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RIDGEFIELD, Conn. - Chefs’ Warehouse Inc. (NASDAQ:CHEF) reported better-than-expected second quarter results on Wednesday, with both earnings and revenue surpassing analyst estimates.
The company’s shares were up 2.99% in pre-market trading following the announcement.
The specialty food distributor posted adjusted earnings per share of $0.52 for the second quarter, exceeding the analyst consensus of $0.45. Revenue climbed 8.4% to $1.03 billion compared to $954.7 million in the same period last year, topping the consensus estimate of $1.01 billion.
"Second quarter business activity displayed typical seasonality as revenue and profitability improved across our network," said Christopher Pappas, Chairman and Chief Executive of the Company. "Our operating divisions, domestic and international, delivered strong unit volume and unique item placement growth and managed pricing effectively."
Gross profit increased 11.1% to $254.3 million, with gross profit margins expanding by 59 basis points to 24.6%. The company’s specialty category saw organic case count increase approximately 3.5%, with unique customer and placement increases of 3.6% and 8.7% respectively.
Adjusted EBITDA rose to $65.4 million from $56.2 million in the prior-year quarter.
Looking ahead, Chefs’ Warehouse provided full-year guidance, projecting revenue between $4 billion and $4.06 billion, compared to analyst expectations of $4.04 billion. The company also forecasts adjusted EBITDA between $240 million and $250 million.
The positive quarterly performance reflects the company’s ability to navigate industry challenges while expanding its customer base and improving operational efficiency.
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