The Chefs' Warehouse Reports Fourth Quarter 2024 Financial Results

Core Viewpoint - The Chefs' Warehouse reported strong financial results for Q4 2024, achieving over $1 billion in revenue for the first time in its history, driven by robust demand in the upscale dining sector and effective market share growth [3][4]. Financial Performance - Net sales for Q4 2024 increased by 8.7% to $1,033.6 million from $950.5 million in Q4 2023 [4][9]. - Gross profit rose by 9.8% to $251.0 million, with gross profit margins increasing by approximately 23 basis points to 24.3% [5][8]. - Operating income for Q4 2024 was $46.5 million, up from $38.2 million in Q4 2023, representing an operating income margin of 4.5% [8][9]. Customer and Market Dynamics - Organic case count in the specialty category increased by approximately 6.1%, with unique customer placements and new customer acquisitions rising by 4.5% and 12.3%, respectively [4][3]. - The company experienced strong demand across domestic and international markets, particularly during the holiday season [3]. Expense Management - Selling, general, and administrative expenses increased by approximately 8.9% to $206.8 million, primarily due to higher depreciation, compensation, and distribution costs [6][8]. - Other operating income for Q4 2024 was $2.3 million, compared to an expense of $0.5 million in Q4 2023, mainly due to non-cash credits related to contingent liabilities [7]. Earnings and Guidance - Net income for Q4 2024 was $23.9 million, or $0.55 per diluted share, compared to $16.0 million, or $0.38 per diluted share, in Q4 2023 [9][10]. - The company provided fiscal 2025 guidance, projecting net sales in the range of $3.94 billion to $4.04 billion and adjusted EBITDA between $233 million and $246 million [15][29].