Earnings

Chefs' Warehouse Specialty Case Growth Picks Up

The Tip Desk · July 29, 2026 · 3 min read

Net sales rose 12.9% to $1.17 billion, faster than the 11.4% pace of the first quarter, as organic specialty case count rose about 6.0%.

The Chefs’ Warehouse, Inc. (CHEF), a distributor of specialty food products in the United States, the Middle East and Canada, reported second-quarter net sales of $1.17 billion, up 12.9% from $1.03 billion a year earlier. That growth rate accelerated from 11.4% in the first quarter of 2026 and 10.5% in the fourth quarter of 2025.

Organic sales increased $126.1 million, or 12.2%, versus the year-ago quarter. Acquisitions contributed $7.6 million, or 0.7%. Chairman and Chief Executive Christopher Pappas said regional teams continued to deliver execution across markets and product categories, and that the company is driving market-share gains through product penetration, case volume and unique customers, combined with operational efficiency.

Organic case count in the specialty category rose approximately 6.0%. Unique customers increased 3.6% and placements 7.2%. Those rates were higher than the first quarter, when organic specialty case count rose about 5.7%, unique customers 1.9% and placements 6.2%. Organic pounds sold in the center-of-the-plate category increased approximately 8.8%. In the fourth quarter of 2025, specialty case count had risen about 3.3% and center-of-the-plate pounds had fallen about 2.4% after the company exited a non-core commodity poultry program.

Gross profit increased 15.2% to $292.9 million. The dollar increase was primarily a result of increased sales volumes, price inflation and acquisitions. Gross profit margins rose approximately 49 basis points to 25.1%. Specialty margins increased 47 basis points and center-of-the-plate margins increased 75 basis points. Selling, general and administrative expenses rose 9.6% to $234.2 million, or 20.0% of net sales, down from 20.7% a year earlier. The expense increase was primarily due to higher compensation and benefits, facilities and distribution costs to support sales growth, and higher depreciation from facility and fleet investments.

Operating income was $58.6 million, or 5.1% of net sales, compared with $40.2 million, or 3.9%, a year earlier. The increase was driven primarily by higher gross profit, partially offset by higher selling, general and administrative expenses. Interest expense decreased to $9.4 million from $10.7 million, due to lower fees and losses associated with debt transactions, as well as lower aggregate principal amounts of debt outstanding and lower interest rates. The effective tax rate was 31.4%, up from 28.0%, due to increased permanent tax differences related to compensation expense.

GAAP net income was $33.8 million, or $0.76 a share, versus $21.2 million, or $0.49 a share, a year earlier. Adjusted net income was $34.7 million, or $0.78 a share. Adjusted EBITDA was $88.1 million.

Pappas said Middle East operations are improving gradually as the company enters the seasonally slower summer period. During May and June, the business located there operated at approximately 94% of prior-year sales, a trend that had remained fairly steady through recent weeks. In the first quarter, Pappas had cited volatility from extreme weather and the start of a conflict in the Middle East later in the quarter.

Cash and cash equivalents were $135.5 million at June 26, 2026. Long-term debt, net of the current portion, was $693.7 million.

The company is providing fiscal 2026 full-year guidance for net sales of $4.50 billion to $4.60 billion, gross profit of $1.102 billion to $1.125 billion, and adjusted EBITDA of $305 million to $315 million.

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