Company: CHEF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036589
Chunk: 3

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 3
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 in the Company’s specialty category and decreased 11 basis points in the Company’s center-of-the-plate category.

Selling, General and Administrative Expenses

20252024$ Change% ChangeSelling, general and administrative expenses$416,513 $385,155 $31,358 8.1 %Percentage of net sales21.0 %21.1 %

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 10 basis points due to sales growth combined with certain benefits derived from our investments in our facility and distribution operations.

Other Operating Expenses, Net

20252024$ Change% ChangeOther operating expenses, net$870 $3,413 $(2,543)(74.5)%

The decrease in other operating expense, net was primarily due to lower employee severance charges during the twenty-six weeks ended June 27, 2025 compared to the prior year period. 

19

Interest Expense

20252024$ Change% ChangeInterest expense$20,968 $24,934 $(3,966)(15.9)%

Interest expense decreased primarily due to lower aggregate principal amounts of debt outstanding and lower interest rates in the current period compared to the prior year.

Provision for Income Taxes

20252024$ Change% ChangeProvision for income tax expense$10,454 $7,481 $2,973 39.7 %Effective tax rate24.9 %30.0 %

The Company’s effective tax rate was 24.9% and 30.0% for the twenty-six weeks ended June 27, 2025 and June 28, 2024, respectively. The effective tax rate for the twenty-six weeks ended June 27, 2025 reflects the annual effective tax rate estimated for the full fiscal year, adjusted for a discrete item related to a tax benefit from the vesting of stock awards during the period.

LIQUIDITY AND CAPITAL RESOURCES

We finance our day-to-day operations and growth primarily with cash flows from operations, borrowings under our senior secured credit facilities and other indebtedness, operating leases, trade payables and equity financing.

Indebtedness

The following table presents selected financial information on our indebtedness: 

June 27, 2025December 27