Chefs' Warehouse Reports Strong Financial Performance

By Bobby Samwell • Wednesday, July 31 15:23 • Permanent Link

Chefs' Warehouse, Inc. has recently released its 10-Q report, providing a detailed look into the company's financial performance and operations. The company is a premier distributor of specialty foods, offering over 70,000 stock-keeping units, including artisanal charcuterie, cheeses, oils, truffles, caviar, and center-of-the-plate products such as custom-cut beef, seafood, and poultry. Chefs' Warehouse serves a wide range of customers, including independent restaurants, fine dining establishments, hotels, and specialty food stores.

In the 10-Q report, Chefs' Warehouse highlighted its recent acquisitions, including the purchase of Oakville Produce Partners, LLC ("GreenLeaf") and Hardie’s F&V, LLC ("Hardie’s Fresh Foods"). These acquisitions contributed to the company's growth and expansion in the specialty food distribution market.

In terms of financial performance, the company reported net sales of $954.7 million for the thirteen weeks ended June 28, 2024, marking an 8.3% increase compared to the same period in 2023. The growth was mainly driven by organic factors, with organic case count and pounds sold in the center-of-the-plate category showing positive increases. The gross profit for the same period was $229.0 million, representing a 9.9% increase from the previous year.

Looking at the twenty-six weeks ended June 28, 2024, Chefs' Warehouse reported a 14.2% increase in net sales, reaching $1.83 billion compared to the same period in 2023. The company's gross profit for the same period was $438.4 million, showing a 15.9% increase from the previous year.

In terms of liquidity and capital resources, Chefs' Warehouse disclosed its indebtedness, which included a senior secured term loan, convertible debt, and borrowings outstanding on an asset-based loan facility. The company also provided information on recent financing transactions, including principal prepayments and share repurchases.

The report also detailed the company's cash flows, with net cash provided by operating activities reaching $60.2 million for the twenty-six weeks ended June 28, 2024, a significant increase from the previous year.

Following these announcements, the company's shares moved 3.0%, and are now trading at a price of $42.48. For more information, read the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.