefs' Warehouse shares have increased approximately 24.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $972.16 million, and for the current fiscal year, it is $1.65 on revenues of $4.02 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - The performance of Chefs' Warehouse may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

This presentation also contains the non-GAAP financial measures "EBITDA", "Adjusted EBITDA", "Adjusted Operating Expenses", "Net Debt Leverage" and "Free Cash Flow" on a historical basis. Management believes that EBITDA, Adjusted EBITDA, Adjusted Operating Expenses, Net Debt Leverage and Free Cash Flow are each a measure commonly reported by issuers and widely used by investors as indicators of a company's operating performance. These non-GAAP financial measures, while providing useful information, should n ...

Core Insights - The Chefs' Warehouse reported a strong second quarter for 2025, with net sales increasing by 8.4% to $1,034.9 million compared to $954.7 million in the same quarter of 2024, driven by effective pricing and strong unit volume growth [4][9][10] - The company achieved a gross profit of $254.3 million, reflecting an 11.1% increase from $229.0 million in the prior year, with gross profit margins rising to 24.6% [5][9] - The effective tax rate decreased to 28.0% from 30.0%, contributing to a net income of $21.2 million, or $0.49 per diluted share, compared to $15.5 million, or $0.37 per diluted share, in the second quarter of 2024 [8][9] Financial Performance - Net sales for the second quarter of 2025 were $1,034.9 million, an increase of 8.4% from $954.7 million in the second quarter of 2024 [4][9] - Gross profit rose to $254.3 million, up 11.1% from $229.0 million year-over-year, with gross profit margins improving by 59 basis points [5][9] - Selling, general and administrative expenses increased by approximately 9.7% to $213.8 million, primarily due to higher compensation and benefits costs [6][9] - Operating income increased to $40.2 million from $33.9 million in the prior year, with operating income as a percentage of net sales rising to 3.9% [7][9] - Adjusted net income per share was $0.52 for the second quarter of 2025, compared to $0.40 in the same quarter of 2024 [10][27] Operational Highlights - The company experienced a 3.5% increase in organic case count in its specialty category, with unique customer and placement increases of 3.6% and 8.7%, respectively [4] - The center-of-the-plate category saw a decrease of approximately 4.0% in organic pounds sold, attributed to the exit from a non-core commodity poultry program [4] - The Chefs' Warehouse achieved the 'Great Place to Work' certification for the fourth consecutive year, highlighting its focus on employee culture [3] Guidance and Future Outlook - The company provided full-year financial guidance for fiscal 2025, projecting net sales in the range of $4.0 billion to $4.06 billion, gross profit between $964 million and $979 million, and adjusted EBITDA between $240 million and $250 million [15][30]

Core Viewpoint - Chefs' Warehouse (CHEF) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with earnings expected to be $0.45 per share, reflecting a 12.5% increase, and revenues projected at $1.02 billion, up 6.8% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for July 30, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 2.7% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Chefs' Warehouse aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [12]. - The company holds a Zacks Rank of 2 (Buy), but the lack of a positive Earnings ESP makes it challenging to predict a consensus EPS beat [12]. Historical Performance - Chefs' Warehouse has consistently beaten consensus EPS estimates in the last four quarters, with a notable surprise of +19.05% in the most recent quarter [13][14]. Industry Context - In comparison, Sysco (SYY), another player in the food industry, is expected to report earnings of $1.4 per share, reflecting a year-over-year change of +0.7%, with revenues projected at $20.99 billion, up 2.1% [18][19].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - Chefs' Warehouse (CHEF) is currently highlighted as a recommended growth stock, benefiting from a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 19.6%, with projected EPS growth of 12.2% this year, significantly surpassing the industry average of 7.4% [4] Group 2: Financial Metrics - Chefs' Warehouse exhibits a year-over-year cash flow growth of 17.7%, which is notably higher than the industry average of 4.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years stands at 16.9%, again exceeding the industry average of 4.3% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Chefs' Warehouse have been revised upward, with the Zacks Consensus Estimate increasing by 1.9% over the past month [7] - The combination of a Zacks Rank 2 and a Growth Score of A positions Chefs' Warehouse favorably for potential outperformance in the market [9]

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]