Chefs’ Warehouse beats Q1 estimates, raises 2024 outlook

NEW YORK – Chefs’ Warehouse Inc (NASDAQ:CHEF), a premier distributor of specialty food products, reported a robust first quarter of 2024, surpassing analyst expectations for both earnings and revenue.

The company announced an adjusted EPS of $0.15, which was significantly higher than the analyst estimate of $0.08. Revenue also exceeded forecasts, coming in at $874.5 million against the consensus estimate of $831.58 million.

The company’s net sales saw a substantial increase of 21.5% compared to the same period last year, rising from $719.6 million in the first quarter of 2023. This growth was attributed to an 8.8% increase in organic sales and a 12.7% contribution from recent acquisitions.

The specialty category saw a 4.6% rise in organic case count, while the center-of-the-plate category experienced a 6.2% increase in organic pounds sold.

Gross profit for the first quarter improved by 23.4% year-over-year (YoY) to $209.4 million, benefiting from both increased sales and price inflation. Gross profit margins edged up by approximately 37 basis points to 23.9%. Operating income also saw an uptick, reaching $16.0 million, maintaining an operating margin of 1.7%, consistent with the previous year.

Christopher Pappas, Chairman and Chief Executive of Chefs’ Warehouse, commented on the results, “Our business units, international and domestic, delivered strong new customer and placement growth during the first quarter… I would like to thank all our Chefs’ Warehouse teams… for delivering a great start to 2024.”

Looking ahead, Chefs’ Warehouse provided an optimistic full-year financial guidance for 2024, with expected net sales ranging from $3.640 billion to $3.785 billion. This projection sits comfortably above the analyst consensus of $3.72 billion.

The company also forecasts a gross profit between $867.0 million and $902.0 million, and an adjusted EBITDA between $207.0 million and $219.0 million.

While the stock movement following the earnings release was not disclosed, the positive earnings beat and raised guidance for the fiscal year 2024 reflect the company’s strong performance and may influence investor sentiment.

The impressive first quarter results and optimistic outlook for the rest of the year underscore Chefs’ Warehouse’s continued growth trajectory and its ability to exceed market expectations.

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