RIDGEFIELD, Conn., May 01, 2025 (GLOBE NEWSWIRE) -- The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or “Chefs’”), a premier distributor of specialty food products in the United States, the Middle East, and Canada, today announced that the Company will participate in a fireside chat at the BMO Global Farm to Market Conference in New York, NY on Wednesday, May 14, 2025. The fireside chat will begin at 11:00 a.m. ET. Investors and interested parties may listen to a webcast of the fireside chat by visi ...

Financial Performance - Net sales for the thirteen weeks ended March 28, 2025, were $950,748, an increase of $76,260 or 8.7% compared to $874,488 for the same period in 2024[64] - Gross profit increased to $225,995, reflecting a $16,559 increase or 7.9% from $209,436 in the prior year, with a gross profit margin of 23.8%[66] - Net income for the period was $10,288, a significant increase from $1,931 in the prior year, driven by improved operational performance[64] Expenses - Selling, general and administrative expenses rose to $202,763, an increase of $12,442 or 6.5%, representing 21.3% of net sales, down from 21.8%[67] - Interest expense decreased by $2,991 or 22.6%, totaling $10,253, due to lower debt levels and interest rates[69] Taxation - The effective tax rate improved to 17.6% from 30.0% in the prior year, reflecting a discrete tax benefit related to stock awards[70] Cash Flow and Capital Expenditures - Cash provided by operating activities was $49,566, an increase of $18,666 from $30,900 in the prior year, attributed to sales growth and improved working capital management[76] - Capital expenditures for fiscal 2025 are expected to be approximately $40,000 to $50,000[75] Share Repurchase and Indebtedness - The company has a remaining share repurchase authorization of $82.6 million as of March 28, 2025, with no repurchases made during the current quarter[74] - As of March 28, 2025, total indebtedness was $359.3 million, with a significant portion bearing variable interest rates, indicating exposure to interest rate risk[80] Compliance and Governance - The company filed Amendment No. 7 to the ABL Facility on March 12, 2025[92] - Certifications of the Chief Executive Officer and Chief Financial Officer were completed pursuant to the Sarbanes-Oxley Act of 2002[92] - The report was signed on behalf of the registrant on April 30, 2025[94] - James Leddy serves as the Chief Financial Officer and Timothy McCauley as the Chief Accounting Officer[96]

"First quarter 2025 business activity displayed typical seasonal cadence as revenue trends coming out of January increased steadily into February and March. During the quarter, our business units, international and domestic, delivered strong growth in unique item placements and solid operating leverage versus the prior year first quarter", said Christopher Pappas, Chairman and Chief Executive of the Company. "As we entered the second quarter, revenue builds during the first few weeks of April continued to d ...

Chefs' Warehouse (CHEF) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.05%. A quarter ago, it was expected that this distributor of specialty food products would post earnings of $0.51 per share when it actually produced earnings of $0.55, delivering a surprise of 7.84%.Over the l ...

The Chefs' Warehouse (CHEF) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Greetings, and welcome to the Chef's Warehouse First Quarter twenty twenty five Earnings Conference Call. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Alex Alders, General Counsel, Corporate Secretary and Chief Government Relations Officer. Please go ahead, sir. Speaker1 Thank you, operator. Good morning, everyone. With me on today's call are Chris Pappas, Founder, ...

First Quarter 2025 Earnings Presentation The Chefs' Warehouse, Inc. 1 Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding the business of The Chefs' Warehouse, Inc. (the "Company") that are not historical facts are "forward-looking statements" that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which c ...

The Chefs' Warehouse, Inc. (http://www.chefswarehouse.com) is a premier distributor of specialty food products in the United States, the Middle East and Canada focused on serving the specific needs of chefs who own and/or operate some of the nation's leading menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. The Chefs' Warehouse, Inc. carries and distributes ...

RIDGEFIELD, Conn., March 06, 2025 (GLOBE NEWSWIRE) -- The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or “Chefs’”), a premier distributor of specialty food products in the United States, the Middle East, and Canada, today announced it will host an Investor Day in New York on Thursday, March 13, 2025. The event will feature a presentation and a question and answer session with Chefs’ executive management team. The event will begin at 10:00 a.m. ET and is expected to conclude by 11:30 a.m. ET. The ev ...

Financial Performance - Net revenues increased from approximately $1.1 billion for the fiscal year ended December 25, 2020, to $3.8 billion for the fiscal year ended December 27, 2024, reflecting significant growth[16]. - Net sales for fiscal 2024 reached $3,794,212, an increase of 10.5% from $3,433,763 in fiscal 2023[197]. - Net income for fiscal 2024 was $55,479, up from $34,590 in fiscal 2023, reflecting a year-over-year increase of 60.5%[197]. - Gross profit for fiscal 2024 was $914,147, representing a gross profit margin of approximately 24.1%[197]. - Selling, general and administrative expenses rose to $784,852, an increase of $80,094 or 11.4%, representing 20.7% of net sales[200]. - Other operating expenses decreased significantly by $7,685 or 87.6%, down to $1,088 from $8,773 in the prior year[201]. - Interest expense increased to $48,675, a rise of $3,201 or 7.0% compared to $45,474 in fiscal 2023[202]. - Provision for income tax expense was $24,053, an increase of $3,174 or 15.2% from $20,879, with an effective tax rate of 30.2%[203]. - Cash and cash equivalents increased to $114,655 from $49,878, while working capital rose to $327,992 from $295,288[213]. - As of December 27, 2024, total indebtedness amounted to $672.5 million, with senior secured term loans at $260,000 and total convertible debt at $287,500[205]. Acquisitions and Growth Strategy - The company completed sixteen acquisitions since December 25, 2020, with an up-front cash purchase price exceeding $326.2 million, funded by operational cash and borrowings[16]. - The company has completed thirty-six acquisitions since its initial public offering, enhancing market penetration and product capabilities[29]. - The company acquired Oakville Produce Partners for $88.2 million, enhancing its distribution capabilities in Northern California[182]. - The acquisition of Hardie's F&V, LLC was completed for approximately $41.4 million, expanding the company's presence in Texas[183]. - The company’s future growth is dependent on expanding operations in existing markets and penetrating new markets through organic growth or acquisitions[89]. - Past growth has been achieved through acquisitions, but successful integration and management of these acquisitions are critical for realizing expected benefits[90]. Customer Base and Market Presence - The company serves over 50,000 core customer locations across twenty-three primary geographic markets in the United States, the Middle East, and Canada[17]. - The top ten customers accounted for less than 6% of total net sales for the 2024 fiscal year, indicating a diversified customer base[30]. - The company serves over 50,000 core customer locations, primarily independent restaurants and fine dining establishments[179]. - The New York market accounted for approximately 15.9% of the company's net sales for fiscal year 2024[117]. - The company is particularly exposed to economic downturns in key markets such as New York, San Francisco Bay Area, and Los Angeles[117]. Operational Efficiency and Technology - The company aims to improve operating margins through investments in facilities and technology, targeting efficiencies in purchasing, warehousing, and distribution[28]. - The company operates 49 distribution centers, enabling efficient order fulfillment and high service levels[23]. - The company has invested significantly in advanced warehousing, inventory control, and distribution systems to enhance operational efficiency[41]. - Wearable inventory scanning devices are being implemented to improve order fulfillment speed and accuracy[42]. - Significant investments have been made in technology systems, including route optimization and warehouse management systems[45]. - The company has aggressively invested in new information technology to reduce operating expenses and improve operational efficiencies, but implementation delays may negatively impact financial results[127]. Risks and Challenges - The company's profitability is significantly affected by inflation in food, labor, energy, and occupancy costs, which could impact operating results if cost increases cannot be passed to customers[65]. - The company operates in a low-margin business, with profit margins sensitive to inflationary and deflationary pressures, potentially affecting profitability if product cost increases cannot be passed on[75]. - Economic conditions, including consumer discretionary spending, significantly influence the company's business, as reduced spending could lead to lower sales volumes[74]. - The company is exposed to risks from inflation and economic uncertainty, which could lead to long-lasting changes in consumer spending behavior[74]. - The company faces risks from group purchasing organizations that may force price reductions to retain customers, potentially harming financial performance[78]. - The company faces substantial risks related to cybersecurity, including potential breaches that could disrupt operations and lead to increased costs for protection and remediation[125][126]. - The company is exposed to cybersecurity risks due to reliance on information technology systems for operations[122]. - The company may face increased costs and operational disruptions due to geopolitical issues, such as the Russian invasion of Ukraine[121]. Employee and Diversity Initiatives - Approximately 980 sales and customer service professionals are employed, with a focus on culinary education and customer service[36]. - In 2024, approximately 70% of employees and over 20% of management were from diverse backgrounds[52]. - As of December 27, 2024, the company had 5,029 full-time employees, with approximately 3% represented by unions, potentially impacting labor costs and operational efficiency[85]. - Labor costs are a significant concern, particularly in the center-of-the-plate category, and any increases could adversely affect profitability[86]. Compliance and Regulatory Environment - The company has adopted a Code of Business Conduct and Ethics applicable to all employees, ensuring ethical standards in operations[67]. - The company is subject to significant regulatory scrutiny across multiple jurisdictions, which could result in enforcement actions or product recalls if compliance is not maintained[136][137]. - Compliance with emerging data privacy laws, such as the California Consumer Privacy Act and its amendments, significantly increases the company's compliance requirements and potential financial liabilities[129][130]. - New climate-related disclosure laws in California could expose the company to fines of up to $50,000 per reporting year for non-compliance, starting in 2026[140][141]. Financial Management and Capital Structure - The company may need to raise additional capital through new equity or debt offerings, which could dilute existing stockholders' interests[152]. - The concentration of ownership among executive officers and directors, who own approximately 12.6% of outstanding shares, may limit new investors' influence on corporate decisions[154]. - The company’s ability to comply with financial ratios required by its Credit Facilities may be affected by external events, potentially leading to defaults[151]. - The company is monitoring changes in tax laws, including the OECD's global minimum tax rate of 15% on companies with revenues of at least €750 million, which may impact its effective tax rate[145].

Financial Data and Key Metrics Changes - Net sales for Q4 2024 increased approximately 8.7% to $1.034 billion from $950.5 million in Q4 2023 [18] - Gross profit increased 9.8% to $251 million for Q4 2024 compared to $228.6 million for Q4 2023 [20] - GAAP net income was $23.9 million or $0.55 per diluted share for Q4 2024, compared to net income of $16 million or $0.38 per diluted share for Q4 2023 [22] - Adjusted EBITDA for Q4 2024 was $68.2 million compared to $59 million for the prior year [22] - Adjusted operating expenses increased 7.7% versus the prior year, with adjusted operating expenses as a percentage of net sales at 17.7% for Q4 2024 [21] Business Line Data and Key Metrics Changes - Specialty sales were up 11.5% over the prior year, driven by unique customer growth of approximately 4.5% and placement growth of 12.3% [11] - Gross margin in the specialty category increased approximately 22 basis points compared to Q4 2023, while gross margin in the center-of-the-plate category decreased approximately seven basis points year-over-year [12] Market Data and Key Metrics Changes - Approximately 56% of customers ordering through domestic specialty locations were online in Q4 2024, up from 48% in 2023 [15] - The company experienced net inflation of 3.8% in Q4 2024, with 5.1% inflation in the specialty category and 1.8% in the center-of-the-plate category [18] Company Strategy and Development Direction - The company aims for continued above-industry-average top-line gross profit dollar and adjusted EBITDA growth over the next four years [16] - Focus on expanding digital platform capabilities to enhance customer experience and drive online order adoption [14] - The company is committed to becoming a complete solution provider in every market, integrating protein and specialty offerings [50] Management's Comments on Operating Environment and Future Outlook - Management noted strong business activity and demand through Q4 2024, with no significant impact from weather events or industry traffic [31] - The outlook for 2025 includes estimated net sales in the range of $3.94 billion to $4.04 billion, with gross profit expected between $951 million and $976 million [26] - Management expressed confidence in navigating potential tariff impacts due to a diverse supplier base and the ability to pass on costs [35] Other Important Information - Total liquidity at the end of Q4 2024 was $261.4 million, comprised of $114.7 million in cash and $146.7 million available under the ABL facility [23] - The company prepaid $14 million principal on its 2029 term loan during the fiscal year 2024 [23] Q&A Session Summary Question: Did you see any impact from the softer industry traffic in December? - Management indicated that the cadence during Q4 was strong, with no significant impacts from weather or demand issues [31] Question: How much exposure do you have to potential tariffs from Mexico, Canada, and Europe? - Management stated that they have a diverse supplier base and can navigate tariff impacts, with a focus on domestic products [35] Question: What are the margin opportunities for 2025? - Management highlighted that operating leverage would improve in the back half of the year, with a goal of 20 to 25 basis points of EBITDA margin improvement [44] Question: What are your expectations for labor availability and inflation in 2025? - Management noted that labor costs have stabilized and they are paying competitive wages to attract talent [62] Question: Can you provide an update on the utilization levels in new locations? - Management did not disclose specific utilization levels but mentioned positive growth in Northern California and Texas [90] Question: What is your CapEx expectation for this year? - Management guided to CapEx of $40 million to $50 million for 2025, with 80% allocated to facility expansion [94]