In This Article:
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Net Sales: Increased 8.7% to $1.034 billion from $950.5 million in Q4 2023.
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Gross Profit: Increased 9.8% to $251 million from $228.6 million in Q4 2023.
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Gross Profit Margin: Increased approximately 23 basis points to 24.3%.
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Operating Income: $46.5 million compared to $38.2 million in Q4 2023.
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Net Income: $23.9 million or $0.55 per diluted share, up from $16 million or $0.38 per diluted share in Q4 2023.
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Adjusted EBITDA: $68.2 million compared to $59 million in Q4 2023.
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Total Liquidity: $261.4 million, including $114.7 million in cash.
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Net Debt: Approximately $557.8 million, with a net debt to adjusted EBITDA ratio of approximately 2.5 times.
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Full Year 2025 Guidance: Net sales estimated between $3.94 billion and $4.04 billion; Gross profit between $951 million and $976 million; Adjusted EBITDA between $233 million and $246 million.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The Chefs' Warehouse Inc (NASDAQ:CHEF) achieved its first $1 billion plus revenue quarter, marking a significant milestone in the company's history.
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Net sales for the fourth quarter increased by 8.7% year-over-year, driven by strong growth in specialty sales and unique customer growth.
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Gross profit margins improved by approximately 23 basis points, with a notable increase in the specialty category.
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The company reported a 13% increase in adjusted EBITDA per employee, indicating improved operational efficiency.
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Digital platform investments have led to increased online ordering, with 56% of customers ordering through digital channels, enhancing margin and customer engagement.
Negative Points
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Selling, general, and administrative expenses rose by 8.9%, primarily due to higher depreciation, amortization, and compensation costs.
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The gross margin in the center of the plate category decreased by approximately 7 basis points year-over-year.
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The company faces potential risks from tariffs with Mexico, Canada, and Europe, which could impact import costs and sourcing strategies.
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Inflationary pressures, particularly in the chocolate and egg markets, continue to pose challenges.
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Net debt remains high at approximately $557.8 million, although it has decreased from the previous year.
Q & A Highlights
Q: Did you see any impact from softer industry traffic in December or from the southern winter storms and California wildfires? A: James Leddy, CFO: The fourth quarter was consistently strong, with no significant impact from weather or demand issues. The fires in L.A. had minimal impact, affecting only a few customers.