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]

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 ...