The Chefs' Warehouse (CHEF) Morgan Stanley Global Consumer & Retail Conference 2025 summary

Market trends and demand outlook

• Upscale dining and specialty food segments remain resilient, with spending stable or slightly better than anticipated, even through economic cycles.

• Non-chain, independent restaurants and non-restaurant segments like cruise lines, airlines, and hotels show strong demand and resilience compared to chains and fast casual.

• All major markets, including California, Texas, Florida, and the Middle East, are experiencing growth, with some regions like Texas and Florida expected to become top markets in the next five years.

• Demand is expected to remain stable over the next 12 months, with no significant deceleration or acceleration anticipated.

Growth strategy and market share

• Continued focus on organic growth through investments in facilities, technology, and highly trained salesforce.

• Market share gains driven by a hybrid sales model, cross-training, and targeting fragmented specialty categories.

• Acquisitions remain opportunistic, with a preference for fold-ins that fit existing capacity and strategy.

• Expansion plans target the South, including the Carolinas and Georgia, to complete national coverage.

Operational efficiency and margin improvement

• Gross profit growth prioritized over margin percentage, with focus on scaling operations and integrating new categories.

• EBITDA margin expansion expected as new facilities mature and operating leverage from recent investments is realized.

• CapEx is shifting from heavy facility investment to more balanced spending, with 60-80% on retrofitting and 20-30% on technology and maintenance.

• Operating leverage and procurement synergies from recent M&A are beginning to show benefits.