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 improved demand trends, higher case counts, and price inflation in both specialty and center-of-the-plate categories.

• Gross profit grew 8.2% to $224.7 million, with margin up 58 basis points to 24.1%, supported by growth in both domestic and international divisions and digital adoption among specialty customers.

• GAAP net income was $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.

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

• Organic specialty sales grew 7.5%, unique customers increased 4.7%, and unique item placements rose 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 basis points year-over-year.

• Operating income was $31.9 million, up from $25.5 million year-over-year.

• 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, with adjusted EBITDA projected at $210 million to $219 million.

• 2028 targets include $300–$350 million adjusted EBITDA and 6.5–7.0% adjusted EBITDA margin, with annual organic sales growth of 4–7%.

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