Chefs' Warehouse (CHEF 2.45%), a specialty food distributor with a focus on high-end restaurants and culinary professionals, released results on July 30, 2025. It reported GAAP revenue of $1,034.9 million and earnings per share (Non-GAAP) of $0.52. These figures surpassed analyst expectations, which had projected $1,013.5 million in GAAP revenue. The period showed notable strength in gross profit and operating leverage. Overall, the quarter reflected strong execution on key initiatives and cautious optimism ...

Core Insights - Investors are increasingly focusing on artificial intelligence (AI) as a significant opportunity for growth, similar to past successes with companies like Amazon and Nvidia [1] Group 1: Company Summaries - **The Honest Company**: Specializes in personal and baby care products with clean ingredients, reported $97 million in revenue for Q1 2025, a 13% year-over-year increase, and is positioned for profitable growth [4] - **Stride**: A technology-based learning company with an 18% year-over-year revenue increase to $613 million in Q3 fiscal 2025, and profits of $99 million, with analysts predicting a 14% rise in stock price [6] - **Revolve Group**: An online fashion retailer utilizing AI, reported a 10% year-over-year sales increase and a 5% rise in net income, with mixed analyst opinions on stock price targets [8][9] - **Nomad**: A European frozen foods company with a 6% compound annual growth rate over the past decade, despite a recent sales decrease, all analysts rate it a buy with a target price 40% higher than current levels [10] - **Driven Brands**: Offers automotive services, reported a 7% sales increase in Q1, and plans to open 200 new stores in 2025, with a 30% average price target increase anticipated [11] - **Oddity Tech**: A cosmetics and skincare company using AI, reported a 27% revenue increase in Q1, but is seen as potentially expensive in the short term [12] - **Urban Outfitters**: Experienced an 11% revenue increase in Q1 fiscal 2026, with earnings per share nearly doubling, and all analysts expect further stock price increases [13] - **Shake Shack**: Reported a 10.5% sales increase in Q1 and more than doubled net income, with a positive long-term outlook despite a recent stock price surge [14] - **Academy Sports**: A sporting goods retailer facing short-term pressure but has long-term growth potential through new store openings and digital expansion, with a 20% average price target increase [16] - **Chef's Warehouse**: A specialty foods distributor with a 9% revenue increase in Q1 and earnings per share rising from $0.05 to $0.25, all analysts predict an 8% to 20% stock price increase [17][18]

Core Viewpoint - Innovative Food Holdings, Inc. has announced a change in its independent registered public accounting firm, transitioning from Assurance Dimensions, LLC to Stephano Slack, LLC effective April 28, 2025 [1][3]. Group 1: Change in Auditors - Assurance Dimensions resigned from its role as the Company's auditor due to its decision to exit the public company audit business [1]. - Assurance Dimensions served as the Company's independent auditor for the fiscal years ended December 31, 2024, 2023, and 2022, without any adverse opinions or disagreements during this period [2]. - The Company has engaged Stephano Slack, LLC as its new independent registered public accounting firm, effective April 28, 2025, with Assurance Dimensions staff supporting the transition [3]. Group 2: Company Background - Innovative Food Holdings, Inc. specializes in providing access to specialty foods that are hard to find and are at the forefront of food trends, connecting artisan food makers with professional chefs nationwide [4].

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]

The Chefs' Warehouse (CHEF) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Alexandros Aldous - Gen. Counsel, Chief Government Relations Officer, Corporate Secretary & Chief Administrative OfficerChristopher Pappas - Founder, Chairman, CEO & PresidentJim Leddy - CFOMark Carden - Director - Equity ResearchPeter Saleh - MD - RestaurantsKelly Bania - MD - Equity Research Conference Call Participants Alexander Slagle - Stock AnalystAndrew Wolf - SVP & Senior Research AnalystTodd Brooks - E ...