The Chefs' Warehouse (CHEF) Q1 2025 earnings summary

Executive summary

• Net sales rose 8.7% year-over-year to $950.7 million in Q1 2025, with GAAP net income of $10.3 million ($0.25 per diluted share), up from $1.9 million ($0.05 per share) in Q1 2024, driven by organic growth and increased specialty category activity.

• Adjusted EBITDA increased to $47.5 million from $40.2 million year-over-year, with margin gains supported by digital adoption and operational efficiencies.

• Organic specialty case count grew 5.7%, unique customers rose 4.5%, and unique placements increased 7.7% year-over-year.

• Digital platform adoption increased, with 58% of domestic specialty orders now online, up from 56% at year-end 2024.

• Center-of-the-plate pounds sold declined 1.3% year-over-year due to attrition of low-margin, non-core business.

Financial highlights

• Gross profit increased 7.9% to $226.0 million, with gross margin down 18 basis points to 23.8%.

• Operating income rose to $22.7 million from $16.0 million year-over-year.

• Adjusted EBITDA reached $47.5 million, up from $40.2 million year-over-year; margin steady at 5.8%.

• GAAP net income was $10.3 million ($0.25 per diluted share), up from $1.9 million ($0.05 per share) last year.

• Cash provided by operating activities was $49.6 million, up from $30.9 million in the prior year period.

Outlook and guidance

• FY2025 net sales expected between $3.96 billion and $4.04 billion.

• Gross profit guidance: $954–$976 million; adjusted EBITDA forecasted at $234–$246 million.

• Fully diluted share count expected to be 46.3–47 million due to convertible notes.

• FY 2025 free cash flow expected at $60–100 million.

• Capital expenditures for fiscal 2025 are expected to be $40–50 million, excluding acquisitions.