The Chefs' Warehouse Reports Second Quarter 2025 Financial Results

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]