The Chefs' Warehouse(CHEF) - 2025 Q1 - Quarterly Report

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$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$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]