The Chefs’ Warehouse Reports Third Quarter 2025 Financial Results

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]