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…
Earnings analysis · 10-Q
CHEF earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.