CHEF — The Chefs' Warehouse, Inc.

Chefs' Warehouse Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Sales: Increased by 11.4% to $1.059 billion, up from $950.7 million in Q1 2025.
• Organic Sales Growth: 10.4%, with specialty sales up 6.8%.
• Gross Profit: Rose 13.9% to $257.4 million; gross profit margin increased by 53 basis points to 24.3%.
• Operating Income: Increased to $33.1 million from $22.7 million year-over-year.
• GAAP Net Income: $17.4 million or $0.40 per diluted share, compared to $10.3 million or $0.25 per diluted share in Q1 2025.
• Adjusted EBITDA: $60.1 million, up from $47.5 million in the prior year.
• Total Liquidity: $278.3 million, including $122.7 million in cash.
• Net Debt: Approximately $522 million, with a net debt to adjusted EBITDA ratio of 1.9x.

2. Strategic Updates and Business Highlights

• Strong execution in North America contributed to market share growth despite external challenges.
• Unique customer growth was 1.9%, with an adjusted figure of approximately 4.3% after accounting for attrition from exiting non-core Texas customers.
• Continued investment in training and technology to enhance sales and operational capabilities.
• The company is focused on leveraging its investments to deepen customer relationships and improve product offerings.

3. Forward Guidance and Outlook

• Full-year guidance for 2026 remains unchanged, with net sales expected between $4.35 billion and $4.45 billion, gross profit between $1.053 billion and $1.076 billion, and adjusted EBITDA between $276 million and $286 million.
• The company anticipates double-digit growth to continue into Q2 2026, contingent on the resolution of the Middle East conflict.

4. Bad News, Challenges, or Points of Concern

• The ongoing conflict in the Middle East has created volatility in supply chains and customer demand, particularly affecting operations in the region, which are currently operating at about 75% of prior year levels.
• The company acknowledged that the Middle East business, while profitable, contributes less than 10% to overall revenue, and uncertainty in this market could impact future performance.
• Inflationary pressures remain a concern, particularly in the center-of-the-plate category, which saw an 8.2% increase in prices.

5. Notable Q&A Insights

• Management indicated that the Middle East situation is being closely monitored, with various scenarios modeled for potential impacts on revenue and profitability.
• The North American business is performing strongly enough to offset the challenges posed by the Middle East, with expectations for continued growth driven by domestic travel and events like the World Cup.
• The management team emphasized the importance of their diversified product portfolio and operational maturity in managing inflation and maintaining margins.
• There is a cautious optimism regarding consumer spending trends and the potential for continued market share gains in key regions, particularly Florida and Texas.

Overall, Chefs' Warehouse reported a strong start to 2026, with solid financial performance and strategic initiatives in place, although external geopolitical factors present challenges that could impact future results.