"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]

Financial Data and Key Metrics Changes - Net sales increased by approximately 8.7% to $950.7 million from $874.5 million in Q1 2024 [12] - Gross profit increased by 7.9% to $226 million, with gross profit margins decreasing by approximately 18 basis points to 23.8% [14] - 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 [15] - Adjusted EBITDA was $47.5 million for Q1 2025, compared to $40.2 million for the prior year [15] 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% [8] - 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 [9] Market Data and Key Metrics Changes - Net inflation was 5.2%, with 4.8% inflation in the specialty category and 5.9% in the center of the plate category [12] - Average revenue per case in Hardee's increased approximately 12% versus Q1 2024 [13] Company Strategy and Development Direction - The company is focusing on digital platform investments to improve profitability and customer engagement, with 58% of customers ordering online [11] - The company is diversifying its supply chain to mitigate tariff impacts and has alternative sources for many products [22] 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 company is well-positioned for economic fluctuations [24][25] - The company remains cautiously optimistic about future growth, despite some concerns regarding tourism and economic conditions [80] Other Important Information - Total liquidity at the end of Q1 was $278.9 million, with net debt approximately $535.2 million [16] - Full year 2025 guidance estimates net sales between $3.96 billion and $4.04 billion [17] 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 [20][22] Question: Impact of international travel on sales - Management noted that while tourism is significant, most business is conducted in suburban areas, which are less affected by tourism fluctuations [30][32] Question: Slowdown in new restaurant formation - Management reported no significant slowdown in new restaurant openings, particularly in growing areas [41] Question: Update on Chef Middle East performance - The business is performing well, with growth continuing and a new facility opened [45] Question: Impact of non-core customer exits on margins - Management explained that attrition from low-margin customers was anticipated and factored into guidance, with a focus on improving profitability [87][90]

Financial Performance - Sales increased by 8.7% in Q1 2025 compared to Q1 2024[6] - Specialty sales grew by 10.7% in Q1 2025 compared to Q1 2024[6] - Adjusted EBITDA increased by 18.2% in Q1 2025 compared to Q1 2024[16] - The company repurchased $17.4 million of common stock in 2024[18] - Q1 2025 Free Cash Flow was $37 million, with a FY estimate remaining at $60-100 million[20] Operational Efficiency - Gross Profit per Route increased by 33.5% in LTM Q1 2025 compared to 2019[10] - Adjusted EBITDA per headcount increased by 19% in LTM Q1 2025 compared to 2019[10] - Adjusted Operating Expenses as a percentage of Gross Profit improved by 127 bps in LTM Q1 2025 compared to 2019[10] Digital Transformation - Approximately 58% of specialty location customers are ordering via the digital platform[15] - Unique customers ordering online (specialty) reached 58% in LTM Q1 2025[13] Capital Allocation - The company repaid $20 million on its ABL line in Q1 2025[18] - Net Debt Leverage was 2.4x in Q1 2025[18]

RIDGEFIELD, Conn., April 30, 2025 (GLOBE NEWSWIRE) -- The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or “Chefs’”), a premier distributor of specialty food products in the United States, the Middle East, and Canada, today reported financial results for its first quarter ended March 28, 2025. Financial highlights for the first quarter of 2025: Net sales increased 8.7% to $950.7 million for the first quarter of 2025 from $874.5 million for the first quarter of 2024.GAAP net income was $10.3 million, ...

The Chefs' Warehouse, Inc. (http://www.chefswarehouse.com) is a premier distributor of specialty food products in the United States, the Middle East and Canada focused on serving the specific needs of chefs who own and/or operate some of the nation's leading menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. The Chefs' Warehouse, Inc. carries and distributes ...

RIDGEFIELD, Conn., March 06, 2025 (GLOBE NEWSWIRE) -- The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or “Chefs’”), a premier distributor of specialty food products in the United States, the Middle East, and Canada, today announced it will host an Investor Day in New York on Thursday, March 13, 2025. The event will feature a presentation and a question and answer session with Chefs’ executive management team. The event will begin at 10:00 a.m. ET and is expected to conclude by 11:30 a.m. ET. The ev ...

Financial Performance - Net revenues increased from approximately $1.1 billion for the fiscal year ended December 25, 2020, to $3.8 billion for the fiscal year ended December 27, 2024, reflecting significant growth[16]. - Net sales for fiscal 2024 reached $3,794,212, an increase of 10.5% from $3,433,763 in fiscal 2023[197]. - Net income for fiscal 2024 was $55,479, up from $34,590 in fiscal 2023, reflecting a year-over-year increase of 60.5%[197]. - Gross profit for fiscal 2024 was $914,147, representing a gross profit margin of approximately 24.1%[197]. - Selling, general and administrative expenses rose to $784,852, an increase of $80,094 or 11.4%, representing 20.7% of net sales[200]. - Other operating expenses decreased significantly by $7,685 or 87.6%, down to $1,088 from $8,773 in the prior year[201]. - Interest expense increased to $48,675, a rise of $3,201 or 7.0% compared to $45,474 in fiscal 2023[202]. - Provision for income tax expense was $24,053, an increase of $3,174 or 15.2% from $20,879, with an effective tax rate of 30.2%[203]. - Cash and cash equivalents increased to $114,655 from $49,878, while working capital rose to $327,992 from $295,288[213]. - As of December 27, 2024, total indebtedness amounted to $672.5 million, with senior secured term loans at $260,000 and total convertible debt at $287,500[205]. Acquisitions and Growth Strategy - The company completed sixteen acquisitions since December 25, 2020, with an up-front cash purchase price exceeding $326.2 million, funded by operational cash and borrowings[16]. - The company has completed thirty-six acquisitions since its initial public offering, enhancing market penetration and product capabilities[29]. - The company acquired Oakville Produce Partners for $88.2 million, enhancing its distribution capabilities in Northern California[182]. - The acquisition of Hardie's F&V, LLC was completed for approximately $41.4 million, expanding the company's presence in Texas[183]. - The company’s future growth is dependent on expanding operations in existing markets and penetrating new markets through organic growth or acquisitions[89]. - Past growth has been achieved through acquisitions, but successful integration and management of these acquisitions are critical for realizing expected benefits[90]. Customer Base and Market Presence - The company serves over 50,000 core customer locations across twenty-three primary geographic markets in the United States, the Middle East, and Canada[17]. - The top ten customers accounted for less than 6% of total net sales for the 2024 fiscal year, indicating a diversified customer base[30]. - The company serves over 50,000 core customer locations, primarily independent restaurants and fine dining establishments[179]. - The New York market accounted for approximately 15.9% of the company's net sales for fiscal year 2024[117]. - The company is particularly exposed to economic downturns in key markets such as New York, San Francisco Bay Area, and Los Angeles[117]. Operational Efficiency and Technology - The company aims to improve operating margins through investments in facilities and technology, targeting efficiencies in purchasing, warehousing, and distribution[28]. - The company operates 49 distribution centers, enabling efficient order fulfillment and high service levels[23]. - The company has invested significantly in advanced warehousing, inventory control, and distribution systems to enhance operational efficiency[41]. - Wearable inventory scanning devices are being implemented to improve order fulfillment speed and accuracy[42]. - Significant investments have been made in technology systems, including route optimization and warehouse management systems[45]. - The company has aggressively invested in new information technology to reduce operating expenses and improve operational efficiencies, but implementation delays may negatively impact financial results[127]. Risks and Challenges - The company's profitability is significantly affected by inflation in food, labor, energy, and occupancy costs, which could impact operating results if cost increases cannot be passed to customers[65]. - The company operates in a low-margin business, with profit margins sensitive to inflationary and deflationary pressures, potentially affecting profitability if product cost increases cannot be passed on[75]. - Economic conditions, including consumer discretionary spending, significantly influence the company's business, as reduced spending could lead to lower sales volumes[74]. - The company is exposed to risks from inflation and economic uncertainty, which could lead to long-lasting changes in consumer spending behavior[74]. - The company faces risks from group purchasing organizations that may force price reductions to retain customers, potentially harming financial performance[78]. - The company faces substantial risks related to cybersecurity, including potential breaches that could disrupt operations and lead to increased costs for protection and remediation[125][126]. - The company is exposed to cybersecurity risks due to reliance on information technology systems for operations[122]. - The company may face increased costs and operational disruptions due to geopolitical issues, such as the Russian invasion of Ukraine[121]. Employee and Diversity Initiatives - Approximately 980 sales and customer service professionals are employed, with a focus on culinary education and customer service[36]. - In 2024, approximately 70% of employees and over 20% of management were from diverse backgrounds[52]. - As of December 27, 2024, the company had 5,029 full-time employees, with approximately 3% represented by unions, potentially impacting labor costs and operational efficiency[85]. - Labor costs are a significant concern, particularly in the center-of-the-plate category, and any increases could adversely affect profitability[86]. Compliance and Regulatory Environment - The company has adopted a Code of Business Conduct and Ethics applicable to all employees, ensuring ethical standards in operations[67]. - The company is subject to significant regulatory scrutiny across multiple jurisdictions, which could result in enforcement actions or product recalls if compliance is not maintained[136][137]. - Compliance with emerging data privacy laws, such as the California Consumer Privacy Act and its amendments, significantly increases the company's compliance requirements and potential financial liabilities[129][130]. - New climate-related disclosure laws in California could expose the company to fines of up to $50,000 per reporting year for non-compliance, starting in 2026[140][141]. Financial Management and Capital Structure - The company may need to raise additional capital through new equity or debt offerings, which could dilute existing stockholders' interests[152]. - The concentration of ownership among executive officers and directors, who own approximately 12.6% of outstanding shares, may limit new investors' influence on corporate decisions[154]. - The company’s ability to comply with financial ratios required by its Credit Facilities may be affected by external events, potentially leading to defaults[151]. - The company is monitoring changes in tax laws, including the OECD's global minimum tax rate of 15% on companies with revenues of at least €750 million, which may impact its effective tax rate[145].

Financial Data and Key Metrics Changes - Net sales for Q4 2024 increased approximately 8.7% to $1.034 billion from $950.5 million in Q4 2023 [18] - Gross profit increased 9.8% to $251 million for Q4 2024 compared to $228.6 million for Q4 2023 [20] - GAAP net income was $23.9 million or $0.55 per diluted share for Q4 2024, compared to net income of $16 million or $0.38 per diluted share for Q4 2023 [22] - Adjusted EBITDA for Q4 2024 was $68.2 million compared to $59 million for the prior year [22] - Adjusted operating expenses increased 7.7% versus the prior year, with adjusted operating expenses as a percentage of net sales at 17.7% for Q4 2024 [21] Business Line Data and Key Metrics Changes - Specialty sales were up 11.5% over the prior year, driven by unique customer growth of approximately 4.5% and placement growth of 12.3% [11] - Gross margin in the specialty category increased approximately 22 basis points compared to Q4 2023, while gross margin in the center-of-the-plate category decreased approximately seven basis points year-over-year [12] Market Data and Key Metrics Changes - Approximately 56% of customers ordering through domestic specialty locations were online in Q4 2024, up from 48% in 2023 [15] - The company experienced net inflation of 3.8% in Q4 2024, with 5.1% inflation in the specialty category and 1.8% in the center-of-the-plate category [18] Company Strategy and Development Direction - The company aims for continued above-industry-average top-line gross profit dollar and adjusted EBITDA growth over the next four years [16] - Focus on expanding digital platform capabilities to enhance customer experience and drive online order adoption [14] - The company is committed to becoming a complete solution provider in every market, integrating protein and specialty offerings [50] Management's Comments on Operating Environment and Future Outlook - Management noted strong business activity and demand through Q4 2024, with no significant impact from weather events or industry traffic [31] - The outlook for 2025 includes estimated net sales in the range of $3.94 billion to $4.04 billion, with gross profit expected between $951 million and $976 million [26] - Management expressed confidence in navigating potential tariff impacts due to a diverse supplier base and the ability to pass on costs [35] Other Important Information - Total liquidity at the end of Q4 2024 was $261.4 million, comprised of $114.7 million in cash and $146.7 million available under the ABL facility [23] - The company prepaid $14 million principal on its 2029 term loan during the fiscal year 2024 [23] Q&A Session Summary Question: Did you see any impact from the softer industry traffic in December? - Management indicated that the cadence during Q4 was strong, with no significant impacts from weather or demand issues [31] Question: How much exposure do you have to potential tariffs from Mexico, Canada, and Europe? - Management stated that they have a diverse supplier base and can navigate tariff impacts, with a focus on domestic products [35] Question: What are the margin opportunities for 2025? - Management highlighted that operating leverage would improve in the back half of the year, with a goal of 20 to 25 basis points of EBITDA margin improvement [44] Question: What are your expectations for labor availability and inflation in 2025? - Management noted that labor costs have stabilized and they are paying competitive wages to attract talent [62] Question: Can you provide an update on the utilization levels in new locations? - Management did not disclose specific utilization levels but mentioned positive growth in Northern California and Texas [90] Question: What is your CapEx expectation for this year? - Management guided to CapEx of $40 million to $50 million for 2025, with 80% allocated to facility expansion [94]