The Chefs' Warehouse (CHEF) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 increased 11.4% year-over-year to $1.06 billion, driven by organic growth and acquisitions, including Italco.

• Gross profit rose 13.9% to $257.4 million, with margin improving to 24.3% from 23.8% year-over-year.

• Net income grew 68.8% to $17.4 million ($0.40 per diluted share), up from $10.3 million ($0.25 per share) in Q1 2025.

• Adjusted EBITDA increased to $60.1 million from $47.5 million, reflecting strong operating leverage.

• North American operations, over 90% of the business, outperformed guidance and drove profitability.

Financial highlights

• Organic sales grew $98.3 million (10.4%), with acquisitions contributing $10 million (1.0%) to net sales of $1.059 billion.

• Gross profit margin improved by 53 basis points to 24.3% due to effective pricing and cost management.

• Operating income was $33.1 million, up from $22.7 million in Q1 2025.

• Adjusted net income per share was $0.40, up from $0.25 year-over-year.

• Adjusted operating expenses were 18.6% of net sales; SG&A as % of net sales was 21.2%.

Outlook and guidance

• Full-year 2026 guidance: net sales $4.35–$4.45 billion, gross profit $1.053–$1.076 billion, adjusted EBITDA $276–$286 million.

• Free cash flow for FY 2026 estimated between $80 million and $110 million.

• Capital expenditures for fiscal 2026 expected to be $45–55 million.

• Fully diluted share count expected between 46 and 46.7 million due to convertible notes.

• Guidance unchanged despite Middle East uncertainty; potential for upward revision if conditions normalize.