The Chefs' Warehouse (CHEF) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 5.6% year-over-year to $931.5 million, driven by higher case counts, price inflation, and improved demand trends across domestic and international markets.

• GAAP net income rose to $14.1 million ($0.34 per diluted share), up from $7.3 million ($0.19 per share) in Q3 2023, reflecting improved gross profit and lower other operating expenses.

• Gross profit increased 8.2% to $224.7 million, with gross margin up 58 basis points to 24.1%, supported by growth in both specialty and center-of-the-plate segments.

• Adjusted EBITDA was $54.5 million, up from $50.3 million, and adjusted net income was $15.4 million ($0.36 per share).

• Specialty sales grew 7.5% organically, with unique customers up 4.7% and unique item placements up 10.8% year-over-year.

Financial highlights

• Q3 2024 net sales: $931.5 million, up 5.6% year-over-year; YTD net sales: $2.76 billion, up 11.2%.

• Gross profit margin for Q3 2024 was 24.1% (up 58 bps year-over-year); YTD: 24.0%.

• Operating income was $31.9 million, up from $25.5 million in Q3 2023.

• Adjusted EBITDA margin for Q3 2024 was approximately 5.8%.

• Cash provided by operating activities YTD was $80.1 million, up from $20.0 million YTD 2023.

Outlook and guidance

• Full-year 2024 net sales expected between $3.71 billion and $3.775 billion.

• Gross profit guidance set at $890 million to $906 million; adjusted EBITDA forecasted at $210 million to $219 million.

• 2028 financial goals include $300–$350 million adjusted EBITDA and 6.5–7.0% adjusted EBITDA margin.

• Organic sales growth targeted at 4–7% annually through 2028.

• Capex guidance for FY 2024 is $45–$50 million (~1.2% of revenue), with moderation to 1% expected in 2025.