Chefs' Warehouse Q1 Sales Rise 11.4% to $1.06B, Adjusted EBITDA $60.1M
The Chefs' Warehouse posted first-quarter net sales of $1.06 billion, up 11.4%, with GAAP net income rising to $17.4 million ($0.40/share) from $10.3 million ($0.25/share) a year ago. Adjusted EBITDA surged to $60.1 million and full-year sales guidance was set at $4.35-4.45 billion.
1. First-Quarter Performance
The Chefs' Warehouse reported Q1 net sales of $1.06 billion, an 11.4% increase from $950.7 million, driven by organic growth of 10.4% and $10 million from acquisitions. GAAP net income reached $17.4 million ($0.40/share) versus $10.3 million ($0.25/share), while adjusted EBITDA rose to $60.1 million.
2. Margin and Profit Expansion
Gross profit increased 13.9% to $257.4 million, lifting gross margins by 53 basis points to 24.3%. Specialty category margins grew 43 basis points and center-of-the-plate margins surged 110 basis points, supporting operating income of $33.1 million (3.1% of sales) up from $22.7 million (2.4%).
3. Expense and Tax Trends
Selling and administrative expenses rose 10.5% to $224.1 million, remaining stable at 21.2% of net sales. The effective tax rate increased to 23.6% from 17.6%, reflecting discrete items related to stock award vesting.
4. Full-Year Financial Outlook
Management projects fiscal 2026 net sales of $4.35 billion to $4.45 billion, gross profit between $1.053 billion and $1.076 billion, and adjusted EBITDA of $276 million to $286 million.