Wed, Oct 30, 12:05 PM (64 days ago)
The Chefs’ Warehouse, Inc. (CHEF) reported solid financial results for the third quarter ended September 27, 2024, with net sales of $931,452,000, a 5.6% increase year-over-year. Gross profit rose to $224,748,000, improving the gross margin to 24.1%. Operating income increased by 24.9% to $31,882,000, driven by sales growth and effective cost management, despite a rise in selling, general, and administrative expenses to $192,894,000. Net income for the quarter was $14,098,000, compared to $7,322,000 in the prior year, reflecting a significant improvement in profitability. The company generated $80,057,000 in cash from operations, a substantial increase from $20,045,000 in the previous year, indicating robust operational efficiency. However, cash used in investing activities was $41,446,000, mainly for capital expenditures. The firm continues to manage debt effectively, with total debt obligations at $731,274,000, and has recently amended its senior secured term loan to reduce interest rates. Looking ahead, the company faces uncertainties related to inflationary pressures and supply chain disruptions but remains optimistic about future growth driven by strategic acquisitions and expanding customer base.