The Chefs Warehouse 2025 Q2 Earnings Strong Performance as Net Income Surges 36.8%

The Chefs' Warehouse (CHEF) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company showcased a remarkable performance, with net income surging by 36.8% year-over-year. The results exceeded market expectations, driven by an 8.4% increase in total revenue to $1.03 billion. The Chefs' Warehouse raised its full-year guidance, projecting net sales between $4.0 billion and $4.06 billion, and adjusted EBITDA between $240 million and $250 million.

Revenue
The total revenue of The Chefs' Warehouse increased by 8.4% to $1.03 billion in 2025 Q2, up from $954.70 million in 2024 Q2.

Earnings/Net Income
The Chefs' Warehouse's EPS rose 34.1% to $0.55 in 2025 Q2 from $0.41 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $21.24 million in 2025 Q2, marking 36.8% growth from $15.52 million in 2024 Q2. Remarkably, in 2025 Q2, the company set a new record high for fiscal Q2 net income, the highest in 16 years. The EPS growth indicates a strong earnings performance.

Post-Earnings Price Action Review
The strategy of purchasing The Chefs' Warehouse (CHEF) shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days has shown impressive returns over the past three years. This approach achieved a remarkable 452.71% return, significantly outperforming the benchmark return of 87.61%. The strategy's excess return of 365.10% highlights the substantial gains driven by focusing on the revenue raise event. With a compound annual growth rate (CAGR) of 41.07% and a maximum drawdown of 0.00%, the strategy displayed a reasonable Sharpe ratio of 0.87, indicating favorable risk-adjusted returns.

CEO Commentary
"Second quarter business activity displayed typical seasonality as revenue and profitability improved across our network," said Christopher Pappas, Chairman and Chief Executive of the Company. He highlighted strong unit volume and unique item placement growth while effectively managing pricing. Pappas expressed gratitude to the Chefs' Warehouse teams for their contributions and noted the company's achievement of the 'Great Place to Work' certification for the fourth consecutive year, emphasizing the importance of their unique culture and the value of their customer and supplier relationships in driving the company forward.

Guidance
The Company expects fiscal 2025 full-year net sales in the range of $4.0 billion to $4.06 billion, with gross profit projected between $964 million and $979 million. Adjusted EBITDA is anticipated to be between $240 million and $250 million.

Additional News
In recent weeks, The Chefs' Warehouse has been actively engaging in strategic initiatives beyond its earnings announcements. The company participated in a fireside chat at the BMO Global Farm to Market Conference, showcasing its commitment to expanding its market presence and engaging with industry stakeholders. Additionally, The Chefs' Warehouse has continued to emphasize its dedication to creating a 'Great Place to Work,' earning this certification for the fourth consecutive year. This recognition underscores the company's focus on fostering a positive workplace culture and strong relationships with both customers and suppliers, which are integral to its ongoing success.