Chefs’ Warehouse Inc. (NASDAQ:CHEF) announced second-quarter earnings and revenue that surpassed analyst projections on Wednesday, boosting its stock nearly 3% in pre-market trading.
The specialty food distributor reported adjusted earnings per share of $0.52 for the quarter, beating the consensus estimate of $0.45. Revenue increased 8.4% year over year to $1.03 billion, topping forecasts of $1.01 billion.
“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. “Our operating divisions, domestic and international, delivered strong unit volume and unique item placement growth and managed pricing effectively.”
Gross profit rose 11.1% to $254.3 million, while gross margin expanded by 59 basis points to 24.6%. The company’s specialty category experienced a 3.5% increase in organic case counts, alongside customer and placement gains of 3.6% and 8.7%, respectively.
Adjusted EBITDA climbed to $65.4 million, up from $56.2 million in the same period last year.
Looking forward, Chefs’ Warehouse issued full-year guidance, forecasting revenue between $4 billion and $4.06 billion, slightly above the analyst consensus of $4.04 billion. Adjusted EBITDA is expected to range from $240 million to $250 million.
The strong quarterly showing highlights the company’s capability to overcome industry headwinds while broadening its customer reach and boosting operational performance.
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