The Chefs' Warehouse (CHEF) Q4 2025 earnings summary

Executive summary

• Strong demand and business activity in Q4 2025, especially among upscale casual and high-end dining customers, drove net sales up 10.5% year-over-year to $1.143 billion, with significant organic volume growth and market share gains.

• Adjusted EBITDA increased 17.7% to $80.3 million, reflecting operational improvements and cost efficiencies.

• Continued investment in talent, technology, and operational efficiency across all divisions, with a focus on high-growth markets and digital initiatives.

• Eliminated two non-core Texas programs, impacting reported metrics but representing only 1% of full-year revenue.

• Adjusted net income per share rose to $0.68 from $0.55, while GAAP net income per share declined to $0.50 from $0.55.

Financial highlights

• Q4 2025 net sales rose 10.5% year-over-year to $1.143 billion; organic sales up 9.7%.

• Gross profit increased 10.2% to $276.6 million; gross margin decreased 8 bps to 24.2%.

• Adjusted EBITDA for Q4 2025 was $80.3 million, up from $68.2 million in Q4 2024.

• Adjusted EBITDA margin improved to 6.2%; adjusted EPS grew 29% year-over-year.

• Free cash flow for FY 2025 was $88 million; net debt leverage reduced to 2.1x.

Outlook and guidance

• Fiscal 2026 net sales expected between $4.35 billion and $4.45 billion.

• Gross profit guidance: $1.053 billion–$1.076 billion; Adjusted EBITDA: $276 million–$286 million.

• FY 2026 free cash flow expected between $80 million–$110 million.

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

• Guidance assumes 6–8% revenue growth, with inflation expected at 2–4%.