OpenAI seen preparing for 2027 IPO at $1 trln valuation- Reuters
RIDGEFIELD, Conn. - On Wednesday, Chefs’ Warehouse Inc. (NASDAQ:CHEF) reported third-quarter results that exceeded analyst expectations on both earnings and revenue, and raised its full-year guidance.
The specialty food distributor’s shares were up 3.21% in pre-market trading following the results.
The company posted adjusted earnings of $0.50 per share for the quarter ended September 26, surpassing the analyst estimate of $0.42. Revenue climbed 9.6% to $1.02 billion, beating the consensus forecast of $986.36 million and marking significant growth from $931.5 million in the same period last year.
"Business and demand trends improved sequentially through the third quarter and momentum in demand and market share gains continued into October," said Christopher Pappas, Chairman and Chief Executive Officer. "Our operating divisions across domestic and international markets delivered strong growth in revenue and gross profit dollars."
Gross profit increased 10% to $247.2 million compared to $224.7 million in the third quarter of 2024, with gross margins improving slightly to 24.2%. The company’s specialty category saw a 3.2% increase in organic case count, with unique customer and placement increases of 2.6% and 5.3%, respectively.
Following the strong performance, Chefs’ Warehouse raised its fiscal 2025 outlook, now projecting revenue between $4.085 billion and $4.115 billion, above the previous analyst consensus of $4.058 billion. The company also increased its adjusted EBITDA forecast to between $247 million and $253 million.
Operating income rose to $38.9 million, representing 3.8% of net sales compared to 3.4% in the prior-year quarter. The company’s effective tax rate increased to 32.6% from 30% in the third quarter of 2024.
Chefs’ Warehouse distributes specialty food products across the United States, the Middle East, and Canada, serving more than 50,000 customer locations with over 88,000 products.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.