Company: CHEF
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001517175-25-000021
Chunk: 3

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 3
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 placements in our specialty category increased 2.6% and 5.3%, respectively, compared to the prior year quarter. Pounds sold in our center-of-the-plate category decreased 1.1% compared to the prior year quarter, representing a decrease in net sales of $4.0 million, primarily due to our exit from a non-core commodity poultry program in fiscal 2025. Estimated inflation increased sales by $25.7 million, or 4.4% in our specialty category and by $42.8 million, or 12.3% in our center-of-the-plate category compared to the prior year quarter.

Gross Profit

20252024$ Change% ChangeGross profit$247,191 $224,748 $22,443 10.0 %Gross profit margin24.2 %24.1 %

Gross profit dollars increased $21.7 million as a result of sales growth which includes inflation, with the remainder of the increase primarily due to improved gross profit margin rates. Gross profit margin increased approximately 7 basis points due to improved inventory management and favorable production cost leverage. Gross profit margins increased 59 basis points in the Company’s specialty category, or $3.7 million, and decreased 49 basis points in the Company’s center-of-the-plate category, or $1.9 million, compared to the prior year quarter.

Selling, General and Administrative Expenses

20252024$ Change% ChangeSelling, general and administrative expenses$208,125 $192,894 $15,231 7.9 %Percentage of net sales20.4 %20.7 %

The increase in selling, general and administrative expenses was primarily due to higher costs associated with compensation and benefits to support sales growth, higher depreciation expense driven by facility and fleet investments and higher self-insurance expense. Our ratio of selling, general and administrative expenses to net sales decreased 30 basis points due to improved fixed cost leverage.

Other Operating Expenses (Income), Net

20252024$ Change% ChangeOther operating expenses (income), net$130 $(28)$158 (564.3)%

Other operating expenses (income), net increased by $0.2 million primarily due to higher third-party deal costs.

Interest Expense

20252024$ Change% ChangeInterest expense$10,535 $11,743 $(1,208)(10.3)%

Interest expense decreased primarily due to lower aggregate principal amounts of debt outstanding