The Chefs’ Warehouse Inc ((CHEF)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Chefs’ Warehouse Inc. recently reported a robust performance in its second-quarter earnings call, showcasing significant growth in net sales, gross profit, and adjusted EBITDA. Despite facing challenges such as inflation and strategic attrition in Texas, the company expressed confidence by raising its full-year guidance, signaling optimism for continued growth and profitability.
Strong Net Sales Growth
Chefs’ Warehouse reported an impressive 8.4% increase in net sales for the second quarter of 2025, reaching $1.035 billion compared to $954.7 million in the same quarter of 2024. This growth was driven by a rise in specialty sales and an increase in unique customer accounts.
Improved Profitability
The company saw its gross profit rise by 11.1% to $254.3 million in the second quarter of 2025, up from $229 million in the previous year. Gross profit margins also improved by 59 basis points, reaching 24.6%, highlighting enhanced profitability.
Great Place to Work Certification
For the fourth consecutive year, Chefs’ Warehouse achieved the Great Place to Work certification, underscoring its commitment to fostering a positive workplace culture and focusing on its people.
Adjusted EBITDA Growth
Adjusted EBITDA for the second quarter of 2025 increased to $65.4 million, compared to $56.2 million in the prior year. This growth reflects the company’s effective cost management and operational efficiency.
Full-Year Guidance Raised
Chefs’ Warehouse raised its full-year 2025 guidance, projecting net sales between $4 billion and $4.06 billion, with gross profit expected to be between $964 million and $979 million. Adjusted EBITDA is forecasted to range from $240 million to $250 million, indicating strong future performance expectations.
Impact of Attrition in Texas
The strategic attrition of noncore commodity protein and specialty produce programs in Texas impacted reported case growth and pounds. However, these measures are part of a broader strategy to enhance profitability.
Inflationary Pressures
The company faced net inflation of 7.2% in the second quarter, with notable inflation in the specialty and center-of-the-plate categories. This inflation influenced costs and pricing strategies, presenting challenges in maintaining margins.
Challenges from Tariffs
Tariffs on imports, particularly from the EU, have begun to exert inflationary pressure on certain categories, adding to the cost challenges faced by Chefs’ Warehouse.
Forward-Looking Guidance
Looking ahead, Chefs’ Warehouse anticipates continued growth, with expectations of increased net sales and profitability. The company remains focused on expanding its customer base and improving operational efficiencies, as evidenced by the raised full-year guidance.
In summary, Chefs’ Warehouse Inc.’s recent earnings call highlighted a strong performance with significant growth in key financial metrics. Despite challenges from inflation and strategic changes in Texas, the company remains optimistic about its future, as reflected in its raised full-year guidance. Investors and stakeholders can look forward to continued growth and profitability from this dynamic company.