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]

Core Viewpoint - Growth stocks are appealing due to their above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Chefs' Warehouse (CHEF) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the specialty food distribution sector, which is currently experiencing promising growth metrics [3] Group 2: Earnings Growth - Chefs' Warehouse has a historical EPS growth rate of 19.3%, with projected EPS growth of 19% this year, significantly outperforming the industry average of 6.8% [5] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as indicative of strong future prospects [4] Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 17.7%, surpassing the industry average of 4.3% [6] - Historical cash flow growth has been strong, with an annualized rate of 16.9% over the past 3-5 years compared to the industry average of 4.2% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Chefs' Warehouse, with the current-year earnings estimates increasing by 8% over the past month [9] - Positive earnings estimate revisions are correlated with near-term stock price movements, indicating potential for future growth [8] Group 5: Investment Potential - Chefs' Warehouse holds a Zacks Rank of 2 (Buy) and a Growth Score of A, suggesting it is a solid choice for growth investors [11]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, ensuring its longevity is crucial for success [1][2]. Group 1: Investment Strategy - The "Recent Price Strength" screen is a tool designed to identify stocks with strong fundamentals that can maintain their upward price trends [3]. - Stocks that are trading in the upper portion of their 52-week high-low range are typically indicative of bullish sentiment [3]. Group 2: Company Analysis - Chefs' Warehouse (CHEF) - Chefs' Warehouse (CHEF) has shown a solid price increase of 9.1% over the past 12 weeks, indicating investor confidence in its potential [4]. - The stock has also increased by 5.4% over the last four weeks, suggesting that the upward trend is still intact [5]. - CHEF is currently trading at 95.4% of its 52-week high-low range, indicating a potential breakout [6]. Group 3: Ratings and Recommendations - 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 strong optimism from the brokerage community regarding its near-term performance [7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, underscoring the effectiveness of this rating system [7].

Core Insights - Chefs' Warehouse reported strong Q2 2025 results, with GAAP revenue of $1,034.9 million and Non-GAAP earnings per share of $0.52, exceeding analyst expectations [1][2] - The company modestly raised its full-year financial guidance, reflecting confidence in ongoing growth initiatives [1][10] Financial Performance - Q2 2025 Non-GAAP EPS was $0.52, up 30% year-over-year from $0.40 in Q2 2024 [2] - Revenue increased by 8.4% year-over-year, from $954.7 million in Q2 2024 to $1,034.9 million in Q2 2025 [2] - Net income rose to $21.2 million, a 36.8% increase from $15.5 million in Q2 2024 [2] - Adjusted EBITDA reached $65.4 million, up 16.4% from $56.2 million in the previous year [2] - Gross profit improved to $254.3 million, an 11.1% increase from $229.0 million in Q2 2024 [2] Business Model and Strategy - Chefs' Warehouse specializes in distributing high-end specialty foods, including proteins and kitchen staples, to fine-dining restaurants, hotels, and gourmet retailers [3] - The company offers over 88,000 unique products sourced from more than 4,000 suppliers globally, focusing on artisan and family-owned businesses [3] - Recent strategic initiatives include expanding the product catalog, investing in digital ordering systems, and enhancing supplier partnerships [4] Growth Drivers - Organic revenue growth was driven by increased demand for specialty foods, with a 3.5% increase in organic case count [5] - Unique customer relationships and product placements grew by 3.6% and 8.7%, respectively [5] - The exit from a low-margin commodity poultry program led to a 4.0% decline in organic pounds sold in that category, aligning with the company's focus on profitability [6] Profitability and Efficiency - Gross profit margin expanded by 59 basis points to 24.6%, with improved operating income as a percentage of revenue [7] - SG&A expenses rose by 9.7%, but higher profits from product mix and pricing contributed to stronger overall margins [7] - The company accelerated its online ordering system adoption, now handling approximately 58% of specialty customer orders in the US, up from 48% [8] Future Outlook - Management raised FY2025 revenue guidance to between $4.0 billion and $4.06 billion, with gross profit expectations of $964 million to $979 million [10] - Adjusted EBITDA is projected to be between $240 million and $250 million, reflecting strength in core categories and digital initiatives [10] - Key metrics to monitor include margin trends, SG&A expense ratios, and management of the company's $690 million long-term debt [11]