The Chefs’ Warehouse reported fourth‑quarter 2025 results that saw net sales rise to $1.143 billion, a 10.5% increase from $1.03 billion in the same quarter a year earlier. The growth was driven by robust demand in the upscale‑casual and higher‑end dining segments, while a decline in the center‑of‑the‑plate category partially offset the gains.
Operating income fell to $43.2 million from $46.5 million, reflecting a 0.3 percentage‑point drop in operating margin. The decline was largely attributable to the exit of the commodity poultry program, which removed a lower‑margin product line, and modest cost inflation in specialty product sourcing.
Net income slipped to $21.7 million versus $23.9 million, yet adjusted earnings per share of $0.68 beat the consensus estimate of $0.62 by $0.06. The beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin specialty items.
Adjusted EBITDA increased to $80.3 million from $68.2 million, a 17% rise. The jump was supported by higher operating leverage and an improved gross profit margin of 24.2% versus 24.9% in Q4 2024.
Management guided fiscal 2026 revenue to $4.396‑$4.400 billion, up from $4.14‑$4.15 billion, and adjusted operating income to $2.151‑$2.155 billion, signaling confidence in continued demand and cost control. Analysts noted that the guidance was tempered by margin compression concerns.
CEO Christopher Pappas highlighted that “business activity and demand remained consistently strong” and that the company is “closing the year with strong year‑over‑year organic volume growth,” while acknowledging that the commodity poultry program exit remains a headwind that will require ongoing focus on pricing and cost discipline.
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