Wed, Apr 30, 1:29 PM (23 days ago)
### Summary of The Chefs' Warehouse, Inc. (CHEF) Q1 2025 Financial Performance **Company Overview:** The Chefs' Warehouse, Inc. (CHEF) is a distributor of specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company serves chefs and culinary professionals in various sectors, including restaurants, hotels, and catering services. **Financial Performance:** - **Revenue:** Net sales increased by 8.7% to $950,748,000, driven by organic growth and price inflation. - **Gross Profit:** Gross profit rose by 7.9% to $225,995,000, with a slight decrease in gross profit margin to 23.8%. - **Operating Income:** Operating income increased by 41.4% to $22,735,000, reflecting improved operational efficiency. - **Net Income:** Net income surged by 433.3% to $10,288,000, primarily due to higher operating income and lower interest expenses. - **Earnings per Share (EPS):** Basic EPS was $0.27, and diluted EPS was $0.25, showing significant improvement from the previous year. **Profit Margins:** - **Gross Profit Margin:** Decreased slightly to 23.8% from 23.9%. - **Operating Margin:** Improved to 2.4% from 1.8%. - **Net Profit Margin:** Increased to 1.1% from 0.2%. **Cash Flow:** - **Operating Cash Flow:** Increased by 60.4% to $49,566,000, driven by higher net income and improved working capital management. - **Investing Cash Flow:** Decreased by 28.4% to $(12,344,000), primarily due to lower capital expenditures. - **Financing Cash Flow:** Increased by 66.2% to $(35,412,000), mainly due to higher payments under revolving credit facilities and share repurchases. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** Increased to $116,530,000. - **Working Capital:** Decreased slightly to $311,226,000, excluding cash and cash equivalents. - **Debt:** Total long-term debt decreased to $681,078,000, with a reduction in interest expenses. **Future Operations and Uncertainties:** - **Growth Strategy:** The company plans to continue investing in facilities and distribution operations to support sales growth. - **Share Repurchase Program:** The remaining share purchase authorization is $82,617,000, with no share repurchases during the quarter. - **Market Risks:** The company faces risks related to interest rate fluctuations, commodity price volatility, and supply chain disruptions. **Conclusion:** The Chefs' Warehouse, Inc. demonstrated strong financial performance in Q1 2025, with significant improvements in net income and operating cash flow. The company's strategic investments in facilities and distribution, along with effective cost management, position it well for future growth. However, ongoing market uncertainties and potential supply chain disruptions remain key areas of focus.