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]

The Chefs' Warehouse, Inc. 2 Fourth Quarter 2024 Highlights Q4 2024 vs. Q4 2023 | Sales | +8.7% | | --- | --- | | Specialty Sales | +11.5% | | Unique Customers | +4.5% | | Placements | +12.3% | | Specialty Cases | +6.1% | | Center-of-Plate Pounds | +3.6% | Fourth Quarter 2024 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, ...

Financial Performance - Net sales for Q4 2024 increased by 8.7% to $1,033.6 million, up from $950.5 million in Q4 2023[4] - Gross profit rose by 9.8% to $251.0 million, with gross profit margins increasing by approximately 23 basis points to 24.3%[5] - GAAP 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[10] - Adjusted EBITDA for Q4 2024 was $68.2 million, an increase from $59.0 million in Q4 2023[10] - Operating income for Q4 2024 was $46.5 million, representing an increase from $38.2 million in Q4 2023, with operating income as a percentage of net sales at 4.5%[9] - Net income for the fifty-two weeks ended December 27, 2024, was $55,479, up 60.5% from $34,590 in 2023[21] - Basic net income per share increased to $1.46 for the fifty-two weeks ended December 27, 2024, compared to $0.92 in 2023, reflecting a 58.7% growth[21] - Net income for the thirteen weeks ended December 27, 2024, was $23,926,000, an increase of 49.5% compared to $16,000,000 for the same period in 2023[30] - Adjusted net income for the same period was $23,905,000, up 18.0% from $20,186,000 year-over-year[30] - Diluted adjusted net income per common share increased to $0.55, a rise of 17.0% from $0.47 in the prior year[30] Guidance and Projections - The company provided fiscal 2025 guidance with net sales expected in the range of $3.94 billion to $4.04 billion[14] - The company provided adjusted EBITDA guidance for fiscal 2025, estimating a range between $233,000,000 and $246,000,000[31] - The low-end guidance for net income in fiscal 2025 is set at $68,000,000, while the high-end is $72,000,000[31] Expenses and Liabilities - Selling, general and administrative expenses increased by approximately 8.9% to $206.8 million, maintaining a ratio of 20.0% of net sales[6] - Total liabilities increased to $1,321,045 as of December 27, 2024, from $1,250,634 in 2023, an increase of 5.6%[23] - The company reported a provision for allowance for credit losses of $11,982 for the fifty-two weeks ended December 27, 2024, compared to $8,078 in 2023, representing a 48.5% increase[25] Cash Flow and Assets - Total current assets rose to $868,043 as of December 27, 2024, from $730,943 in 2023, marking an increase of 18.8%[23] - Cash and cash equivalents increased significantly to $114,655 as of December 27, 2024, compared to $49,878 in 2023, a growth of 130%[23] - Net cash provided by operating activities for the fifty-two weeks ended December 27, 2024, was $153,061, compared to $61,639 in 2023, indicating a substantial increase of 147%[25] Adjustments and Other Income - Other operating income for Q4 2024 was $2.3 million, a significant improvement from an expense of $0.5 million in Q4 2023[7] - Total adjustments to reconcile net income to adjusted net income amounted to $17,791,000 for the fifty-two weeks ended December 27, 2024[30] - Stock compensation adjustments for fiscal 2025 are projected between $17,500,000 and $18,500,000[31] - Duplicate rent expenses are expected to range from $1,500,000 to $2,500,000 in fiscal 2025[31] - Moving expenses for fiscal 2025 are estimated between $500,000 and $1,000,000[31] Organic Growth - Organic case count in the specialty category grew by approximately 6.1%, with unique customers and placements increasing by 4.5% and 12.3% respectively[4]

Core Insights - The Chefs' Warehouse reported a strong financial performance for the fourth quarter of 2024, achieving over $1 billion in revenue for the first time in its history, driven by robust demand in the upscale dining sector [3][4]. Financial Performance - Net sales increased by 8.7% to $1,033.6 million in Q4 2024, compared to $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]. - 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]. Operational Metrics - Organic case count in the specialty category increased by approximately 6.1%, with unique customers and placements rising by 4.5% and 12.3%, respectively [4]. - Organic pounds sold in the center-of-the-plate category increased by approximately 3.6% compared to the prior year [4]. 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, a significant improvement from an expense of $0.5 million in Q4 2023 [7]. Guidance for 2025 - The company provided fiscal 2025 guidance, projecting net sales in the range of $3.94 billion to $4.04 billion, gross profit between $951 million and $976 million, and adjusted EBITDA between $233 million and $246 million [15][30].

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].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Chefs' Warehouse, with a focus on how actual results compare to estimates impacting stock price [1][2]. Company Summary - Chefs' Warehouse is expected to report quarterly earnings of $0.51 per share, reflecting an 8.5% increase year-over-year, with revenues projected at $1 billion, a 5.6% rise from the previous year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Chefs' Warehouse is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.93%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise History - In the last reported quarter, Chefs' Warehouse exceeded expectations by posting earnings of $0.36 per share against an estimate of $0.35, achieving a surprise of +2.86% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Industry Context - In the Zacks Food - Miscellaneous industry, Flowers Foods is expected to report earnings of $0.21 per share, indicating a 5% year-over-year increase, with revenues projected at $1.13 billion, a slight 0.1% increase from the previous year [17]. - Flowers Foods has an Earnings ESP of -0.31% and a Zacks Rank of 3, making it challenging to predict a beat on the consensus EPS estimate [18].

Core Viewpoint - The Chefs' Warehouse, Inc. is set to announce its financial results for the fourth quarter and fiscal year ending December 27, 2024, on February 12, 2025, before market opening, followed by a conference call to discuss the results [1]. Company Overview - The Chefs' Warehouse, Inc. is a leading distributor of specialty food products in the United States, the Middle East, and Canada, catering to the needs of chefs operating independent restaurants, fine dining establishments, and various culinary businesses [3]. - The company distributes over 70,000 products to more than 44,000 customer locations across its operational regions [3]. Conference Call Details - The conference call will be available via live webcast on the company's investor relations website, with an online archive accessible for 30 days post-event [2].

Core Insights - The Chefs' Warehouse is expanding its produce distribution through GreenLeaf to serve customers in Southern California, enhancing access to high-quality produce [2][3] - GreenLeaf, a leading produce distributor in Northern California, has a strong reputation for delivering top-quality, sustainably sourced produce since 1976 [4] - The acquisition of GreenLeaf by The Chefs' Warehouse on May 1, 2023, reflects the company's strategy to become a one-stop-shop for chefs, providing a wider range of specialty products [3] Company Overview - The Chefs' Warehouse is a premier distributor of specialty food products across the United States, Canada, and the Middle East, catering to various culinary businesses [5] - The company distributes over 55,000 products to more than 35,000 customers, sourcing from over 2,000 artisan producers in more than 40 countries [5] - GreenLeaf is recognized for its best-in-class service and commitment to supporting family-owned farms in the Los Angeles, San Diego, and Santa Barbara areas [1][4]

Company Overview - The Chefs' Warehouse, Inc. is a leading distributor of specialty food products in the U.S., Canada, and the Middle East [1] - The company holds approximately 13% market share of the top 35% of independent restaurants [1] Market Position - The company is focused on small-cap stocks with strong price appreciation potential [1] - GSBR Research, associated with the company, has over 12 years of stock market investing experience [1]

RIDGEFIELD, Conn., Jan. 13, 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 its preliminary outlook for fiscal year 2025. Based on current trends in the business, the Company is providing the following financial guidance for fiscal year 2025: Net sales in the range of $3.94 billion and $4.04 billion;Gross profit to be between $951 million and $976 ...