CHEF earnings analysis
What we found in CHEF's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Chefs’ Warehouse delivered strong Q2 growth, with revenue up 12.9% to $1.169 billion, gross margin up 49 basis points to 25.1%, and operating income up 45.8% to $58.6 million. Organic specialty and center-of-the-plate volumes both grew, while SG&A leverage supported an approximately 110-basis-point year-over-year operating-margin expansion. Liquidity improved through $96.7 million of first-half operating cash flow, although leverage remains substantial and the effective tax rate increased to 31.4%. Reported EPS was not included in the provided 10-Q text.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated to 12.9%
- Q2 net sales rose $133.7 million, or 12.9% year over year, to $1.169 billion. Sequentially, sales increased about $108.6 million from $1.06 billion in Q1 2026.
- Gross margin expanded to 25.1%
- Gross profit increased 15.2% to $292.9 million and gross margin expanded 49 basis points year over year to 25.1%, versus 24.3% in Q1 2026. Management attributed expansion to effective pricing and product-cost management.
- Operating leverage materially improved
- Operating income increased 45.8% to $58.6 million from $40.2 million, producing an approximately 5.0% operating margin versus 3.9% a year ago and 3.1% in Q1 2026. SG&A fell 70 basis points as a percentage of sales to 20.0%.
- Underlying volume growth remained strong
- Organic growth supplied $126.1 million, or 12.2%, of Q2 sales growth. Specialty case count increased approximately 6.0%, while center-of-the-plate pounds increased 8.8%.
- Operating cash flow and cash balance improved
- First-half operating cash flow rose $32.6 million to $96.7 million from $64.1 million. Cash and equivalents increased to $135.5 million from $121.0 million at year-end despite $17.2 million of investing cash outflow.
- Liquidity remains ample after debt reduction
- Borrowings under the asset-based facility declined $30.0 million to $70.0 million since year-end, and the company retained $185.6 million of facility availability. The board also left $57.6 million available under its repurchase authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Leverage and financing obligations remain material
- Total reported debt and financing obligations were $733.4 million at June 26, 2026, including $287.5 million of convertible notes, $245.5 million of term-loan borrowings, $70.0 million on the asset-based facility, and $130.4 million of finance leases/other financing obligations.
- Variable-rate debt exposes earnings to rates
- The company had $315.5 million of variable-rate indebtedness; a 100-basis-point increase in market rates would reduce annual after-tax earnings by approximately $2.2 million, holding other variables constant.
- Higher effective tax rate pressures earnings
- The effective tax rate increased to 31.4% from 28.0% a year earlier, and Q2 income-tax expense rose 87.1% to $15.5 million, driven by increased permanent differences related to compensation expense.
- Planned capex may weigh on cash conversion
- Management expects fiscal-2026 capital expenditures of approximately $45.0 million to $55.0 million. First-half investing cash outflow was $17.2 million, primarily capital expenditures, which could constrain cash conversion as investment ramps.
- No material risk-factor updates disclosed
- The filing states there were no material changes to risk factors previously disclosed in the 2025 Form 10-K; accordingly, it identifies no new or revised risk-factor disclosures.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 25.1%
- Operating margin
- 5.0%
- Segment
- Specialty: organic case count increased approximately 6.0%, contributing $38.7 million of sales growth; unique customers increased 3.6% and placements increased 7.2%.
- Segment
- Center-of-the-plate: organic pounds sold increased 8.8%, contributing $34.8 million of sales growth.
- Segment
- Italco acquisition: contributed $7.6 million, or 0.7%, of total sales growth.
What they said about what is next.
The 10-Q MD&A does not provide quantitative revenue or EPS guidance. It states fiscal 2026 capital expenditures, excluding acquisitions, are expected to be approximately $45.0 million to $55.0 million; numeric sales/EPS outlook was deferred to earnings materials outside this filing.
The filing reads better than the one before it.
What came before.
- 10-Q · April 29, 2026
- Chefs' Warehouse reported a strong Q1 2026 performance with revenue of $1.059 billion, reflecting an 11.4% increase year-over-year. The company also significantly beat EPS expectations with $0.40, enhancing its…
- 10-K · February 24, 2026
- The Chefs’ Warehouse reported fiscal 2025 net sales of $4,149,537,000 (reported as $4,149,537 in thousands) — up $355,325,000 or 9.4% year-over-year — with gross profit of $1,004,090,000 (24.2% margin) and net income of…
- 10-Q · April 30, 2025
- Q1 FY2025 results showed organic top-line growth and margin stability year-over-year with stronger operating cash generation. Net sales rose to $950,748,000 (+$76,260,000, +8.7% YoY) and diluted EPS improved to $0.25…
- 10-Q · July 31, 2024
- The Chefs’ Warehouse reported Q2 net sales of $954,704 (vs. $881,820 a year ago), with gross profit of $229,002 and operating income of $33,867. Diluted EPS was $0.37 for the quarter and the company generated stronger…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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