The Chefs' Warehouse(US:CHEF)2025-10-29 11:30Financial 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]